giveNow_Button
News Smart Talk Small businesses say regulations putting the hurt on them
Tuesday, 03 January 2012 16:51

Small businesses say regulations putting the hurt on them

Written by  Scott LaMar, Director of Radio Smart Talk
Radio Smart Talk for Wednesday, January 4:

Jobs, jobs, jobs. Unemployment is the issue every candidate for public office touts and what most polls show is the main concern of Americans as well. What to do about a stubborn economy that features a jobless rate around 9% nationally is another story.

Why haven't more jobs been created? Employers have been cautious to hire new workers in a fragile economy. The thinking is they want to see a more robust recovery before investing in new employees or expanding.

Others say that's not it at all and point to government regulations on businesses, especially small businesses, as the culprit. A recent report from the U.S. Small Business Administration says it cost businesses with under 20 employees $10,585 to comply with regulations while companies that employ 20-499 pay about $7,454 per worker.

Are regulations too burdensome for small business? We'll look at that issue on Wednesday's Radio Smart Talk.

LISTEN TO PROGRAM:

comments  

 
# Sam Winch 2012-01-04 10:26
Is anyone doing basic journalistic fact-checking of the statements of fact made by your guests? Just curious, because these sound like soundbites from corporate America. Google's Eric Schmidt admitted that the real problem for small and large businesses now is low demand. People aren't buying because their wages have stagnated while prices of things like gasoline and heating oil have shot up. Start paying people decent wages, and they will buy.
Reply | Reply with quote | Quote | Report to administrator
 
 
# lori 2012-01-04 10:30
were businesses able to self-regulate without causing harm to those of us who live nearby or work there, no regulations would be necessary, but, as has been proven so many times in the past (example: massey energy's blatant disregard for human life that killed so many of the miners just last year), the majority of businesses are in it purely for profit, and to hades with anyone or anything else. stop talking like regulations are all bad, we NEED them to ahve a safe, clean, civil society.
Reply | Reply with quote | Quote | Report to administrator
 
 
# lori 2012-01-04 10:39
scott, this is incredibly one-sided. the guy just ran down the names of all the "democrats" who support deregulation, yet all of those he named are DINOs, who do NOT represent most of us who feel regulations are necessary and protect the majority of us from pollution and abuse by those who would certainly do that if they could get away with it.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Lisa 2012-01-04 10:46
If the small business person has to now notify his employee 4 times a year for a one-time payment, why would this take 10 hrs? If the employer knows that he only contributes once per year, then it should be as simple as just pulling up the same report the other 3 times. I just don't think your guests "facts" are credible at all! What makes him a medical expert, too, on what is healthy and what is not?
Reply | Reply with quote | Quote | Report to administrator
 
 
# Snuff 2012-01-04 10:53
This guest has monopolized the conversation with his own political agenda. Politely get the guy to cede some time to the other guest or some callers, please.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Lisa 2012-01-04 10:48
If government regulatory bodies have increased by 13%, then isn't this also job creation? You cannot complain just because the jobs being created aren't the ones you want!
Reply | Reply with quote | Quote | Report to administrator
 
 
# Michelle 2012-01-04 10:49
I remember a few years ago when they instituted the contractor ID numbers. Good idea, but what was the point. Last year the pa local news reported an elderly woman had being taken by a contractor who had no insurance, and the attorney general's office indicated they have nothing to do with policing the policy, just enforcing it and collecting the money, so where's the checks and balances in that regulation?


Secondly, on the lead pain issue, mention the fines to be imposed on small contractors not complying with that regulation. The fine is unbelievable.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Lisa 2012-01-04 10:54
Baloney about having difficulties finding someone to work on homes built before 1978! I just had my c.1865 home repainted, a job which included lead paint abatement, and had no problem finding companies who could/would do the work. Not one of the 4 small, locally owned companies I contacted about this job had an issue with lead paint regulations.
Reply | Reply with quote | Quote | Report to administrator
 
 
# kyle 2012-01-04 10:55
Is this an infomercial? These two guests seem to be spokesmen for the Tea Party.

What is clean water and clean air? We need science to decide and as the science gets better we learn that our regulations are not good enough to protect human health & welfare.

Are you willing to be the one or your children/grandchildren who gets asthma, cancer, or some other illness because of outdated regulations?

Regulations, financial and environmental, are for the common good of all citizens. Just imagine if we had good financial regulations (and compliance) for the last 20 years. I wonder what the "financial collapse" would have looked like?

Maybe these guests should move to Nigeria, Mexico, China, or Pakistan if they want an economy without regulation.
Reply | Reply with quote | Quote | Report to administrator
 
 
# lori 2012-01-04 10:56
given NPR's recent series where they LOOKED for employers who didn't hire due to regulations, and found nobody, this guy's sounding more and more desperate. he repeats his talking points, but he's not really saying anything except his talking points, no valid examples. that's not helping his case at all. most regulations on businesses provide for a safe and healthy life for us.

also, LACK of regulation is what brought on the financial disaster, so we need MORE, not fewer, regulations and people to monitor for compliance.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Michael Marshall 2012-01-04 11:04
How about a little reality here? The EPA was founded by President NIxon because it was necessary. Period. For years businesses large and small simply dropped the ball. The Cuyahoga River in Cleveland would catch fire routinely , because it carried such a load of filth. The clean air and water acts, along with other regulations, HAVE been effective, but need to be up-graded. All of this activity creates more jobs than it costs, especially over the long run. Almost all of the studies that have been done have shown this. Yet business STILL acts as if this is all some evil plot to put them out of business; "of course we ALL want a clean environment for our kids, etc." If this desire had manifested itself in voluntary action (which the environmental mess of the 50sand 60s clearly shows was not the case) then these regulations would not be necessary. As our population grows we will need to be more vigilant not less. This is just common sense.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Margaret 2012-01-04 11:19
As wife of a business owner (corrugated packaging manufacture), I can sympathize with Mr. Henry trying to grow his business, get the work done, and comply with myriad regulations. However, Mr. Shivers was not a good/knowledgeable spokesman for PA small businesses. He had only a few points, many wrong "facts" and kept repeating himself. He doesn't come across as having any passion from experience in running a business. To take on such an issue, shouldn't a prime spokesman have that passion? Not impressed.
Reply | Reply with quote | Quote | Report to administrator
 
 
# kyle 2012-01-04 11:54
I wonder why Scott didnt bring this up? It was on the front page of the Patriot News yesterday.

Environmentalis ts cite report in disputing 'job-killer' claims

http://www.cnn.com/2012/01/03/us/maryland-regulations-jobs/index.html
Reply | Reply with quote | Quote | Report to administrator
 
 
# Scott LaMar 2012-01-04 12:31
Kyle:
The Chesapeake Bay Foundation will appear on the program Friday morning to discuss the report.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Shari 2012-01-05 11:23
As I mentioned in a comment below, I teach a class on regulation at Susquehanna University. If you are interested in more shows about regulation and would like to hear what young people think, I'd love to bring some of our students to your studio to discuss this. They are bright, engaged, articulate, and have a unique set of concerns. We could do this in November or December of 2012.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Ted 2012-01-04 12:31
It has been proven time and again that business cannot be trusted to “do the right thing”; ergo, regulations. The guest was a bit disingenuous when he blamed regulatory influences on hiring. When asked about this – and given a direct “yes or no” question by the host – he never really said yes or no. Indeed, he talked around the question. Why? Because it’s a bogus issue. In general, jobs are created by demand, not by regulatory environment.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Ted 2012-01-04 12:36
A personal point: There might well be any number of unnecessary or burdensome regulations, but these must be taken on a case by case basis. I had a very small business that dealt with food service products. My business failed because of certain state health regulations, but the blame should not be placed on the regulations guarding the health and wellbeing of the consumer. Rather, I must look in the mirror. It was the failure of a faulty business model. I did not do enough research on what was needed to protect the public health. If I had been allowed to go ahead and produce my products using the process I was economically dependent upon, I might have endangered the health of those who bought my products. I could not step up to the necessary production process, so I cut my losses and ended the business. It is my position that the problem is NOT with regulations, per se; it is with either a refusal to accept regulations, ignorance of regulations, or a faulty business plan.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Shari 2012-01-04 20:15
I agree with listener comments. The problem with the guest was not that he was partisan (we all are) but rather that he presented misinformation and at times outright lies. In which policy statement did Pres. Obama say he'd create more jobs by making businesses hire people to fill out forms for regulators? Who can't get a contractor to work on an older house? Lies! The problem was that there was no economist or knowledgable reporter to hold him accountable and few calls were taken. I used to love this show and consider it vital for democracy in Central Pennsylvania, but I have to question its usefulness given Mr. Lamar's choice of guests and apparent lack of desire to hold them accountable.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Kevin 2012-01-04 23:38
Scott,
I work for the NFIB and I'm one of the guys who talks to business owners daily about these issues. You are welcome to ride with me some day and you can hear these stories first hand. The lead paint compliance issue has doubled the cost for homeowners to replace windows in older homes and two agencies demand the exact same compliance from contractors doubling their cost for no apparent reason. I hear similar stories every day. It's out of control but business owners are stubborn and will fight through the red tape.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Todd 2012-01-05 05:30
Look at the Chesapeake Bay. Filled with "dead spots" as a result of nitrogen overload. Without regulations this is what happens.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Todd 2012-01-05 05:35
Regulatory agencies are often given the ability to regulate without the need for Congress like the EPA, FDA, FCC and others and they usually tend to regulate for businesses not against.

Just take the FDA and look at the number of recalled drugs on almost a daily basis and the number of lawyers advertising they take cases against defective drugs.

This is not evidence of over regulation.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Todd 2012-01-05 05:40
Fracking is now been determined to pollute water in at least one state and we know the number of accidents that have already occurred here in PA. The process has been found to have caused earthquakes in 5 states and yet where is the regulation?

I understand that these companies are competing with governments that don't care about their environments but we've already been down that road and we've learned that we do need to regulate because many companies will take the easy route and they'd rather pay the fine than upgrade or comply with the regulations.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Todd 2012-01-05 05:49
The banking industry has brought our entire country to it's knees because of one regulation that was undone by the government Glass-Stegal. So please explain how this deregulation has helped anyone?
Reply | Reply with quote | Quote | Report to administrator
 
 
# Todd 2012-01-05 05:52
This guest would have you believe that this entire crisis of job loss was due to too many regulations and it was the deregulation of one industry by one regulation that brought us here!

We've learned since Reagan and this deregulation that has occurred in his name that this is the wrong approach. What we're talking about it the difference be reasonable profits and greed!
Reply | Reply with quote | Quote | Report to administrator
 
 
# Shari 2012-01-05 11:20
I teach a class on regulation at Susquehanna University. If any of the folks who've commented here are interested I would urge you to visit our campus at the end of fall's semester (December 2012) to listen to our students engage in formal, one-hour debates about regulation. We have four debates addressing, respectively, regulation of the economy, of food, of drugs, and of sex. One team takes the affirmative (favoring regulation) and the other the negative. Check out Susquehanna University's website next December or feel free to contact me at the Department of Sociology and Anthropology.
Reply | Reply with quote | Quote | Report to administrator
 
 
# Mark 2012-01-05 13:41
Whether listeners choose to accept Mr. Shiver's comments does not alter what the US Small Business Administration (federal government agency)states it research finds: it cost businesses with under 20 employees $10,585 to comply with regulations while companies that employ 20-499 pay about $7,454 per worker. So those who doubt this is a real issue answer this - where does the small business find the extra $$ to meet the cost? Yes, from you the consumer... but then you, the consumer don't like the price hikes and oops, stop buying. And then the small business eventually closes up shop..job's gone, taxes paid gone, economy going, going, gone....
Reply | Reply with quote | Quote | Report to administrator
 
 
# Stephen Herzenberg 2012-01-05 16:32
Your listeners Wednesday did a good job of underscoring the critical importance of effective regulation and exposing the lack of evidence for your guests’ sweeping opposition to regulations. If there had been time to take my call (I was waiting on the line), I would have pointed listeners to the writing of Bruce Bartlett, a former high-level policy person in the Reagan and Bush administrations (http://economix.blogs.nytimes.com/2011/10/04/regulation-and-unemployment/). In a column tellingly entitled “Misrepresentat ions, Regulations, and Jobs," Bartlett points out that “No hard evidence is offered” for the claim that new regulations are holding back investment and job creation: “it is simply asserted as self-evident and repeated endlessly throughout the conservative echo chamber.” CONTINUED
Reply | Reply with quote | Quote | Report to administrator
 
 
# Stephen Herzenberg 2012-01-05 16:33
CONTINUED

Bartlett goes on to explain that “the number of layoffs nationwide caused by government regulation is minuscule and shows no evidence of getting worse during the Obama administration. Lack of demand for business products and services is vastly more important.” A more balanced panel of Smart Talk guests might have led to a richer discussion of a real long-term issue — how to implement regulations effectively, using carrots and technical assistance as well as penalties to ensure high labor, environmental, and compliance standards, while helping businesses pursue productive and profitable competitive strategies. The short-term priority, of course, is how to strengthen the economic recovery and lower unemployment — which has nothing to do with regulations and everything to do with overcoming federal and state fixation on spending cuts which reduce economic growth.
Reply | Reply with quote | Quote | Report to administrator
 

Add comment


Security code
Refresh

Radio Smart Talk Sponsors

pinnaclehealth300x75

CBC300x75

Smart Talk TV Sponsors

PPL300x75

PSMSHMC300x75

Stay Connected to witf

Ticket Giveaway Button
ListenLIVE_Button
WatchNow_Button

Support for witf is provided by:

Become a witf sponsor today »

Support for witf is provided by:

Become a witf sponsor today »