Posts Tagged ‘economic development. government regulations’

Growing Economic Opportunity

July 27th, 2011 2 comments

I recently purchased a beautiful hibiscus plant for our patio. It’s dazzling red blooms provide a sort of floral fireworks show all summer long. Unfortunately, this stunning plant will not survive our harsh Hoosier winters. That’s why I kept it in the plastic container when I planted it. When the hostile environment arrives, it will be plucked from sure destruction and placed inside until a new, more agreeable, season arrives.

In many ways, our current economic crisis is a lot like trying to grow tropical plants in Indiana! Our president continually chides the business community for sitting on capital and refusing to hire new people. However, business owners are not idiots. They understand you cannot grow healthy businesses in harsh economic environments. If the government does not change the playing field by creating genuine economic freedom and opportunity, those with the ideas and the capital will never “plant” new businesses or expand existing operations. Like my fragile hibiscus, they’ll uproot and move to an environment more conducive to long term health and vitality.

If the president wants to end the economic recession, he’ll need to change the horrid business environment he has created via bad economic policy. Condsider for instance, the proliferation of regulations, rules, and red tape, all of which impose heavy costs on America. The Heritage Foundation just-released a new study called “Red Tape Rising: A 2011 Mid-Year Report” which goes on to highlight the pervasiveness of government’s intrusive regulatory hand. According to the study:

During its first 26 months—from taking office to mid-FY 2011—the Obama Administration has imposed 75 new major regulations with reported costs to the private sector exceeding $40 billion.

Every government regulation on the free market comes with a price tag. These costs are passed on to the consumer. As a result, “Basic items, such as toilets, showerheads, light bulbs, mattresses, washing machines, dryers, cars, ovens, refrigerators, television sets, and bicycles all cost significantly more because of government decrees on energy use, product labeling, and performance standards that go well beyond safety—as well as hundreds of millions of hours of testing and paperwork to document compliance.”

So what’s the bill for all this ridiculous regulation? Approximately $1.75 trillion a year!

President Obama should realize that just as hibiscus plants won’t survive harsh Midwestern winters, neither will American businesses survive the frigid blasts of an ever-increasing regulatory burden.

It’s time for a change of seasons.