by Chas Bonner
We all whine and cry about the red tape that inundates our businesses, but if you need something to really whine about, let’s look at statistics that illustrate the true and frightening picture.
The Office of Information and Regulatory Affairs (an office of the U.S. government) printed a bar chart that highlights the staggering growth of government regulation. It was a 10 year chart from 2001 to 2011, indicates a relatively steady number of “significant” new regulations per annum through 2006 (an average of 72 new “significant” regulations per year), but the number begins to sky-rocket in 2007 to an average of 140 per year in 2011. According to the Competitive Enterprise Institute there are 4000 new regulations in the pipeline (most of which may never be enacted), and 81,000 pages of new rules actually created in 2010.
There were many causes of the escalation in new rules, primary among them the 2011 terrorist attacks, the Enron disaster, the real estate crisis, new health care laws, and an over-active Congress. The cost to American business of all federal regulations, according to the Small Business Administration, is $1.75 TRILLION, or 12% of GDP. By contrast, in 1950 regulations were 4% of a much smaller GDP. To the federal rules, add state and local for the true picture.
While these astounding regulations may be “doable” by large business, they will “do in” small businesses and virtually any farmer. Over 60% of all jobs are created by small organizations, and it appears that government is killing the Golden Goose.
The one ray of hope: Virtually all Americans are becoming aware of the dysfunction of government and looking for massive changes; they cannot come too soon.
And one recommendation: Call, write, email, or visit your Congressmen. They are especially attentive today, knowing the revulsion of their constituents.
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