In response to the release of yet more terrible jobless claims numbers this AM, President Obama renewed his call to lower taxes on small business and to ease the small business credit crunch. The legislation, which promises to lower certain taxes on small business and to increase federal funding of loans to small businesses through various means, is "stuck" in Congress. Mr. Obama blamed the Republicans for "blocking" the bill: "'There will be plenty of time between now and November to play politics,' Obama said. 'Let’s put aside the partisanship for a while and work together.'”
I think this is rich, personally. We run a small business and I know what it feels like to be a small business in the Obama-cized children's product market. We are facing skyrocketing costs nicely matched with soft revenues and mounting taxes (funded by the company, too). Cost increases include $300K in new medical plan expenses to accommodate the terms of the Obamacare initiative, plus astronomical all-in costs for increased safety testing under the new CPSIA rules and related manias. The increased testing has yet to reveal any useful information of identify any health threat that constitutes a human safety risk - so all that money is wasted.
These costs have a common link - they are both a result of increasing regulation. I know, I know, Mr. Obama has lectured us that we really need all these new regulations. Well, I don't agree, but in any event, we see these regulations as major impediments in our business. These high costs affect our cash flow and our business outlook - to the bad. Do the Democrats think we maintain our sunny disposition when we face a shaky market lacking confidence (soft revenues), higher costs (a lot higher) and mounting cash needs from higher taxes and other federal regulatory expenses? This is rather a recipe for managers who want to hide until the storm passes. Who will spend money on new investment now? While we are not cutting our product development efforts, we haven't bought new equipment, fixtures or additional office/warehouse space in several years now. And we have no plans to do so. Welcome to the Dems' economy. No wonder new jobless claims are over 500,000 in the last month.
In the case of the CPSIA, the Dems are only too happy to whack us with heavy regulations, all justified by imaginary benefits. The imaginary benefits of the new CPSIA regulations are as invisible as the imaginary problems they are designed to solve. The absence of data on effectiveness is matched by the absence of data suggesting that there was a problem in the first place - the "know nothing's" jacked up your costs and destabilized your business to no purpose. Now Mr. Obama wants to fix it all with another handout. Throwing money at the problem is new style. And after that handout is parcelled out, the Dems will proceed to raise taxes on higher income individuals (read, small business owners, particularly S Corp owners) to attempt to staunch the hemorrhaging Federal deficit, and then express "shock" at the sluggish economy. No doubt the next step will have to be more handouts and perhaps Cap-and-Trade to raise more costs. What a great cycle. . . .
Is there another way? Well, as for small businesses in the children's product market, I would note that the voluminous new CSPIA rules (two feet high and growing) impose massive costs on industry (to comply) AND on government (to enforce). I think of the stupid health official bent on enforcing his food handler's license rule against the little girl in Portland operating a lemonade stand - many of the new CPSIA rules are pointless from a safety standpoint and cost big money to administer as well as to comply with. If the Dems seriously want to stimulate the economy and add jobs, here's an efficient way to do it for NO out-of-pocket cost - DROP your boundless regulations and go back to something more modest and manageable. This also means that the Obamite idea that life is better with lots more government needs to be shelved. I submit the recent rules on testing frequency and "reasonable" testing programs as evidence that inviting bureaucrats to become involved in operating businesses brings nothing but trouble, inefficiency and devastation. There must be a better way.
Hey, I figured out some time ago that I am talking to myself here. The CPSC certainly doesn't care or understand what I am talking about (or else they might have done something about it perhaps 300 blogposts ago). The Democrats in Congress likewise are deaf and disinterested. I cannot name a single Democrat, NOT ONE SINGLE DEMOCRAT, who will stand up in front of their peers and demand significant amendment or revocation of the CPSIA. The Dems are in lockstep agreement - no light shines in if your head is in the sand, after all.
You can't work with people like this.
I urge you (URGE YOU) to select the CPSIA perpetrator of your choosing and WORK to knock them out of Congress in this election cycle. Remember - they are trying to put YOU out of business. You need to return the favor.
Return the favor . . . this is my theme song until polls close on November 2. Then the party begins.
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7 comments:
The girl with the lemonade stand did receive an apology.
Rick-I am sure you're aware, that for over 2 years, you have had an avid following of like-minded stakeholders in this debacle. Outside of reading your blog and reacting to new rules, most of us are busy just trying to keep our jobs. We thank you for your perseverance...however futile you may think it is. I have a suggestion for a future blog. I like your idea of targeting local politicians during this "run up" and I think people would be more apt to get involved locally if they were equipped with the right information. If we choose to attend a local "town hall", what are the best questions to ask ? What answers would we expect ? and what rebuttals can we use ? In other words, equip us with questions and wisdom so that we can attempt to make a difference locally.
Blah, blah,blah! Rick, your rants are getting tiring. These are no longer about the CPSIA but more about "let's get them dems out of office". You've gone way off the path, bro.
I wonder why anon is reading your blog if it is tiring. I'm confused. Most of us reading Rick's blog run businesses and it is a fact that the democrats have not and are not open to helping change the situation. With or without Rick's information, I planned on voting differently after the door was slammed in my face countless times by all of those who have the "power" to change this, won't, but still want my vote...no thanks.
I am currently represented by three democrats. Even the representative, whom I generally respect for his votes, has failed to respond to this issue.
I'm just a consumer. But the loss of availability of the toys, educational items and books under this law do effect me and my family. For example, we are avid readers and frequently buy older, out of print books. Books which were declared to be a health risk under this law.
This is the sort of lunacy that I'm fed up with. I'm also fed up with getting form letter replies that are internally contradictory or that don't actually address the questions and concerns submitted.
Anon, if you are so tired of reading Rick's blog, and think he has gotten off course, would you kindly lay out the steps you think he should logically take to get 'back on track'? Rick is no fool--he's open to good, sound advice! Tell us what we can do.
@Ben S: Oh, an apology? How nice. Wouldn't it have been nicer if she didn't need an apology in the first place?
See, that's the thing that Obama supporters don't seem to understand. An apology doesn't fix anything. If a bunch of Federal lifer bureaucrats come in and shut down my business and confiscate all my inventory, then it doesn't matter that they later rescind their decision and are "real sorry" about it. I'm still ruined! That the regulatory bureaucrats would be sorry afterwards doesn't make me want to take the risk of being put out of business.
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