CPSIA - Report Abusive Database Rule to Eric Cantor!

Today, Republican CPSC Commissioners Nancy Nord and Anne Northup, noting the stifled debate orchestrated by Democratic CPSC Commissioners on the final public database rule (up for a vote on November 17th) and the toxic impact of that rule on the business community, have proposed their own alternative rule on the database.

HERE is the link to the Nord/Northup proposal. I believe the CPSC is currently mud wrestling over whether the Nord/Northup alternative proposal can be shown to you . . . the public. I think the Dems don't think you are mature enough to be able to read it. Perhaps when you're older . . . .

Here is Nancy Nord's blogpost and Anne Northup's blogpost relating to their proposed new rule. I also want to commend Ms. Northup's three other blogposts on this topic, beginning on October 27. It is gratifying to see Commissioners taking political risk to do the right thing. Both Ms. Nord and Ms. Northup are taking a stand here. Let's hope that fighting breaks out on other issues, too. We need the help.

This proposal by two Republican Commissioners is yet more shocking evidence that at today's CPSC, safety and market integrity is an entirely partisan issue. Frankly, I don't understand this and find it all so outrageous. In my view, this cartoonish standoff is ENTIRELY the fault of the Democrats who are stone deaf to the legitimate concerns of the business community. The hollow words of Inez Tenenbaum committing to "dialogue" with stakeholders makes me want to scream.

Consider, for instance, that I testified at the hearing on the database on November 10, 2009 at the personal request of Matt Howsare, Tenenbaum's then counsel (now her Chief of Staff). Ms. Tenenbaum purportedly wanted my feedback on this critical proposal, and as it was related to me, the agency needed more comments from the business community. Naively, I spent our company's money to fly to Washington to accommodate this seemingly reasonable request. I am accepting Fool of the Year nominations at this time. . . .

This hearing took place almost exactly ONE YEAR AGO - plenty of time for Ms. Tenenbaum to absorb my testimony. Listen to my testimony - did the majority take ANY of my points seriously? According to Nancy Nord, she was not allowed to ask at the October 20th Commission meeting about CPSC Staff's conclusion that the rule would have an insignificant impact on small business - the ENTIRE focus of my testimony in November 2009. Don't kid yourself, staff conclusions like this are are driven from ABOVE - from Ms. Tenenbaum and her political patrons. Ms. Nord was gaveled silent by the majority party - they had heard enough, I guess. Other issues impacting business interests from a fairness standpoint were also ignored or blunted.

This kind of treatment is completely outrageous. This example of government-out-of-control explains why the public spoke so profoundly last Tuesday. Nevertheless, the people running the shop at the CPSC didn't hear you on Election Day. We MUST stop the Dem's plan - unless you want to be eaten alive by trial lawyers. Listen to my testimony - it's a road map to litigation doom.

Eric Cantor has called for substantially increasing Congressional oversight of the activities of federal agencies which he says are "now actively working to enact [President Obama's] agenda through agency regulations". Could Tenenbaum, Adler and Co. be doing JUST THAT at the CPSC right now? Hmmm.

Please WRITE ERIC CANTOR to tell him what you think. His fax number is 202-225-0011. Please post your letter as a comment to this blog.

CPSIA - Dear President Obama

An Open Letter to President Obama:

Dear President Obama,

Tuesday's election results were a message to your administration. The "shellacking" you experienced was a referendum on your economic policies as well as a passionate call for smaller government.

Readers of my blog have heard all about these issues for two years. It is frustrating to me that you and your administration remain in the dark. You weren't listening.

My industry, children's products, suffered mightily at the hands of your administration. Admittedly the problem began on Mr. Bush's watch but it was your Democrats who refused to relent or admit their errors. Since passage of the Consumer Product Safety "Improvement" Act in 2008, your party has refused to consider our industry's increasingly pathetic pleas for mercy. The result has been utter market chaos and dramatic financial loss. This regulatory "railroad job" has driven many of us into politics against you and your party out of desperation and profound anger over this undeserved and insensitive treatment.

If you take the midterm election results seriously, you must reexamine the impact of this law on our industry and promptly offer sensible relief.

The problems with the CPSIA can be divided into four categories - Cost, Complexity, Risk and Intrusion. Please give up the idea that these problems can be overcome with tax relief or some sort of economic incentive. If you break my leg, I won't be able to get up and run like an Olympic champion no matter how many carrots you dangle in front of my nose. It's time to be accountable for the damage that the CPSIA wrought - and then directly address it.

Cost: The many ridiculous new rules in the CPSIA dramatically raise the cost of operating our businesses. It goes far beyond the asphyxiating testing costs that the CPSIA imposes. Wasteful administrative costs are skyrocketing in every direction. For instance, tracking labels do not magically appear on our products - we must hire people to redesign each of our products and our manufacturing processes, and we must hire yet more people to make sure we don't screw up these tasks. We sell or manufacture literally thousands of skus (items) - but have had only one tiny recall in the last 26 years. This is PURE UNADULTERATED WASTE. We nevertheless must incur these costs to keep the CPSC happy.

These well-documented costs come from somewhere. You may wonder why we're not hiring. [In fact, I have previously disclosed in this space that our head count continues to decline, an uninterrupted trend since 2007 to this very day.] Well, we must fund these unproductive costs from productive activities - sales, marketing, product development - you know, activities that produce new revenue. [Please note: your proposed tax increases will be paid from the same kitty.] Unlike you, we can't solve our money problems by printing more dollar bills - we have to EARN them. If you make us waste our money, we must shrink our business to pay these new costs. WE GIVE UP GROWTH TO PAY THESE WASTEFUL COSTS.

I find it exasperating to have to explain this to you.

Complexity: We now face perhaps 3,000 pages of new safety rules and laws applicable to our business. I have never included rules on childcare or infant items in this total. For those miserable companies who stubbornly persist in making this kind of item, their total is probably well in excess of 3,000 pages. Each word of those pages is a possible felony.

The pre-CPSIA total was about 100 pages of rules, most of which were inapplicable to our business. There was very little to remember - which made it easy for us to administer our business. We could teach the rules, we could remember the rules, we could follow the rules, we could set up sensible priorities oriented around safety (not merely compliance). This is no longer the case.

Face it, President Obama, NO ONE understands these new rules. I include the CPSC on that list. There are just too many rules, and they are riddled with inconsistencies, flaws and head scratchers. The rules are also a mess, existing in many forms, in many places, never correlated or conformed, and are certainly not indexed. The rules have no underlying logic, so it is not possible to anticipate how any rule should work or does work - you have to find the rule and study it, preferably with an expensive lawyer helping you. Even finding a particular rule is quite a treasure hunt.

We are pretty busy - this does not enhance our productivity.

I believe that unless one is a rabbinic scholar or some kind of savant, it is not possible to master 3,000 pages of dense and inconsistent rules. The CPSC has done little to make sense of these rules.

Consider the paradox of musical instruments - full-sized musical instruments are not considered "Children's Products" even if marketed EXCLUSIVELY to children. Does that make ANY sense to you? Remember, these are SAFETY rules so if musical instruments are unsafe for some reason, wouldn't logic suggest that we should not let children interact with them? And if they're safe, then they shouldn't be regulated at all. Right? Interestingly, the CPSC says that if you shrink the same instruments down for children, they WOULD BE considered "Children's Products" and subject to the CPSIA, even if marketed side-by-side with slightly larger, full-sized instruments which are not regulated. This makes absolutely no sense, is completely indefensible as public policy and creates a terrible quandary for any business attempting to interpret and apply these rules.

The complexity and opacity of the rules outstrips EVERYBODY'S abilities. We are completely stymied - and it's your fault. You and your team refused our advice on how to resolve these issues.

Risk: The CPSIA is a tort lawyers' dream. With the coming public database, our industry will be a feeding trough for these vipers. To say the least, you have permitted the government to set up a system DESIGNED to be gamed by lawyers and litigants.

How do you think business people will react to this massive expansion of the tort system? Please note that NO ONE contends that there are more injuries to address - it is absolutely clear that the effect of the CPSIA is to create many more claims of action. More cost, more risk - and as a result, there WILL be less economic activity.

Good job, guys!

Add to this misery the current practice of this CPSC to press for recalls that do not meet the CPSA's legal standards for recalls (substantial risk of injury or death) and to impose huge vindictive penalties. The agency is on the war path, trying with all its might to scare us to death. This is an especially powerful economic depressant for small businesses which typically lack the resources to resist these pressures. Small businesses are more conservative and tolerate risk less comfortably as they manage their own money and see themselves as having more to lose than mass market companies or public companies.

The aggression of the new CPSC is out of control. The current Chairman likes to BRAG about her big penalties. Trust has been utterly destroyed in the manufacturing community. In two short years, the CPSC squandered its reputation as a partner in safety, someone to be trusted. Who in their right mind would trust this CPSC? If you doubt me, ask McDonald's how they feel about being pressured to recall 12 million acknowledged safe Shrek glasses (and the ensuing media frenzy over cadmium - all without ANY documented injuries from cadmium in children's products EVER). Or ask Schylling Associates or Daiso how they feel about penalties imposed on them for rule violations without any injuries. By all appearances, those penalties reflected regulatory anger, not endangered public safety.

[While you're at it, ask the CSPC why they never completed their FOIA disclosure to me on the Schylling penalty.]

Seemingly, almost any violation of these rules can be twisted into a felony charge now. We joke in our office about visiting each other in jail - but it's not really funny at all. I simply cannot fathom conducting my affairs in a way that risks being charged with a felony. As a lawyer, the criminal risk imposed by the CPSIA is completely unacceptable to me and highly offensive. I often say that felonies cannot be committed accidentally - except in the Children's Product industry. The unavoidable accumulation of trivial infractions with heavy penalty risk gives the CPSC winning leverage in any negotiation. The game is FIXED. Everyone knows it, too.

This is no stimulus plan, by the way.

Intrusion: It's this simple - we have a new partner who showed up two years ago - the U.S. government. They don't know anything about our business and have never run any operation similar to ours but they now reserve the right to check all our work and to second-guess us. Mother May I? That's the new game in our business.


Could we live without ANY of this? Yes, most definitely. While the zealots behind this self-destructive law like to emphasize the POSSIBILITY of injury from lead and love to repeat the simple-minded chestnut that there is "no safe level of lead", they FAIL utterly to tie these claims of POSSIBLE injury to data of ACTUAL injury. There is no "nexus". Lead may be "bad" but it has no history of causing injury in children's products. Leaded gasoline, house paint and industrial pollution are the culprits that caused blood lead levels to rise materially - that's undeniably true. Congress missed the boat entirely with the CPSIA - it's all cost, no benefit.

Lead injuries from children's products are virtually unknown. My study of CPSC recalls in 1999-2010 totals one death (from a piece of jewelry) and three unverified injuries from lead in 11 years. Given the truly massive size of our industry and the children's marketplace, and the literally trillions of interactions with our industry's products each year, this injury total is statistically equivalent to ZERO. Instead of punishing our industry, you should give us a good citizenship award. We have earned the trust of U.S. consumers.

The path forward is clear but frankly, I Still don't think you get it. Trust has been broken. Until you and your administration DEMONSTRATE that you are taking a DIFFERENT path, we will continue to conduct a war against the CPSC and Congress. This defective law deserves a FULL repeal. It is misconceived and has cost countless jobs. I hope you and your associates will not continue to deny the obvious, to fly in the face of data and reason. The voters are on to this scam. They voted many Democrats out of work in midterm elections. If you and your team don't wise up quickly, in the over-regulation of our industry and other industries, they'll vote the rest of you out in two years.

The problem was never the law. Before Congress "improved" it, the CPSA was a powerful law that enabled the CPSC to closely supervise children's markets. Let's not forget that the recalls in 2007/8 were conducted under PRIOR law - the unamended CPSA had plenty of teeth. The recalls in 2007/8 were clearly a COMPLIANCE problem, not a problem with the rules themselves. For various reasons, some people weren't following the law closely enough. As objectionable as that may be, it is also important to remember that the 2007/8 recalls were associated with virtually NO injuries. So what should we have done, in lieu of all the tough new standards and venal penalty provisions in the CPSIA?

The agency should have been reorganized to work on compliance more effectively. The agency needed to invest in education, outreach to industry and more effective partnership with industry. This idea that we in the business community can't be trusted is revolting and completely untrue - it is a populist idea you and your allies flogged to get elected. If you want to keep your jobs for much longer, you need to drop this caustic idea. We are not bad people or incompetent people - we can be trusted and can be good partners (as our record proves). No, not everyone will be good or conscientious. Bad people and incompetent organizations cannot be legislated away (at a reasonable cost). Still, the data indicates that a lower cost approach of partnership and education will produce very good results.

Fixing this law will be a stimulus plan that creates JOBS. Please give us back control of our financial statements and we will find a good way to spend our own money to grow our businesses. We don't need your help - we need you to GET OUT OF THE WAY.

Yours sincerely,

Richard Woldenberg
Chairman
Learning Resources, Inc.
Vernon Hills, Illinois

CPSIA - Election Results

Democrat Members of the House Energy and Commerce Committee Election Results:

Three members retired (Stupak, Gordon and Melancon), three were defeated (Boucher, Hill and Space) and one race is too close to call (McNerney).

The composition of the next Congress' House Committee on Energy and Commerce will be all new.

CPSIA - Election Day is FINALLY Here

810 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA.

ELECTION DAY IS TOMORROW.



[Here's the long version of this clip, with people screaming out the windows "I'm as Mad As Hell and I'm NOT going to TAKE THIS anymore!"]

Tuesday is the BIG DAY, guys. We have an opportunity to pay back the perpetrators of the CPSIA in the voting booth. Don't miss this opportunity - it's your right as a citizen, speak out and tell them where you stand. Ideally, make them PAY with their jobs for their refusal to listen.

I have thrown my efforts into two Congressional campaigns - Bob Dold running in Illinois' 10th district against Dan Seals, and Joel Pollak running in Illinois' 9th district against CPSIA perpetrator Jan Schakowsky. As you know from this space, I have given up on the process of "dialogue" - no one in the Democratic Party will listen anymore (if they ever did). The next phase is politics. If they won't listen, we will throw them out.

Tomorrow is the day we measure what we have achieved.

It didn't have to be this way. When Inez Tenenbaum came on board as Chairman of the CPSC, she promised to engage in dialogue and to listen to all stakeholders. As far as I can tell, that was a bald-faced lie. If it wasn't a lie, it turned out to be completely untrue. Sham processes like two-day workshops and comment periods were thrown up as a smoke screen to cover up a scheme to impose draconian regulatory change whether we wanted it or not.

Listening isn't this CPSC's forte. Nor is data analysis. With the cram downs evidenced in the final rules on the definition of "Children's Product" and the public database, it is perfectly clear that Ms. Tenenbaum has no interest in views that diverge from hers, whether based on fact or data or reasoning. She's on a mission - and there's hell to pay if you stand in the way. Just look at her penalty record.

The next big event at the CPSC is implementation of the final rules on component testing and testing frequency/reasonable testing programs. This is coming SOON - all to ensure that the stay on testing requirements can be lifted in February - you know, so we can all be so damned safe. [Do you have a sense, by the way, that we are UNSAFE today - despite the stay? Oh yeah, that's data and reasoning again. Pah!] When they cram down those rules, your goose is cooked.

You've been warned (many times).

So tomorrow is your big chance to tell the Democrats that you aren't going to take this anymore. That goes double for the people principally responsible for the CPSIA, like Jan Schakowsky, Henry Waxman, Bobby Seals, Barbara Boxer and other Democratic "luminaries" up for reelection. Here is a list of the members of the House Committee on Energy and Commerce - I hope you will vote AGAINST any and ALL Democrats on this Committee. NONE of them did ANYTHING to help us despite our pathetic pleas for help literally for years. They have PROVEN they don't care - and you need to throw them OUT.

People ask me - how can I be so certain that the Republicans will help us? Will they be better than the Democrats, really? Aside from the fact that some Republicans have gone to great lengths to try to help us, taking political risk along the way (something I will never forget), I can say this with CONFIDENCE - I know EXACTLY what to expect from the Democrats. If we don't make a change, we're goners. So the Republicans are my choice and my strong recommendation to you. When they are in power, we'll see what they will do. I am confident, but as voters, we all must remember that the proof is in the pudding. In the meantime, we need to make some serious changes NOW.

After the Election winds down, I have a long "to do" list and will publish a number of essays on CPSIA subjects that deserve your attention. In addition, we must engage in dialogue on how to fix the mess Ms. Tenenbaum and Mr. Waxman have created. That's to follow . . . but as for now, you must vote.

MAKE THE CPSIA PERPETRATORS PAY WITH THEIR JOBS.

CPSIA - Let's Keep Sucking Our Thumbs . . . .

803 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 7 days left until Election Day.

Seven days to go! Go, baby, go!

I just found this article documenting the pain of some Illinois toy craftsmen owing to the CPSIA. Imagine, these guys are being held up by the noxious CPSIA and are essentially shut down. I have been reading these articles for almost three years now. Ho-hum.

Have any of you heard of Mattel or Hasbro going out of business because of this law? Me, neither.

Articles of this type are discouraging on several levels, not least of which is the lack of comprehension of almost everyone who gives a quote. The scale of the problem for small business, even the very nature of the problem presented by the law is unclear, apparently. No one asks the right questions like - why are we doing this? What are we achieving? Is it worth the cost? Can we even measure what we have accomplished?

Of course, the answers to these questions are all negative. No one knows why we're doing this, other than a general love of children. Don't know about you but a "general love of children" is a rather flimsy justification for killing off an entire industry (other than mass market companies like Mattel). Given that we have many fine universities here and train the occasional engineer in this country (I am one of them), I would think we could be a just a little more "science-y" in our analysis. So, if we can put our "general love of children" on the shelf for just a moment, why indeed are we doing this? To improve the health of children, right? That sounds good to me.

To assess whether we have had any impact on the health of children, presumably we would need to be able to describe what is WRONG with the health of children now. The zealots assure us that there is no safe level of lead. They also assure us that lead harms children "silently", in other words, the harm cannot be measured accurately, but trust us, it's there. In other words, there is no way to differentiate between lead "poisoning" in children not presenting symptoms - and a purely imaginary condition in those same children. The "real" problem and the imaginary problem present exactly the same way - no symptoms. Contrast banning pixie dust with banning lead-in-substrate - the issues are the same.

[Ed. Note: Apparently there ARE safe levels of lead in musical instruments made of brass if they are full-sized, but not if they are under-sized. This is part of the new interpretative rule on the definition of "Children's Products". Therefore, if you had a small trumpet (dangerous, subject to regulation) and you stretched it, making it into a full-sized trumpet with thinner walls of brass, it would become safe (no regulation)! Hmmm. This is not magic, this is the CPSIA!]

And if you want to measure your impact on this dreaded problem, how would you do it? The health statistics are purely made up, because there are no symptoms. The reasoning goes - since there is "no safe level" for lead, then we must consider anything that could possibly cause a blip in blood lead levels as a causative agent, therefore, we must ban everything that COULD POSSIBLY make blood lead levels rise.

Given that blood lead levels are declining these days and are not considered a health risk by the EPA, FDA, NIH or CDC except in connection with certain specific hazards (leaded house paint, residual pollution from leaded gasoline, or other environmental factors like air pollution), we cannot measure any improvement in health. It's literally impossible (remember, the "real" problem and the purely imaginary problem present exactly the same way). Thus, it will be impossible to measure how much we have achieved for our investment. We must cling to our assertion that there is "no safe level" for lead to assure ourselves that we have accomplished something. This is a logical argument, but there's no evidence to support it.

So the entire exercise is speculative? The benefits cannot be measured. The problem can't be measured or even described accurately. There weren't any victims before, there aren't any victims now. Seems like nothing has changed. Uh-oh.

Ah, thumb suckers, THAT isn't true. Something fundamental has changed, thank you Congress. Safety hasn't improved . . . but a few things have changed substantially:

1. Our regulator is no longer capable of exercising a judgment about what is and what is not safe. Consider the musical instrument example above. The CPSC has also become quite aggressive, perhaps to justify its existence and its new jumbo budget. Not pretty.
2. The cost of compliance has already skyrocketed. Those dollars are coming out of activities that would otherwise be used to grow our businesses.
3. You ain't seen nothing yet on costs - wait for the CPSC to approve the 15 Month Rule on testing frequency and reasonable testing programs. Costs will rise by 10-100x for many companies if the rule is adopted as presently drafted. I'm not kidding.
4. Complexity and risk have skyrocketed. What do people do when they can't figure out the rules or they get scared about the consequences of failure? They exit.
   
   [Here's another pre-Xmas threat by the ever-lovable Inez Tenenbaum: "'We will continue to recall their products and it will damage the brand. There will be penalties, there will be lost customers,' she said in an interview." She's quite a charmer, isn't she? Does this sound good to you? Want to enter the Children's Product market? Want all your family's wealth dependent on the health of a business in this market, being regulated by Ms. Tenenbaum? Hmmm, the line's out the door, everyone wants in!!!]
   
   
5. Products and markets are being dropped, or aren't being entered in the first place. Profits are being lost (profit prevention) and jobs are being shredded. Lots of jobs . . . .
6. It's not fun anymore to be in this business.

As for the Illinois wood toymakers, it's a shame for them. We read about this kind of thing all the time. Maybe it will go away on its own. Maybe it's all their imagination. Small businessmen are often so unsophisticated, they probably don't know what they're talking about. The U.S. government is just too smart to get something this wrong. If they really screwed up, they'll fix it - the government's not the enemy, you know. Something this big and stupid can't be true. Somebody big and important, like a trade association, will save us. No, no, 60 Minutes or John Stossel will do an embarrassing story and that will break the logjam. [Ed. Note: been there, done that.] I'm too busy running my business to address this. You can't fight City Hall. It will get fixed, don't worry! Nothing this ridiculous lasts very long.

Boy, that thumb must be yummy! But at your age, thumb-sucking seems so inappropriate.

Don't forget to vote on November 2nd. Even if this scourge won't go away and has become entrenched, you can still strike a note for capitalism and for sanity by voting against the idiots and the venal people who want to destroy your businesses and deprive you of valuable products that you prize. You can defend yourself - and you MUST.

CPSIA - Hey Sucker!

801 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 9 days left until Election Day.

Consider this note I received today from a friend:

"Thought you'd like to know that i received a check in the mail today from Uncle Sam's new Affordable Care Act to help cover the cost of my Medicare drugs in the amount of $250. Mind you, this one-time gift arrived just eleven days prior to election and, to me, an obvious bribe to receive my endorsement of their plan. Hope this backfires on them as I am immediately turning this check back to Joel Pollak in the form of my contribution in the same amount. Hope it helps the last few days of his successful campaign." [Emphasis added.]

The Affordable Care Act is Dem-sponsored legislation designed to ameliorate the "donut hole" that Seniors experience in drug coverage under Medicare. I am sure this is a real problem. That said, the arrival of this check magically two weeks before the election is just one more bit of evidence of the privilege taken by Congress and the White House to award themselves gifts in even-numbered years to ensure reelection. The real question is "how dumb are we?"

Please note that the CPSIA was just such a gift. Passed almost unanimously on August 14, 2008 right ahead of the 2008 election season, the CPSIA allowed every member of Congress to blunt accusations that they were "soft" on Chinese toys. Not unlike so many other pieces of complex legislation passed by Nancy Pelosi's Congress, our esteemed members of Congress apparently never read the bill which covered soup-to-nuts in Children's Products, not just toys. Even today, you can find Congressmen expressing surprise and alarm that the law covered anything other than toys.

Duping members of Congress must seem like child's play to devious staffers. After all, they know the members can't or won't read their handiwork. We call that the "political process".

Some people ask me why I cut the Republicans such a "break" by attacking only Democrats on this law. Didn't all the Republicans vote for the law, too? By and large, that's true. However, since passage of the CPSIA, many Republicans have stood up and tried to help us. They have allied with my efforts and have gone to considerable effort, not to mention taken political risk, to address a Congressional screw-up that imperils Small Business without any corresponding safety benefit for consumers. Has every Republican member of Congress helped us? No. However, ZERO Democrats have lifted a finger to help us and most have scorned us publicly and privately. The Democrats who were put in charge of the CPSC are perhaps the MOST insensitive and the most strident in their political posturing.

Until the Democrats DEMONSTRATE that they can be trusted, which for me will take quite a bit of work on their part, I have NO interest in giving them a pass. The Republicans have EARNED my support. I hope you are not susceptible to bribes or other trickery by the party in control. Your business and your markets hang in the balance. Assess the situation clearly and pick sides. It's now or never!

CPSIA - Jan Schakowsky Wants to Design Your New Home, Too.

801 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 9 days left until Election Day.

801 days without ANY help. Amazing . . . .

Rep. Jan Schakowsky, the Illinois Congresswoman who informed the WSJ that I am a "cynical special interest" because I dared to participate in the upcoming midterm elections, is not content with rearranging your business and the Children's Product industry. Now she wants to redesign your new home.

Does she have good taste, you ask. Well, read on and see what you think of Jan Schakowsky as your architect or decorator.

Your home is your last refuge, right? Not if she gets her way - but then again, she knows what's best for you! After all, a bigger government involved in every aspect of your life is a BETTER government. The estimable Ms. Schakowsky is the sponsor of HR 1408 Inclusive Home Design Act of 2009. In other words, this law-in-the-makings is her handiwork.

She brags about this pending legislation on her Facebook page in posts dated October 6, so she must be pretty psyched about it. I gather she wants the electorate to know of her excellent leadership in Congress, so I thought I'd help out. Happy to lend a hand to such a "great" leader.

Best I can tell, Ms. Schakowsky latest brain wave is to require you to redesign your new home to be disability-friendly if you get "federal assistance". The so-called purpose of the act is "[t]o require all newly constructed, federally assisted, single-family houses and town houses to meet minimum standards of visitability for persons with disabilities."

And what might she have in mind, precisely? Anyone who receives "federal assistance" needs to design new homes to meet several ADA-like standards even if they are useless to the buyers. No matter that this will cost money or that you don't want it. It's good for you, Jan says so. It may also make it difficult for you to find new homes without these features. Like cod liver oil, you'll get used to it!

As noted, to get into this spot, you need to receive federal assistance. Here's a sample of what might constitute "federal assistance":

"any assistance that is provided or otherwise made available by the Secretary of Housing and Urban Development or the Secretary of Veterans Affairs, or any program or activity or such agencies, through any grant, loan, contract, or any other arrangement, after the expiration of the one-year period beginning on the date of the enactment of this Act, including . . . grants, subsidies, or any other funds . . . services of Federal personnel . . . any tax credit, mortgage or loan guarantee or insurance. . . ."

In other words, if you even brush against the federal government in constructing your new home, you are COVERED by this law. Tax credit for your new energy-efficient furnace? You're IN. HUD loan refinance for a development of several homes? You're IN. Fannie Mae or Freddie Mac involved? You're IN. Vet benefits? You're IN. Inspected by a federal employee for some reason? You get the idea.

Hey, here's the REAL idea - the government belongs in EVERY aspect of your life. Ms. Schakowsky doesn't even think you should be allowed to measure the door frames in your house without her oversight. It doesn't even matter if you have a disabled person living in the house - you MIGHT be visited by one and certainly, you would not able to accommodate that visit without Ms. Schakowsky's supervision.

Perhaps you should invite her, too, just to work out the kinks. Uh-oh, I sense an amendment coming!

Had enough yet? If not, vote DEM on November 2nd so society can be reengineered a little bit more. On the other hand, if you have the vaguest sense that this is a runaway train and might need to be stopped before it's too late . . . vote the other way.

The Dems brought this on themselves. They put people like Schakowsky in leadership roles. The Children's Product industry is in tatters as a result. PLEASE STOP THE INSANITY ON NOVEMBER 2ND!!!

CPSIA - Do We Need More Government? [No!]

796 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 14 days left until Election Day.

Hey, have any of you noticed that since I began a daily reminder of our abandonment by this Democrat-led government (reminders began on August 22nd when 738 days had passed without help), no Democrat has done a single thing to help us? Have you also noticed that as they weren't rising up to help us, the Dems were actually engaged in making things WORSE? Definition of Children's Products, the so-called "15 Month Rule", making carpets subject to testing, further implementation of a database certain to make our business environment FAR more hostile.

Do we need a lot more of this?

Mr. Obama says we do: "The basic idea is that if we put our blind faith in the market and we let corporations do whatever they want and we leave everybody else to fend for themselves, then America somehow automatically is going to grow and prosper." The implication is clear - more government is the solution, we can't trust markets. Corporations need overseers, heavy regulation.

This quote is from a remarkable WSJ article that appeared last week by Daniel Henninger entitled "Capitalism Saved the Miners". Beleaguered victims of the awful CPSIA should read this article. Let me sum it up with his concluding remarks:

"The U.S. has a government led by a mindset obsessed with 250K-a-year 'millionaires' and given to mocking 'our blind faith in the market.' In a fast-moving world filled with nations intent on catching up with or passing us, this policy path is a waste of time. The miners' rescue is a thrilling moment for Chile, an imprimatur on its rising status. But I'm thinking of that 74-person outfit in Berlin, Pa., whose high-tech drill bit opened the earth to free them. You know there are tens of thousands of stories like this in the U.S., as big as Google and small as Center Rock. I'm glad one of them helped save the Chileans. What's needed now is a new American economic model that lets our innovators rescue the rest of us." [Emphasis added]

I don't know about you, but I think we operated our company very well before Mother Government invited herself into our affairs. We knew the difference between right and wrong, and were pretty good at allocating our capital to its highest and best use. Now we must play "Mother May I" with the self-appointed experts who arrived to protect against "dangers" they can't accurately describe or measure. The vacuuming up of our money, our resources, our mind share, our energy, destroys our ability and will to compete.

Fine, ignore the reality. Wait for the bodies. Assert your superiority and your authority. But the facts are the facts. The case against the CPSIA is crystal clear and the only ones who don't "get it" are the Democrats. After two years of banging my head against the wall, I can only conclude that they don't WANT to get it.

It's no mystery - I know why the Dems refuse to listen. They are rather transparent about it. When I spoke to Rep. Jan Schakowsky (D-IL9) at a candidate forum eight days ago, I asked her why she called me a "cynical special interest" to the WSJ. She asked me who I was, and then told me she didn't know me. That fact didn't stop her from trashing me, a private citizen, to a nationally-prominent newspaper. Pointing the finger at me serves her interest in getting reelected - she's saving the populace . . . again. Who is in a position to argue with her? When I protested that our products had been safe for 26 years, she replied that she "didn't understand what the problem is" and turned to a voter standing nearby to assert that she just wants to protect children against lead. The higher moral ground . . . for people who don't know what they're talking about. Unfortunately, scare tactics sell very well.

I believe the Mob also sells protection. Do you want to buy some protection from them?

The Chilean miners were saved by companies that invested their money to make the world a better place incentivized by the opportunity to make a profit. Our industry, the one that serves children as our reason-to-be, is being depleted by a heavy tax - the intrusion of a heavy-handed government that treats us as "guilty-until-proven-innocent". The government REFUSES to listen to us.

Those of you with children will pay the consequences.

Thank you, Mother Government. The market saved the miners, but you will happliy kill us.

Vote on November 2nd for a fresh start.

CPSIA - Jan Schakowsky's Expert Opinion

790 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 20 days left until Election Day.

I guess I'm famous now. Rep. Jan Schakowsky (D-IL9) is talking about me to the Wall Street Journal:

"Ms. Schakowsky said Mr. Woldenberg's success as a fundraiser, is proof that 'very cynical … special interests are highly engaged in the [Ninth District] campaign.'"

It seems strange that Ms. Schakowsky is so certain that I am an official Special Interest, a cynical one at that. When I ran into her at the BJBE candidate forum on Monday night, she asked me who I was. I was just a touch insulted, since as a cynical Special Interest, I would have expected her to know who I am. After all, she did tell Elizabeth Williamson of the WSJ that I was attempting to cynically influence the election in her district. This is what cynical Special Interests do, apparently.

What sneaky business am I up to? I want to amend the CPSIA. Ms. Schakowsky does not want to change her seminal law. That makes me a Special Interest. In other words, I disagree with her. And I thought my "special interest" was educating kids. Apparently not.

I never met a Special Interest before but now I know what one looks like. Here's a picture of a Special Interest:

What makes Ms. Schakowsky such an expert on Special Interests, anyhow? Well, it turns out she has experience. For instance, Crain's Chicago Business recently pointed out the "highly unusual intervention" by Ms. Schakowsky to stop foreclosure procedures against a "group" of borrowers in her district. What a caring, generous act, always looking out for her constituents! Here's Ms. Schakowsky both explaining and congratulating herself:

"In an interview, Ms. Schakowsky says she was concerned that Devon Avenue 'essentially would go dark. . . . If there are communities that are (in danger of being) decimated, I assure you that any member of Congress would do everything they could to deal with the devastation of foreclosures. I feel very proud of this,' she says, adding that Mr. Singh’s contributions had nothing to do with her decision to help. 'It was clear to me there was a widespread problem,' she says." [Emphasis added]

What a swell Congresswoman!

Ummm, some of the borrowers were donors to Ms. Schakowsky and her Democratic cronies. Is it okay for the Congresswoman to do this? Should she be "proud" of her magnanimous act? Republican challenger Joel Pollak filed an updated House Ethics Complaint against Ms. Schakowsky providing following details:

• "While initial reports suggested that Schakowsky had helped about 20 businesses in the local South Asian-American community, court documents show that 19 of the 24 loans (80%) in foreclosure . . . were held by just three individuals: Mr. Amrit Patel (12, including 3 held jointly), Mr. Balvinder Singh (5), and Ms. Shahira Khan (4, including 2 held with Patel). One of the remaining 5 loans is held by Mr. Haresh Patel, who is apparently Mr. Amrit Patel’s son."
• "Court documents indicate that only 3 of the 24 affected properties are actually located on Devon Avenue. Only 4 are actually in the neighborhood. Except for those few, and for a small cluster of multi-unit properties further north near the intersection of Touhy Avenue and Clark Street, most are well outside the area, including properties as far away as Calumet City, Itasca, Barrington, and Sauk Village, IL."
• "Some of the key individuals who benefited from Schakowsky’s actions have close political ties to her and her allies. Mr. Singh contributed $500 to Schakowsky in 2004 and $2000 in 2006. He has also given thousands of dollars to other federal, state, and local Democratic candidates. Mr. Patel contributed $1000 to Ms. Schakowsky in 2002, and raised $50,000 for former governor (and convicted felon) Rod Blagojevich (D) in 2006. He also paid $34,000 to Mr. Blagojevich’s wife in real estate consulting fees; similar transactions were probed by prosecutors during Mr. Blagojevich’s recent corruption trial. . . . In addition, Mr. Patel’s lawyer is Democratic state senator Ira Silverstein, whom Schakowsky backed successfully in 2008 for the position of 50th Ward Democratic Committeeman."

Cozy! Does that sound like a Special Interests story to you? If it does, perhaps Ms. Schakowsky IS an expert on such things . . . .

[Btw, I am Joel Pollak's Finance Chair. On the occasion of the WSJ profiling me in that role, Ms. Schakowsky labeled me as a Special Interest.]

Still wondering about her authority on the topic of Special Interests? According to FEC records, Ms. Schakowsky seems to hang out with Special Interests by the basketful. How many Labor Unions, lobbyists and trial lawyers does it take to be tainted by Special Interests? Or are Special Interests just small educational toy companies which complain about laws that Schakowsky defends???

Let's see who gave money to Rep. Schakowsky through June 30:

PACs:

Union PACs:

• AFL-CIO COPE PAC
• Air-line Pilots Association PAC
• Amalgamated Transit Union PAC
• Am. Fed of Govt Employees PAC
• Am. Fed. Of State, County and Municipal Employees PAC
• Am. Fed. Of Teachers (AFL-CIO) PAC
• Am. Postal Workers Union PAC
• United Brotherhood of Carpenters and Joiners PAC
• Letter Carriers Political Action Fund
• Intl Brotherhood of Teamsters DRIVE PAC
• Intl Union of Operating Engineers
• Intl Assn of Bridge, Structural, Ornamental & Reinforcing Ironworkers PAC
• Intl Assn of Firefighters PAC
• Intl Assn of Machinists and Aerospace Workers PAC
• Intl Brotherhood of Boilermakers Campaign Assistance Fund
• Intl Brotherhood of Electrical Workers PAC
• Laborers International Union of North America PAC
• Natl Air Traffic Controllers PAC
• Natl Assn of Social Workers PAC
• SEIU COPE
• Transport Workers Union PAC
• United Auto Workers PAC
• UniteHere (Garment and Textile Workers) PAC
• United Food & Commercial Workers Intl Union PAC
• United Pilots PAC
• United Transportation Union PAC

Medical Interest Group PACs –

• Am. Academy of Family Physicians PAC
• Am. Academy of Neurology Prof. Assn BrainPAC
• Am. Academy of Phys. Assts PAC
• Am. Assn of Nurse Anesthestists CRNA-PAC
• Am. Assn of Orthospaedic Surgeons PAC
• Am. College of Radiology Assn PAC
• Am. College of Surgeons PAC
• Am. Congress of Oby-Gyn PAC
• Am. Hospital Assn PAC
• Am. Nurses Assn PAC
• Am. Occupational Therapists Assn PAC
• Am. Optometric Assn PAC
• Am. Podiatric Medical Assn PAC
• Blue Cross Blue Shield PAC
• Natl Community Pharmacists Assn PAC
• Natl Emergency Medicine PAC

Corporate PACs -

• CME Group PAC
• Coca-Cola Enterprises PAC
• Credit Union PAC
• Emergent Biosolutions PAC
• Entertainment Software Association PAC
• Ford Motor Civic Action PAC
• General Electric PAC
• Illinois Central Rail Co. PAC
• Harris N.A. PAC
• Hospira Inc. PAC
• Kellogg Company PAC
• Kraft Foods PAC
• Lockheed-Martin PAC
• Microsoft Corporation PAC
• Natl Assn of Chain Drug Stores PAC
• Natl Assn of Realtors PAC
• Natl Beer Wholesalers Assn PAC
• Natl Cable and Telecom Assn PAC
• Northern Trust Corporation PAC
• Raytheon Company PAC
• UPS PAC
• Walgreen Co. PAC

Trial Lawyer PACs–

• American Association for Justice (formerly the Assn of Trial Lawyers of America) PAC

Law Firm PACs

• Drinker Biddle
• Dykema Gossett
• Hogan Lovells
• Holland & Knight
• McGuireWoods
• Nelson Mullins Riley & Scarborough (former firm of Inez Tenenbaum's Chief of Staff Matt Howsare and CPSC Executive Director Kenneth Hinson)
• SNR Denton US LLP
• Venable LLP (VEN-PAC)

Others –

• J Street PAC
• Medical Marijuana PAC

Individuals:

Lobbyists –

• Michael Bauer (community organizer/lobbyist)
• Jonathan Cuneo
• Andrew Fields
• Ken Inouye
• Charles LaDuca
• Andrew Quinn
• Ed Rothschild (Podesta Group)
• Larry Suffredin See also this link.
• Susan White (health insurance lobbyist)

CPSC-related -

• Pamela Gilbert (former Exec. Dir. of CPSC under Ann Brown; partner in Cuneo Gilbert & LaDuca law firm and lobbying firm; member of Obama Transition team - with now Commissioner Bob Adler - responsible for the CPSC)

Plaintiff/Trial Lawyers –

• Patricia Bobb
• Thomas Clancy
• Robert Clifford
• Kevin Conway
• Philip Corboy, Jr.
• Anne Megan Davis
• Jay Paul Deratany
• Linda Friedman See also this link.
• Andrew Greene
• Keith Heibeisen
• Penny Nathan Kahan
• Thomas Keefe See this link, too.
• Clint Krislov
• Jerry Latherow
• Joseph Power
• Thomas Prindable See this link, too.
• Larry Rogers
• Antonio Romanucci
• Mary Stowell [She gave a mere $98,525 in 2008 campaign donations, and recently felt it was her "duty" to file a complaint with the FEC about Republican Bob Dold's June 30 campaign disclosure for the missing cost of a bus (bill not received).]
• Candace Wayne

Other Notable Lawyers:

• Patricia Curtner (bond lawyer)
• Lynn Cutler (government affairs lawyer)
• Elizabeth Gracie (real estate tax lawyer) See also her 2008 campaign contributions.
• Gail Morse (state tax specialist)

Large Contributors to Dem Causes –

• Lucy Ascoli
• Prudence Beidler
• Pam Crutchfield
• Grace Allen Newton
• Bettylu Salzman
• Susan White
• Lois Zoller

Others –

• Gila Bronner (prominent government contractor)
• Anna Giannoulias (mother of Democratic Senatorial candidate Alexi Giannoulias and family owners of well-known failed bank)
• Laura Ricketts (part-owner of the Chicago Cubs)
• Sheli Rosenberg (executive in various Sam Zell entities)
• Howard Trienens (longtime Chairman of Board of Trustees of Northwestern University)

This list gives me a whole new perspective on Schakowsky's campaign slogan "A Fighter on Our Side". Which side is that, precisely?

While I am sure Ms. Schakowsky meant "cynical . . . special interest" as a compliment, I hardly deserve to be in such august company as her campaign contributors. I am sure she really meant "Shoo, fly, shoo".

On November 2nd, we'll see who shoos. Don't forget to VOTE!

CPSIA - Fox Business Interview of RW on CPSIA

789 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 21 days left until Election Day.

I was interviewed on Fox Business Bulls and Bears Show today to discuss CPSIA. In particular, I noted the high cost of testing and the low potential payback in avoided injuries. Loyal readers, you've heard it all before. I also note that the pending paper deluge in Obamacare will add to the misery.

Help me . . . on November 2nd. Please!

CPSIA - "Children's Product" Means Whatever They Want

770 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 40 days left until Election Day.

As the Commission privately dithers, or squabbles, for weeks over passing the final interpretative rule on the meaning of "Children's Product" under the CPSIA, a recent recall illustrates the uncertainty and capriciousness of the draft rule currently in use by the Compliance staff. Or, should I say, the uncertainty and capriciousness of the current administration running the CPSC shop?

On Tuesday of this week, the CPSC announced the recall of mood rings. No, they weren't recalled because the CPSC inspector's mood ring always turned black, but good guess! The agency cited "high levels of lead". Oooo, scary lead!

Ahem, doesn't the CPSIA only apply to "Children's Products", and if so, don't the mood rings need to be "Children's Products" to be subject to the new lead standards? Right and right, careful reader! You have been paying attention, unlike certain regulators. The CPSC says this is a product intended for children under 12, so they were just doing the Lord's work to recall them, right? Save the Children! Who could oppose that?

Perhaps we should hear the company's side of the story (courtesy of one of my readers, thank you, Anonymous!):

"September 21, 2010,

To Whom It May Concern:

From: D&D Distributing-Wholesale, Inc.

To Whom It May Concern:

We are writing in response to the Love Tester items that were found by CPSC staff to contain lead in excess of the current CPSIA limits. These items were originally purchased in 2005, and intended as a teenage to adult novelty, and not for children 12 and under. This is evidenced by the novelty of this item being to measure the sexual performance of the bearer with the results ranging from clammy to naughty, passionate and hot stuff. These words were specifically chosen to target a more mature market.

Nonetheless, due to our awareness potential future legislation, we instructed the factory to make these items using lead-free metal to avoid any problems. The factory confirmed that these goods would be made out of lead-free material and adjusted the prices to reflect this. In 2005, we felt that this effort was appropriate for the time. By the second half of 2007, D&D Distributing had started the process of testing new items as well as taking steps necessary to ensure that older items were lead safe. We had contacted the factory of the Love Testers again in 2007, and they responded that they had done their own testing to confirm that these items used lead-free metal.

We believed that this was enough evidence to make a reasonable assumption that the Love Tester items did not contain lead.

In early 2009, we were visited by CPSC Officer Marcus Morris. Officer Morris randomly selected items for x-ray testing, as well as several items offered by D&D staff, and a few items did have lead content in excess of the new limits. These items were ordered to stop sale. It was our intention to evaluate every questionable item imported previous to new federal law (CPSIA act of 2008), and test them using CPSC’s x-ray gun. Unfortunately, the Love Tester items were missed during this time. Since early 2009, we have had several other visits from Officer Morris, and many other items were offered by D&D to be tested.

CPSC has determined that the Love Tester items are for children 12 and under, and D&D agrees to comply with the CPSC’s decision to recall the items.

Best regards,

D&D Distributing-Wholesale, Inc."

[Emphasis added.]

So the CPSC just decided that this sex toy was for kids 12 and under. Perhaps kids grow up faster in Bethesda, I don't know, but the action of the CPSC seems to ignore the clear intent of the manufacturer, not to mention the rather obvious fact that this product is not suitable for Middle School children (or younger). Feeling "clammy" yet?

Okay, zealots of the world, you ask - how dare you defend icky LEAD? Don't you Rick know how dangerous lead is for the CHILDREN? Let's not forget the children . . . .

Lead's capacity to harm has never been in doubt, but of course, I believe facts and circumstances are important in determining WHEN lead is a worry. In this case, however, I think the issue is different.

As a manufacturer subject to the awful CPSIA and the unrelenting pressure of the manic CPSC, I object to rules "on wheels". If the CPSC can move the rule from here or there to justify whatever it wants to do today without restraint, how can I protect myself? How can I plan? Please TELL ME what a "Children's Product" is. I have to figure out what my legal obligations are. Do I have to test, or not? Do I need to be lead-free, or not? What about phthalates? I also sell to thousands of distributors and stores. They are as confused as me, or more. What if they disagree with my judgment? Who decides what's right? And what if the CPSC disagrees with both of us? What is our recourse? [You know the answer to that one.]

Will regulators at the CPSC ever understand how this kind of case absolutely SCREWS me and everyone else that stupidly remains in the children's market? Will someone PLEASE tell me how to run my business? PLEASE!

We seek meaning in what we do. We produce educational products for a reason - we want to change the world for the better, we want to make a better future for children in dozens of countries. It is our privilege to do this for a living. The CPSC ruins the fun and meaning we find in our work. They poison the well by doing damage to a mood ring company. They have attacked me directly, too - but I am prohibited from telling you in this space what they are doing. I want to, but I cannot (yet). And you're next.

This has to end. I am working on it, but you have to help, too. Do you want to be the next "mood ring" company? I don't. Please HELP me. Please HELP yourself. We (you) cannot sit on our hands at a terrible time like this.

CPSIA - Am I a Tea Partier?

I have heard the comment that I am too harsh on the Democrats and risk marginalizing myself as some sort of Right Wing Nutjob, a Tea Party extremist.

Is this a fair criticism?

My POV is that this criticism fails to take into account my experiences in this business tragedy and does not consider that my views and my anger did not come from the sky - they were built, block by block, by Congressional Democrats and by the leadership at the CPSC.

I won't defend my being perpetually angry at the agency or Congress for their defiant stance of indifference. [Some Dems cloak their indifference in words of sympathy, never matched by actions consistent with their purported tears. I follow actions, not words, and prefer to ignore insincere blubberings unless something concrete is offered. It never is.] I have been working on this project for three years now, and actively working to get the CPSIA fixed for almost two years. That's a punishing death march, guys, particularly since almost everything I have written or pushed for has been disregarded or completely ignored. It seems improbable that I have been wrong about everything without exception for two long years - even a blind squirrel finds the occasional acorn. Hence the anger and the mounting frustration.

Of course, there are other sources of anger and frustration. The process of implementing this flawed law by the CPSC has destroyed so much good in the process. What we have left is much less protective of public health or well-being. The constant media pandering and the relentless positioning of businesses and business people as evil societal elements that must be controlled is, frankly, embittering. Under the pressure of this relentless drumbeat, it is hard to not feel unprotected and in great danger. We have no defenders and are on notice that we are prime suspects.

No defense, but please someone, tell me, what am I supposed to do now? Grin and bear it? Give in and pretend everything's okay? If you think either option is realistic, you really don't understand my situation or my motivation. These aren't realistic options. I am fighting off doomsday - grin-and-bear-it doesn't work when the Grim Reaper is coming your way. And there are no days off.

So if I can't go along to get along and if the CPSC and Congress have proven beyond a shadow of a doubt that they have made up their mind and have no interest in me or my problems, what options are left to me? The process of advocacy that I have been practicing and that I have been financing hasn't produced enough results - we are still in the soup. If I can't give up and if what I am doing just doesn't work - logic suggests I need to do something else.

So what I have been doing is telling the truth - it's the Dems who have done all this and it's the Dems who refuse to fix it. It's the Dems who won't listen and it's the Dems that refuse to acknowledge their errors. If everyone in Congress voted to save their job by supporting passage of the CPSIA in August 2008 rather than face reelection attack ads, that was then and this is now. The Dem leadership has chosen to ignore the OBVIOUS and continue to deny that anything can or should be done in this matter. There's nothing wrong or politically-incorrect about speaking the truth - and that's the truth. We are where we are because of the Dems. They own it.

If the politicians who are busily engaged in snuffing out our business enterprises won't listen and cannot be influenced, then what's left to me? I must enter the political arena to specifically target them for removal. And that's what I am doing. It's only fair - they act like they want my business dead. So we need to put different people in their place. And we need to do it right away.

If this makes me a Tea Partier or a Right Wing nutjob, so be it. My head is not bowed. My customers, my suppliers and my working associates and partners know where I stand. I am fighting for our business life and will not rest until the people responsible for this mess are brought to justice.

CPSIA - Why Hasn't Data Changed Opinions at the CPSC?

I have recently published numerous blogs on CPSC recall data documenting the dearth of injuries and deaths from lead in the past decade. I am certainly not indifferent to the suffering of any victim, however, I note that data on injuries is a way to measure the urgency of the threat. There has been one death and three asserted injuries in the last eleven years from lead. We are a country of 300 million-plus and have a $15 trillion dollar economy - presumably, we need to prioritize.

I have also provided CPSC data on injuries and deaths from other hazards, such as cadmium (zero), pool drains (very low, but greater than lead), phthalates (zero) and pool and spa (extremely high, more in an average day than in a decade for lead, phthalates and cadmium put together). In fact, I documented the distribution of injuries and deaths among all recalled children's products over an 11-year period. At one death and three unverified injuries, lead comes in last among all recall categories with more than eight recalls over 11 years (lead and lead-in-paint accounted for 248 of 899 total recalls in the surveyed period of time). Literally every significant hazard facing children in consumer products is worse and much more dangerous than lead according to the CPSC's own data.

I have also shown that the data on recalls publicized by the CPSC tends to magnify the scale of lead recalls, making the recalls seem more threatening and the implied hazard more urgent than they really are. Among other things, the quantity of recalled products typically (if not always) includes inventory in the possession of the manufacturer. This inventory NEVER MADE IT TO THE MARKET. In addition, recall data also includes product still on the shelf at retailers. This inventory, which was sold by the manufacturer to the retailer, was never sold to consumers. Inventory in the possession of the manufacturer, its factories or its retailers has no conceivable potential to harm a child. The amount of product in the hands of consumers could be tiny. Please consider these facts when evaluating the claims of consumer groups on the "poor" effectiveness of recalls. The math gets all tangled up, doesn't it?

Call me crazy, but this seems like some rather shocking data. The deaths and injuries from lead and phthalates are so small that they are trumped in a single day by pool and spa deaths and injuries. [The reported deaths and serious injuries from pools and spas since Memorial Day, at least 210, are AT LEAST FIFTY TIMES THE NUMBER OF DEATHS FROM LEAD IN THE LAST ELEVEN YEARS. In other words, it will take more than 500 years for lead to produce as many deaths and serious injuries as the last 53 days from pools and spas (if the lead death and injury rate doesn't taper off).]

And yet the CPSC seems to have no interest in this data, their OWN data. Why? Well, the best I can say is that they believe every life is precious and thus, economics cannot be considered when designing a response to the hazard. I did not invent this view of the consumer group-dominated Commission - I asked this very question of a person in a position to know, and got this answer. So there you go.

Does this hold water, that economics are irrelevant and should never be considered? First, on the relevance of economics, I think that's a silly proposition. Of course economics matters. Please don't feign shock or disgust. Let's do an exercise: How much shall we spend to save a life? A child died from swallowing a lead charm on a single bracelet several years ago. This is the lone reported death from lead or lead-in-paint from a consumer product in at least 11 years and has been cited as a justification for the CPSIA maelstrom. In this space, I have adopted a proxy estimate of $5.6 billion in annual CPSIA compliance costs for the children's product industry (based on a submission of the HTA to support their Congressional testimony).

So, is $5.6 billion the "right" amount to spend annually to prevent the next loss of life? Sure, you say, spend the $5.6 billion each year, every life is precious. Okay, does the cumulative spend of $61.9 billion over 11 years (to match the period in which the one death occurred) sound a bit extreme? Can you think of anything else that might be a better use of $61.9 billion? [Like a new national highway system? A new electrical grid? A few more cruise missiles? A few months of national health care?] I would note that $62 billion is double the provisional losses of BP from the Gulf oil spill. That's a lot of coconuts, if you ask me.

Should we spend $61.9 billion on every cause of death? What about causes of death that are "worse", meaning that loss of life is greater? Should we spend proportionately? If our resources are limited (I used to think that was relevant but lately, who knows?), how should we allocate our limited dollars? Is it okay to prioritize? Does lead make the cut if we try to allocate rationally?

It is worth noting that the value of a life or an injury is a heavily-litigated subject. It is a staple of tort litigation to estimate damages by assessing the economic value of a life or an injury. The U.S. government also engages in the same analysis. Certain agencies are forbidden by law to issue regulations that do not show an economic profit, that is, the cost of the regulation must be outweighed by its economic benefits. [Money spent or saved by the public versus the government is not relevant to this analysis - a dollar's a dollar no matter who spends it.]

The benefits of the regulation are calculated by assessing the economic value of lives and injuries. To regulate otherwise is economically irrational - which is where the CPSC seems to be. More to the point, economic irrationality is against the weight of U.S. jurisprudence, not to mention laws limiting the ability of the government to issue regulations. Hate to sound trendy, but it is Big Government completely out of control to contend that lives are "priceless" and to assert that the cost to avoid injury or death should not be limited by economic considerations. Please note that the EPA assesses the economic "value" of a life at $6.1 million. For even more perspective, the EPA says that one IQ point lost to lead is worth $8,346. CPSIA compliance costs are not less than $5.6 billion EACH YEAR. Do the math.

Okay, this is bordering on insulting your intelligence. Yet, astoundingly, the CPSC doesn't get it. What about the behavior of the CPSC itself - do they ever consider economics? Again, at the risk of insulting your intelligence, of course they do. For one thing, they themselves have limited resources. They can't do everything they want, and have to make choices. They have a BUDGET. They can't hire everyone they want, can't inspect everything, can't process every claim immediately and so on. They also make practical judgments on some things. I reported recently the tarring the Commission received for making a practical judgment about how to implement the pool drain law. In that case, they chose to agree with the recommendations of industry, which is heresy in some circles . Certain members of Congress live in those circles . . . . No doubt the savaging of the Commission over that minor practical judgment will have the intended effect of eliminating whatever shreds of common sense or backbone extant at the CPSC and the Commission. Perhaps this is the end of their consideration of economics . . . .

Where does this leave us? Come on, guys, right where we were for the last two years! We continue to rail against this awful law, and the CPSC gets progressively more and more stone deaf. I feel increasingly like I am mumbling to myself, especially when they won't respond to their own data or other data-driven rational arguments. Given that the Dems have made their name by being totally deaf to the legitimate concerns of industry, what choices are left to us? I am turning more of my energies to the 2010 Midterm elections. I hope you will also do what you can to change the dynamic in Washington. You've seen what these people have done in the last 18 months. Ready for more?

I'm not. And I am doing something about it.

CPSIA - Schakowsky's Opponent Has the Horses!

I recently saw this impressive video of Joel Pollak, the young man running as the Republican candidate for Illinois' 9th Congressional District currently occupied by Rep. Jan Schakowsky.



It is hard to get used to the idea that we could have someone this bright and clear-thinking in Congress. Of course, until the CPSIA passed and I began beating my head against a wall, I wasn't that cynical.

Let's hope the constituents of the 9th district give a fair hearing to Mr. Pollak and explore the advantages of making a change in leadership. Ms. Schakowsky has represented this district since 1999. Enough damage has been done.