Cities And States Stifle New Small Businesses

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Nocturnal

Lifer
Jan 8, 2002
18,927
0
76
So I read an article from a local newspaper and the gist of it was that Obama is to blame for all unemployment and that due to his Obamacare package this is the exact reason why no one is hiring or allowing small businesses to thrive.
 

MooseNSquirrel

Platinum Member
Feb 26, 2009
2,587
318
126
I have a resume that has years of experience in economic and business development at state and national levels. I have also worked with a variety of cities all over the world and their economic development agencies.

Having an ombudsman is a result in no small part of having a level of regulation that is TOO DAMN HIGH!

Hehehe.

If you need a specialist to explain the hundreds of gotchas built into the system, the level of regulation is TOO DAMN HIGH!

If you have to go to the mayor or city council or congressman to by-pass the regulatory burden, the level of regulation is TOO DAMN HIGH!

In the real world, the economic development types are in dynamic tension with the regulatory and tax types. Every deal that I ever did was enthusiastically supported by the ED folks and fought by the regulatory and tax departments. In some places, the ED types do hold sway, in others they are just place holders.

Reducing regulatory burden is a hard thing, but it is NOT TOO DAMN HARD! It requires an expert commission to review every single regulation and to weigh it for positive and negative effect. It is always going to be a balancing act but it has come to a point that a national review at all levels is required for there to be a substantive economic shift.

From the entire taxation regimen through the lowest level permitting, we as a country need to figure out how our way of life became TOO DAMN REGULATED and then we need to start addressing the myriad of intentional and unintentional roadblocks that have become entrenched.

Only a systemic change in focus will work to overcome the inevitable inertia of entrenched bureaucracies and interests.

Good luck with that.

If the free market didn't always shoot itelf in the foot, we wouldn't have all these regulations in the first place.

Also, stop ignoring the elephant in the room in all your posts. Voters elect officials. If they can't be bothered to educate themselves on issues and keep an eye on what their politicians are doing, then too freaking bad.
 

techs

Lifer
Sep 26, 2000
28,561
4
0
If you think its bad in America you should see Germany.
They have so many rules they could only go from the fourth largest exporter behind the U.S. to the second largest exporter behind China in ten years.
 

techs

Lifer
Sep 26, 2000
28,561
4
0
A freer market built this country, a less free market has stopped this country in its tracks.

Such stupid rhetoric!

What's "stopped America" in its tracks is the the concept that we have free trade with a country like China where the government determines wages, the government manipulates its currency to give its businesses a 40 percent discount for exporters, and a country where you can literally poison your workers.

NO amount of "deregulaton" no amount of "free market" bullshit will change that.

You are 100 percent wrong. And by continually repeating what is a false statement that makes YOU the problem.
 

Acanthus

Lifer
Aug 28, 2001
19,915
2
76
ostif.org
I would agree with this article in principle. There are a lot of stupid local laws that intervene with starting a new business and sometimes the insane amount of red tape can kill a start up.

The problem is when think tanks like this actually talk about what red tape they want to cut, they shift gears to a completely different area like taxes, safety regulation, and controls that stabilize critical sectors of the economy.

Removing laws for aesthetics and goofy zoning laws, as well as exclusivity contracts and other things that obviously stifle competition is a no-brainer.
 

glenn1

Lifer
Sep 6, 2000
25,383
1,013
126
Cities and States Stifle New Small Businesses

In an economic climate with few jobs and cutbacks on basic city services such as police protection and firefighting, you would think cities and states would be overjoyed when someone was willing to open up a new business, bringing with him jobs, economic vitality and tax revenues. You might think that, but you'd be wrong.

Instead, cities and states stifle new small businesses at every turn, burying them in mounds of paperwork; lengthy, expensive and arbitrary permitting processes; pointless educational requirements for occupations; or even just outright bans. Today, the Institute for Justice released a series of studies documenting government-imposed barriers to entrepreneurship in eight cities. In every city studied, overwhelming regulations destroyed or crippled would-be businesses at a time when they are most needed.

Time and again, these reports document how local bureaucrats believe they should dictate every aspect of a person's small business. They want to choose who can go into which business, where, what the business should look like, and what signs will be put in the windows. And if that means that businesses fail, or never open, or can operate only illegally, or waste all their money trying to get permits so they have nothing left for actual operations, that's just too bad. This attitude would be bad enough in prosperous times, but in a period of financial strain and high unemployment, it's almost suicidally foolish.

Along the way, the dreams of individuals are repeatedly crushed:

•In Chicago, Esmeralda Rodriguez tried to open a children's play center, paying rent month after month while she waited in vain for the government permits she needed to open her business. After a full year of bureaucratic red tape, she finally exhausted her life savings and closed down for good.

•Worried more about their personal aesthetic preferences than the survival of local businesses, Houston now strictly limits all window signs — inexpensive advertising that is vital for small shops that can't afford to advertise through other media.

•Los Angeles places enormous and pointless restrictions on home-based business. For people who are struggling and can't afford to rent commercial space, working out of the home might be their only option to stay afloat. But in Los Angeles, they had better make sure they don't use their garage, manufacture or sell any products, advertise or violate any of the other myriad laws. Many businesses end up operating illegally, scared to grow their business for fear that the next knock on the door could be a regulator.

•In Miami, an accidental loophole in state law allowed jitney van transportation services to flourish briefly. As soon as Miami-Dade County got the opportunity, however, it shut down the new jitneys and ensured no others would open by requiring any new business to prove it wouldn't hurt its competitors. It even allowed those competitors to object to any new businesses, which is like allowing Burger King to veto the building of a new McDonald's.

•In Milwaukee, Nasir Khan spent tens of thousands of dollars renovating an abandoned hot dog stand and getting permits, only to have them withdrawn when a local alderman intervened. The politician wanted something nicer than a hot dog stand at that corner, and apparently it was better to have no business than one he didn't like.

•In Newark, several long-term businesses just managed to escape destruction. The city tried to use eminent domain to remove one of the few thriving business areas, but new judicial restrictions on eminent domain put a stop to the city's plans. Ignatius Paslis was also lucky. Although the city delayed his permits so that his café catering to Rutgers students could not open until after all the students had left for the summer, he managed to survive until the fall, and now his business is thriving.

•Philadelphia's permitting and licensing codes are difficult enough in themselves, but city officials often seem hellbent on treating the system as a perverse game designed to punish honest enterprise. The government required convenience store owner Ramesh Naropanth to put new gates on his store before it would allow him to sell sandwiches, setting the small businessman back $8,000.

•In Washington, D.C., hundreds of people have waited more than a year to take the required class and test to become a taxi driver. Rather than encourage these individuals to create jobs for themselves, the city has simply stopped offering the class and test.

When governments actually get rid of barriers to entrepreneurship, new businesses open almost immediately. Indeed, removing even a single law can unleash entrepreneurial energy and create hundreds of jobs. Mississippi finally got rid of its requirement that African hair braiders get government-issued cosmetology licenses to practice or teach. The result? A single entrepreneur — Melony Armstrong — trained dozens of women to braid hair and open their own businesses.

In Redmond, Wash., after winning a legal challenge to a law that prohibited mobile signs, bagel maker Dennis Ballen used such signs to grow his business, expand his bagel empire with two new stores and employ dozens of individuals.

America was once known as the Land of Opportunity. It could be again, but not until state and local officials get out of the way of entrepreneurs trying to fulfill their dreams of new business and new prosperity for themselves and their families.

I'm glad, I hate all those cities; the more jobs and businesses they run out the better.
 

Craig234

Lifer
May 1, 2006
38,548
349
126
So I read an article from a local newspaper and the gist of it was that Obama is to blame for all unemployment and that due to his Obamacare package this is the exact reason why no one is hiring or allowing small businesses to thrive.

Sounds like a syndicated propaganda column, though occasionally it's a homegrown ideologue. Got a name?
 
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