New Laws... Bad for Small Business... Bad for Employment Outlook

With the coming of 2011, the battered small business sector has even more to contend with. Thousands of new laws and requirements have been concocted mainly by lobbyists paid for by larger corporations to corner the market and raise the barriers of competition. Just like on January 1st 2010, thousands of new laws are on the books. It sure pays to be politically "well connected"! The good news is there is a solution! And it's already on the books!

In 2008 we saw this scheme in action with the debacle created by the "toy bill", the  Consumer Improved Product Safety Act of 2008. Which was spurred primarily by Walmart's importation of defective and dangerous Chinese toys. The company that benefited the most from the bill was Walmart. Surprisingly or not, this was at the cost of many smaller toy businesses, craftsmen and entrepreneurs who simply had to leave the marketplace because of the inability to raise enough money to comply with the new rules and of course the threats of fines and jail time if they didn't. With this kind of success, more large businesses and corporations send lobbyist to continue this in their field. This is the trend in industry after industry. And not surprisingly, with the number of lobbyist at an all time high... the number of laws continue to increase proportionately.

Unfortunately, with over 70% of the employees in the US being employed by small business, this development doesn't bode well for future job opportunities.

As government has become more and more corrupted by this it is becoming increasingly easy for large businesses to prey upon smaller segments simply by calling up their pals in government, passing new laws and raising the barriers to competition. Then sicking which ever police force has jurisdiction on the competition. From haircuts, to cheese, to coffin making government has been used to restrict competition and in particular squeeze out the little guy. Boy, the mafia would be proud of these tactics!

Believe it or not our forefathers foresaw this. The US Constitution had certain built in features that restricted this kind of law making. But more importantly, they adamantly opposed a "Democracy" in favor of a Republic. Democracy was opposed because it represented "mob rule" which ultimately leads to tyranny, while a Republic representing an adherence to the Rule of Law of which the ultimate law being the US Constitution.



They also understood the power of a Jury. John Jay our first Chief Justice clearly pointed out that juries not only had the power to determine the facts but also to judge the law and to nullify laws that didn't serve the public interest. Thus the 7th Amendment made it essential that in disputes of more than $20, individuals have the right to a jury trial. Ask an attorney or judge today about jury nullification and they will either claim they have no idea or that concept is "outdated". The beauty of jury nullification is it puts the power of judging laws back in the hands of the people. Being that all juries have to come to a unanimous decision, this not only sets the bar very high for the quality of laws passed, but it also hands each individual a great deal of power. This is why judges and law professionals steer clear... they make a living off of the law's complications and people's ignorance!

While the average American is kept in the dark about jury nullification , the beauty for corporations in using the government is... people have been lead to believe they can't sue the government unless the government allows them to (a claim of Sovereign Immunity (talk about an outdated concept)); they can keep things secret and claim "national security"; they can use public employees to harass the competition, as mentioned above; and most importantly (as we've seen in bailout after bailout) they can get the government to transfer the risk and responsibility of any cost to the taxpayer. Have a product that's got questionable safety? Get the government to say it's ok! You've just reduced your liability and risk! And that product that you couldn't sell has now become an income stream!

Over the past 100 years or so, the function of the government has become so overbearing and contorted that it truly is amazing we have an economy at all. What few seem to grasp or understand is the basic element of government: force. Government's credo is effectively: If you don't do what we want, we have a bullet or a jail cell for you. Force is tyranny. Which is in direct opposition to the primary principles of freedom and liberty. The principles that founded the nation. In fact, Ben Franklin's suggestion for the Seal of the USA included the words "Rebellion to Tyrants is Obedience to God"

Freedom from tyranny is what made the United States into the most powerful economy in the world and the misunderstanding of that is what has brought us to the verge of economic ruin. The good news to take home is we can change it back or... make it better!



The bottom line is everyone involved in business understands two concepts very clearly. Incentives and Risk. What those at the top have figured out, through the concept of government and it's supposed sovereign immunity, they can increase incentives to themselves while at the same time reducing or shifting there risk to someone else. And once it's a law they can use force to get their way. Only knowledge spread far and wide will stop this immoral and unjust act and restore prosperity to our shores.

Toy Bill turns into Toxic Mess? - Article

New Laws Govern Guns, Web, Banks - WSJ Article

Business Laws Small Businesses should Worry About - Article

Health care law's massive, hidden tax change - CNN Money Article

New law creates headaches for property owners -  Examiner Article

***Update***
Here's a perfect example of government destroying small business. The EPA vs. farmers.



Why small business isn't hiring and won't be anytime soon.

***Update*** March 30 2011

Poll reveals people see regulations damaging small business and job prospects