Small firms say regulation is fastest-growing concern
It’s been exactly three and a half years since Barack Obama was inaugurated, and here are two things that folks on the left have been saying about the economy every day since then: It’s Bush’s fault, and the problem is a lack of aggregate demand.
Here’s what small businesses have to say about the situation:
Chart by Dan Clifton at Strategas Research, via the AEIdeas blog
Keeping in mind that these are what small firms are “most concerned” about, meaning many likely have concerns to varying degrees about all three, a few things jump out at me:
1. In 2005, these three concerns accounted for a little more than one-third of small firms’ biggest worries. Today, they combine for about 60 percent. That suggests to me that these firms have less time and energy to devote to specific concerns about growing their business.
2. After shooting to the top in the second half of 2008, concerns about sales plateaued for about two years. Those concerns have been falling pretty steadily for the past year and a half.
3. Concerns about regulation, which more or less mirrored those about sales from 2005 to the start of 2008, began a steady ascent in 2009 and have almost doubled since then.
4. Concerns about taxes have remained fairly steady over these years.
5. At the beginning of 2009, the sum of concerns about regulation and those about sales was in the neighborhood of 40 percent — pretty much the same as today. But the division between them is starkly different: Whereas there were three small firms concerned about sales for every one worried about regulation then, now the two are dead even. In other words, worries about sales have been gradually replaced by worries about regulation.
6. If current trend lines continue, both taxes and regulation will soon rank higher among small firms’ concerns than sales.
Even if one wants to credit Obama’s “stimulus” package with the decrease in worries about sales — totally ignoring the effects of the Federal Reserve’s ultra-loose monetary policy — this graph clearly shows why improved demand hasn’t shifted the economy out of neutral: Increased regulation has stifled the recovery we might have had.
Small firms are generally credited with the bulk of job creation in this country. So the question this information puts to voters is: Which candidate do you expect to do more about the most pressing problems faced by small firms — Barack Obama or Mitt Romney?
– By Kyle Wingfield
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575 comments Add your comment
F. Sinkwich
July 20th, 2012
6:38 pm
“SIX hours and not one of the brilliant posters here have taken up my challenge to put forth a list of ten small business/economy strangling regulations promulgated by the Obama Administration.”
Okay, fil, I’ll bite.
Lots a times it’s the regs that aren’t out there that are the most damaging to business, but are in the pipeline.
There are still more than 150 regs outstanding for Obamacare and over a hundred for Dodd-Frank.
Uncertainty abounds.
It’s a killer environment for business expansion.
But thanks for playing.
Thulsa Doom
July 20th, 2012
6:38 pm
Filter,
I just now saw your open challenge. I can’t speak for others but I know increased regulation has dragged my business down. Hasn’t put me out. Its just made life more difficult and a pain in the ass with extra compliance and rules.
But I did just provide an example of how regulation bankrupted hundreds of U.S. banks back in the 30s. You asked for 10. I gave you an example of several hundred in just one industry that went under due to regulation.
Hillbilly D
July 20th, 2012
6:39 pm
Thulsa @ 6:34
Yes but we’ve also gotten to see the downside of big banks, too.
As somebody wrote in the Vent the other day, “Give a man a gun and he can rob a bank; give a man a bank and he can rob the world”.
sirwinston
July 20th, 2012
6:42 pm
No matter what is said about the trend of small businesses, it started in the last 8 years with President Bushes and his administration lying to the American Citizens about Weapons of Mass Destructions or (WMD) which lead to wars that last for years. Then there were all of these unprofessional Real Estate Agents and Real Estate Companies, couple with these cheating and greedy banks making out mortgage to people who were lied to; could not afford home loans, etc., that got all of us into this great big mess that has ran over for years. Everything begun to fall when President Obama was running for office and when he took office. So none of this really has anything to do with him…..but he say, the bucks stop with him and he is dealing with it in a most professional manner. Now those of you who know what those big banks have done to you and your 401k, why are you still carrying around one or two of their bank credit cards in your possession? I am not stupid, I have not going to let someone rob me and then carry around their card and pay them for what they stolen from me. They made you and millions of others to suffer; took your home, cars, put on the streets, etc. I do without any of those banks credit cards, I am not going to be sucker into their arena, paying them back for years for something they actually owe me for. So all of these small businesses, don’t plan on getting back on top until you sit down and see what the banks have done for you on your behalf. then asked yourself, why can’t I qualify to get loan or build my small business, it is the greed that hamper and keep banks in business over your hard earn dollars that you make and can’t enjoy because yo have to pay it all back to them! Also remember this, Sadaum Husain, (excuse the spelling), and his two sons was killed for nothing because of the lies that was told about WMD in both of the Bushes President era.
Thulsa Doom
July 20th, 2012
6:44 pm
Hillbilly D,
No doubt. There are downsides also but I’ll take a bank that is going to stay in business over one that could fold with the latest crop failure. Besides credit unions is what I’ve always gone with even though I deal with a bank right now. Much friendlier than banks.
md
July 20th, 2012
6:45 pm
“They are also have a 10 year life, which few people know but how many folks are going to spend $3-4K to change out airbags on a 10 year old car?”
Hence the reason I had to “throw away” a car recently……the damage from the accident was repairable…..the cost of installing a new airbag sent it over the top………
Thulsa Doom
July 20th, 2012
6:49 pm
” Now those of you who know what those big banks have done to you and your 401k, why are you still carrying around one or two of their bank credit cards in your possession?”
Sorry but my bank has never done anything to me. Nor to my 401k which has nothing to do with them. Get off the W tirade. He is not in office anymore. Furthermore if you look at economic history typically the deeper the recession/depression the greater and steeper the recovery. Only under obama has this nation had such a poor, anemic recovery. And btw the recession officially ended 6 months into his presidency. That doesn’t explain poor economic performance for the 3 years after it ended.
md
July 20th, 2012
6:49 pm
“Price out a funeral”
Bad example……that one’s coming at some point no matter what…….
Thulsa Doom
July 20th, 2012
6:52 pm
” it is the greed that hamper and keep banks in business over your hard earn dollars that you make and can’t enjoy because yo have to pay it all back to them!”
We must come from 2 different worlds. In my world when you borrow money you pay back the loan. As for greed if the banks are that greedy don’t deal with them. The last bank loan I had was also at a reasonable rate. Its not as if I was dealing with titlemax sir.
MarkV
July 20th, 2012
6:52 pm
The question of business regulations is similar to the question of spending. With the exception of people too crazy to make a sense to debate with, it is not about whether there should be regulations, but which regulations. The conservatives usually hide beside such expressions as “as few regulations as possible,” which are essentially meaningless.
Thulsa Doom
July 20th, 2012
6:52 pm
I’m out. Ya’ll have a good evening.
yuzeyurbrane
July 20th, 2012
6:54 pm
Now is a small businessman like the small investor? Shorter than 5 ft.? I know. Bad joke. But a valid point. It is a cliche’ thrown around but who exactly do you include? And what is the source of your impressive chart? Its bonafides? Even your own analysis talks about feelings, not facts. The facts are that you are not going to increase production or your sales force if your current production is more than adequate to meet the demand. Yet all you and your ilk keep proposing is more tax breaks for the wealthy, excuse me, the “job producers” to make them feel more confident. What a bunch of illogical hooey. Kyle, stop tilting at the economics windmill—you show your intellectual shortcomings.
Libtard defined
July 20th, 2012
6:54 pm
A liberal who believes the government is the answer to your problems.
The Austrian Brotherhood
July 20th, 2012
6:54 pm
Kyle, which economist(s), living or dead, do you believe has the most credibility?
md
July 20th, 2012
7:05 pm
winston….those are some mighty fine excuses there, and I bet you have even more.
Can you show me just one person that was forced to buy a house? Just one will do.
As for the credit cards……you are aware that everybody’s rates went up in direct relation to the credit card bill passed by Obama….don’t you?
And filter, you can add that bill to your list of regulations……….
Filter
July 20th, 2012
7:28 pm
Thulsa,
I understand your point. My point, however, is that I hear an awful lot of scary talk about the Obama administration promulgating regulations that strangle business. So my question was narrowly presented to see if I could get a list of 10 of that specific type of regulation.
So far, outside of broad, general references to prominent bills like Dodd-Frank and the ACA I have had no takers.
I understand the necessity of political propaganda, but i do believe that if you are going to employ the propaganda it needs a specific basis in a core truth. From that core truth comes the propaganda message. Here it’s a self consuming “common knowledge” of which no one seems to have any specific, actual knowledge. People know the propaganda but they don’t understand the underlying basis. Therefore it’s just empty talk.
Another sort of related example is all the talk of “repeal and replace”. I get repeal, what is the replace. I have never gotten an intelligent response to that outside of broad generalities of “let the free market work”.
Michael H. Smith
July 20th, 2012
7:29 pm
While we are talking about conservatives making non-sense arguments on which regulations to keep perhaps one of these sanctimonious Marxist Fascist Socialist all government gurus can enlighten us on what isn’t regulated by the wunerful BIG FEDERAL GUB’MENT?
Oh and by the way, I can make a very sensible list of “specific regulations”. In fact, that list has already been written long ago by people far smarter than any of us and that includes you on the left. That list can be found in the United States Constitution Article 1 Section 8.
Enjoy your “enumerated” reading assignment liberals.
Michael H. Smith
July 20th, 2012
7:32 pm
Bet I’m not going to get any takers either on my question: What isn’t regulated by government?
MarkV
July 20th, 2012
7:34 pm
“Oh and by the way, I can make a very sensible list of “specific regulations”. In fact, that list has already been written long ago by people far smarter than any of us and that includes you on the left. That list can be found in the United States Constitution Article 1 Section 8.”
A nonsense par excellence.
Michael H. Smith
July 20th, 2012
7:39 pm
Free market?
If anyone finds it let me know where it is located, perhaps in a vacuum, some lab, or deep outer space?
Yeah I know, the phrase Free Market sounds good in talking points on fox news but so do fairy tales until you mature enough to face reality. The market is both manipulated business and regulated by government.
Samantha
July 20th, 2012
7:39 pm
We can’t be concerned about regulation. What difference does regulating business make since government and the workers are the source of all economic growth. Businesses are just parasites to be milked…err…taxed and kept under control.
How far we have fallen!!
Michael H. Smith
July 20th, 2012
7:42 pm
A nonsense par excellence.
Confession does the heart good but I’m not your priest and you have answered my question and you certainly cannot rebut my answer with that childish retort.
Michael H. Smith
July 20th, 2012
7:45 pm
correction….and you haven’t answered my question
Michael H. Smith
July 20th, 2012
7:51 pm
How far we have fallen!!
Oh about as far outside of the Constitution as you can get, thanks to the so-called progressives who have dismissed any idea of state and individual rights.
Today’s Rebellion News – July 20th 2012 | Rebellion News
July 20th, 2012
8:00 pm
[...] Small firms say regulation is fastest-growing concern [...]
Rafe Hollister, suffering through Oblamer's ineptocracy
July 20th, 2012
8:10 pm
After reading all these comments, I think I finally figured out why there are only about 22% of the people in America, who ID themselves as liberals. I think a great deal of people, who would have sired liberals were previously killed by marauders.
Can’t you just see it now. Guy runs across a hill and says, run for your life, Hannibal is coming with 150 elephants and warriors. Conservatives run for the swamps. Liberals gather around and say, are you sure those were elephants and not big horses, are you sure about the 150 number, have you had your eyes checked recently? Be specific man!! I think that is too many elephants to have crossed the sea. Surely, the gov will protect us if this foolishness is real. What is your source for these lies? Are you anti-government? Why would they hurt us? Are they armed? Aren’t spears and arrows illegal? Whap!
Bruno
July 20th, 2012
8:25 pm
Are we officially off-topic yet??
For my old friend josef:
http://www.youtube.com/watch?v=1jg8jf9oTjw
Bruno
July 20th, 2012
8:29 pm
I was 21 years when I wrote this song…….
http://www.youtube.com/watch?v=y1Bl4BnU_NI
Bruno
July 20th, 2012
8:33 pm
I guess I’m just in a Simon & Garfunkel type of mood……
http://www.youtube.com/watch?v=lO9Ild2cvdg&feature=related
For @@ ^^^^^^^^
PlatinumBlack
July 20th, 2012
8:37 pm
Tonight I am playing the “What the heck does that lyric mean?” game:
I wanted to be with you alone
And talk about the weather
But traditions I can trace against the child in your face
Won’t escape my attention
http://youtu.be/NYx8IHJ9dWE
Bruno
July 20th, 2012
8:40 pm
Well, if we’re going with Tears For Fears, this one comes to mind. Must be the mood I’m in.
http://www.youtube.com/watch?v=96025-qG3C8&feature=related
Mr_B
July 20th, 2012
8:43 pm
Evening, Bruno. You are missed next door.
How Inciteful Is That!
July 20th, 2012
8:43 pm
Here is a prime example of how regulations are destroying small business.
PlatinumBlack
July 20th, 2012
8:45 pm
Bruno, your post inspires this one of me:
http://youtu.be/av11y3tm_ek
Bruno
July 20th, 2012
8:47 pm
Evening, Bruno. You are missed next door.
Hey, Mr. B, great to see you. I guess all good things must eventually end. Hope you and yours are well.
Put up a song for us.
Mr_B
July 20th, 2012
8:49 pm
OK. While your in a Simon mood.
http://www.youtube.com/watch?v=FZM0U6ZVxz0
Bruno
July 20th, 2012
8:50 pm
Inciteful–This one is for you:
http://www.youtube.com/watch?v=QZ-bq4E2AKc
Mr_B
July 20th, 2012
8:51 pm
Damn! “You’re” not “your.” I’d ream a student for that one.
obozo
July 20th, 2012
8:54 pm
Happy ramadan!
allah akbar!
Wait, is moochelle eating pork? Again?
Mr_B
July 20th, 2012
8:55 pm
“Tenneco Automotive Operating Co. Inc. is a division of Tenneco Inc., a global transportation components manufacturer headquartered in Lake Forest, Ill., that has more than 80 facilities on six continents.”
Small business? I hope you’re being sarcastic.
PlatinumBlackAsTheDarkKNightRises
July 20th, 2012
8:57 pm
OK. While your in a Simon mood
Mr. B…
For thy tuneage, we gratefully thank thee.
PlatinumBlackAsAnneHathaway'sCatSuit
July 20th, 2012
9:00 pm
Do you have to smell my finger?
http://youtu.be/G6Kspj3OO0s
Bruno
July 20th, 2012
9:03 pm
So where are josef, TBS, JamVet and Reporter tonight??
Mr_B
July 20th, 2012
9:08 pm
Jamvet was here earlier: josef and TBS were next door.
josef
July 20th, 2012
9:10 pm
BRUNO
Thanks….tried to make a link, but I’m in moderation here, so going back home…
Bruno
July 20th, 2012
9:14 pm
I like this Coldplay song:
http://www.youtube.com/watch?v=1bJMxhvVf0o
Bruno
July 20th, 2012
9:15 pm
but I’m in moderation here
Thanks for trying, josef.
Bruno
July 20th, 2012
9:20 pm
Here’s the Coldplay song I was looking for:
http://www.youtube.com/watch?v=MIHZBKl7KPw
Confusion that never stops
The closing walls and the ticking clocks gonna
Come back and take you home
I could not stop, that you now know, singing
JDW
July 20th, 2012
9:21 pm
@tiberius…”Further, the Post goes on to say: “Still, it’s worth noting that the number of “economically significant” regulations — meaning those that are expected to have a positive or negative impact on the economy of at least $100 million — has increased from 126 during Bush’s last three years to 177 during Obama’s first three.””
Yep and since the net impact is less than in prior Republican Administrations Sunsteins statement is correct and your opinion is not.
PlatinumBlack
July 20th, 2012
9:27 pm
Tori Silent All these Years:
http://youtu.be/1XYhr6N0bBI