OBAMA’S MALAISE: Rampant Regs Stymie Economic Recovery

Posted on July 21, 2010 by LCT Staff - Also by this author - About the author

The Obama Administration’s ideological obsession with issuing complicated and costly rules on businesses is derailing job creation, prosperity, and economic security.

WASHINGTON, D.C. — The avalanche of new and proposed rules and regulations introduced by the Obama Administration and its federal agencies is creating great uncertainty among businesses and stifling job creation, according to business owners and academia attending a July 8 forum hosted by the National Chamber Foundation (NCF), the U.S. Chamber’s public policy think tank.

“We’re not hiring because we don’t know what’s going to happen,” said James Vitrano, general counsel and vice president of corporate affairs at New Orleans-based Blessey Marine Services Inc. This year was the first that Blessey’s employees did not receive raises, noted Vitrano, speaking as a panelist at the NCF event. The company is also reviewing its employee health care coverage in light of the new health care law.

Vitrano says that two departments at Blessey Marine Services are devoted entirely to scouring the Federal Register notice for possible regulations. He estimates that the 700-employee company faces $40 million in additional costs due to regulations from the EPA, Coast Guard, and EEOC.

“The Chamber has an initiative calling for business owners to ‘Dream Big.’ The biggest threat to dreaming big is that nasty alarm clock in a hotel that goes off without warning at 3:40 AM,” Vitrano said. “That alarm clock represents every administrative regulatory agency in this country. It wakes up my CEO who is dreaming big. Congress is the hotel manager who won’t rein in those agencies that are keeping us awake.”

The ideal solution would be to reduce regulations, Vitrano said. But at the very least, small business owners should have some recourse to fight regulations, and the federal government should be held more accountable for the consequences of burdensome regulations.

Administrations of both parties are responsible for the growing regulatory burden, says Christopher DeMuth, a leading scholar at the American Enterprise Institute (AEI) and a panelist at the regulatory forum.

President Bush expanded his regulatory reach in response to the Enron scandal, the Sept. 11, 2001 terrorist attacks, and the financial crisis that began to take hold in 2008, DeMuth noted.

The Obama Administration continues the trend of reactionary regulations, DeMuth said, and is “enthusiastic and unconflicted” in its pursuit.

“The trend of regulation growth is one that should worry all public-spirited citizens,” said DeMuth, who released a paper, Contemporary Conservatism and Government Regulation, at the event.

Increasing regulation is every bit as debilitating as tax increases but is more acceptable to politicians and the general public, added Ted Gayer, co-director of economic studies at the Brookings Institution. “It’s a paradox — everybody hates taxes but are ok with regulations and subsidies,” he said.


Source: Free Enterprise newsletter, U.S. Chamber Of Commerce

View comments or post a comment on this story. (0 Comments)

More News

Uber Appears To Be Losing A Big Case In Europe

Should the TNC be treated as a taxi service subject to the same safety and employment rules?

Drivers File Preemptive Labor Suit Against Uber Chiefs

The suit alleges disgraced ex-CEO Travis Kalanick and co-founder Garrett Camp advised the company to misclassify drivers.

Virginia Operators Fight TNC Bill And Unfair Tax

The Virginia Limousine Association gears up to repeal TNC registration relief and unfair vehicle tax advantage.

Inside Travis Kalanick’s Resignation As Uber’s CEO

At a Chicago hotel, two venture capitalists presented him with a list of demands, including his departure by the end of the day.

Push To Close Long Island TNC Sex Offender Loophole Begins

Uber and Lyft can start operating in Suffolk County on June 29th.

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

LCT Store

LCT Magazine - July 2017 $12.95 COVER STORY: * Why These Titans Work So Hard to Give it Away * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close