How Will Government Regulation Impact Business?
Regulation Nation panel weighs in
- Duration 5:14
- Date Sep 10, 2011
Regulation Nation panel weighs in
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Welcome back to FOX & Friends as far as business goes President Obama says we have as a nation we have to change -- ways.
Pass this jobs bill I'm starting tomorrow small businesses will get a tax cut that they hire new workers or if they raise workers' wages.
Pass this jobs bill and all small business owners will also see their payroll taxes cut in half next year.
But will president Obama's job -- help or hurt businesses for just keep it neutral.
We're asking our special economics panel this morning rob -- it was an -- for -- at a small business owner.
We Kaufman is -- chief market analyst for John Thomas financial and call penalties you know -- She's a Fox Business news -- nice to see all of you this morning.
-- started this big question -- start review -- -- small business owner you your polls on this will small businesses start hiring as a result of this jobs plan.
Well if you look at the -- jobs act that Obama passed about a year and a half ago it basically had to -- effects on the economy.
People were not hiring I don't think that a plan that has half the amount of money and effort put towards it is gonna get -- -- I'm not I'm -- -- my organization but a lot of my clients and represent over 3000 small businesses are not really hiring -- what are they say is the biggest problem.
Well part of it is access to capital -- look at some of the regulations that are put down for example to Dodd-Frank act that had been passed.
There's difficult access to capital because small and medium sized banks have very high capital reserves remember the thirty billion dollars that was supposed to be let out to -- community banks right back right now only a billion dollars of that money actually gotten where it's supposed to -- Money not flowing -- I'll ask you a similar question you talk about the regulations President Obama has identified at least He says we don't know specifics 500 or so regulations that He wants to get rid of or at least trim back and try to help small businesses will that be enough.
Well first of -- Obama has a history of saying he's gonna do things in -- does the opposite.
So I think the whole speech in a lot of ways was pure grandstanding on his part regulations at this point the regulatory burden.
-- is about 12% of our whole economy one point 75.
Trillion dollars some economists of cutting him some slack -- review some quotes here mark sandy from Moody's saying that this could -- hundreds of thousands of jobs.
Other CEOs seeing similar things about the jobs package and of course the White House the -- quick to link to them on their White House blog this morning.
I would love to see it bring on the hundreds of thousands of jobs because.
I can tell you I'm waiting.
America's -- what we've been seeing out of the president the administration has been a lot of talk and not so much action in the labor force peaked in 2008.
It's been shrinking trillions of dollars in spending.
And now all these businesses small businesses are paying taxes they are nervous it's a climate of fear and uncertainty.
I don't know I think we had a bunch and nonbelievers at this point.
It's something rob that we'll break that uncertainty I mean is there's something hearing from my father -- -- -- small business and thanks.
Well least -- tax breaks that for him could encourage healing individuals off.
This could actually get him to hire again but when you're getting a 4000 dollar tax credit.
And it's gonna cost you because of regulation 7000 dollars in regulation -- the math doesn't add up.
The last time I checked if you don't have orders lined up toward hiring new employees you can give somebody half their pay and it would make no difference at all.
The things that are included in the bill that they're suggesting that get passed.
The trust with the American political system right now has been broken and until that trust is -- -- gained small business -- -- not gonna hire.
-- you talk about.
You talk about some of the -- -- that we're gonna pay for this.
You're talking about this could cost economy -- regulations over one point seven trillion dollars annually that's current that's current up is it going to cost more.
Of course they've got more more regulations you know in the last.
The the regulatory bodies.
Their budgets they have grown 16%.
Just over the last three years.
The economy certainly hasn't grown 16% over -- three years.
So and also getting back to these projections you mentioned Mark Zandi and Obama's own projections.
Nobody has any faith at all in the government's projections of job creation Obama has zero credibility look at the past projections.
Because that was here here you down on Wall Street all week understand they're talking to traders is that what you're hearing -- I talk to traders I talk to guys who own small businesses on Wall Street not everybody on Wall Street is Goldman Sachs and I can tell you they are fed up they think he's a one termer.
They're Don -- nonbelievers they had the psychology of the market is terrible many of our stocks that we all own art you know at least 20% off their recent highs.
We're we're in a tough spot at the moment.
All right rob Wayne an -- would thank you so much for joining us to -- hits and one other thing and then we're -- next week on now fox is going to be doing regulation nation so.
All the things that are over regulated everything from.
-- tip ice cream shops we've been covering it and.
Just how it's crushing that it not only the consumer but the business is not able to be innovative -- to check that out of Fox Business Network because there's a lot of rhetoric being flown around right now been interesting to see some specifics thinks the FB and for doing that thanks guys we really appreciate it.
Could appear on the.