New year, new laws
Report: More than 400 new regulations kick in this week
- Duration 9:07
- Date Jan 5, 2013
Report: More than 400 new regulations kick in this week
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Well forget tax hikes in the new year is the bigger worry the 77000.
Hi everybody got David -- welcome to Forbes on FOX let's go -- focus where did Steve Forbes.
Rick younger Elizabeth MacDonald rich car guard Morgan -- and Victoria -- now -- a lot of silly things but there -- some really.
Important rules and regs that are going to affect a lot of small businesses in America right.
Boy you're right about that David you should look at four areas one is financial regulations.
Which makes it's still hard for small businesses to get loans you have the health care regulations that you mentioned obamacare is adding.
Cost burdens everywhere you look behind every nook and cranny.
You have environmental regulations that's a hole I area that's killing small businesses particularly where I live in California California farmers are getting.
Groaned at the expense of protection of certain insects and then you have labor regulations last year we saw the national their little -- -- labor relations board to war against Boeing's so.
He added -- a lot but adds a lot of uncertainty and it paralyzes new hiring.
Now Rick -- the president claims that he speaks for small businesses but aren't the small businesses.
The ones who were particularly hard hit by always -- rates actually now -- I'm always amazed some people say that I was a small businessman for a very long time.
Am I gotta tell you -- you know I had the same hassles everybody has but there was never regulations I said boy if we could just get rid of that regulation.
I'd be making a lot more money -- David let me point this out as you set.
A lot of things were talking about here our state based silly laws are not silly -- but they don't have an impact on the economy.
The reality is because last year was an election here we actually have a very small number.
Our regulations that are hitting us as well you'll bring up an -- -- back is which is that that the president's new list of regulations which are the 77000.
Were issued on the Friday before Christmas interesting -- to that try to get buried in the holidays right.
Yeah -- -- release of between April and October but they buried it in the dead of night and you know these proposed new rules -- -- cost economy 128 billion dollars that's one estimate out there you know even Russia's Tsar Nicholas said.
You know what my I don't ruled Russia my is my bureaucrats -- -- little -- -- is -- that's we have.
Going on in this country rich her cart has it right.
We've got bureaucrats justifying their own existence by creating new rules and what happens with small businesses we talked to a lot of -- talk to them they got to hire their own bureaucrats to do with the governor.
And -- so Morgan -- seem access for all these new rules you need new administrators knew bureaucrats news ours we don't need anymore those doing.
Hey maybe it adds jobs but actually I think it's really important to -- the point that.
Regulations are necessary -- something even governor Romney -- in the first presidential debate.
And for -- poorly written regulation we actually have some that are very smartly written especially on the state level as far as what's rolling out this here.
Case in point Oregon is coming out with a lot that makes employers not discriminate discriminate against unemployed applicants it's very important especially with long term unemployed.
We've seen a lot of discrimination -- that's actually good for.
For -- -- you can always justify things I -- government bureaucrats are great just -- but the bottom line is that regulations.
Or tax on business are they not they are indeed David and people who love regulations always make it a choice between.
Anarchy and regulations.
It isn't regulations cost us economy one point 75 trillion dollars a year.
A lot of them optionally unnecessary.
And in terms of job creation.
Having -- -- -- midsize bank had to hire a thousand people for compliance that -- hundreds -- -- loan officers one reason -- small and medium -- businesses are struggling.
So regulations are -- pure and simple Victoria the president claims that he's for small business the president claims that he's for more jobs and get.
He comes out with a basket full of regulations that may hurt job creation.
Absolutely because each regulation is a hidden cost of doing business.
It and and rich put it the right way from the beginning.
Which is that these small businesses have to then go out and hire someone to keep track.
Of all these regulations and that's hiring that isn't going toward productivity towards growing their businesses and growing the economy.
So it's sneaky stuff you know where you see it.
Really really wreak Havoc as -- -- university systems we're now you've got.
For every one -- you've got.
More than or at least one administrator that wasn't the case forty years ago -- and we should nobody's going well we've got regulations to keep up with.
That's true there are regular but rich you are right parents talk about you but you've made a lifetime of studying the way business works in -- about you actually hear people complaining saying it.
It's gonna prevent me from hiring more people because -- have to deal always he -- Really you're right about that not so much and Silicon Valley because if you deal in bits and -- if you're what I call an algorithmic business.
You make software.
You escape -- regulatory detection apparatus.
And the problem is is that you know the companies that actually make.
And -- things and use energy and extract things from the ground.
You know those that companies that constitute the bulk of the economy.
Those are the ones are really hit it's fine if you're making you know applications for the iPhone or you're doing algorithms for trading on Wall Street then you're not.
It's so much so so Rick the kind of business you do you were small businessman a small business -- but the fact is is that.
The folks who actually make things were more in the intellectual property round where you're not actually it's fascinating which just said I think -- world to that story is the reason we have regulations and it's the people who were in the position to do harm.
To their customers to the environment to whoever.
That are the ones who won the padding regulations why.
Because before they had the regulations they.
We're doing harm you know that I illicit we're all for rules that protect the public safety we get that but we've got -- congress the senate is breaking its own rules by not.
Passing a budget in the last three years so that's the issue and -- is is that.
The reason we're seeing is is not a lack of rules that the shortage of enforcement we're creating rules.
And credit -- is not the same as making people or the government or the economy more effective.
No Margaret Thatcher had a right -- she sent to one conservative backed venture.
The trouble with huge John as you spy doesn't reach your brain so -- -- is bureaucrats are making rules to justify their own existence and then justify more bureaucrats well I think.
These roles that integrate plug it organized you shaking your head but it is true having brought up a -- -- Italian a very often these bureaucracies look for ways to replicate themselves to make sure that they have job protection later rot.
I am sorry but making it illegal to sell you cigarettes to children and it is -- is a right -- -- regulation that's rolling out this here.
I don't see how that is a bureaucrat looking to make -- -- -- -- we're not talking -- -- that -- not thought about those rules were talking about things like health reform.
Which is its own many government until he's out here no we're not we're talking about the states have to make -- -- rules and force the government's rules about health reform.
And it's really ad hoc rule making on the fly that small businesses are gonna have to -- Steve Forbes it in the in just the last ninety days according to the website the federal government has issued more than 5500.
New regulatory proposals you can cherry pick and find some good ones in there.
New regulatory proposals and all of those might require some.
Paperwork and a part of businesses.
Yes it is a burden David and the fact matter is bureaucracies love to expand -- British historian once noted when the British navy declined and sides after World War I.
The agency running that may be increased in size so the navy got smaller but the bureaucracy got bigger -- -- -- your -- government yeah have you ever seen a regulation that that was not necessary or that was just I'm sort of make work for now I'm sure that -- -- but I can tell you were talking about banks.
These are people who have built a business over the years with tiny tiny tiny print -- rip people off I am not sorry that they're having to hire a lot of compliance people.
Because they now have to be honest when -- It assumes that the regulators inside the beltway are smarter then that whiz kids in -- worked out Wall Street having -- sometimes the regulators are about two or three steps behind the people they're trying to regulate.
Well and end and -- want to talk about.
I mean the regulator that's one of the most have been historically one of the most heavily regulated industries.
And yet it was the cause of our financial crisis that it was in no small part because those banks were regulated.
Very risky loans ever so hard and it's almost like yeah yeah.
That's lower regulation a broad view of what is what is the morals in this turnout for -- -- -- -- or more concern now compliance and creating new things as -- -- -- coming -- that.