The high cost of regulations

By Tom Quiner


Republicans and Democrats believe in the necessity of government regulation.

Few Americans deny that government at various levels has a role to play in keeping the free marketplace honest.

The debate always comes down to where do you draw the line? Democrats tend to believe we need more regulation and Republicans less.

Here’s the deal: there is a cost associated with every single regulation imposed on business by government. That’s something legislators sometimes forget, especially when they haven’t had experience running a business.

A number of years ago, a breakfast club I was in brought in a member of our state legislature to speak. She called for an extension of sales tax laws on out-of-state mail order vendors. I pointed out the complexity and expense of complying to such a law. There are hundreds, even thousands of sales tax laws at local and state levels spread throughout the country. A law like that would drive some companies out of business.

She was intractable, glibly responding that all they need to do is write a new computer program.

She had no idea what that would cost. Worse, she didn’t care.

Obamacare imposes a staggering increase of regulations on small and large businesses. The video above gives one specific example on how excessive regulatory zeal impacts a small business. The business owner above said they refuse to fight the battle, that they will simply close down their business.

Is it any wonder the economy is stagnant under Barack Obama’s leadership?


  1. juwannadoright on November 28, 2012 at 2:03 pm

    At one point my company was the subject of an EEOC investigation for allegedly “discriminating” against a person who had registered with our temporary service. He happened to be a black male college student. (He hadn’t followed our specific instructions that in order to be considered for upcoming assignments, he either needed to stop in or call daily to let us know he was available for work. We handed each person who completed an application a copy of these instructions). Well, two and one half years and $50,000 later we were found not to have done anything wrong and that the applicant was at fault. What a waste of time and money – except for the three government employees who showed up several times a week and to whose salaries we “contributed”.

    • quinersdiner on November 28, 2012 at 2:10 pm

      A $50,000 hit like that would bury a bunch of mom and pop businesses. Thanks for sharing a real-life example of the cost of over zealous government regulations.

  2. Wrobel on November 29, 2012 at 11:29 pm

    I am just happy my cargo van starts each day when I simply turn the key. Generally if the radio gets results, hey and that’s really a superior day.