Opinion

Runaway regulations are hurting Nebraska

Friday, December 2, 2011

With our nation in the midst of the worst jobs crisis since the Great Depression, you would think policymakers would be focused on reducing barriers to job creation. Not so. High unemployment has many drivers, but one of the most obvious culprits is over-regulation.

Unnecessary regulations and their unintended consequences are self-inflicted wounds on our economy. They drive up the cost of doing business, leaving employers with fewer resources to hire and invest. Instead of making job creation easier and cheaper, Washington has been making it harder and more expensive.

The regulatory onslaught over recent years has been mindboggling. Of the administration's new regulations, 200 are expected to cost more than $100 million each. Seven of those new regulations will cost the economy more than $1 billion each. At the current pace, the total regulatory burden for 2011 alone will exceed $105 billion. That's more than $100 billion taken out of our economy simply to satisfy bureaucrats. Since January 1st, the federal government has imposed more than 81.9 million annual paperwork burden hours, costing $80 billion in compliance. It's no wonder a recent Gallup poll found small business owners cite "complying with government regulations" as "the most important problem" they face.

Nebraska has not been immune to the reams of red tape being handed down by federal regulators. One blatant example of overregulation was the EPA's attempt to regulate farm dust which would directly impact farmers and ranchers in Nebraska. More recently, the Labor Department released a proposed rule which would restrict youth involvement in certain agricultural work, including detasseling. In response, I wrote a letter to Labor Secretary Hilda Solis warning how this rule would have a negative effect on everything from family farm operations to agricultural education programs. So it's not just big business facing the effects of overregulation; it's also rural America and families who make their living in the agricultural sector.

In the weeks before Congress adjourns for the holidays, I will have an opportunity to reverse the tide of onerous government regulations. In addition to the repeal of specific over-reaching regulations, the House also will soon consider a bill I have co-sponsored -- the Regulations from the Executive in Need of Scrutiny Act, or the REINS Act (H.R. 10). The REINS Act would require Congress to take an up-or-down, standalone vote on, and for the President to approve, all new major rules before they can be enforced on the American people.

As I travel the Third District, it is abundantly clear Nebraskans recognize economic growth ultimately depends on job creators - not regulators. We need to lift the burden on small businesses, giving them freedom to invest more, produce more, and create more jobs for American workers.

Make no mistake, there is a need for responsible regulation to ensure public health and safety, and the Constitution gives the federal government the authority to regulate. But just because Washington can, doesn't mean it always should.

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  • I do believe we are over regulated in some areas but we are under regulated in other. For instance congress's insider trading, pension and health plans, lobbyists, campaign contributions, pay for the amount of work you don't get done. I could go on and on but I think my point is made. Another thing that would make the US more competitive is our lack of equal tarrifs with countries we trade with and allowing asian countries to undercut our companies with near slave wage labor (could fix with an extra inport tax until the pay is atleast equal to our min wage).

    Also, unemployment is falling according to the new numbers. 8.6% is the new number I believe (and yes I do know a decent amount of this is temp holiday jobs)

    In the end it comes down to making America competitive again. Even the playing field a bit in other areas besides just deregulation. Too often both sides of the aisle try to bunt for a base hit. Sometimes you gotta swing for the fences.

    -- Posted by carlsonl on Fri, Dec 2, 2011, at 4:16 PM
  • Representative Smith,

    Only 22% of the small businesses in the poll you reference said government regulations is the most important problem they face. What about the other 78% of small businesses?

    They may be the single largest group in poll, but they do not represent the majority of the business community.

    http://www.gallup.com/poll/150287/gov-regulations-top-small-business-owners-prob...

    -- Posted by Geezer on Tue, Dec 6, 2011, at 8:39 AM
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