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Gallup: Gov’t Regulation the Top Concern Among Small Business Owners

A new Gallup survey asked small-business owners an open-ended question about what they viewed to be “the most important problem” facing the small-business community. It’s not “lack of demand,” as Democrats like to argue. In fact, 22 percent of respondents listed “complying with government regulations” as their top concern.

House Republicans have been leading an effort to roll-back or repeal some of the most onerous federal regulations, and have already passed a number of measures that Senate Majority Leader Harry Reid (D., Nev.) has yet to take up. Democrats have been particularly loathe to accept the idea that concern over federal regulations is anything more than a self-serving fiction conjured up by Republicans as part of their sinister effort to “end the EPA” and expose the nation’s children to mercury. From President Obama’s “jobs” address to Congress  in September:

What we can’t do — what I will not do — is let this economic crisis be used as an excuse to wipe out the basic protections that Americans have counted on for decades. I reject the idea that we need to ask people to choose between their jobs and their safety. I reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients. I reject the idea that we have to strip away collective bargaining rights to compete in a global economy. We shouldn’t be in a race to the bottom, where we try to offer the cheapest labor and the worst pollution standards. America should be in a race to the top. And I believe we can win that race.

The administration’s attitude toward regulation is epitomized by the response the president gave in to a farmer at an event in Atkinson, Ill., who had expressed concern about the EPA’s plan to impose new regulations on farm dust. “Don’t always believe what you hear,” Obama told the farmer. The event was part of Obama’s August “listening tour” across the Midwest. And while it appears his administration is starting to wise up to the fact that its proposed regulations would be disastrous for small businesses, the president continues to denounce Republicans for doing nothing to help the economy. In fact, there are no less than 15 House-passed bipartisan bills awaiting action in the Senate, many of which are intended to ease the regulatory burden on small businesses.

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COMMENTS   7

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   10/24/11 18:11
Tarheels77
   10/24/11 18:25

Wow! Talk about missing the forrest for the trees. Consumer confidence was 15% and lack of consumer demand was 12%. So, the combination of the lack of consumer demand and weak consumer confidence is 27% and is of GREATER concern than "complying with government regulations!!!"

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Dan Grund
   10/24/11 19:48

"Democrats have been particularly loathe to accept the idea that concern over federal regulations is anything more than a self-serving fiction conjured up by Republicans as part of their sinister effort to “end the EPA” and expose the nation’s children to mercury."

Why do Democrats get to legally mandate mercury be placed in fragile glass tubes in the homes of every American (child or otherwise) and accuse Republicans of wanting to expose the nation's children to mercury?

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   10/24/11 20:31

Not sure which category this falls in to, but high self-employment taxes definitely make me less competitive with overseas vendors. Could be "complying with gov't regulations" or "competition from big business and overseas."

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Tim L.
   10/24/11 23:57

Not to give aid and comfort to the Keynesians, but 'consumer confidence' and 'lack of consumer demand' seem like basically the same thing. If so, you could add those two together, then add together 'complying with government regulations' and 'new healthcare policy' and the poll becomes a 27-27 ideological tie.

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   10/25/11 04:34

The poll is misleading. It breaks out "consumer confidence" and "lack of consumer demand" into two categories when it should really be one category.

A little basic mathematics shows you that concerns about lack of demand is the number one issue. (Confidence does not matter unless it results in an unwillingness to buy.)

The real headline here is that a plurality of small business owners confirm that to get the economy back, people are going to have to start spending again.

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John Smith
   11/02/11 12:14

To all the people complaining that confidence and demand (two different things) should be merged to equal 27 percent:

Under that logic, the new healthcare policy and complying with regulation should also be added together which equals 27 percent too, tying them. Of course, poor leadership should also be added and all three counted as "regulatory uncertainty" for a total of 36% for regulatory/government action concerns.

Either way the government is either the biggest issue or tied for top concern.

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