Tuesday, April 24, 2012

Government''s War on Business

One of the big questions about the on-going lousy economy is why aren't people starting more businesses on their own, rather than relying on government?

The short answer is that governments at all levels in the U.S., have systematically created rules that make it increasingly difficult to start a business in America.

We've all heard about the police shutting down children's lemonade stands in several states because the kids don't have a license to conduct business on their front lawn.

The problem is much deeper than that.

My wife owns a home daycare business. Over the last three years, she has been very successful, by providing great service to her customers.

Washington State has a program that subsidizes the day care payments of low income kids.

Given where we live, my wife had long ago decided not to take government subsidized daycare students.

Good thing that she didn't.

Washington State recently passed a law stating that if your home daycare accepts low income kids, who get a government subsidy, then you are actually an employee of the state, and therefore need to join the Service Employees International Union (SEIU).


This may be the first case ever where a small business owner is compelled by the government to join a union.

What happens to the poor kids when small day care owners don't want to join the union? They are left out in the cold.

It's yet another awful unintended consequence of crazy government laws.

This isn't the only case where politicians have enacted rules that prevent small businesses from starting and serving their community.

There are a ton of immigrants who would love to start a taxi company in New York.

They get a driver's license. They buy a car. They get their car inspected. These are all reasonable requirements, but no dice -- government requires them to bid on a Taxi Medallion, which is used to restrict entry into the market.  A Taxi Medallion  now costs $1 million.

Many poor people who want to start their own business and rely on themselves can't do so because governments across the United States have restricted the market to prevent competition.

Most of these ambitious people wind up becoming someone else's employee, usually at minimum wage... it's hardly the American dream.

The really smart and ambitious ones wind up in the black market, selling drugs or engaging in other questionable activities.

Wouldn't society be better served with them starting and running a legitimate business?

America became a GREAT country because we enabled people to follow their own dreams, open a business, and become their own boss.

Now, governments at all levels systematically destroy people's dreams by restricting entry into markets to create monopolies or oligopolies for themselves or for the special interests.

It's wrong.

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