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Impact of Regulation on Small Businesses

Regulation has become a growing issue in America, especially for small businesses. If we look back to the time of our founding fathers, we see that this is not at all how they intended America to be. In fact, we separated from Britain for similar reasons – unreasonable taxes and regulations on items and businesses. Our founding fathers saw that if the people of a country are not free to prosper, the country and/or its government will become weak.

We can look back and see how America prospered, when it was easier for people to have their own businesses. People were able to make themselves comfortable depending on hoe hard they worked; they did not have to depend on government welfare. This is where the phrases ‘the American dream’ and the American work ethic’ originated. These phrases have been used by people in different countries longing to be in America. Clearly, this freedom of working hard and earning our due was different from the ideas of other countries. It was this mindset that allowed America to rise above all other countries.

Now, however, America must abide by the rules and regulations of different government agencies. There are usually so many rules and regulations, that businesses must hire lawyers in order to make sure all requirements are met. As a result, only the bigger companies are able to survive. Perhaps, later, it will get to the point where there are only government run companies. This is mainly caused by the combination of too many powers given to the bureaucracy and the bureaucrats’ abuse of their power. It has gotten so bad, that now we must have licenses and fill out stacks of paper work if we want to do something as simple as run a hot dog stand. Recently, bake sales are even talked about being regulated.

Not only are many of these regulations ridiculous (such as rules of where doctors should store their band aides), but they have made it so hard for someone to run a business, that these business owners have their manufacturing done in China. This alternative for business owners creates another harm for America; Americans are deprived of jobs because they are given to foreign people in foreign countries.

Before regulations, you would succeed if you worked hard, now even hard workers are getting laid off because businesses cannot afford to keep them. If we got rid of even half of these regulations, America would be able to give many of the unemployed jobs and keep money in America. Plans such as the stimulus package, the health care plan, and other welfare programs are not the solution to poverty, a return to capitalism is.