It’s the Regulation, Stupid!

Much has been said regarding the latest American company to pull up stakes and leave the country. Carrier Air Conditioners is leaving Indiana and moving its plant to Mexico.

During Saturday’s republican debate, Trump brought up this fact. He said he would not use an executive order to punish Carrier for leaving. Instead, he would first build a consensus with Congress and the Senate. Then he would approach Carrier saying if you go to Mexico and try to import air conditioners back into the U.S., we’re going to tax you. In other words, an import tariff. He has stated that tariffs on incoming goods could be as high as 35% or more. “So stay where you are [in Mexico] or build in the United States. Because we are killing ourselves with trade pacts that are no good for us and no good for our workers,” he stated.

Naturally, everyone is blaming the company, which, apparently, has the nerve to try to stay in business or make a profit. Perish the thought.

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Many times, Trump has belittled trade deals that have been done throughout the years – which are great for other countries but punish the United States. The only problem he sees is that the deals are negotiated by idiots – that he will make great deals.

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At no time during the debate did anyone take the opportunity to tell Trump his tact in dealing with exiting businesses is totally wrong. Okay sure, he’s the billionaire business mogul and I’m a dope. But anyone with any common sense can see that making UUUGE trade deals isn’t going to bring companies running back to America. Not one person on that stage Saturday night – not even Ted Cruz – brought up why these companies are really leaving and how to keep them and attract businesses to settle here.


American companies are being taxed at the highest rate in the developed world and regulated to death and the hardest hit is small business, which employs over two thirds of all working Americans. But it’s really the regulations. Taxes are visible and tangible. They are numbers that everyone can see. With a little will, they can be fixed, adjusted, or lowered. It’s regulation that is really killing off jobs and entire industries in this nation and they are neither visible nor tangible. They are created by unelected bureaucrats, hidden away from the public, accountable to no one. Thousands upon thousands of pages of regulations are written every year which companies, large and small, must abide by – most of which no one is even aware of until its too late.

Large corporations at least have the option of pulling up stakes and moving. Small business does not have this luxury. Their option is but to go out of business if they are unable to comply.

“The Competitive Enterprise Institute’s Wayne Crews has done exhaustive work cataloging regulation in America, and his new report on regulation for 2015, Tip of the Costberg, is an eye-opener. Crews estimates that regulation will cost the American economy $1.885 trillion in 2015. This is a staggering figure and, as you might have guessed, more expensive than 2014. It’s larger than the entire GDP of all but 11 countries in the entire world – ahead of major developed nations like Australia and South Korea.”

Yes, just our government regulatory burden is greater than entire GDP of Australia! That’s sinful.

As of 2013, the print edition of federal regulations was about 175,000 pages, 238 volumes. The index alone is 1242 pages. Tens of thousands of pages have been added since, and companies are required under penalty of law to abide by them. Of course, this is impossible. To date, there are well over a million federal regulatory restrictions.

So corporations with the means pack up and leave – and who can blame – but the angry and ignorant.

Some one needs to stand up and tell Trump that it’s not bad trade deals that are driving companies away.


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