Posted by: The Elephant Owner in Common Sense on August 31st, 2008

Unless you have a law degree or an MBA from a highly regarded university, your chances of rising through the ranks of corporate America are pretty slim. For most Americans, the most likely path to financial success lies in operating a small business. It’s true that most small business fail, but that is Americans taking a shot at their dream. Let’s hope that spirit never dies.

The government could significantly help the American dream. There are two things that government does to get in the way. They create regulations and they provide protections for workers. Both regulations and protections are necessary. Yet the government goes too far and ends up crushing the dreams of many Americans in the process.

Think about what burdensome regulation does in the real world. A large corporation can send a team of lawyers to make sure that they are in line with regulations. Many regulations are written with a big time lobbyist using influence to steer regulations that favor big business over small. They can also use those lawyers to attack pesky competition who may step outside the guidelines imposed by the government. Small business can not afford burdensome regulations. Think of big oil. How many small oil companies do we have in the United States? You can’t just pop a hole in the ground in your back yard and pump out oil even if it is there. You would need a team of lawyers and EPA specialists even if it was bubbling up out of the ground.

Government also sides with workers over employers on too many issues. As a small business owner, I feel that workers have the benefit of the doubt and employers are assumed to be both guilty and rich. I cannot get a straight answer when checking references on potential employees. If past employers give a bad review of ex-employees, they open themselves up to legal action. Hiring is a crap shoot.

Small companies can’t afford law suits from employees. I know of many cases when an employee was fired for just cause and sued for some trumped up reason. Each time the employee has won. Even when an employer wins the legal battle, the company loses. The cost of lawyers and the time lost to fight the legal battle ends up draining valuable time and resources that a small business can not afford. This in turn ends up hurting those that would otherwise work for a small business. 

In my opinion, frivolous law suits are on the rise because so many court decisions are based on what a judge views as fair instead of what the law says. This in turn makes any case a possible victory. Judges who see victims and villains instead of laws as they are written hurt small business by giving every crack pot a chance at a legal payday.

If the Democrats were serious about helping the middle class of America, they would help small business. This could be achieved by making the law more fair for employers, reducing regulations and by stopping frivolous lawsuits. Democrats are supported by unions (workers), enviornemental zealots and lawyers. All of these groups hurt small business and therefore are an impediment to fulfilling the American dream. I know that is not Democrat’s intentions, but that is the outcome of their policies as seen from this small businessman’s perspective.

You can leave a response, or trackback from your own site.

Leave a Reply