Monday, March 17, 2014

The War on Small Business: Understanding Why Big Business likes Regulations

New Geography reports:
A 2010 SBA report found that federal regulations cost firms with less than 20 employees more than $10,000 a year per employee, while bigger firms paid roughly $7,500 per employee. The biggest hit to small business is environmental regulations, which cost small firms 364 more percent than large ones. Small companies spend an average $4,101 per employee on such regulations, compared with $1,294 at medium-size companies (20 to 499 employees) and $883 at the largest companies. This has come over a period when many of the key costs faced by the business-owning middle class – house prices, health insurance, utilities and college tuition – have all soared.

Given these conditions, it's not surprising that small-firm owners are about the most alienated large constituency in America, according to Gallup. Yet, their once-considerable clout has faded, particularly among Democrats, who have found new allies within Silicon Valley, much of Wall Street and, most of all, a growing, connected clerisy of government workers, academics, high-end professionals and much of the media.
An article well worth your time.