Comments for The Regulation Monster and the Confidence Fairy at http://www.cepr.net , comment 1 to 23 out of 20 comments http://www.cepr.net Fri, 24 May 2013 21:44:08 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17069 Wait, I want gov't subsidized loans but don't want to do anything. Isn't it this is the theme that TP demand people who get any subsidy should WORK for them? Oh, I forget that demand applies only to the poor, not the so called "job creators." Why am I required to keep documenation for my business-related entertainment expense when I claimed them (flying to Aspen for the Food or Film Festival)? Why do I have do that just want to claim the deduction? I should not need to hire a CPA to do that as the gov't/IRS should simply trust me. - James Fri, 22 Jun 2012 09:43:48 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17067 Exactly, have been involved and represented PL for over 20 years, Section 504 or 7(a)make up a bulk if not all the loans. So typical of someone trying to use something "INMATERIAL" even if that's valid to suggest the whole world is collasping. If SBA loans are so bad to people, who force them to apply on the first place even there are several criteria to meet? NO one compell your poor borrowers to apply one given their attitude toward gov't regulations, right? So, if the borrowers are so annoyed by any criteria by SBA, they should have tried ahhhhhhhhh....financial institutions? The fact that they are willing to pay the fees speaks volume that the conventional lenders shut them down. - James Fri, 22 Jun 2012 09:32:57 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17059 I never said, nor even implied, that regulation is not necessary. Not only do I believe that some regulation is necessary, I believe that many regulations provide great service to society. (Clean Water Act, Clean Air Act, Securities Act). If it were not for regulations, I would not have a job. James: most people who obtain small business loans do not know that they are required to bid on government contracts in their field. Actually, most SBA loans go to businesses that do not manufacture anything for sale in interstate commerce. Ethan: Thalidomide was approved by the FDA (created in 1938) for sale beginning in 1957. It is an example of regulatory failure. Jay: You are right. Kent needs a better attorney. But, the cost of litigating the undue financial hardship defense is very high and it is usually rejected. Dean: I proved in federal district court that the way the CalEPA regulated water discharge into the ocean established San Diego's drinking water as a pollutant. The regulators did not understand the chemistry. Is that a specific enough reference to avoid your accusation of making things up? - JLR Fri, 22 Jun 2012 07:07:48 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17055 Kent, your friend needs a better lawyer. Most business people should know that undue financial hardship is an exception to ADA requirements. Also, the rule really didn't apply to existing pools! It sounds more like your friend was just looking for an excuse to complain. It is suspect that something like that caused them to shut down. It was probably more like decreased demand, poor customer service, and dwindling tourism or something more realistic than making the pool handicap accessible. - Jay Fri, 22 Jun 2012 03:44:54 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17052 I think Krugman is referring to Alfred Marshall who introduced the confidence fairy to the world in 1890: "The chief cause of the evil is a want of confidence. The greater part of it could be removed almost in an instant if confidence could return, touch all industries with her magic wand, and make them continue their production and their demand for the wares of others." - Galludor Fri, 22 Jun 2012 01:45:44 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17051 Robert; The object of the regulations you cite from Florida, as with other states governed by Republicans, have little if anything to do with regulating anything. They have much more to do with shrinking the size of government - in these cases state governments - by privatizing every governmental function possible. To succeed in the brave new world of Republican governance, start a private for-profit company to take over some function currently being supplied by the government - and get to know your legislators (warning: they will be expecting campaign contributions). - S.D. Jeffries Thu, 21 Jun 2012 19:59:42 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17050 Sorry folks, the business gang makes so much crap up that anonymous regulatory horror stories are worth zero. If you expect anyone to take you seriously, give names, otherwise the working assumption is that the story is not true. - Dean Thu, 21 Jun 2012 16:18:30 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17047 I have one friend who works at a hotel, and another who manages a swim-and-tennis club. Both have had to deal with the issue of handicapped access to their pools. This has required the availability of elevators that allow a disabled person to get into the pool. The hotel has 3 pools and had satisfied the requirement with a portable device that could be moved into place when required. The regulations have recently been changed (not sure if it was CA state or Fed) such that every pool has to have a fixed elevator installed. At a cost of $10-15K apiece, and the liability risk due to its presence (kids hurting themselves), my friend says that many hotels are simply closing their pools. And, by the way, in the 10+ years they've had the portable device, it hasn't been used once. I read recently that there were rule changes requiring regulations above a certain financial impact to be reviewed by congress. That's maybe a good step, if it actually is effectively implemented. Then there's Sarbanes-Oxley... - Kent Thu, 21 Jun 2012 13:23:08 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17046 I have one word for you -- "Thalidomide". Look it up on Wikipedia if you're too young to remember. - Ethan Thu, 21 Jun 2012 11:33:34 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17044 Regulation is code for compliance with laws. There are some businesses that don't want to comply with any laws. They want to do whatever they want in some sort of wild wild west, free for all type of economy until they are on the losing end of the situation. Basically, they don't want to be held accountable for externalities or share information. - Jay Thu, 21 Jun 2012 10:40:18 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17042 Sounds pretty scary and bad for any business trying to get a SBA loan. Ooooo, I guess they are so bad that it's one of the fastest loan growth when CRE loans collapsed in recent year. The 504 or 7(a) Loan Programs are products borrowers want badly since they cannot get a conventional loans. http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs Since Mr. Lawyer is well versed in large business or the consequence of big heavy fines, there is the ombudsdman process, agency informal appeal process and then judicial one. I guess that's why the top largest institutions such as Wells, Chase, and UBS, Citi decided to spend less on BSA program and pay the heft fines. The fines they actually paid is what % of their income? What do I know? I am not a lawyer, just like most of us, the 99%. - James Thu, 21 Jun 2012 10:20:31 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17039 Have you used your position to determine which regulations are necessary and which are not? Or if any are needed at all? - fuller schmidt Thu, 21 Jun 2012 07:54:43 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17036 The regulation "monster" is real. That is why every business with more than 50 employees needs a compliance program. I have been a lawyer for 24 years. I have yet to find a company that can comply with all the applicable regulations. Most of the time, they do not know that they are not complying until some regulator steps in to fine them. And, from my experience the regulators do not go after the large businesses. They target the samll businesses in order to establish precedents. Then, maybe, they go after the big guys. If you get an SBA loan you are required to bid for government contracts in your field. Have you ever tried to read the Federal Acquisition Regulations? I'll bet you real money that you cannot figure them out without hiring an attorney. An acquaintance invented a medical device. He got the patent in two years. He cannot afford to get federal approval to market the device. He now has to license it to a large company that can afford to deal with feds. The monster is ubiquitous. You need a federal license to buy and resell produce in interstate commerce. The regulations have nothing to do with food safety. In 1998 the Federal Register determined that there were 134,723 pages of regulations in 201 volumes of the Code of Federal Regulations. As far as I can tell, no has counted them since. So, Mr. Baker do an experiment. Try to start a new business that makes and sells something in interstate commerce. Attempt to determine all the federal, state, and local regulations that apply to that business. (I am sure that you will miss dozens since the regulations are scattered through hundreds of volumes). Try to organize your entity to comply with all of those regulations. Then, report back that the regulation "monster" is imaginary. - JLR Thu, 21 Jun 2012 07:02:18 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17032 [quote]More Regulation Monstrositites written by Bart, June 21, 2012 7:00 AM Robert, I think what is meant in GOP circles is Federal Government regs, not state.[/quote] States' rights advocates. Once they lived in the Democratic party, now they live in the Republican party. But "states rights" is just an orwellian term that rallies, for one example, slavery advocates to continue their 'business as usual.' So, yeah, basically state regulations should be included as monsters. - david Thu, 21 Jun 2012 05:46:55 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17031 [quote]written by Samuel, June 21, 2012 7:55 AM I love the new meme...regulation monster! Now you need something for all the so-called "class warfare" that the GOP shouts about and you will cover all of their fairy tales. [/quote] Maybe Bill Bennett can compile all these fairy tales into one volume, providing our nation's youth with tidy moral lessons. - Kat Thu, 21 Jun 2012 05:33:10 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17028 It should be noted that Obama, at least when it comes to small business, is quite willing to echo Republican concerns about regulations. He had this to say in January 2011: "[T]oday I am directing federal agencies to do more to account for—and reduce—the burdens regulations may place on small businesses. Small firms drive growth and create most new jobs in this country. We need to make sure nothing stands in their way." A few months later, perhaps prompted by this, McClatchy published a great piece looking for evidence of the "burden" placed on small businesses by regulatory agencies. The author, of course, found none. The McClatchy article can be found here: http://is.gd/A74ho9 - Anthony Thu, 21 Jun 2012 05:15:22 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17024 I'm sure that was a fine piece of journalism (sometimes the NYT does its job), but I could not get past the first few paragraphs. It is far too depressing. - Kat Thu, 21 Jun 2012 04:04:09 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17016 I love the new meme...regulation monster! Now you need something for all the so-called "class warfare" that the GOP shouts about and you will cover all of their fairy tales. - Samuel Thu, 21 Jun 2012 02:55:51 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17014 Speaking of the regulation monster, a favorite sport among private corporations is to crush states rights on grounds they should be superseded by uniform federal regulations across all states in order to facilitate efficiency. Financial regulations for example were designed to enable competition in a global marketplace, advance economic welfare for the entire nation and especially serve as an important deterrence to fascist based incentives that could undermine independent local businesses. - Last Mover Thu, 21 Jun 2012 02:40:54 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-regulation-monster-and-the-confidence-fairy#comment-17011 Robert, I think what is meant in GOP circles is Federal Government regs, not state. - Bart Thu, 21 Jun 2012 02:00:29 +0100