A national survey released today confirms the economy continues to teeter between recovery and further losses. Although a handful of economic indicators have pointed towards positive momentum, it seems each bit of progress has been dampened by greater intervention by bureaucrats in Washington.
Today’s study, which was conducted by Vistage International, found that on the whole small businesses recently cut their hiring plans as their confidence in the economy has fallen. Similarly, the number of executives and owners who expected the economy to recover over the rest of the year dropped 19 points to 30 percent. The most cited cause for concern was economic uncertainty. Now, more than ever, businesses need policies that encourage them to invest, hire, and grow – not even greater bureaucratic barriers in their way.
Policymakers in Washington have consistently voiced their support for the small business community, but at the same time they have proposed even more federal regulation. Today, there are nearly four thousand new rules waiting to be handed down. What’s worse, even more rules packaged in legislation that’s already been passed won’t hit for years, but still loom in the way of businesses’ ability to plan for the future.
Keeping up with this constantly shifting landscape is dampening small businesses’ outlook. Every dollar they have to put towards complying with the latest rule is one they can’t use creating a new job. In fact, a Gallup poll earlier this year found 85 percent of small businesses it polled weren’t hiring, and about half cited government regulations as the reason.
Given the state of the economy, we can’t afford for regulators and business owners to be out of sync. By partner together, instead of working against each other, as often seems to be the case, regulators can create policies that meet our regulatory goals and help business operate more effectively. Particularly, giving the small business community a greater role in the rulemaking process will help create greater transparency and balance, and will better ensure regulations don’t jeopardize the larger health of our economy.
