Have Big Government Regulations on Small Businesses Gone Way Overboard?

By Dr. Gerard Lameiro

You might think that Los Angeles with an unemployment rate of 13.7% in September might want to encourage people to start small businesses and earn a living for themselves, or, better yet, start small businesses and create new jobs for others as well as themselves.  But, that doesn’t seem to be the case according to The Wall Street Journal.  Have big government regulations on small businesses gone way overboard?  Are regulations helping to keep unemployment high?  And, importantly, are they also holding back the American economy? 

Here are some facts from the study.  In Los Angeles, if you lose your job and you want to make some money, you might think of starting a business.  In LA, if you want to earn some money hanging wallpaper, trimming trees, or building fences, you must first obtain a license called a “speciality contractor” license.  But, don’t think you can count on getting that license in a day or a week.  It can take years!  Suppose you have a flair for clothing and want to design and make hip clothes for teenagers.  Sorry to say.  But, in LA, you need a garment manufacturer’s license... still other examples of enterprise-crippling regulations.

Free enterprise is not so free anymore in some cities across the U.S.  Not only do entrepreneurs have to deal with burdensome Federal and State taxes and regulations, but they also have to overcome City and County taxes and regulations.  Have big government regulations on small businesses gone way overboard?  The answer is a resounding Yes!  Americans need economic freedom and free enterprise to ignite the engines of small business job growth. [more...]