In this era of the housing crisis and stock market crash, that many claim to have been brought on from a lack of regulation, it’s easy to get caught up in the idea of government stepping in and protecting us from ourselves. And, with the “health care crisis” that the President keeps talking about, there’s plenty of talk now about the government saving us from evil employers as well. A couple of days ago, news broke that Wal-mart was siding with the progressive think tank, Center for American Progress in calling for an employer mandate to provide health insurance.
Why? Because they can afford it, but a lot of their competitors (the small, locally owned businesses in particular) can’t. They’re hardly the first corporation to do this either.
Recently, the FDA was given the authority to regulate tobacco products in never before seen ways. As the FDA has already shown that they’re not fans of free speech in advertising, this is going to make it nearly impossible for smaller tobacco companies to function in the market place. Of course, Phillip Morris knew that, which is why they supported the measure. Like Wal-mart, they used the government as a weapon against smaller competitors.
Even local regulations can have the same consequences of hurting smaller businesses.
Take for example Albany’s infamous sign ordinance. I had a conversation with the owner of a local restaurant on Westover that’s quite popular with the breakfast and lunch crowd (and makes an pretty darn good bacon, egg, and cheese sandwich on wheat bread too) about our sign ordinance. He pointed out how he was unable to advertise things like breakfast specials and such.
I started thinking about a large competitor like McDonalds or Burger King. They have the budget to advertise nationally. Even though franchises aren’t necessarily owned by the national company, they get the same benefits as far as advertising. As such, the Burger Kings in Albany can advertise their breakfast specials in ways that say Roosters can’t.
A large amount of people work in small businesses in this country. When people miss how these regulations hurt those same small businesses, you get unintended consequences like we find here in Albany with the sign ordinance. Larger chains weather it fine, while smaller chains and small businesses have a real problem getting their message out.
Unless the intent is to feed into the corporations that so many Americans are convinced are pure evil, then it’s time to back off and let the small businessman thrive for a change.
