Letter to the Editor: 11/19/12

To the Editor,

In regard to Eric Baldwin’s column at the beginning of this month, advocating for a larger government is a frightening thought considering the federal government’s spending already exceeds 24 percent of the economy. But this is not to say our competent government was not hard at work. In the last year government officials created more than 3,500 new regulations that will cost American families and businesses $46 billion in compliance costs! Rarely do we see creativity or innovation birthed by a government bureaucracy. Yet it is exactly these types of creative activities that are required to grow the economy and create jobs. While I agree a reasonable amount of regulation is necessary to avoid “cutting corners,” the free market is the best way to regulate its competition for reputation. If you’re not doing solid work for your clients, they are not going to continue to use your services or recommend your company.

When the government takes money away from businesses (higher taxes) to fund government programs, the private sector becomes smaller and has fewer jobs. History proves the public sector is less productive with funds than the private sector. The unemployment numbers are higher when the government is larger. This suggests a path toward shrinking government and marginal tax rates in order to, once again, grow our way out of this mess. President Barack Obama wants to raise the income tax rate for anyone earning more than $250,000 a year, but this isn’t just the “fortunate folks,” — it’s small businesses, our lifeline for jobs. Federal regulations cost small businesses about 36 percent more per employee to comply than their big-business counterparts. But the Obama administration approved 129 significant federal rules (those costing the economy more than $100 million) during the president’s first 33 months in office. Compare this with only 90 approved regulations from former President George W. Bush and 115 for former President Bill Clinton during their 4 years. Our nation did not get where we are today because of the government. We earned our wealth despite the government.

Sincerely,

Christy Lampe

Dietrich School of Arts and Sciences