An Open Letter To The President

| February 1, 2010 | 0 Comments

Dear President Obama,

Last week I listened to your State of the Union Address.  You are a great speaker and I enjoyed your oratory.  You said something that resonated with me.  You moved job creation to the top of your list.  Driving down unemployment is a very important goal.

You set out a number of programs to create more jobs.

Honestly, most of them are a waste and will have little impact on the economy.  I know you are supposed to be the agent of change we need in the country… However, in some areas I think you are the one who needs to change.

Your heart is in the right place.  But now’s the time to look at our problems from another point of view.  Take the view of a small business owner for example…

Selfishly I offer up my view of the situation.

Why do I offer this vantage point?  Simply because as a small business owner I see the day to day impact of your decisions.  The actions of the White House and Congress impact me every day.  Simple things like increased regulation, taxes, and your healthcare reform are all creating a heavy burden small businesses cannot bear.

Small business is the engine of our great economy… don’t limit our ability to grow.

If you want small business across America to create more jobs and pay better wages, there’s a simple solution… eliminate the burdens of having a new employee.  Think about it.  If you can make it easy to hire someone new, I’m more likely to do it!

Right now, every new employee brings not only risk but huge amounts of paperwork and added cost.

As a business owner, I take a risk every time I extend a job offer to a potential employee.  Government doesn’t help eliminate this risk… You, Mr. President, make it worse.

If you want businesses to employ more people, get rid of the extensive OVER REGULATION.  Just saunter into the break room of my business (or any other) and you’ll see firsthand what I’m talking about.  Government mandated postings issued by no fewer than 16 different government agencies…

The burden these government agencies place on all businesses is becoming unmanageable.

And that’s just an example of the postings.  The government paperwork requirements are amazing.  Did you know I face a fine of $10,000 for filling just one specific government form out incorrectly?  And it’s a form I need to fill out every time I employ a new person.

Tell me, do you think fines like these make me want to employ more people?

Why don’t you sit with me for 20 minutes and explain all the different rules and regulations impacting my business.  There are hundreds of complicated issues.  ERISA rules, fair labor laws, Department of Labor regulations, COBRA, the Family and Medical Leave Act, I-9 forms, E-verify… the list goes on and on and on.

When I could be out generating revenue for my business, I’m stuck behind a desk doing bureaucratic paperwork.

But don’t just take my word for it.  Just look at recent reports by the Small Business Administration.  They estimate the cost per employee of federal regulation is an astounding $7,647.

I’m sure my employees would rather have the $7 grand in their paycheck.

What makes it worse, there are no resources to help.  The rules are so complex, and the legislation so enormous, the response from government agencies is frequently “consult your attorney”.  Great, another huge expense.  I could employ another person for what I pay in legal advice every year!

As an owner, it gets even better.  And I mean that sarcastically.

For certain activities, I’m personally liable.  My future and my family’s well-being is in jeopardy every day because of government rules and regulations.  If I fill out a form wrong, I face fines.  If there’s a problem in my retirement program… I could lose my house and my life savings.

Are you kidding me?

Why would I want to employ more people with that hanging over my head?

Mr. President, if you want to see employment numbers increase, don’t do something complex.  Don’t enact more rules and regulations.  All you need to do is remove the roadblocks to bringing on new employees.

I have no plans to ever enter politics.  However, I know governing is about making tough decisions.  This isn’t a tough decision.  There is no tradeoff to make, no sacrifice on anyone’s part.  I’m not asking for a handout.  If you are truly the President of “Change”, change the current environment… make life simpler, not more complex.

Then you’ll see the engine of America shift into high gear.

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Category: Stocks

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The Dynamic Wealth Report works with a number of staff writers and guest experts who specialize in everything from penny stocks to ETFs to options trading. These guest analysts post under the 'staff writer' moniker for ease of use.

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