Government, Not Industry, Grows Poverty

In Cleveland, we see it all around us. Polite society skirts the real issue, only discussing the matter with a few cherry-picked, politically correct phrases. And few people, contrary to the rhetoric force-fed to them by way of government and mass media, understand the true cause. What am I speaking of? Poverty.

Liberals, among them David Shipler, find a myriad of people and entities to blame, ranging from big business to an inadequately supportive government. Some, mostly conservative, individuals will place the blame entirely on the poor people themselves. And undoubtedly, their own poor choices are a major factor in their destitution and economic parasitism. But such an answer lets the primary culprit off the hook: the American government.

How is it that the government, which spends billions of dollars annually on social support, with programs ranging from welfare to Social Security, manages to make matters worse? As noted economist Milton Friedman stated in an interview with John Stossel, “There’s nothing that does so much harm as good intentions.” And, as American history has shown, that notion rings true.

Consider a government agency such as OSHA (Occupational Safety and Health Administration). Created by Richard Nixon, the goal of OSHA is to enforce certain workplace health and safety standards, thereby making it safe for workers to go about their jobs. In the year 2000, OSHA attempted to set ergonomic standards, which would have cost American businesses almost $2 billion up front, and an additional $500 million a year thereafter. For the larger, more commercially successful businesses, the impact was of little consequence. But what about small business?

According to the SBA, there are approximately 26 million small businesses in the United States, and they are responsible for nearly 80 percent of new jobs in the last decade. Moreover, they employ roughly half of all workers in the nation. But, when faced with massive compliance costs, these numbers are impacted. Job creation grinds to a halt, and many employees are let go, as businesses do not have the means to retain as many employees, while still following the law.

This is just one example of seemingly positive legislation coming back to hurt the American workers. There are literally thousands more like it, each of which carries its own set of burdensome terms and unwarranted financial strain. As government tries to regulate better working conditions, it ignores critical economic principles. And, rather than approach the problem pragmatically by letting industry manage itself, government continues to grow the list of legislation that cripples American businesses, thereby killing millions of jobs, and driving people further into poverty.

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