CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Friday, November 05, 2010
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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22 Comments:
Oh, please. If things were more favorable for Chuck as a worker, there'd be no problem. The business is at fault by trying to lord over Chuck.
If not for businesses doing wrong at some point in time, those regulations wouldn't have existed. The rest is inertia.
Great Video! I have to put up with excessive bureaucracy every day and almost all of it rolls downhill from the government and hits me right up side the head. Most of it adds absolutely no economic value but uses up a lot of resources.
sethstorm obviously didn't watch anything but the first few seconds of the video and made his own conclusions. Give me an example of your completely non-fact based reasoning that an interior decorator would need to be licensed because of "wrong done at some point"(except for the ones already operating).
Actually, you cant because of this thing called logic.
If they had done "wrong", then wouldnt the existing decorators have to go in for licensing? (the answer is yes)
So either 1) you didnt watch it but came in to make an ignorant comment or 2) you watched the whole thing and dont have the ability to reason.
Trolls will be trolls.
Oh wow, i saw this and it totally goes with this video
http://icanhascheezburger.files.wordpress.com/2010/11/68fa8dea-daf4-438d-a42d-6bf409d6d6fc.jpg
Quote from sethstorm: "If not for businesses doing wrong at some point in time, those regulations wouldn't have existed. The rest is inertia."
Perhaps next you can explain how it's a woman's fault that she gets raped because she's a woman.
Ah, the unintended (or perhaps intended) consequences, Sometimes, maybe - just maybe, you really are better off just letting people figure things out for themselves,
Instead governments create laws, reguations and drivel that only empowers government and lawyers.
"So either 1) you didnt watch it but came in to make an ignorant comment or 2) you watched the whole thing and dont have the ability to reason."
You must not visit often, or you would know that for single issue sethstorm either #1 and #2 may apply, and sometimes both do, in the same comment. His only concern is that employers are, for some unknown reason, spitefully withholding jobs from him even though he isn't qualified any longer, or the job he desires doesn't exist anymore.
His solution to unemployment is for government to force businesses to hire unqualified people at wage rates they like, and then provide them with whatever training is required at business's expense. This will somehow cause the economy to take off like a rocket once again.
Oh! And also, any product not made in the US is absolute junk. There's never an explanation for why stupid consumers would continue to buy something over and over that they can barely get home with before it falls apart, but there you have it.
Did I leave out anything, seth?
We DO like the comic relief sethstorm provides us, though, so we encourage him to continue.
Yes, local regs are onerous--often due to homeowner groups. See, homeowners do not want a brothel, 7-11, or rendering plant next door so they set up land uses regs.
The weenies who cry about excessive regs need to consider their hometowns.
Try building a skyrise condo in Newport Beach, CA. Hardcore R-Party town, very rich. And you have to get voter approval to build anything over 125,000 sf. And you ain't building any skyrise condos in Newport Beach, sucker.
Ha-ha.
"See, homeowners do not want a brothel, 7-11, or rendering plant next door so they set up land uses regs."
Well, I don't know about a rendering plant, but a brothel or a 7-11 would be kind of nice, and would save me a lot of travel by car. That would help save the Earth as an additional benefit.
I tried to get my two teenage sones started in the lawn keeping business in our neighborhood. They were willing to under bid a contractor (who can easily hire illegal aliens as many in this kind of business do) to do lawns for foreclosed properties but they needed a business license, liability insurance and Florida law is unclear if teenagers can work with equipment. In the old days, kids did most of the grass cutting. Today, we supposedly need illegal aliens who can easily bypass the laws due to unenforcement. At least I can have my boys do my yard, unless I get arrested for child abuse for making them work too hard!
I didn't have time to watch the video because I have two jobs today. Was there any mention of the proliferation of the big-box stores the last decade or two? I have some skills that I can use for a small business, but I see myself working for Home Depot instead of competing with them in the future. Part of the reason is to let them worry about the regulations, licensing, and such; however the other reason is the economy of scale and pricing they can provide. Anyone starting a business today has to find a niche that the big guys don't provide to survive.
Jim, it only takes one teenager getting his fingers or hand cut off to pass a law that kids can't work with power equipment.
Today, we supposedly need illegal aliens who can easily bypass the laws due to unenforcement.
Enforce the existing laws, and we won't need more of them. They don't get a pass just because they're "business friendly".
Jim, it only takes one teenager getting his fingers or hand cut off to pass a law that kids can't work with power equipment.
That was the sort of the point I was making earlier.
ExtremeHobo said...
Unlike your claim, I watched the whole thing. The video only claimed only the worst examples, not average ones.
I do agree that the environmental and interior design regulations are indeed overkill.
Walt G. said...
"I didn't have time to watch the video because I have two jobs today. Was there any mention of the proliferation of the big-box stores the last decade or two?
Wow, Walt G., you must be really busy! The video is only 5:05 long. You could have answered your own question in just a little longer than it took you to read all the other comments and write your comment asking it.
You should probably take the time to watch it before you comment much further, but in case you still haven't, I will answer your question:
No, there's no mention of big box stores, only several examples of the unnecessarily high barriers to entry for anyone, such as yourself, who might consider starting a small business.
It's hard to imagine how many good ideas never get off the ground due to these barriers. Of course, a lot of bad ideas never get off the ground either, but the market would sort out which was which if allowed to do so.
Even you, with your particularly narrow view of the role of regulations, must admit that many, if not most such barriers result from lobbying efforts on the part of existing businesses who want to prevent competition, and from government seeing revenue opportunities in license and fee requirements.
"Anyone starting a business today has to find a niche that the big guys don't provide to survive."
I couldn't agree more. Not many would consider starting a hardware business in Home Depot's back yard, but the 'niche' businesses you mention have an equally difficult time due to high barriers. Without them, a niche business might prosper and the market would take care of the fool who opened a hardware store.
"Jim, it only takes one teenager getting his fingers or hand cut off to pass a law that kids can't work with power equipment."
Jims story is a perfect example of a regulation likely originally promoted by existing companies to eliminate cheaper competition in the cynical guise of "Protect Our Children!".
If you have children, you may have allowed them to operate power equipment, including lawnmowers, after you are comfortable that they are competent to do so safely, as I have, and as Jim no doubt has.
If, as you seem to suggest, lawnmowers are so dangerous that even properly instructed teenagers can't safely operate them, then perhaps no one should be allowed to do so.
If memory serves - and it often doesn't - most stories I recall about lawnmower accidents involve adults and liquid entertainment rather than teenagers. Perhaps we need laws against 'drunken mowing', or perhaps a breathalizer should be required in the ignition circuit.
"Unlike your claim, I watched the whole thing. The video only claimed only the worst examples, not average ones."
How can you know that from watching the video? Are you guessing and making things up for some reason?
When my lawyer graduated from law school and was admitted to the bar he opened an office in Los Angeles. One by one over the next five years the nice people from this and that city agency came by his office to point out the error of his way and help him comply with this and that regulation and tax.
All of the entrepreneurs I know have known that forgiveness is easier to come by than permission.
Chuck’s problem is not onerous regulation but timidity and a lack of initiative. He needs to keep his job and let someone else take the risks.
"Chuck’s problem is not onerous regulation but timidity and a lack of initiative. He needs to keep his job and let someone else take the risks"...
Actually I have respectfully disagree here...
Chuck and the rest of the citizens of Milwaukee have the government they deserve since the citizens voted in the clowns that made the onerous rules and regs and attached extortion rates to them...
Ron H.
The computer I was using does not have a video player in it. I would have had to drive somewhere else to see it. People who use video in print media (blogs) need to understand not everyone can access them at all times.
"The computer I was using does not have a video player in it"...
Walt G are you saying the computer you use is so underpowered that it can't view a YouTube clip or run a software package like VideoLan?
Juandos,
No. I was using a computer yesterday that had filters that do not allow video or downloading of any type of software or programs. I guess the owners don't want people watching football games or the World's Series on them. I find that's not uncommon.
Yes, my home computer has video capability, but I am not there much anymore.
Hey Walt G, consider this: stunnel...:-)
Chuck’s problem is not onerous regulation but timidity and a lack of initiative. He needs to keep his job and let someone else take the risks.
Who said he couldn't go the business route? All Chuck would have to do is put the risk on the contractors and dispose as necessary. Why should he give a darn, they should be thankful for a job and worship Chuck.
How can you know that from watching the video? Are you guessing and making things up for some reason?
The examples were interior design, where you can put a food cart, and the multiply stacked regulations in one locality. Extreme examples, not the normality.
"Who said he couldn't go the business route? All Chuck would have to do is put the risk on the contractors and dispose as necessary. Why should he give a darn, they should be thankful for a job and worship Chuck."
Is this your attempt at a sarcastic comment, seth? If so, it's not bad!
If not, I will have to ask juandos to come back with his hypocrite brush.
"The examples were interior design, where you can put a food cart, and the multiply stacked regulations in one locality. Extreme examples, not the normality.{"
And just what is 'normality' in the world of regulation? Again, I ask, how can you possibly know any of this from your spot on the couch in your mother's basement?
You could refute this entire video by explaining how easy it was for you to start up a business.
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