Free Markets, Free People


How clueless? This clueless

Rep. Keith Ellison, a Democrat member of the House from MN, explained why he thought creating more and more regulations was a good idea.  You see, the more you pass, the more people businesses have to hire to comply with them, per Ellison:

"I think the answer is no," Ellison said when asked if he believes regulations kill jobs. "And here is why: When we talked about increasing fuel efficiency standards, the industry responded, and they need engineers and designers and manufacturers, and they need actually more people to help respond to the new requirement."

"I believe if the government says, look, we have got to reduce our carbon footprint, you will kick into gear a whole number of people that know how to do that or have ideas about that, and that will be a job engine. I understand what you mean, because if anything adds a cost to a business, you could assume that that will diminish that business’s ability to hire. But I don’t think that’s actually right. I think what businesses want is customers and what — if they are selling product, if they have a product to sell they will do well even if they have some new regulations to meet," the Congressman said.

The economic ignorance in that statement is dumbfounding.  The man obviously has no idea of what productive vs. non-productive work entails.  Bureaucrats don’t “produce” anything but cost.  They impose a cost burden that the producer must pass on or eat.

Most producers choose to pass on the cost burden in the price of what they produce (it obviously depends on the competitiveness of the market, profit margins, etc.).   So in essence, every new regulation that imposes a compliance cost on a producer means those who consume the product end up paying the compliance cost in the price of the product at some point or another.  And the man hours that could have been used in a productive job are wasted in seeking compliance with bureaucratic regulation.

These are the guys in Washington DC making decisions about your future.   They’re deciding what portion of what you earn you should be allowed to keep.  And they have no idea of what makes an economy run.

Here’s a representative that figures a job is a job.  And he actually thinks he’s creating jobs what will benefit the economy by increasing regulation and bureaucracy.

Unfortunately his type are more prevalent that you might imagine.  And our present situation is beyond their understanding.  How does one go on a national television network and make statements like that and think they’re being profound when in fact what they say is profoundly ignorant?   He obviously doesn’t know that.  That’s just scary.

When all is said and done about our current situation, when the hindsight evaluations are made and the scope of the disaster is understood, it will be clear that people like Rep. Keith Ellison were as responsible as anyone for our economy’s inability to recover.

And he won’t even know it.

~McQ

Twitter: @McQandO

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17 Responses to How clueless? This clueless

  • Like the ludicrous idea of “multiplier” effects creating 1 + x times government spending, the stupidity here is easily  demonstrated.
    What happens if you promulgate a near-infinite number of regulations?
    FULL EMPLOYMENT…if you’re Keith Ellison.
    RUIN…if you have a brain.

  • Well, the problem I see is most of the business these guy deal with are plush with cash.  They are dropping that cash all over Washington to buy influence.  So they thing all businesses are plush with mega profits they are pocketing.  And their mission is to force those business to hire people with those mega profits.

    They don’t realize, like you said, businesses are going to re-balance by increasing costs (inflation) and expecting decreasing sales (unemployment) as a consequence.

    They also don’t realize most businesses don’t have massive profit margins.  Unfortunately they hang out with people who are plush with cash trying to buy influence in Washington like hedge funds that have been on a 3 or 4 year tear at 40%.  These cronies rain money down on Washington and its probably the only businessmen Ellison meets with.

    • Just a small quibble…an increased price is not inflation.

    • Exactly. These guys are lawyers, a profession that used to be an area where you can charge outrageous amounts of money and assume everyone else can do that too. Or they are academics who think of hiring someone as simply writing a grant proposal. Look at Obama’s consumer credit cazar who thinks opening a factory is easy, probably just like writing a brief or an academic paper, right?

       

  • It’s odd that the first Muslim elected to congress is advocating an economic plan that would completely bankrupt the nation.  OBL would be so happy.

  • Aw come on, we’ve already proved with that idiot who thought Guam could capsize that you don’t have to have any brains to be in Congress.

  • Yeah, that good old SarBox legislation has been a boon to my company’s business.  Every year, thousands upon thousands of dollars are sunk into the cost of this ill-conceived compliance.  Our customers are just lining up to help us recoup those costs.

  • Guess nobody ever told him that small businesses are the drivers of the U.S. economy and responsible for the employment of over half of the private sector workforce and it’s these businesses who can least afford to comply with these regulations.

  • MY SOLUTION
    George McGovern had a late in life epiphany over regulation when invested in a hotel after retiring from politics. I think we should try to re-create that with the EAT YOUR OWN COOKING ACT. If CEO’s have to be responsible for their accounting via Sar-Box, we should institute a program for elected officials to taste their soup, too.

    1) Congress will no only be in session every other year.
    2) In the off year, each Congressman will be randomly assigned a business from his jurisdiction. During that one year, the Congressman will work at that business with full responsibility for all federal regulations. No staff assistance will be provided, and the Congressman must sign off on all compliance issues, with a personal responsibility if they are not done to perfection.
    Let’s how many new rules get passed once this is in place.
     

  • He is a representative. He is not some god given ruler in DC that decides our fate. He represents people who elected him and who share his views. You wanted democracy and everyone to vote? Lay back and try to enjoy it.
    If you have a problem with how your compatriots vote either take the vote from them or try to convince them that you are right. Anything else is an electronic equivalent of pissing against the wind.

    • Yeah, I think the point he’s a representative was made abundantly clear in the post. And it is also clear that this is a representative making decisions about the future of others who hasn’t a clue as to how it all works.

      Or did you miss that part?

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