A common theme that always seems to unite both sides of the political aisle is advocacy for small business. From sweetheart loans to tax rebates, a lot of public assistance is available for small business. When the government isn’t helping small business, it’s usually going out of its way to harm large businesses with burdensome regulations and taxes. None of this is fair or prudent. All businesses should be encouraged to grow and commended for growing.
Obamacare is a perfect example of what I’m talking about. It only applies to those businesses that employ less than 50 people. If the legislation is so helpful, why limit its application? Sadly, there are thousands of regulations like Obamacare that small businesses can easily avoid, whereas big business must follow or face the full force of the federal and state legal apparatus.
Many of the regulations meant to target all businesses only end up hurting large businesses because there is no glory in prosecuting a mom & pop pizza ship, when much bigger pockets can be extorted. By way of example, anyone that knows anything about small business knows that many pay their employees under the table. If you should happen to be an under-the-table employee at a small business and report your condition to the local authorities, what are the chances a government bureaucrat will care? Answer: slim...you probably wouldn’t report it, as the act of reporting it would likely get you fired. However, assume you’re Wal-mart employee that is getting paid under the table and report your condition to the authorities, what are the chances a government bureaucrat will care? Answer: high...cash symbols will light-up in any government bureaucrat’s eyes, as that means big pockets to pay a hefty fine.
It’s often said that big businesses have expensive lawyers and savvy accountants; accordingly they can easily comply with Federal Regulations. I reject this assertion, big businesses, if they aren’t making money, will go out of business or they will tailor their operation to make money. One way to tailor an operation to avoid labor regulations is by relying on low cost foreign labor to make their products or manage their call centers.
We should look to our big businesses as a source of national pride, not piggy banks or test cases in social justice. In other countries, big businesses are often taken over by Government entities much like what happened to Yukos in Russia. It’s why Third World Countries have economies consisting primarily of open-aired markets, while virtually every major significant corporation in the world chooses to compete on our soil.
So the next time you hear someone make a pitch for a small business, do me a favor and remind them that we should support all businesses.