Federal Regulations Hampering U.S. Economy

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CBN News discusses a recent study covering small businesses which revealed that federal regulations do even more harm than people believe. In fact, the regulations cost the nation $1.75 trillion a year. Small businesses lose more than $10,000 per employee by following the federal rules.

According to author Phil Kerpen, “Democracy Denied,” a Washington D.C. think tank called Phoenix Center discovered that “each federal regulator destroys an average of 98 private sector jobs per year.”

He added that “when you talk about spending, it’s often far more costly than just what we spend on the budgets of these agencies because of the reach they have into the private economy and the negative impact that they have.”

Small Businesses Create Thousands of Jobs But Labor Market Remains Shaky

According to a recent survey, U.S. small businesses have created 55,000 jobs this month, though employees worked less hours and earned smaller amounts of money. Based on responses from around 71,000 small businesses, the survey covered the period between October 24th and November 23rd.

Payrolls processing company Intuit said the small business employment rise in November compared to October’s revised 60,000 count, which was reported previously as a 30,000 gain.

The average work week for such employees dropped 0.3% to 24.9 hours, and the average monthly salary fell 0.18%, to $2,637.

“Total comparison is down, part time workers aren’t getting as many hours, and there are fewer hourly employees who are working full time,” explained Susan Woodward, an economist involved in the survey’s development.

“Overall, this data is the best we could hope for given the uncertainty of the situation in Europe.”