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Government regulatory uncertainty puts ‘breaks’ on economy

Small businesses are somewhat resilient when it comes to dealing with state and federal regulations, and to a certain extent, large businesses can deal with the new rules and rule changes a bit more effectively since they can absorb additional costs across different business areas. What small and large businesses both have more difficulty with is regulation uncertainty.

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Catholic Church regulation bill pulled

The Hartford Courant has just posted a news item concerning SB 1098 here. The hearing scheduled for March 11 (tomorrow) has been canceled.

The Courant has more.

A controversial bill that would change the way the Catholic church governs itself has been pulled and a public hearing planned Wednesday on the issue postponed until its constitutionality can be determined.

The hearing had been expected to draw hundreds of people, many of whom where angry about what they view as the state’s inappropriate and perhaps unconstitutional incursion into church affairs.

At a press conference this morning at the legislative office building, Tom Gallagher of Greenwich, who has long advocated that lay people be given greater responsibilities within the church, said he has asked Rep. Michael Lawlor and Sen. Andrew McDonald, co-chairmen of the legislature’s judiciary committee, to put off the hearing until Attorney General Richard Blumenthal has reviewed the matter.

Update: Morrissey at HotAir reports.

Reason 72 & 73: Government should not bail out corporations

President Obama is considering limiting executive pay to companies who are part of the TARP program, and GM and Chrysler are still in the courtroom fighting California’s proposed legislation to raise fuel efficiency standards. Again we highlight why government should not get involved with the free market.

First we have Obama’s marketing campaign to limit executive pay for companies getting bailout funds. From Reuters

President Barack Obama kicks off a campaign to rein in corporate compensation on Wednesday with rules limiting executive pay to $500,000 a year for companies getting taxpayer bailout funds in the future.

Sounds great doesn’t it? Boy, would it feel awesome to put the screws to the executives that screwed up! Let’s think about the reality of what will happen if this goes through.

  1. The best executives will move to other companies that are not receiving government help.
  2. The companies who must limit their executive pay will have a difficult time recruiting top talent.

I’m not saying that some of the top executives will stick around and do a good job, I’m just saying that most of the top executives will not. What would you do if you were a manager making $100k per year, but you’re company tells you “sorry, we have to cut your salary to $50k.”

You start looking for another gig, especially if there are other companies able to pay you more money for your talent. Those companies are able and willing to pay you more, since they do not have to deal with Obama regulations.

Courtesy Radio Vice Online commenter KrisT, as reported by the MSN Money Central site.

Earlier this week, Obama instructed the EPA to reconsider the case of California’s existing proposal to raise fuel-efficiency standards. The automakers have been fighting California and other states in court for several years. Last week, they pledged to continue that fight – despite the president’s instructions and, to a larger extent, his consistent and unequivocal insistence on a “green” auto industry. Except, as it stands now, the automakers are basically using their bailout money — from taxpayers — to turn around and sue…the taxpayers themselves.

Another perception problem for GM and Chrysler as they continue to fight proposed California efficiency standards for cars sold in the state.

In essence, the people are going to see this as GM and Chrysler spending our money in court fighting the government.

Obama leadership – energy prices will skyrocket

Conservatives did not suggest this, Obama himself suggests it. If you want to encourage research and development into new energy sources, forcing additional regulations on energy companies is the wrong approach.

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French Plan to Regulate Line Dancing

When it comes to stories out of France, you really do not have to try hard to find a good laugh. Although the countries new president seems to have his head on straight, that does not mean that the civil servants even have a brain.

Country line dancing has become a big hit in the wine-loving country. They are even wearing the Stetson hats and Justin boots. They may not dance exactly the way country-loving folks might do here in the states – God forbid – but line dancing has become so big that French officials think it should be regulated like soccer and rugby.

What?

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Governement Promotes Subprime Loans – Gets Caught

There is quite a bit of blame going on concerning the so-called subprime loan crisis. Depending on who you speak with, it’s either the predatory lenders that took advantage of people, or it was the people who signed the contract that clearly stated they were buying into an adjustable rate mortgage, but just didn’t care.

The homeowners in “crisis” were gambling. Since their home value went from $100k to $150k, they spent the extra $50k in equity towards boats, motorcycles and a truck to tow everything around. Since home value are no longer increasing – and in some cases decreasing – everyone seems suprised and shocked that their adjustable rate mortgage rates adjusted; higher.

You can’t legislate stupidity out of people, but we must look at how the federal government and a new generation of activists planted the seed for the problems in 1977, through efforts to force lending institutions into providing high-risk loans. Read more