Not All Businessmen Are Smart, You Know

[Jefferson23]

By James Kwak

June 6, 2011 at 11:01 pm


Stephen Carter, a professor at the Yale Law School and an accomplished novelist, wrote a Bloomberg column based on a conversation with a medium-sized business owner he met on a plane. The gist of the column is that the businessman isn’t hiring more workers because he’s worried about the regulations changing on him. From this, Carter draws a general lesson about business and government:

“For medium-sized firms like his, however, there is little wiggle room to absorb the costs of regulatory change. Because he possesses neither lobbyists nor clout, he says, Washington doesn’t care whether he hires more workers or closes up shop. . . .

“Recessions have complex causes, but, as the man on the aisle reminded me, we do nothing to make things better when the companies on which we rely see Washington as adversary rather than partner.”

Jim Henley (hat tip Brad DeLong) has already pointed out the silliest thing about this column: anyone who has a growing business and isn’t hiring more people, and isn’t hiring them because he’s not sure about future regulatory changes, is making a mistake (or perhaps is in a very unusual business that is heavily exposed to some very particular and very concrete regulatory risk).

in full: http://baselinescenario.com/2011/06/06/not-all-businessmen-are-smart-you-know/

[KT2000]

1. some regs are protecting him

It sounds like he may be spouting talking points he may have learned from the Chamber of Commerce.
Such a throw-away line should not be the basis of an article, much less policy.

Let's deregulate everything and see where the mid-size businesses end up.

[Jefferson23]

3. It is commentary on what nonsense is published for consumption.n/t

[no_hypocrisy]

2. And this same businessman is foregoing greater profits by not hiring more workers.

Idiot.

[provis99]

4. excellent article. Thanks

[marmar]

5. Irrefutable proof:

[Jefferson23]

7. lol marmar, I do appreciate the size of it too...point well made. n/t

[txlibdem]

6. With MORANS like that guy running companies, no wonder our economy is in the tank

Sounds like that guy couldn't manage his way out of a paper bag. Just like the heads of 90% of American businesses.

[Left coast liberal]

8. Most aren't. nt