‘Compliance’: The Word That Sunk a Million U.S. Jobs
December 22, 2010 - by Jeff Pope
Generally speaking, when discussing the state of international competition the conversation focuses on issues of taxation, fair/unfair trading partners, labor costs, and corporate CEO greed. However, as competitive as Americans are it is surprising that so little attention is given to the ways in which we make ourselves uncompetitive by putting one-sided burdens on our own companies. Whether as a source of revenue or a means of promoting social policies, we have watched federal and state governments do just that.
American manufacturers have become quite adept at reducing product-related costs by managing productivity at all levels of their organization. Many can hold their own in the global market when competition is based on product cost alone, because higher labor costs are offset by significantly higher productivity. Non-product costs — better recognized as government facilitated monetary and social costs — tilt the playing field heavily against domestic manufacturing by adding a layer of cost not related to the value of the product:
“A Million Jobs” is probably an understatement. Law makers and bureaucrats don’t understand and don’t care … until jobs disappear … and even then they blame “off-shoring” while not realizing that the cause of what they demonize is the foolish laws and regs they themselves imposed.