The Wall Street Journal says that Senator Susan Collins asks for a one year regulatory time-out, saying actions like the new Environmental Protection Agency (EPA) rules are causing business to hunker down and results in shipping jobs overseas.
Her biography claims she has earned a national reputation as a thoughtful, effective legislator, who works across party lines to seek consensus on our nation’s most important issues. First elected to represent Maine in the United States Senate in 1996, she was reelected in 2002 and 2008.
Her article is titled The Economy Needs a Regulation Time-Out: Why send jobs overseas by creating more rules for American business? Senator Collins describes the cost of new EPA regulations and uses an example of a small company in her state that may have to scrap a new $300,000 boiler he recently installed.
The unintended consequences of this are that she sees 36 American pulp and paper mills will close. That would directly put more than 20,000 Americans out of work. Her study says that an additional 70,000 related jobs will also disappear. Senator Collins projects that nearly 90,000 American workers would lose their jobs from just one of a plethora of decisions and regulations underway.
Her conclusion is that business leaders are telling her the threat of a torrent of new regulations is causing them to hunker down and is sending jobs overseas. Senator Collins says her answer to this problem is a one year moratorium on most new regulations to give the US economy more time to recover.
In his West Coast campaign appearances, President Barack Obama says the Republican complaints about regulatory job loss are not correct.
One of the two has to be correct. Which one do you think is telling the truth?
Regardless of your political leanings, you have a business to run and part of that process is to make immediate, midterm and longer term strategic decisions. There are at least three logical questions you may have to ask. Then you can decide how likely Senator Collins or President Obama is correct. Actually this process will help you estimate the possible enterprise risk management exposure for your business.
- What is your answer to the incoming wave of regulations?
- Do you agree or disagree with her suggestion?
- What examples do you have to support your opinion?
Contemplate how this issue could or would impact you as a mini version of a strategy session, contingency planning or enterprise risk management application. The answers must be made on incomplete information and periodically reviewed.
Do nothing is an answer. Hunker down strategically is an answer. Decide you can live with the political and regulatory risk is another option.
Just recognize you must evaluate this risk as part of your leadership decision-making process.
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Nurture Financials – Avoid Disaster! Helping your company become fiscally fit and make you more money. THE NUMBERS WILL NOT SCARE YOU WHEN YOU LEARN TO apply this information to improve your fiscal management, profitability, re-engineer business models, and strengthen or gain competitive advantage in the marketplace.