When Will We Ever Learn?

Regulation costs money. Regulation upon regulation upon regulation costs lots of money without adding any significant benefit to our society.  In fact, more often than not these additional regulatory burdens lower our quality of life by misdirecting limited resources.

Yet, it seems not a week goes by that some new regulation designed to protect us is passed. We're told our schools are in a budget crisis situation, yet the federal government has put in more regulations that costs schools money in areas that have nothing to do with inproving academics:

Imagine a playground with bark chips instead of sand, curved plastic edges and smooth bolts so no one gets hurt, specialized swing chains and three different play zones for different ages.
    
This is not just someone's imagination. It's a set of federal guidelines that will cost Albuquerque Public Schools about $10 million to meet.
    
The federal guidelines are not mandates per se, but failure to follow them leaves the district vulnerable to lawsuits, said John Dufay, APS maintenance and operations director.
    
He said the most important reason for doing so is student safety, although liability is an issue. Any student injured on a playground that doesn't comply with the guidelines would have an easier case, he said. 

Now, I have two school age children, and don't want to seem them get hurt playing on playgrounds.  But, let's get real here.  Children sometimes get hurt when they play, and there don't exist safety measures that can be put into place to 100% protect children from getting hurt. I can almost guarantee you that even with these proposed playground changes, we will still have kids getting hurt during recess. And, we will still have schools getting sued when children get hurt because we live in a litigious society.

 It's not just regulation supposedly designed to protect children that is misguided. There are other regulatory burdens that basically boil down to more money out of our pocket. 

New pollution controls could be in store for New Mexico as the Obama administration moves to crack down on smog.

Parts of at least four counties — San Juan, Rio Arriba, Doña Ana and Bernalillo — could be out of compliance with the new ground-level ozone standard proposed by the U.S. Environmental Protection Agency.
    
Nationally, the new limits could more than double the number of counties in violation.  

What's going to follow these regulations? Well, let's see:

• increased vehicle emission testing = money out of your pocket
• prohibition on gas lawn mowers = money out of your pocket
• no pump times for filling your vehicle = citizen inconvenience 

Of course, that's just a partial list.  States and municipalities will have 20 years to come up with prohibitions and mandated services to meet these new federal regulations.  Plus, we know that as soon as these regulations are in place, someone will come up with a new stricter regulations will come into play. After all, that's what the government does - come up with new regulation and legislation.

The kicker is that we don't live in a national bubble, so the regulations and associated costs along with reduction in quality of life won't really make a big difference in the end:

"In places like southern Doña Ana County, there's not a lot the state can do," said Mary Uhl, state Air Quality Bureau chief. "There are not a lot of emissions to be reduced. The state will need to work with Texas and Mexico to address that."
    
The tighter standards, though costly to implement, will ultimately save billions in avoided emergency room visits, premature deaths, and missed work and school days, the EPA said. 

That last sentence says it all.  What we're really doing is cost shifting from one expense area to another. We're removing one inconvenience n replacing it with another. We're not improving our lives in any substantial manner.  We're just regulating for the sake of regulating.

Government Shakedown of the Homeless

Every once in awhile you come across a perfect example of what's wrong with government's natural tendency to regulate:

Larry Moore was a homeless man who got it together and started a shoeshine business. From his profit, he saved enough money to rent an apartment and get off the street. And then, the city of San Francisco slapped with him a bill for sidewalk vendor permit. The shakedown cost Larry hundreds of dollars, because in San Francisco, as is most places, offering a product or service that people are will to pay for and pulling your self up by your bootstraps requires someone’s permission.

Another perfect example of American entrepreneurship being regulated out of existence. Now tell me again, who is keeping the poor, poor?

Here We Go Again

There is a right way and a wrong way to do things. When it comes to passing laws, that right way is to introduce a bill at the legislative level and let those for and against a particular bill make their case. Then, if the bill gets passed, it is up to the Governor to sign or veto it. Pretty simple to understand, right?

Then someone please explain to me why Governor Richardson and his appointees continue to struggle with this relatively easy concept?

In the absence of state legislation, New Mexico officials will continue to try to work with other Western Climate Initiative members to flesh out details of the cap-and-trade system they still hope to pursue, said Sarah Cottrell, Gov. Bill Richardson's energy and environment adviser.

The state will also look at other steps that can be taken administratively, without the need for legislation, Cottrell said.

This administration, more than any other, has repeatedly tried to undermine the legislative process when they have been unhappy with the outcome of a particular bill. The bill in question HB653: Mandates Green House Gas Reductions, was widely considered "a Governor's bill" which makes this maneuver even worse.

This is not the first time this administrative slight of hand has occurred, and I've given an example before of why this should give everyone pause regardless of whether you support or oppose the bill in question. That example is worth repeating again here:

Before the environmentalists among you leave comments that support the Governor's mandate over the constitutional process we still have for making laws. Let me put this in another context for you. Let's take an issue like abortion that pretty evenly divides the population. Should a pro-life Governor be able to appoint a regulatory body to regulate abortion?

How supportive would those who are pro-choice react if this body some evening at midnight decided to ban abortion throughout the state? Would you be okay with the pro-life Governor's edict that:

“The Ban Abortions Program is a key part of our state’s effort to reduce the murder of the unborn to avoid the worst effects of a misguided planet,” said Governor Conservative. “Today’s decision by the Life Improvement Board means New Mexico can implement the most stringent standards for protecting the sanctity of life in the country. New Mexico is again taking action, when Washington won’t.”

Like I said, it's a slippery slope.

It's still a slippery slope.

Regulators to Invest in Our Future

The legislative and executive branches have done everything in their power to bankrupt our state in recent years by "investing in our future." There was the Rail Runner investment in our future, which has resulted in an increase in gross receipts taxes to support it's operations - look for more increases to come in the future. Then, there was the Spaceport America investment in our future, which has also resulted in new taxes.

Now, it looks like the regulators are eager to get into the action. The New Mexico Public Regulation Committee (PRC ) would like to invest in our future to expand rooftop solar energy programs, practically ensuring future increases in the cost of energy in New Mexico (subscription):

New Mexico regulators are considering a proposal that would expand rooftop solar energy programs at the state's largest utility.

The program, under which Public Service Company of New Mexico would pay a premium to buy electricity from rooftop arrays, is part of the state Public Regulation Commission's efforts to expand production of renewable energy in the state.

The program's backers say it will create an incentive to expand nonpolluting energy production. By putting the power systems in the middle of the city — "distributed generation" — it will also reduce the need for new transmission lines, backers say.

"We're investing in the future," said PRC member Jason Marks.

Oh yeah, nothing like working towards bankrupting us in the present by "investing in the future." Anytime anyone in New Mexico government says "we're investing in the future, " you can bet your bottom dollar that what they're really saying is "we're going to be increasing your expenses in the VERY near future."

Education + Work Ethic = Achievement

A week ago, American Home filed bankruptcy. Yesterday, Circuit City filed bankruptcy - before the Holiday Season with serious ramifications for retail property owners:

U.S. shopping center and mall property owners took a thumping on Monday as investors feared Circuit City Stores Inc's (CC.N: Quote, Profile, Research, Stock Buzz) bankruptcy filing would usher in more failures and take property owners down with them.

It has been reported that next quarter Eclipse Aviation might be closing shop. In China, people are abandoning the cities and moving back to the countryside. This is not just a U.S. recession. This is a major world recession, and giving AIG another $27 billion is not going to keep it from happening.

The government restructured its bailout of American International Group Inc, raising the package to a record $150 billion with easier terms, after a smaller rescue plan failed to stabilize the ailing insurance giant.

The Federal Reserve and the Treasury Department announced the new plan on Monday as AIG reported a record third-quarter loss of $24.47 billion, largely from write-downs of investments.

The new package, at least $27 billion more than was previously extended, will leave the government exposed to billions of dollars of potential losses.

I was on the phone with a friend, and I predicted as a nation we could hit 10% unemployment before we hit the bottom. A bottom I don't expect us to hit until after the 4th Quarter of 2009. This year's retail holiday season could be one that shrinks for the first time in a long time, and my guess is that next year will be worse.

I'm a naturally optimistic guy, but there is a difference between being an optimist and a dreamer. Now, I do have one really big fear - newly elected New Mexico Democrats will overreach. Contrary to what some folks might suggest, I don't think the Democrats need to "shut up about winning the election and go about maintaining the status quo."

They won, they're entitled to try their way. After all, campaign promises were made, and they are going to have to try and deliver on some of them. That's not the problem. I think it's a mistake, but hey, I'm obviously in the minority. The real problem is if they try and deliver on ALL of them. It is not possible.

Take cap and trade legislation on oil and gas for instance. I've mentioned once before that this was on the table for the legislative session. The thing is, there couldn't be a worse time than right now to pursue this type of the legislation:

"If policy makers ignore the global nature of climate change, it will drive U.S. companies to relocate overseas to low-cost nations where there is little or no environmental regulation," Mullikin said. "This relocation fails to accomplish the goal of reducing global greenhouse gas emissions, and will likely make global emissions worse."

For example, Mullikin said that China's carbon dioxide (CO2) emissions increased more in one year (2006-2007) than U.S. emissions have increased in the last decade (1997-2007). In 2007, China passed the United States and now accounts for 18 percent of the world's CO2 emissions, releasing over 800 million metric tons more CO2 than the United States last year.

The shift of clean, regulated American industry to nations with little to no environmental regulation will result in lost U.S. jobs. Proposals like a cap and trade program will also increase energy prices for consumers.

A study by the National Association of Manufacturers showed the potential impact that federal cap and trade legislation could have on New Mexico, particularly if developing nations do not agree to reduce their emissions:

• New Mexico is at risk of losing over 11,000 jobs and up to $1.2 billion in gross state product by 2020;
• New Mexico's household income could decrease by almost $2,300 a year by 2020;
• Electricity prices in New Mexico are estimated to increase by up to 133 percent by 2030, while gasoline prices are estimated to rise by up to 140 percent.

Can you imagine the loss of 11,000 jobs and $1.2 billion in gross state product on top of the economic recession/depression we are about to experience? Four or five years from now, while the rest of the country is experiencing an economic rebound, New Mexico could very well be falling further into a depression because some folks decide to regulate and tax our biggest economic contributors out of existence.

That's my greatest fear.

Of course, there is a light at the end of the tunnel. And, it comes from an interview that Peter St. Cyr did with Democratic State Treasurer James Lewis:

Lewis tells us he's looking at the election of the 44th President of the United States in its historical perspective. He says the country has come along way since the Jim Crow laws, used to block African Americans from voting. Lewis even reminded us that before the 1965 Voting Rights Act his relatives were prevented from voting because they didn't know how many "bubbles were in a bar of soap."

"This is a proud moment for me," said Lewis. "It's a sense of achievement."

Lewis says any young person who goes out and gets a good education and has a strong work ethic can achieve anything they want.

We have come a long way, but let's not forget how we arrived here. The secret is in Lewis' last sentence above: education + work ethic... not government bailouts and additional regulation. If more Democrats keep this in mind, we just may be okay.

The Oil Policy Difference

Just a couple of months ago, it was widely predicted that prices at the pump would hit five dollars by Labor Day. Now, it seems that we might actually see a drop in prices at the pump between now and the election in November.

However, don't be fooled. If we see temporary relief, it will be just that - temporary. Relief designed to give the impression that we don't need to increase domestic oil exploration. If the Democrats expand their control of the legislative branch and take control of the executive branch, we will see gas prices north of five dollars a gallon for a very simple reason (subscription):

Sen. John McCain, the presumed Republican presidential nominee, supports lifting a drilling ban along the Outer Continental Shelf and encouraging more offshore drilling and natural gas production in the Gulf of Mexico. Sen. Barack Obama, the all-but-certain Democratic nominee, has opposed lifting the current offshore drilling bans.

"There is no way for at least a generation that we can get by without more and more oil," Domenici said. "If we could just use our own, we could save American dollars from flowing out of America."

Meanwhile, President Bush on Wednesday renewed his request that Congress lift its moratorium on coastal oil and gas drilling.

"The American people are rightly frustrated by the failure of the Democratic leaders in Congress to enact commonsense solutions," Bush said. "All the Democratic leaders have to do is to allow a vote. They should not leave Washington without doing so."

Senate Majority Leader Harry Reid, D-Nevada, relented on the offshore drilling issue earlier this week, offering Republicans a chance to offer four amendments to the speculation bill, including one that would bring the drilling proposal to a Senate vote.

Look again at the bolded sections from Michael Coleman's article. Even a goof like "Give 'em Hell Harry" recognizes the fact that domestic drilling deserves to be on the table. Yet, the Democrats presumptive nominee for President, Senator Barack Obama, remains stubbornly opposed to any common sense solution to ultimately returning market control of gas prices to Americans.

Instead, Senator Obama is perfectly happy to leave us hostage to the dictates of a cartel:

OPEC has rejected US pleas for raising production and the president of the cartel says he expects oil to stay at current price levels through the end of this year. That stands against a market where oil demand has gone up 1.5 million barrels a day for the last ten years.

Now who gets hurt the most when Democrats in the U.S. government insist on blocking domestic oil production? The working poor and middle class families is who:

If gasoline prices move from their current average price of $3.20 to $5, the cost of fuel for a family that spends $50 a week for gas would move up over $1,000 a year. That would wipe out any tax rebate payments from the Federal government and drive the economy deeper into its currently slowdown. It would also further fracture already delicate P&Ls and balance sheet at large auto makers and airlines. Retailers would get less traffic. Very few industries would be spared some effect.

"... wipe out any tax rebate payments from the Federal government and drive the economy deeper into its currently slowdown." That's also an important fact to keep in mind for Governor Richardson's upcoming taxpayers funded Special Session.

We're an oil producing state, yet the Governor is doing everything in his power to discourage oil production. He did it when he passed unnecessary pit rules, and he'll do it again in the upcoming regular session by trying to bring the cap and trade scam to New Mexico.

Of course, in characteristic Richardson fashion, he is hoping to dupe New Mexicans into believing that by giving us a rebate, he is alleviating our pain. However, the plain and simple truth is that, like all other Richardson fiscal decisions to date, he is making it more expensive for most New Mexicans to live.

Beware the Task Force

Here it comes. The conception of countless new regulations and ordinances has occurred. And, in six months time we'll all witness the birth of new unneeded costly regulations and big government spending initiatives (subscription). Mark my word, they are coming. How do I know? Well...

City Hall launched an environmental task force on Thursday that will recommend ways for local governments and residents to address global warming.

Mayor Martin Chávez joined County Commission Chairman Alan Armijo and City Councilor Isaac Benton to announce the 35-member group, which includes representatives from Sandia National Laboratories, environmental organizations and government agencies.

Chávez said he hopes the task force will compile a “climate action plan” within six months.

The group’s plan should have value even to those who aren’t concerned about the environment, he said.

What's a climate action plan? Basically, it's a politician's sound bite that's guaranteed to cost us, the taxpayers, money and hassle.

More Unnecessary Regulation

Everybody loves to hate credit card companies. But, the truth is that most Americans abuse credit cards. We over rely on plastic and spend more than we have. That's a problem. But, a worse problem is when we then complain to the government and want them to solve the pickle we got ourselves into (subscription):

The Federal Reserve and other regulators are planning tighter rules to stop credit card companies from unfairly raising interest rates and to make sure they give people enough time to pay their bills.

-Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay;

-Unfairly allocating payments among balances with different interest rates;

- Unfairly raising annual percentage rates on outstanding balances;

-Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account;

-Unfairly computing balances;

-Unfairly adding security deposits and fees for issuing credit or making credit available;

-Making deceptive offers of credit.

This is more unnecessary regulation. Credit cards are unsecured debt. If you don't like the terms being offered, don't get a credit card. If you're not happy with the fees and penalties of one credit card company, then switch to the another. As to "deceptive offers of credit," I'm sure we already have laws that deal with fraud. If it's fraudulent, then the government should prosecute those committing fraud as opposed to creating new regulations for an entire industry.

The answer to the credit card problem is education, not regulation. Teach financial literacy to children in math classes, and then let personal responsibility trump govern behavior.

The Man is Uncle Sam

I'm a small business owner. Actually, I own two. A friend of mine told me once that he wanted to start a business because he "didn't want to spend his entire life working for the man." Like many, he wanted to be his own boss. Control his own destiny. Reap the rewards he sowed instead of creating wealth for someone else's gain.

There is only one problem with all this...

When you are your own boss, you suddenly become painfully aware of just how much of the wealth you are creating is going to the government in the form of taxes. On average, I work 12 to 16 hour days and have from day one of officially becoming an entrepreneur. Yet, thanks to our government's commitment to tax and spend, more than a third of my time is spent working to pay for bigger and bigger government.

People have been conditioned to think of taxes as simply the government collecting a portion of the money you earn. We are taught that money is the root of all evil. So, parting with it for the greater good must be a good thing.

But, that conditioning is wrong. The government is not taxing our money. The government is taxing our time. Whereas, money is of little true value. Time is priceless. Everyone has only a finite amount of time.

If I work 12 hour days, five days a week, and pay thirty percent in taxes, then one full month of my life each and every year is spent working for the government. That's one month that I don't get to use to strengthen my family, improve my community or better the world. Every year the government takes one month of my life. Every year, they take one month of yours.

Is the world better off because of it? I don't think so.

Both of the Democratic nominees for President believe that the answer to all of America's problems lies in bigger government. Senator Barack Obama has been packaged as the nominee of "change." But, I would argue that nothing will change if Senator Obama is elected President - at least nothing for the better. Instead, of working one month a year for the government, we can all expect to add another week or more of additional time stolen from our lives to pay for his programs.

Both of the Democratic candidates believe that more government programs and more regulations are the answer to solving every social and economic hurdle that arises. By comparison, Senator John McCain believes, and is promoting, a pro-growth agenda that is focused on small businesses and entrepreneurs, less taxation and more free trade.

Take a listen to what RNC Victory Chairman Carly Fiorina had to say about Senator McCain's economic agenda:



As long as government continues to grow, we are all working for the man... and The Man is Uncle Sam.

Glad I Live in the County

The next time someone from Albuquerque tries to push City/County unification on us, we would be wise to remember the financial burdens the City of Albuquerque likes to push on its citizenry in the form of regulations:

Homeowners will get a little more time before City Hall starts enforcing its new "green" building code.

But city executives aren't backing away from plans to require more energy-efficient furnaces, air conditioners and other equipment.

Albuquerque's Planning Department agreed this week to postpone enforcement of the new building code until July 1— three months later than scheduled. City officials say they're willing to consider technical amendments before then.

But minor changes may not be enough to satisfy critics who say the new code will boost the cost of replacing a heater or air conditioner by hundreds, perhaps thousands, of dollars.

As the owner of a 30 year old home with two thirty year old furnaces, I'd hate to be forced to spend thousands upon thousands to replace them both. Mind you, I live in a home with passive solar heating, and I also use a a very efficient wood burning stove for most of the winter. Plus, I keep the house very cool all winter. So, my furnaces hardly go on.

Is all of this because I'm worried about global warming or being green? No, it's because propane is expensive, and I'm pretty frugal in this arena. In other words, economics drives my decision, not regulation. Hmm... I'm sure there is a lesson there somewhere.

No-Knock Ordinance

Criminals commit crimes. Now the City of Albuquerque has thought of a new way to infringe on the rights of law abiding citizens (subscription) because of the actions of two criminals:

Lee and Rowley were each charged with two counts of murder in connection with the Dec. 4 killings of Tak Yi and Pung Yi at the couple's home. They remain in the Metropolitan Detention Center in lieu of $2 million cash bond each.

Integrity Program did not obtain a permit, according to the lawsuit.

The city will seek monetary damages of an unspecified amount and an injunction prohibiting the firm from soliciting here.

"All we have to show is that (Integrity Program) violated our ordinance," said Assistant City Attorney Greg Wheeler.

The proposed ordinance would allow residents to sign up for a city no-knock list, similar to the no-call list barring telephone solicitors. The city would also issue a "tasteful" sticker and yard sign homeowners could post indicating they are on the list.

"It would make it illegal to solicit a household with a no-knock sign posted," Chavéz said.

The ban would not apply to political, religious and nonprofit solicitors, such as Girl Scouts, officials said.

This is just absurd. I wonder how many business leaders got their start knocking on doors to sell a product. As I recall, when I was about twelve or thirteen, I went door to door offering to mow my neighbors lawn for a couple of bucks a week.

Beware Regulation Gone Wild

Uh oh, they're at it again. Governor Richardson's appointees are doing his bidding and ignoring the fact that in New Mexico it is the legislature, not appointed regulatory bodies serving at the pleasure of the Governor, that are supposed to create laws:

New Mexico became the first Intermountain state to implement the Clean Car program today after the Environmental Improvement Board voted late last night to approve the regulations that address climate change by reducing greenhouse gas emissions from cars.

The program, which will become effective Jan. 1, 2008, requires car manufacturers to sell and lease vehicles that meet the standards beginning with model year 2011. The program only applies to new vehicles and will not affect new or used cars sold before that model year.

“The Clean Cars Program is a key part of our state’s effort to reduce global warming emissions to the levels necessary to avoid the worst effects of a warming planet,” said Governor Richardson. “Today’s decision by the Environmental Improvement Board means New Mexico can implement the cleanest standards for vehicle emissions in the country. New Mexico is again taking action, when Washington won’t.”

And there you have it, the Governor's reason for brushing aside the lawmaking process is so that he can have that all important sound bite for his doomed presidential campaign: "New Mexico is again taking action, when Washington won't."

Maybe that has something to do with the fact that the rest of the country is still run like a Democracy?

Regardless of where you stand on the issue of emission standards, you should be troubled by a regulatory body acting in a way that completely eliminates the legislative process. This is a very dangerous slope. The people on this body are not accountable to anyone in New Mexico other than the Governor - and he hasn't spent any significant time in New Mexico in months.

There is no deliberation involved here. There is simply one man dictating the law of the land, and single-handedly changing that law at the witching hour with little to no public input. This is just wrong. You have a Democratic Governor with a Democratic controlled legislature. If this is what is in the best interest of New Mexico, then he should put it on the Legislative agenda for the session and get it passed legally.

Before the environmentalists among you leave comments that support the Governor's mandate over the constitutional process we still have for making laws. Let me put this in another context for you. Let's take an issue like abortion that pretty evenly divides the population. Should a pro-life Governor be able to appoint a regulatory body to regulate abortion?

How supportive would those who are pro-choice react if this body some evening at midnight decided to ban abortion throughout the state? Would you be okay with the pro-life Governor's edict that:

“The Ban Abortions Program is a key part of our state’s effort to reduce the murder of the unborn to avoid the worst effects of a misguided planet,” said Governor Conservative. “Today’s decision by the Life Improvement Board means New Mexico can implement the most stringent standards for protecting the sanctity of life in the country. New Mexico is again taking action, when Washington won’t.”

Like I said, it's a slippery slope.