Regulations Stifling Success

As of Saturday, September 22, 2012

For those that doubt that government regulation stifles success, they need look no further than The Pilot article “American Growler Closing Robbins Plant.”

The plant in Robbins that builds vehicles for the U.S. Marines will soon close due in part to the fact that the Senate has refused to pass a budget for more than three years and due to a HUBZone (Historically Underutilized Business Zones) policy which requires contractors to employ people within a specific area.

The Budget Control Act of 2011, enacted due to a lack of a true budget being passed, requires the Department of Defense to cut $600 billion as part of a balanced and fair approach to spending reduction with no attention paid to the state of our union.

Due to this act, the U.S. Marines are unsure of their ability to order new equipment, and the contractor that employs American Growler in Robbins was forced to end their contract and the employment of about 50 Robbins residents.

American Growler has another facility in Star, but due to the government restrictions from HUBZone, American Growler is unable move the Robbins employees to their Star plant, even though there is work to be done in Star by the Robbins employees.

I hope that the 50 employees in Robbins recognize that they have the government to blame for their unemployment more than they thank the government for their unemployment payments, which will be only a fraction of what they previously earned.

Scott McLeod

Carthage

More like this story

DaveyNC 7 months, 4 weeks ago

Well said. This whole sorry episode is one the dumbest things I have ever seen, an object lesson in the ways that government fails us.

CNMT 7 months, 4 weeks ago

Any chance some of the work in Star could be relocated to the Robbins plant and keep those people employed? Haven't heard anyone mention that option. It might not be possible depending on the equipment needed, but worth asking.

oceangypsy 7 months, 3 weeks ago

It was my understanding that the reason the Growler plant was in Robbins in the first place was to use benefits possible for starting new business in a HUB Zone.

But generally you are right about government regulations. They may be part of the cause of our reduction in economic freedom, which started with Bush and continued with Obama

http://www.cato-at-liberty.org/the-u-s-takes-a-dive-in-economic-freedom-of-the-world-index/#utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Cato-at-liberty+(Cato+at+Liberty)&utm_content=Google+Reader

http://www.aei-ideas.org/2012/09/whats-gone-wrong-with-the-american-economy-maybe-its-nothing-more-complicated-than-a-sharp-decline-in-economic-freedom/

DaveyNC 7 months, 3 weeks ago

oceangypsy, government regulations didn't start with Bush. They started with the beginning of government.

JD 7 months, 3 weeks ago

Oh look sources...

HUBZone Regulations

HUBZone General

Correct regulation did not start with Bush, however HUBzone regulations did start with Bush to ensure rural small business could compete for big government contracts. It's a shame the business was very narrow in what it made. Hopefully they can pick up some of the coal work.

dustyrhoades 7 months, 3 weeks ago

That Budget Control Act you complain of passed the House, on August 1, 2011 by a vote of 269–161; 174 Republicans and 95 Democrats voted for it, while 66 Republicans and 95 Democrats voted against it.

One of the Republicans who spoke in favor of it and voted for it was the right's new poster boy, Paul Ryan.

http://youtu.be/coVnDeomlLw

JimRussell44 7 months, 3 weeks ago

Would all agree that "government regulations" are a double edged sword? They are wonderful when they benefit YOU (provide the impetus to locate plant in Robbins) but are idiotic overreaches by a bloated government when they keep you from getting what you want. It is also ironic that the business in question exists only because of the government, which many view as "the enemy".

clodfelter37 7 months, 3 weeks ago

I have heard the government could screw up a one car funeral. Contact Rep Coble. He has helped me.

JD 7 months, 3 weeks ago

Shhh that makes too much sense. You'll make small minds go boom.

smcleod 7 months, 3 weeks ago

The wonderful thing about submitting a letter to The Pilot is that you bring out comments from the arrogant Left who regard themselves as so superior. Neither JD, Dusty nor JimRussell44 addressed heart of the issue...the failure of the Liberal Seante to pass a budget for more than three years, a complete violation of their constitutional responsibility to their Country. Instead, Dusty chose to post a video wherein Paul Ryan states that the failure of the Senate to pass a budget put a gun to the heads of Conservatives and rather than have the Republic suffer, they chose to COMPROMISE and accept a deal that was not perfect but kept the country from default (COMPROMISE...a concept the Left has refused to adopt as displayed by the fact no budget has been passed by the Senate). JD (probably Dusty in disguise due to no substance and only personal attacks) claims Conservatives have "small minds" yet fails to recognize the big picture. The greatest irony, which i was expecting from the Left, is the fact that no one recognized the fact that government has no business in picking Winners and Losers, as they did with the HUBZone legislation (I point out this fact...LEGISLATION to remind everyone that this was not an executive order by Bush, but a bill passed by passed by Congress that Bush signed as a form of COMPROMISE.

JimRussell44 7 months, 3 weeks ago

It's fun to see the right dusting off the word "compromise" in case their candidate somehow wins in November. Already getting ready to say that the reason Romney won't get it done is because those darn Democrats will say "no" to everything and obstruct progress. Sorry, if it doesn't work for Democrats, it won't work for Republicans either.

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