Group items tagged

The Big Money economy is booming. According to a new Commerce Department report, third-quarter profits of American businesses rose at an annual record-breaking $1.659 trillion - besting even the boom year of 2006 (in nominal dollars). Profits have soared for seven consecutive quarters now, matching or beating their fastest pace in history. Executive pay is linked to profits, so top pay is soaring as well. Higher profits are also translating into the nice gains in the stock market, which is a boon to everyone with lots of financial assets. And Wall Street is back. Bonuses on the Street are expected to rise about 5 percent this year, according to a survey by compensation consultants Johnson Associates Inc. But nothing is trickling down to the Average Worker economy. Job growth is still anemic. At October's rate of only 50,000 new private-sector jobs, unemployment won't get down to pre-recession levels for twenty years. And almost half of October's new jobs were in temporary help.

September 13, 2011 - Many regulations that were originally scorned by politicians and industry as signaling the death of product lines, companies, and jobs - including those requiring more efficient light bulbs and banning chemicals that damage the ozone layer - in fact stimulated healthy innovations that have protected American lives and saved billions of dollars without harming industry, according to a report by Public Citizen. "Regulation: An Unsung Hero in American Innovation," describes five regulations that were originally excoriated but have resulted in innovations that improved public safety, helped the environment and led to better products. The report comes as public protections are under attack from the U.S. Chamber of Commerce and big business allies in Congress, who focus on the cost of rules while ignoring their public safety benefits and their potential to spur innovations.

I've written frequently on the national regulatory state as a source of monopoly rents to big business.  But the true nature of regulation as a naked power grab by incumbent businesses is nowhere more apparent than at the local level. At the lower levels of government, conventional, brick-and-mortar business establishments are heavily involved in using regulatory enforcement to shut down low-cost competition.