Job-Creators: Regulations Ship Jobs to China

February 11, 2011

How Much Longer Will House Democrats Ignore Warnings that Regulations Hurt America’s Global Economic Competitiveness?

House Republicans today are considering a measure to order a comprehensive review of federal regulations. This effort follows the House Oversight and Government Reform Committee’s publication of nearly 2,000 pages of letters from job creators detailing how onerous regulations substantially increase the cost of doing business, which hurts economic growth.

One employer trade association explained how regulations proposed by the Obama administration harm the global competitiveness of U.S. firms:

“The industry is facing an avalanche of EPA rules ranging from tighter air quality standards and EPA-imposed limits on greenhouse gas (GHG) emissions to rules aimed specifically at our sector…

“PCA has recently completed a cumulative economic analysis outlining these impacts and includes the following highlights:

4,000 lost jobs by 2015, in addition to 4,000 lost since 2007;
Two EPA rules will impose $5.4 billion in compliance costs by 2015;
“One EPA rule will close 18 points nationwide by 2013;
Increased imports totaling 56% of domestic consumption by 2025…

The EPA regulations will hinder the cement industry’s ongoing modernization efforts to remain globally competitive…. In total, more than 80,000 jobs could be lost due to EPA regulations targeting the cement industry.” (Aris Papadopolous, Portland Cement Association, Letter to House Oversight and Government Reform Committee Chairman Darrell Issa, 2/1/2011)

Other groups explained how excessive regulations put American businesses at a competitive disadvantage and lead to jobs being sent overseas:

“Manufacturers bear the heaviest burden from any environmental regulation, while facing similar or more stringent regulations in workplace safety, health, transportation, financial, trade, tax administration, homeland security and export controls. A study by the Manufacturing Institute and MAPI indicates that structural costs imposed on U.S. manufacturers including regulations create a 17.6% cost disadvantage when compared with nine major industrialized countries…. the high compliance costs associated with the more stringent ozone standard will hinder manufacturers’ ability to add jobs and hurt our global competitiveness.
(Jay Timmons, National Association of Manufacturers, Letter to House Oversight and Government Reform Committee Chairman Darrell Issa, 1/7/2011)

There are a number of regulations from both EPA and OSHA, that if not implemented correctly and appropriately, could limit the steel industry’s global competitiveness, investment, and job growth in coming years.” (Thomas J. Gibson, American Iron and Steel Institute, Letter to House Oversight and Government Reform Committee Chairman Darrell Issa, 1/10/2011)

Taken individually these regulations are onerous and expensive to industry, often with questionable cost/benefit rationalizations. Collectively they consume extraordinary time and capital that could be better used to increase our global competitiveness and create U.S. jobs.”(Dennis J. Hardman, American Plywood Association, Letter to House Oversight and Government Reform Committee Chairman Darrell Issa, 1/10/2011)

Meanwhile, Minority Leader Nancy Pelosi says that the debate over regulations is “filler”—just a waste of time. How much longer will Pelosi and other House Democrats continue to ignore American job creators about how to fix the economy?

“Instead of focusing on job creation, this congress is spending ten hours on the floor, a filler, as concrete evidence of the fact that they have nothing else to fill the time with, directing our committees to conduct oversights.” (Remarks by Minority Leader Nancy Pelosi, 2/10/2011)