Every state and federal bureaucracy issues regulations on businesses- small, large and entrepreneurial.
These regulations kill growth and innovation as the faceless bureaucrats impose costs, waste time and create impossible hurdles.
For example, the Federal Drug Administration (FDA) is an example of an agency that hurts (and literally kills) opportunity, hope and peoples futures.
Many great drugs and new therapies never get approved because of the high cost of government approval.
In fact, many people with illnesses, who can afford it, go to foreign countries for treatment.
Here is just one example of how regulations kill…
Dendreon, a Seattle-based pharmaceutical company, spent 15 years developing a promising treatment for prostate cancer.
JP Morgan even called the company their top pick for 2011. However, despite their success, years of clinical trials and FDA regulations have hurt the company tremendously.
Because the drug is a cancer treatment, the drug must be administered at a doctor’s office. The drug is also expensive.
So expensive, in fact, doctors’ offices must take out a short-term loan to pay for it.
Because of the Medicare bureaucracy, many doctors won’t even prescribe the drug because they are afraid they will not be reimbursed.
The company then announced that there would be layoffs, despite their incredible product, because government regulations had limited their ability to be successful.
These layoffs meant lost revenue for the government because investors will not be selling the stock and reporting capital gains.
This company, which was started through risk and innovation, was now driven into the ground because of regulations and insensible bureaucracy.
It’s time to stop the over regulations!
What do you think? Do you think regulations hurt jobs? Email your thoughts to me at Craig@craighuey.com