“But How Does Excessive Regulation Kill Jobs?”
By Mitch Berg
The GOP’s plan to help the economy by, among many other things, dialing back regulation, makes intrinsic sense if you have the faintest sense of how business works.
Most liberals do not. They think jerbs are created when government submits a funded work order, all too often.
Worse? When you talk to too many libs about reducing regulation, they say “Hey! Regulation gives us safe water and clean air!”
To which one is tempted to reply “Yes, and we’re not talking, largely, about those regulations, and would it be possible to have enough government and the right amount of regulations, rather than too much of both?”
Joe Doakes from Como Park writes:
You thought that because the City approved all your permits, you could spend tens of thousands of dollars to open a business here?
I followed the link to a PiPress story; one Kevin Vanderaa, owner of a Minneapolis bakery called “Cupcake”, wanted to open another location on Grand Avenue. He had everything squared away – or so he thought.
We pick up with the PiPress story:
Vanderaa signed a lease in July to open in the former Wonderment Toy Store, between Lexington Parkway and Dale Street. Unlike the Minneapolis Cupcake location, this one was to have a 32-seat wine bar along with a bakery and cafe. At the time, he didn’t know that because he was going to serve beer and wine he would need more parking spaces. The city held up the business license until he could secure a shared parking arrangement or a parking variance for seven spaces required by the Board of Zoning Appeals.
“But people gotta park…!”
Have you been to Grand Avenue lately?
Bear in mind, these are jobs. Not “infrastructure” jerbs, like the jerbs Governor Dayton is yapping about in his pork-laden bonding bill, temporary jobs that’ll go to Dayton’s union buddies and disappear as soon as the “infrastructure” is built. Real jobs, that last as long as the business lasts.
The kind of jobs that the DFL extinguishes with gay abandon.
For your own good, of course:
“Everyone wants Cupcake on Grand Avenue,” said McLean Donnelly, vice president of the association. “But there’s a right process of setting up parking with businesses on Grand Avenue, and if the correct process had been in place, we’d be enjoying cupcakes right now.”
Let those unemployed people eat process!
In December, Vanderaa got a signed lease from nearby Anderson Cleaners for the parking spaces. The Zoning Board approved it Dec. 27 with a 10-day period for appeals. Vanderaa said he thought the appeal period began the day it was approved by the board. When 10 days had passed, he began construction. The floor was ripped out and pumping and electrical were started.
But at 5 p.m. Jan. 19, even though the Zoning Board already had given its OK, the Summit Hill Association filed an appeal, citing that Vanderaa should have had a shared parking agreement instead of a lease with Anderson Cleaners. Vanderaa was stunned because he thought the appeal period had passed. Later, he found out it hadn’t actually begun until Jan. 9, when the lease was officially voted on and signed off by the St. Paul City Council. The city then notified Vanderaa that his permit was being pulled.
Did you follow that?
Now, you might say “that’s just a bunch of city regulations” – and you’re right. But DFL government behaves like liberal government, at all levels; regulations have boomed under Obama, under Dayton, and of course in Saint Paul under 60 years of DFL rule (with a 12 year break under Coleman and, to a lesser extent, Kelly).
Take the problems facing Mr. Vanderaa at “Cupcake”, and apply them to something in the state’s kill zone – say, the Polymet mine project up on the Iron Range. Like Saint Paul, the Iron Range desperately needs jobs. Like Saint Paul, there are markets to be filled on the Range; yuppie fans of cupcakes (which, MPR tells me, is the latest pop-culture fad) on Grand, a world hungry for industrial minerals like Polymet will produce).
And on the Range, as in Saint Paul, regulations – controlled, inevitably, by political as well as bureaucratic interests – stymie Polymet with every-bit-as-tight a stranglehold as they do “Cupcake On Grand”.
Donnelly said the information provided to the Board of Zoning was inconsistent and there were several unresolved technical questions the board hadn’t pinned down.
“People think we’re singling out this business,” Donnelly said. “But if Vanderaa gets a parking variance, it can impact other businesses on Grand Avenue. And a variance stays with the property and not ownership. If the parking situation is a mess, we’re stuck with it.”
Look at the bright side; nobody’s building a train down your street.
But the real point is, regulation kills jobs. And while most of our society accepts some regulation – speed limits, pollution limits in water and air, medical licensure and the like – there’s a thick gray line between “The government and regulation we need” and “Government and regulation that really exists only to give government something to do at best, and serve as the policy manifestation of some special interest or another at worst”.
And that kills jobs faster than any “infrastructure” project can possibly replace them.





February 6th, 2012 at 2:05 pm
It probably means that the owner doesn’t know, is friends with, or have a special relationship with the powers that be.
I point to Jimmy Johns in Highland Park, who were denied permission to move from their storefront on Ford Parkway, to space across the street in the strip mall, with parking lot in front of the store (and behind the building as well.) Because of parking issues. Even though the space they currently occupy has no dedicated parking that is apparent to anyone.
Just months later, Panera Bread is allowed to open up in the same strip mall. No parking issues were raised, although I would venture to guess that Panera actually requires more parking than Jimmy Johns.
All I could think was Jimmy Johns is crosswise with the powers that be for some reason. What those rea$on$ might be, I have no idea. Just makes you go hmmmm.
February 6th, 2012 at 5:04 pm
Uber-liberal Cory Doctrow commenting on how difficult it is to open an ice cream parlor, oblivious to the fact that it’s folks like him who enable this behavior: http://boingboing.net/2012/02/04/on-the-horrors-of-getting-appr.html.
For a bonus, the person submitting the link has only been waiting a year for permission to cut a door through his wall for a pizzeria and fully expects to wait another year before it happens.
February 6th, 2012 at 6:03 pm
Eliminating parking requirements is a major part of the agenda for pro-urban density liberals. Here is Matt Yglesias saying Mpls has not gone far enough in eliminating parking requirements.
http://thinkprogress.org/yglesias/2011/06/16/246443/parking-in-minneapolis/
February 6th, 2012 at 7:26 pm
Someone afraid of local competition has someone’s ear in some decision-making capacity. The Polymet comparison is a stretch. Extraction industries provide many jobs for a while, and then a whole lot fewer. Historically, Extraction industries get a great deal of special treatment. That American Eagle we see all over the place, the live ones, are a result of Government Regulation. So are the wolves you get to hunt next year.
February 6th, 2012 at 7:40 pm
OJ,
Yes, extraction has a short-ish shelf life. Not as short as “infrastructure” work, of course. And I’m not sure people on the Range would mind at least a decade or two of prosperity, since it pretty much takes prosperity to breed prosperity.
As re eagles and wolves – as I said, conservatives would like to have the right amount of government. Not too much. Is that doable?
February 6th, 2012 at 9:15 pm
If we didn’t have wall-to-wall regulations in cities the result wouldn’t be dog-eat-dog capitalism and a spoiled commons as each individual tries to maximize his or her share.
People are very, very good at organizing around common interests. They are so good at it they engage in regulatory capture whenever it is possible to do so, and in a democracy there are many opportunities to do so. The right to petition the government is in the constitution.
The opposite of the rule of law isn’t anarchy, it’s revolution.
February 7th, 2012 at 12:11 am
That American Eagle we see all over the place, the live ones, are a result of Government Regulation. So are the wolves you get to hunt next year.
So are the deer that are overrunning populated suburbs. I live less than 5 miles as the crow flies from downtown Mpls, and we often have HERDS of deer running down our street late at night. As in a dozen or more.
February 8th, 2012 at 10:50 am
According to the latest edition of The Highland Villager, the owner of Cupcake has given up opening in St. Paul.