Penalized for Success; Regulatory Growth Means Business Death
Byline: Richard W. Rahn, SPECIAL TO THE WASHINGTON TIMES
Last week, Christine Jacobs, the CEO of Theragenics Corp., a public company listed on the New York Stock Exchange that makes medical devices and is involved in cutting-edge cancer cures, wrote a letter to President Obama explaining why it was necessary to begin moving our U.S. manufacturing to Costa Rica. The power players in Washington still do not get that many businesses are being forced to flee America or just plain shut down because it is no longer profitable or too risky to continue to do business in the historical home of entrepreneurial capitalism.
Businesses operating in the United States, and even businesses outside of the country that have a small nexus with the U.S., are going to be hit with a slew of expensive job- and growth-destroying taxes and regulations beginning the first of the new year, even if the fiscal cliff is avoided. Financial and securities regulations have become huge business- and job-killers. During the last six years, the United States has lost nearly 20 percent of its banks (7,401 banks in 2006 and now only 6,168), but during those same six years, the number of employees at the Federal Deposit Insurance Corp. - one of the bank insurance and regulatory agencies - has grown by about 70 percent, from 4,475 to 7,537, or more than one employee per bank. The FDIC is only one of many bank regulators. There were more than 26,000 banks in 1913 in the United States when the Federal Reserve, the primary bank regulator, was established, and now there are only one-fourth as many.
Theragenics makes medical devices for prostate cancer, vascular access and wound closure. In her letter to Mr. Obama, Ms. Jacobs noted that her company has four factories in four states in the U.S., which employ 626 people. She stated: In our 30-year history we have treated over 200,000 men for prostate cancer, and we have been proud of our workforce and proud to have treated so many dads, brothers and husbands for cancer. ... As a public company we have fallen prey to the heavy burden of being public with increased expenses associated with [Sarbanes Oxley] and now Dodd Frank. She also reminded the president that she had written to him back in 2009, when she stated, We were paying about $8,000 per employee per year to be public and comply with the new Dodd Frank regulations. That money could be better spent on jobs and expansion. …