The word, written on subway walls and in tenement halls, is that red tape is running small business in Australia into the ground. Dennis McIntyre questions the need for so much red tape.
The consensus among small business owners is that bureaucracy and the red tape that defines government battle lines, has made doing business in Australia too costly. Alarmingly, there is a direct correlation between this rise in red tape and the increase in public sector jobs, which are double those of the private sector.
Many will argue that big business is also playing a role in lobbying for tighter regulation. The theory is that further controls will cripple certain industries and the small players within those industries. If doing business is made too costly for the small, local firm, then big public companies are perfectly placed to control market share.
Hearing these theories makes you wonder about the relationship government has with certain monopolies and the corruption that must exist throughout government’s regulatory bodies.
If this is the case, then corruption is not the only crime. In fact, deception may be the major crime. The deception here is that bodies claiming to be organised and run for the benefit of the people are in fact tools for minority interests. The government bodies are thus the very tyranny they claim to be protecting their constituents from.
The above is mere speculation and inference, which when taken as insinuation gives hope that government and its related bodies are actually working in our best interests. Can we afford such naivety though?
Discussion about corruption usually leads to examples of foul deeds in third world countries; where corruption is overt. When it is analysed in a first world context, there are grey areas where corruption is mixed up and messed up within the laws themselves.
Certain regulators have enormous powers and allegiances with big business. They also have strong relationships with certain media outlets. The combination of government ties with business and media can have drastic consequences when used to its full potential. This combination can destroy a business, without even allowing that business to set foot in a courtroom to fight the regulation and red tape it has been stifled with. This business cannot test whether an allegation against them has any substance in the reality of law. With such tactics being commonly used it can be seen that ‘abuse’ of power by regulators means they can act as judge, jury and executioner.
It is evident that the mentality of those in charge is crippling the country’s small businesses and making Australia less and less viable as the land of opportunity. Australia has become a nanny state whereby the people have become servants to the government; it should
be the other way around.
Excerpted from an article originally published in the Sep/Oct 2013 issue of Think & Grow Rich Inc. magazine. If you are a subscriber to Think & Grow Rich Inc. magazine, you will receive this article in your Sep/Oct 2013 issue of TGR. If you are not a subscriber, click here to subscribe.
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