CPSIA – Jobs, the CPSIA and me

I saw this video tonight and it really frustrated me.

Michelle Rena Jones, the unemployed person featured in the video is a victim of our economic downturn, and of Michigan’s long dependence on the auto industry. She seems intelligent and highly employable. . . yet she is the part of the long term unemployed. She’s not alone by a long shot.

We employ about 150 people in our educational toy business. We consider ourselves fortunate to be able to provide these jobs, given the terrible recession, awful State funding prospects, and most importantly, the overhang of the fatal CPSIA. When I thought about Ms. Jones, I asked myself why we aren’t hiring right now.

Frankly, our business reflects the punk economy you hear about on TV. Right now, we lack the confidence that we can safely add people, or even more importantly, that we will see the sales volume to support new people. This closes most doors to new jobs at our shop.

Then there’s our ole’ pal, the CPSIA. What impact does the CPSIA have on our hiring mentality? Hey, I’m the guy who figured out that this government intends to jam me with a requirement to spend $15 million per annum on testing – how do you think it makes me feel? I assume smaller companies, including the crafters comprising the HTA, realize that despite the various promises and wiped-away tears at the CPSC, the new rules offer scant relief to the small fry. The rules mean business death – and that ain’t a job program, kids. If we’re toast, so are other small businesses. Actually, if we’re toast, everyone’s toast.

Right now, I cannot abide investing in our business. Expansion is a joke since the federal government has totally abandoned us. Trust has been obliterated, shredded, stomped on. Congress is completely deaf and the CPSC doesn’t give a darn – which is why after two years of work and “dialogue”, they produced the drivel we were to comment on last week. [For a candid assessment of those rules, please see my comment to Anne Northup's blogpost of August 11.]

Do you think any rational business manager would hire anyone while fearing that costs far exceeding his annual profits are about to be imposed? Forget it – business people suffering under the crushing burden of the wave of Obama hyper-regulation are thinking of how to survive. Bucking the rules won’t work, either – don’t forget that the agency has the power to press felony charges against anyone who knowingly breaks this law. 2011 is Tenenbaum’s “year of enforcement”.

Can’t wait. . . .

Ms. Jones won’t be likely getting a job from a children’s product company anytime soon.

Apparently, some people still wonder why voters are angry and why the Dems are being blamed. If anyone seriously can’t figure that one out, they’re as deaf as the stone deaf members of Congress we will be voting out of office . . . soon.

Very soon.

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CPSIA – Jobs, the CPSIA and me

CPSIA – Misery Loves Company

Well, well, look who’s haunting Toyota these days – if it isn’t David Strickland, Administrator of the U.S. National Highway Traffic Safety Administration. Strickland is well-known to the cognoscenti of the CPSIA as the lead staffer in the Senate for our favorite law and as one of its principal authors/shepherds. Having wreaked sufficient havoc with the CPSIA sufficiently to impress the big boss, he was rewarded by Obama with the top job at NHTSA where he can now work his magic to reduce Toyota and the auto industry to a steaming hulk of debris in short order. And that’s not all – Mr. Waxman bared his claws on Toyota, too, asking who knew what when, holding hearings, providing more and more fodder for the media.

How did Toyota get in this mess? Well, they had a big recall, and the newspapers, TV commentators and panicked members of Congress worked in concert to create a frenzy. Wow, that sounds somehow . . . familiar. Isn’t this an election year, too, just like 2008? In other words, a really good time to identify a bad guy, whip up a crisis and then solve it? You know, to protect the populace just before polls open, having worked the people up into a lather. The time-honored, sure-fire formula for reelection. . . . . The CPSIA formula being rolled out again also includes calls for massive corporate penalties, spiraling litigation, increased regulation and more government involvement in oversight of the industry (because everything is better with more government). Sounds GREAT!

And who better to operate this paranoia machinery than Mr. David Strickland in partnership with Henry Waxman? With Strickland’s credentials, it’s only a matter of time before Toyota is so pilloried and shamed that it will become a shadow of its former self.

I have been warned to stay away from the Toyota story. I have been told, “everybody hates Toyota in Washington”, no sympathy is possible. Nonetheless, I resent the effort to destroy a great company because the opportunity to create a crisis presented itself for some Democrats in need of headlines. The parallel to the CPSIA saga is just too compelling. Let me ask you Toyota owners – is this feeding frenzy what you want? Have you grown tired of the good service at the Lexus dealership, the strong record of reliability of your Camry, the innovation of your prized Prius? Wasn’t it just months ago that you drove your Prius as some sort of Green badge of honor? Have you lost confidence in Toyota based on your personal experience . . . or because of the relentless barrage of bad publicity on TV and in the papers?

It’s a great tradition in Congress these days – bring the mighty down low, and be sure to erode all confidence in business enterprises. It’s a hallmark of leading Democrat today. With Strickland in charge at NHTSA, you can be sure that the damage to Toyota will be severe.

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CPSIA – Misery Loves Company