CPSIA – Thumbscrews, Jobs and You

This week we learned that the G-20 nations established near term fiscal deficit reduction as a twin priority with economic growth. The U.S. says it will reduce its fiscal deficit from this year’s breathtaking 10.2% of GDP to a mere 4.2% in 2013 (that goal translates to about $600 billion in red ink, more or less). This fantastic goal is apparently based on the premise that Mr. Obama’s big spending plans are going to stimulate so much growth that the United States will literally grow away from this problem.

[Please don't bring up the additional expense of new federal entitlements like health care reform - I believe the plan is for magic or heaven above to provide those multi-billions.]

Rosy scenario? To my way of thinking, it is delusional government or at least government in a deep state of denial. Those of us suffering from the CPSIA debacle know why – Obama’s new withering regulations are strangling businesses and the markets. The environment created by these awful rules are killing jobs everywhere. Mr. Obama’s apparent belief that we need a lot more government will render his plan to reduce deficits moot. The passage of time will reveal that thumbscrews are just not a good jobs program.

Consider the trajectory of our companies’ employment ranks over the past four years. Our headcount reduction in 2007 was 3.2%, 2008 was 15.9% and 2009 was 6.6%. There were two big factors in those reductions – a really lousy economy and a really terrible law affecting children’s products. But what about the glorious recovery sparked by our wonderful government? Please note that our businesses are presumably a “beneficiary” of much of that largess because of our dependence on educational sales – schools received MANY billions under the stimulus spending plans. Revenues for first quarter 2010 rose sharply in many industries (an easy comparison to 1Q 2009 but up is up!), so what about jobs at our companies? January – May: our employee headcount shrunk by 2.3%.

We are still not creating net jobs. While we pour endless resources into regulatory compliance, none of which is producing a scintilla of results (and certainly not any sales), we are allowing attrition to lower our costs. We have only so much money – and the government has plans for us to waste it in large quantities. The result – fewer and fewer jobs and a very difficult environment to create jobs. Our total four-year job loss is 25.7%. Some job program. . . .

Mr. Obama prefers to look the other way. While the WSJ notes that “an influential group of U.S. corporate leaders this week accused Mr. Obama of retarding growth with a slew of new taxes and rules”, Mr. Obama simply noted at the news conference at the close of the G-20 meeting “We must recognize that our fiscal health tomorrow will rest in no small measure on our ability to create jobs today.” Time for a hearing test?

And if it weren’t bad enough that Obama endorsed a wishful thinking plan to reduce the deficit through high spending while at the very same time creating the most hostile business environment in recent memory, there is another shoe to drop . . . on you: “President Obama said that next year he would present ‘very difficult choices’ to the country in an effort to meet deficit goals. The president cited his disappointment with the U.S. tax code. ‘Next year, when I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits and debt step up, ’cause I’m calling their bluff.’”

What you aren’t spending on new health care costs or CPSIA compliance, the government plans to take away from you. And by the way, create some jobs while you’re at it.

I cannot help but connect the national issues being discussed with our own travails. We are being sent to the gallows by a truly unconcerned CPSC Democratic leadership. They assert that they are making everyone “safer” without looking at data or considering the serious problems being created in the market. Warnings, dire warnings backed up with data and reason, are falling on deaf ears – it’s as if the Dems are daring us to go out of business to prove our point. Theirs is a catastrophic policy but it seems as though they are bound and determined to see it through. This is terrible news for you, for your customers and suppliers and for our country.

Humpty Dumpty was never the same after he fell over, as we all know. I am committed to prevent this disaster, notwithstanding an uncaring Dem-controlled Congress and Dem-controlled CPSC. I am working for change in Congressional leadership come November, and I URGE YOU to raise money and commit time to candidates offering to help us reform this terrible law. The people who did this to you and me should pay with their jobs. Soon.

Read more here:
CPSIA – Thumbscrews, Jobs and You

CPSIA – New York Times Highlights Big Government at CPSC

The New York Times today highlighted the explosion in regulations under President Obama, particularly noting the CPSC and the controversy over the CPSIA. Here’s what Inez Tenenbaum had to say about our problems:

“‘I don’t want to put anyone out of business,’ said Inez Tenenbaum, chairwoman of the Consumer Product Safety Commission, who was appointed by Mr. Obama. ‘But if anything will help the marketplace, it is to make sure that people have confidence in the products that they buy.’” [Emphasis added]

Let’s be clear about something – this is pure opinion. It may sound like fact, but there’s nothing factual about that self-justifying remark. I am not aware of ANY data to support this point of view. I believe the tenor of Ms. Tenenbaum’s remark is that she knows what’s best for our markets, namely a lot more regulation. I thought her job was to make people safe . . . . She apparently contends that the market for children’s products was sinking under the weight of declining consumer confidence and the CPSIA was some sort of stimulus bill intended to save our market with lots of confidence-restoring regulations.

That is a pretty rosy reconstruction of the CPSIA, don’t you think? I love a good work of fiction!

I have a message for our overlords in Washington – thanks for all your help but frankly, I would prefer to run my business without your assistance. We know our customers, our suppliers, our products and most definitely, our markets – and you do NOT. You say our market needs a boost of consumer confidence. I say that if it does, we’ll take care of it ourselves. You have no right to enter our market and tell us how to run our businesses more successfully. That’s the ultimate in regulatory arrogance and is completely contrary to the capitalist system prevailing in this country. We are the efficient capital allocators, not YOU.

This is all Washington “spin”. The noxious regulations choking our businesses are indefensible for their safety impact so now our regulators are telling us the new rules have been designed to be GOOD for our markets. Pass me a barf bag.

I would like to close by quoting the May 12 HTA letter on the Waxman Amendment:

“Finally, we hope to settle any confusion regarding our intent in endorsing the CPSEA. We endorsed it as our only available alternative. We truly believe that many of our members will be forced out of business after February 10, 2011 without meaningful, clear reform provided by your committee.“

Thanks, Congress and CPSC, for boosting our markets so well with all your new regulations. It’s a brave new world for all of us. Yippee.

Read more here:
CPSIA – New York Times Highlights Big Government at CPSC

CPSIA – Why Do Dems Want to Ban Rhinestones?

Why indeed. The Democrats apparently have it in for rhinestones and are so uptight about this “menace” that they are willing to write an outright ban into the CPSIA, via Mr. Waxman’s new amendment. No more bling for you!

Have we finally entered the land of the looneys?

The Dems’ rallying cry on rhinestones goes way back. On September 10, 2009, Rep. Bobby Rush welcomed Inez Tenenbaum to the one CPSIA hearing since August 2008 by commending her for bravely banning rhinestones.

Let’s think about the basics here:

• Rhinestones are simple embellishments. They are found in inexpensive jewelry, on clothing and shoes, in craft kits, used in scrapbooking, are decorations on kids’ pageant and athletic costumes, adorn hair bows and barrettes, etc. They are bling.
• Rhinestones have no history of causing lead poisoning.
• Rhinestones are even okay to sell under the obnoxious Proposition 65.

Chairman Tenenbaum has conceded in writing that the stones are not dangerous: “Commission staff recognized that most crystal and glass beads do not appear to pose a serious health risk to children . . . .” Of course, CPSC Staff are just scientists and Ph.D.’s, not lawyers writing important laws.

Unfortunately, Tenenbaum recanted her stance in Congressional testimony on September 10, 2009. On September 17, I wrote a letter to Chairman Tenenbaum about her rhinestone testimony . . . but never received a reply. The letter asks her to back up her assertion in testimony that swallowing rhinestones presents a lead poisoning risk. This is an unsupportable contention and perhaps this is why my letter was never accorded a response. In particular, I made the following point about the literal “danger” of rhinestones:

“[T]he Exponent study submitted [by the FJTA] on February 2 indicates that the FDA has determined that six micro-grams of lead per day is required to produce a one micro-gram of lead per deciliter change in blood lead levels in children six years old or younger. Thus, to produce such a change in blood lead levels from jewels would require sustained daily ingestion of 12 grams of stones (roughly 4,000 stones or hundreds of pieces of jewelry) or mouthing of 42 grams of stones (roughly 14,000 stones or more than 1,000 pieces of jewelry). Clearly, this is unlikely to occur, particularly accidentally.” [Emphasis added]

As noted, Tenenbaum never answered this letter.

[See also my posts of July 21, July 21 (no. 2), September 10 and September 12.]

Of course, the natural ally of the Dems, the consumer groups, bang the drum mindlessly for banning rhinestones, too. In my September 20 post, I recounted the attack of Nancy Cowles on the rhinestones “menace”. Here is Ms. Cowles’ suggestion for those who value their bling:

“In an interview with BNA, Nancy Cowles, executive director of Kids in Danger, praised the commission’s July decision on fashion jewelry accessories. Cowles told BNA that lead is a severe toxin with no safe level. She added that while more common sense could be applied to determining which products are hazardous, consumers overall do not want products containing lead. ‘People will come up with other ways to put [jewelry] on children’s clothing that isn’t toxic. Whether the lead [in rhinestones] leaches out fully, it’s hard to know, but we don’t want lead in our children’s products. We will come up with other ways to decorate our clothes,’ Cowles said.”

It’s okay, they just want to protect you.

At this point, I have to ask – what on Earth happened to our country? How did we get to this point? I can’t say for myself, I don’t know how this kind of stridency and absence of BASIC common sense took over our nation. Politics no longer makes sense to me. In today’s New York Times, Senator Evan Byah blasts this theme as he explains why he is dropping out of the Senate after 12 years. It’s a depressing read.

More depressing still is how the Democrats are making such a mess of things and disillusioning so many people, myself certainly included. In yesterday’s Barron’s Magazine, the Dems’ ability to actually govern is questioned. That’s a “wow”. This small article details how Senator Max Baucus’ jobs bill (written in response to President Obama’s call for more economic stimulus), was gutted by Senate Majority Leader Harry Reid for “speedy” passage:

“So Reid selected four provisions that he believes all Senate Democrats and Republicans can agree on: tax breaks for small-business investment; more money for highway construction; expansion of the Build America Bond program, and a payroll-tax exemption for employers hiring someone who’s been jobless for at least 60 days. Speaker of the House Nancy Pelosi is openly opposing the payroll-tax exemption, a stance which has fiscally conservative Democrats near despair. ‘Democrats are in danger of demonstrating they cannot govern on the most basic level,’ a progressive Democratic party leader said last week.”

That’s right – the Dems are failing at the most basic level. The CPSIA saga and the politics/populism infecting CPSC leadership and policy these days are part and parcel of the same phenomenon. Rhinestones are this week’s victim. Who is next in line – you?

When are you going to say “ENOUGH”?!

Read more here:
CPSIA – Why Do Dems Want to Ban Rhinestones?

CPSIA – Why Do Dems Want to Ban Rhinestones?

Why indeed. The Democrats apparently have it in for rhinestones and are so uptight about this “menace” that they are willing to write an outright ban into the CPSIA, via Mr. Waxman’s new amendment. No more bling for you!

Have we finally entered the land of the looneys?

The Dems’ rallying cry on rhinestones goes way back. On September 10, 2009, Rep. Bobby Rush welcomed Inez Tenenbaum to the one CPSIA hearing since August 2008 by commending her for bravely banning rhinestones.

Let’s think about the basics here:

• Rhinestones are simple embellishments. They are found in inexpensive jewelry, on clothing and shoes, in craft kits, used in scrapbooking, are decorations on kids’ pageant and athletic costumes, adorn hair bows and barrettes, etc. They are bling.
• Rhinestones have no history of causing lead poisoning.
• Rhinestones are even okay to sell under the obnoxious Proposition 65.

Chairman Tenenbaum has conceded in writing that the stones are not dangerous: “Commission staff recognized that most crystal and glass beads do not appear to pose a serious health risk to children . . . .” Of course, CPSC Staff are just scientists and Ph.D.’s, not lawyers writing important laws.

Unfortunately, Tenenbaum recanted her stance in Congressional testimony on September 10, 2009. On September 17, I wrote a letter to Chairman Tenenbaum about her rhinestone testimony . . . but never received a reply. The letter asks her to back up her assertion in testimony that swallowing rhinestones presents a lead poisoning risk. This is an unsupportable contention and perhaps this is why my letter was never accorded a response. In particular, I made the following point about the literal “danger” of rhinestones:

“[T]he Exponent study submitted [by the FJTA] on February 2 indicates that the FDA has determined that six micro-grams of lead per day is required to produce a one micro-gram of lead per deciliter change in blood lead levels in children six years old or younger. Thus, to produce such a change in blood lead levels from jewels would require sustained daily ingestion of 12 grams of stones (roughly 4,000 stones or hundreds of pieces of jewelry) or mouthing of 42 grams of stones (roughly 14,000 stones or more than 1,000 pieces of jewelry). Clearly, this is unlikely to occur, particularly accidentally.” [Emphasis added]

As noted, Tenenbaum never answered this letter.

[See also my posts of July 21, July 21 (no. 2), September 10 and September 12.]

Of course, the natural ally of the Dems, the consumer groups, bang the drum mindlessly for banning rhinestones, too. In my September 20 post, I recounted the attack of Nancy Cowles on the rhinestones “menace”. Here is Ms. Cowles’ suggestion for those who value their bling:

“In an interview with BNA, Nancy Cowles, executive director of Kids in Danger, praised the commission’s July decision on fashion jewelry accessories. Cowles told BNA that lead is a severe toxin with no safe level. She added that while more common sense could be applied to determining which products are hazardous, consumers overall do not want products containing lead. ‘People will come up with other ways to put [jewelry] on children’s clothing that isn’t toxic. Whether the lead [in rhinestones] leaches out fully, it’s hard to know, but we don’t want lead in our children’s products. We will come up with other ways to decorate our clothes,’ Cowles said.”

It’s okay, they just want to protect you.

At this point, I have to ask – what on Earth happened to our country? How did we get to this point? I can’t say for myself, I don’t know how this kind of stridency and absence of BASIC common sense took over our nation. Politics no longer makes sense to me. In today’s New York Times, Senator Evan Byah blasts this theme as he explains why he is dropping out of the Senate after 12 years. It’s a depressing read.

More depressing still is how the Democrats are making such a mess of things and disillusioning so many people, myself certainly included. In yesterday’s Barron’s Magazine, the Dems’ ability to actually govern is questioned. That’s a “wow”. This small article details how Senator Max Baucus’ jobs bill (written in response to President Obama’s call for more economic stimulus), was gutted by Senate Majority Leader Harry Reid for “speedy” passage:

“So Reid selected four provisions that he believes all Senate Democrats and Republicans can agree on: tax breaks for small-business investment; more money for highway construction; expansion of the Build America Bond program, and a payroll-tax exemption for employers hiring someone who’s been jobless for at least 60 days. Speaker of the House Nancy Pelosi is openly opposing the payroll-tax exemption, a stance which has fiscally conservative Democrats near despair. ‘Democrats are in danger of demonstrating they cannot govern on the most basic level,’ a progressive Democratic party leader said last week.”

That’s right – the Dems are failing at the most basic level. The CPSIA saga and the politics/populism infecting CPSC leadership and policy these days are part and parcel of the same phenomenon. Rhinestones are this week’s victim. Who is next in line – you?

When are you going to say “ENOUGH”?!

Read more here:
CPSIA – Why Do Dems Want to Ban Rhinestones?