Monday, October 12, 2009

The cost of regulation

A look at regulation's impact on the struggling garment industry in Los Angeles:
Meanwhile, government regulations are mounting. A plan approved last year by California regulators to cut the state's carbon emissions could raise compliance costs for textile mills, which employ 8,300 people in Los Angeles County, Kyser said.

Last year, Congress passed the Consumer Product Safety Improvement Act, which requires children's clothing manufacturers to pay for their garments to be tested for lead content. Children's apparel companies said this had added expense and confusion at an already difficult time.

"There are so many different regulations, you need a score card to understand them," said Brian Thaler, president of the Textile Assn. of Los Angeles.

Edie Marrs produces Geomio and Minawear, two lines of natural-fiber clothing and accessories. Amid all the uncertainty about the Consumer Product Safety Improvement Act, Marrs said, she canceled a children's line she had planned.
There is widespread agreement that our tax code is an incoherent mess which does nothing to boost economic growth. But we also shouldn't forget about the burden posed by regulation, which becomes heavier each year. So many new rules seem to be passed with only a passing interest -- if any at all -- given to any kind of cost-benefit analysis.

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