Starting and maintaining a small business is a fragile thing. Except for the naive desire that entrepreneurs have to be their own boss and possibly get rich, there is no rational reason for anyone to put themselves into such a precarious position: long, hard hours; unending stress; strained personal relationships; financial hardships; and lack of respect are the worst of the offenses but there are many more. However, the most onerous obligation on a small-business-owner is becoming responsible for employees. The nanny-state requirements for having employees are expensive, difficult, and encourage conflict between the employee and the small-business-owner. Often, employees are better rewarded than the small-business-owner, while at the same time the small-business-owner is financial and legally responsible to ensure the employees’ well-being. In fact, nanny-state employee mandates that small-business-owners have been unable to pay, unlike other business expenses, cannot be bankrupted out of. The small-business-owner is responsible to pay for the rest of their life. It is a kind of reverse indentured servitude, something the U.S. Constitution forbids when it guarantees “freedom” and also when it provides the right to bankruptcy.
The nanny-state burdens placed on small-business-owners are laudable, but making the entrepreneur responsible is not only counter-productive, it is ethically and morally wrong. When I have presented this argument to supporters of the nanny-state requirements on small-business-owners, their response is invariably that the small-business-owner should not be in business… Exactly my thoughts. And if someone does somehow manage to start a business - as an attorney, accountant, and financial advisor, I counsel them NOT to hire any employees. Good luck, Barack Obama, trying to exploit the hopes, dreams and ambitions of aspiring small-business-owners. Don’t get me wrong, I’m all for nanny-state protections, but if society wants them then society should be responsible for them, NOT small-business-owners.
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