John R. Smith: Biden’s Newest Attack on Businesses
During his campaign for President, Joe Biden spoke about his plan to transform America. His agenda was to change our way of life by adopting a leftist political agenda. But what Biden did not understand is that his intentions, his goals, are different from most Americans. This is because Biden and his far-left appointees do not understand basic economic principles.
Now that he has the power, Biden has launched a vast and quiet proposal to eliminate, in stages, one of the most important doctrines in economics: the concept of Opportunity Cost.
Opportunity Cost, in business, refers to the potential value of benefits that could have been gained from using financial resources for an alternative purpose instead of how they were actually used currently (such as complying with government regulations). It represents the benefits foregone when a specific choice is made. Understanding opportunity costs, which Biden does not, helps businesses make more informed decisions by considering the trade-offs involved in allocating resources to different opportunities. It is a crucial concept in resource allocation, financial planning and strategic decision-making.
Estimating opportunity cost when company money is spent to comply with government regulations can be somewhat complex, because the benefits of compliance are often non-monetary or indirect. But, it’s still important for businesses to consider the costs of lost opportunities, which could have reduced expenses and helped reduce costs to customers.
The critical problem that businesses face now is that the federal government is about to radically upend how government regulations are imposed on companies The Biden White House is dramatically changing and redefining its regulatory approach to Cost-Benefit Analysis. This will alter the entire structure for future regulations. The government has mistakenly changed its assumptions in its regulatory analysis, which will vindictively undermine the opportunity costs of their laws and rules. Opportunity costs will be swept under the rug in order to make new regulations sound less harmful than they really will be. This will make it easier for the government to justify expensive rules, even as new errors will be introduced in its assumptions.
College academicians around the country, most of whom are not business-friendly, are applauding this new plan, sending positive comments to the White House Office of Management and Budget. This only emphasizes how much more political the academic “elites” have become, and how they have little hesitation to push the business community under the bus when they can.
Other stories you may want to read:
- John R. Smith: Palm Beach County Progressives Never Stop Trying to Take Our Money - November 25, 2023
- John R. Smith: The United Nations Is Not Just Useless, It’s Dangerous - October 31, 2023
- John R. Smith: World Disorder Is Expanding at Warp Speed - October 10, 2023