Anti-Wal Mart Regulation Hits Small Businesses Hardest

Maintaining small town "charm" by keeping big box stores out enables a regulatory apparatus that ultimately hits small businesses hardest.

Local officials who simultaneously decry big box stores and national chains while doling out burdensome regulatory structures and complicated permit processes should understand that regulatory burdens hit the smaller, independent places hardest, because they're the places that have the smallest amount of discretionary cash to hire legal aid (or, if you're really cynical, to make the appropriate campaign contributions). They're on a tighter budget and, therefore, have a smaller margin of error when it comes to hassles like delaying an opening because some bureaucrat determined their signage is a couple of inches out of compliance.

There's a larger lesson in all of this, too. Those who push for federal regulations to rein in "big business" often don't realize that the biggest of big businesses don't mind heavy federal regulation at all. They have the resources to comply with them, not to mention the clout in Washington to get the regulations written in a way that most hurts upstarts and competitors.

Big businesses know that a heavy regulatory burden is the best way to make sure small- and medium-sized businesses never rise up to challenge them.