Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Monday, January 19, 2009

The Final Countdown to CPSIA

What? You don't know what CPSIA is? Yeah well I didn't either so I'll help you out and share with you. CPSIA =Consumer Product Safety Improvement Act. That sounds great doesn't it? Yay!! After that big lead scare last year it's about time something was done! Woo Hoo and Yippee!


Wrong. This is probably some of the most poorly written legislation ever. Here's what our friends at the Consumer Products Safety Commission have done. After the lead scare they got all tough and decided that the solution was to make sure that all products that were intended for use by children 12 and under be thoroughly tested for safe lead levels. Still a great idea, right? Sure until you see how they did it.


It's not enough for the ribbon manufacturers to test their product before they sell it. Now the people who buy that ribbon have to test it again when they put it into any product. They aren't changing the ribbon in anyway but they still have to test it before they can put it on the market.


Now if I buy a dress that has the manufacturer's ribbon on it not only am I paying more for the original manufacturer's testing (which he passed on to the seamstress) but now I'm going to pay for the seamstress's testing too. Guess what happened to my $12 dress from Target? It just jumped to $20.


Now let's look at cottage industry in America. There are home businesses that make art for the nursery, custom tees and onesies, bedding, hairbows and hairbow holders. Want to guess what the new law does to them? They too have to test their product for lead. And if it's a custom shop they can't just test one item out of a batch because they are making them to order. They have to test every individual piece. How long do you suppose they are going to be able to keep it up when they have to foot a $300 test for each item they produce?


So in a time when Americans are already out of work and money is already tight, not only are we going to shut down the American entrepreneur, but we are going to make that same entrepreneur pay more for all of their goods.


Now what started this whole thing? Oh yeah! It came from cheaply made imported goods. Hmmm. So instead of putting the testing on the folks who are importing goods and reselling them, we are going to put it on the manufacturers.


How about this instead. Let's bring some manufacturing jobs home. Convert those eyesores known as empty retail space that Mr. WalMart built and then abandoned for a bigger space right across the street into factories and sewing factories. Put American citizens back to work. And have a safe product created right here in a country that we need to take some pride in again.


Let's see Americans at work - positive; safe product for our children - positive; recycling buildings into something useful - positive; increase in American pride - positive. Anyone see a downside to this?


The CPSIA goes into effect on February 10th. Now the are three things we have going for us. First, the Consumer Product Safety Commission is underfunded and really has no chance of strictly enforcing this law but that doesn't mean people shouldn't follow the law anyway. Second, you can probably rack up some really great deals on Mom-made if you stalk Etsy in the next few weeks because it's going to be a real "Going Out of Business" sale. And finally, consignment shops and "resellers" don't have to test their products for lead content - they just have to make an effort to avoid things that are questionable. So you can still buy that antique wrought iron crib with the white lead paint that you were eyeing for the nursery - it came from a consignment shop.


We all know just how political I am but I promise that I've already sent my letters and e-mails to my state representatives. For the sake of American made could I ask you to do the same? This thing needs to be repealed, reassessed and completely rewritten.


Now Trisha over at MomDot has put a video together too so if you didn't understand my version of events maybe you'll get hers. Study this. Whether you are a home business or not it IS going to impact you. You are a consumer and if they can't pass the cost on through the actual items they are required to test (children's products), they will pass it on in everything else they make (Dad's t-shirts).

Friday, December 12, 2008

I'm Confused.


Yeah, I know that comes as a news flash to everyone. (Insert sarcasm here!) But I really am confused. Now I don't claim at all to be incredibly informed about the whole bailout issue. I am one of those slacker Americans who doesn't get incredibly involved in politics, and I remembered just enough economics to pass my 10th grade Civics class and balance my checkbook. So if anyone can enlighten me a little more - in a constructive way - I would love it.

The banks and mortgage companies made some really bad decisions and made loans that they never should have made. Then they played Russian Roullette with them selling them over and over and creating one ginormous mess when people suddenly couldn't pay. They were given a $700 BILLION bailout. Our good friends at AIG took their bailout money and went on a vacay to the spa under the name of leadership training. No one required that these companies show what they were going to do with the money. No one is making them account for the funds they are given. No one required that those CEO's and CFO's and COO's made huge changes to cut costs and put a infinitely better business plan on paper much less into action.


Now we have Detroit asking for much less help. They too have made some really stupid mistakes by not being pioneers on the energy revolution front. They have bowed to unions and have put a lot of money in their own pockets as well. The unions have run their own companies into the ground and don't really seem to be trying too terribly hard to help out right now. Our government turned Detroit down. Big old "rejected" on that application and a severe tongue lashing for showing up at their hearing in private jets. Detroit went home with their tail between their legs and took their time out to honestly think about what they had done wrong.

They came back with an apology and a detailed plan of what steps they were taking, what steps they would take and what they would do with their money should they get it. They even carpooled this time. They got the big red stamp again.

Before someone one jumps on me for supporting the government's involvement in business, let me tell you that this is not my point. I don't want government involved in business except to make sure that things are run ethically and responsibly via laws. What I DO want is for people to actually look at the ripple effect.

You let the automakers fail and the folks on the line lose their jobs. The folks who work in the electronics factories lose their jobs because they don't need to make car stereos anymore. The people in the upholstery sector lose their jobs because there are no seats to cover. The machinists in the nut and bolt factories lose jobs because what are they putting together? This isn't even looking at the sales force that now has no product. Do you supposed Capitol Hill looked at these factors?

They gave the banks money so that they could help people stay in their homes. Well, guess what guys? If those folks don't have jobs, you can throw all the money in the world at the banks and they are still going to lose their homes, and food, and clothing.

I'm confused. I don't understand why the rules are different for white collar versus blue collar. I don't understand how you can give so much money to one group and require little to no accountability, but you can't give money to the group who has just given you every detail they can possibly provide. Especially when the second group has such a direct and monumental impact on the voter you are supposed to represent!

The CEO of Ford is working for $1. Not he's not going to starve thacks to all his years at the top but he made a personal cut to show his sincerity. AIG dude let his crew go to a spa. I just don't get it.