Wednesday, January 18, 2012

How Will Obama's Proposed Agency Consolidations Affect Your Business?

In the short run, these consolidations will mean significant staff cuts across all six agencies. These cuts, whether through attrition, early retirements, or reductions in force, will disrupt relationships within government, and between government and the businesses these agencies are supposed to assist. Agency action will take longer and require more effort from constituent businesses. For many months, everything will seem to grind to a halt while newly reorganized departments draft, publish and issue regulations implementing the proposed changes. Time delays already built into the regulatory process will frustrate business leaders and government bureaucrats alike.

However, if President Obama succeeds in putting together a “single point of contact” relationship between business and the federal government, like the business services hotline Mayor Daley established in Chicago, the final outcome should significantly streamline all interactions between the federal regulatory bureaucracy and the small businesses which drive the American economy forward.  It remains to be seen whether the intentional Republican House blockade of everything President Obama puts in the hopper will kill this initiative aborning.

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