In my home state of Michigan, the average household has spent nearly $28,000 more due to inflation since January 2021.
Inflation is crushing families nationwide, and the Biden-Harris administration is the number one culprit. When we look at the bad policies that have brought up costs, most initially point their fingers at the American Rescue Plan and Inflation Reduction Act, which Vice President Kamala Harris cast the tie-breaking vote to pass. However, a network of regulatory burdens has also put a stranglehold on American job creators, targeted workers’ benefits, and driven up prices.
The Department of Labor has pushed its Independent Contractor Rule, which seeks to strip many workers of their autonomy and force them into an often outdated, inflexible employment relationship. In the modern economy, millions of workers enjoy the ability to earn how they want and when they want. 77 percent of app-based workers across the country support maintaining their current classification as independent contractors.
These arrangements bolster economic growth and allow personal freedom not typically available through traditional work relationships. If these workers overwhelmingly enjoy the flexible arrangements that allow them to pursue other commitments and interests life has to offer, they should have that freedom.
Another initiative from the Biden-Harris administration, which was struck down by a ruling from the Eastern District of Texas, sought to widen the scope of joint-employer liability, which would have far-reaching consequences, particularly for small businesses. This effort rewrote the narrow 2020 definition of a joint-employer, making it even harder for local entrepreneurs to start or run a business and discouraging businesses from working together.
While not currently implemented, this rule still underscores the whiplash job creators must navigate by tracking burdensome rules promulgated by the administration and ensuing litigation. Ensuring compliance with rules that seem to be ever-changing is very difficult, especially for small businesses.
The Biden-Harris Overtime Rule One rule may sound positive, on a surface level, but applying basic economic principles to it shows that it will clearly cost jobs and lead to higher prices. Finalized in April, this rule seeks to raise the overtime salary threshold for affected employees by roughly 65 percent in less than one year. The previous threshold was widely agreed upon in 2019, and while inflation has certainly shot up since then, this rule will do more harm than good. It is another rule that will again result in lost jobs as employers struggle to make payroll with such a significant rate of increase. It will also construct barriers to entering the workforce as these jobs can often be entry-level and can lead to employees being reclassified from salaried to hourly, impacting their opportunities for growth and development within a field.
Workers deserve protection and safety, and the Occupational Safety and Health Administration (OSHA) has an important role in providing that, but the Biden-Harris Walkaround Rule opens the door for potential abuse, intimidation, and disruption of business operations while distracting us from our common goal of workplace safety. Ultimately, we should come together to bolster workplace safety in constructive ways, but permitting otherwise unauthorized third parties to enter workplaces creates additional challenges without necessarily moving us toward safer work environments.
Notably, these are just some of the inflationary and burdensome regulatory policies stemming from the Biden-Harris administration. Sadly, the inflation-fueling regulatory agenda does not end there; it extends much further when you examine the priorities of the Department of Energy, the Department of Transportation, the Department of Commerce, and other federal initiatives.
The American people are right to blame Kamala Harris for forcing through the Inflation Reduction Act, but there’s a much deeper level to the damage this administration has done through an arsenal of bureaucracy.
Yes, the endless spending has fueled this crisis, but just as responsible are these mandates and a web of red-tape and paperwork that crush American workers, small businesses, and families.
Our history has proven there is little that the American entrepreneur is incapable of accomplishing, but we must let our innovators have the freedom and flexibility to focus on the task in front of them.
We must undo the arsenal of bureaucracy, make life affordable again, and breathe life into the economy.
Rep. Tim Walberg represents Michigan’s 5th District in Congress.