Why USA Management Costs Too Much

There are several reasons why importers find sourcing products overseas superior than to home, but the reason is never "lower labor cost."  In essence the reason is always lower management cost.  I've argued this in my classes and on the blog (and in my next book) but here is a good example.  I changed several hundred canadian dollars into us dollars a few months ago, and the teller grilled me, in a friendly manner, why I had so many (?!) loonies in my possession, was I in Canada, etc.  Homeland security issues you see. Now, what and how I make money in Canada is between me and the tax collectors.  Nonetheless, in the name of national security, I have to burn up my time discussing my business with someone who has no business knowing my business.  At best the clerk gets a brownie point for ratting out a customer.  My time is wasted.

At the same time, the same bank is busy laundering money for the drug trade.  And it is too big to prosecute.  The drug dealers have no problem at all laundering money, and those who do get caught are probably just competition being crushed.

We have to fill out too many forms, pay too many taxes (which then add up to too much for our customers to pay, because business does not pay tax), get too many permits, wait too long in line, experience too many surprises, experience too much trouble if we take on employees, and we never know where we stand in law and property.  Chinese management, ads much of the world, does not have to endure this (except in poor countries).  We are becoming poor because of government interference.  Our management is just as good as anywhere else, it just costs too much.

The solution of course is freedom, freedom from anti-drug laws, freedom from govt interference in banking, freedom to contract with anyone I wish to associate.

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