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John Stossel
  • November 15, 2010 01:24 PM UTC by John Stossel

    Crushing Entrepreneurs

    Clueless regulators continue to pass new rules, despite the damage done by mindless enforcement of the old ones.  I’ve written about the seven-year-old who tried to open a lemonade stand in California.  Now two middle schoolers in New Castle, NY have gotten in trouble because they held a bake sale at the country fair. The local paper reports:

    Their first day was wildly successful, the boys said. They netted $120, of which they invested $60 to buy a cart from Target and added water and Gatorade to their offerings on their second day.

    But then – whoops – looks like the boys didn’t get the required $1 million certificate of insurance.  What’s wrong with them -- didn’t they read the 137-chapter New Castle City Code?!

    Town board member Michael Wolfensohn called the cops.

    "All vendors selling on town property have to have a license, whether it's boys selling baked goods or a hot dog vendor," said Wolfensohn…

    a New Castle parks use permit requires a $1 million certificate of insurance and a fee ranging from $150 to $350 per two hours…

    Couldn't Wolfensohn have simply told the boys that they needed a license, the parents want to know, instead of calling the police?

    "In hindsight, maybe I should have done that, but I wasn't sure if I was allowed to do that," he said. "The police are trained to deal with these sorts of issues."

    For now, the kids are out of a job.

    "I am shocked and sad for the boys. It was such a great idea, and they worked hard at it," said Laura Graff, Kevin's mother.

    "I don't get too many offers for babysitting, and we live in a development, so shoveling snow is not an option either," said Andrew. "We were being entrepreneurs , but now I feel a little defeated."

    Just one more victim of big government.

steelchair53

If you want to start a business and you have a passion to do something honorable, stick with your dreams a pursue it. There will always be obstacles that will come to you almost daily but it's the strong that run businesses and the weak fall off by the wayside. None of us like big business regulations but it the lawyers who have taken on legal issues from greedy individuals who want compensation for personal gain that have caused most of the problems.

November 17, 2010 at 8:34 am

Edmund Burke

I couldn't agree more with Mr. Stossel. I owned and operated a small business several years ago in Washington state. I was required to pay a 1%+ B&O tax on my gross profits, even though the first two years I did not generate any net profits. Though I only employed myself and three other employees, we had to cope with pages and pages of nonsensical bureaucratic regulations. One proposed regulation was mailed to me--I was stunned at how long it was. I do not remember how many pages it ran, but I remember it weighed over 9lbs! The next blow came when the state required me to purchase a performance bond, despite the fact that no losses to consumers could be documented and the state was in the middle of a bond crisis. The latter requirement forced me to sell out to a large, multi-state competitor. A large proportion of government regulations seem designed to: • Favor large corporations, who can afford to hire attorneys, accountants and extra office staff to handle regulatory compliance. • Justify the growth of larger and larger bureaucracies and higher pay. • Satisfy the sick desire of some bureaucrats to bully others, force their own beliefs on others, and to snoop in other people’s lives.

November 16, 2010 at 6:32 pm

Bayareapatriot

If you think the police are your friend, just read this article. When the civil war starts, they will be the enemy.

November 16, 2010 at 3:44 pm

Jenny

As someone who has worked in the private sector since college, at age 45 I find myself wondering where I belong. I would love to start my own tech firm, but as a cancer survivor I am a slave to my benefits that my current employer provides. I found at today that the 60 plus hour work week I put in has provided me with a stip (haven't received one in years) of several hundred dollars. THANKS AVAYA INC, SILVERLAKE, KEVIN KENNEDY-I feel like Clark Griswold from the movie Christmas Vacation

November 16, 2010 at 2:57 pm

Jackson

Government employees are losers that couldn't make a living in the private sector. As a small business owner I have lost 100K this year due to stupid meaningless regulation. Early next year I will be moving out of California and starting over. I can no longer afford to support all the government ASS SITTERS.

November 16, 2010 at 12:57 pm

Kimn

REMEMBER, these are kids selling lemonade. Keep your dirty tainted hands off of them! This should have been overlooked in the name of common decency and mutual respect for kids trying to do something. If it got out of hand they could have easily been reeled-in by talking to the parents, not cowardly calling the police. At some point THE PEOPLE are going to rise-up against this constant government intrusion and as a career politician once said..."that is what elections are for".

November 16, 2010 at 11:15 am

Joe Nagy

Fortunately the kids are receiving a lesson on how government works at an early age so they won't be disappointed later in life. Invaluable knowledge!

November 16, 2010 at 11:04 am

Wenchypoo

This is why you should always buy a house on a busy corner lot: excellent yard sales, and excellent lemonade stands OFF CITY PROPERTY!

November 16, 2010 at 8:32 am

peterj

And the nanny state marches on. Land of the free....what a joke

November 16, 2010 at 12:33 am

Randy

And notice the council member goes off half-cocked. Since it was a kid, he crushed them. If it were a pedophile he would have used kid gloves. These guys are morons.

November 15, 2010 at 9:23 pm

RodeoBrandon

to previous comments: some of you take aim at this article as if the author has used the kids' story to inappropriately take a jab at the government. That IS the point! Worried about someone suing the city over tripping over some kids' lemonade stand? That IS the point! Our freedoms have become strangled by lawyers and insurance companies. When will common sense and morality make a come-back? Not as long as gov't regulatory requirements burden us all like prison shackles. Broken!

November 15, 2010 at 8:50 pm

David Seltzer

Assholes at large!

November 15, 2010 at 7:16 pm

BC

Go play video games kids, then be a public sector union employee.

November 15, 2010 at 6:13 pm

ERic

This was not a country fair, it was just a regular day at a regular park. The guy acted like a jerk & should have left the kids alone, but you, Mr. Stossel, need to either go back to journalism school or state who told you there was a fair. After scouring the New Castle site, I can find no such information. Also did you bother to check Mr Wolfensohn's history of raising money for a 9-11 memorial? Or how the kids have been doing a lot of charity fundraising? This piece isn't journalism Mr. Stossel, its the angry rant of an angry man. A real journalist would have given a history of all parties, and given a well rounded view of the whole situation.

November 15, 2010 at 5:55 pm

Andrew_M_Garland

"$150-350 for two hours". That is not a permit. That is a piece of the action. The government wants its slice of the revenue for allowing a filthy capitalist business to operate however briefly on its property. Never mind that this is a government which is already paid for. -- EasyOpinions.blogspot.com

November 15, 2010 at 5:24 pm

Blue Eyed Wonder

"Bake Sale at the Country Fair" - the parents should have known it required a permit. It was their responsibility to make sure the kids were legal - if you are going to invest in the ingredients,signs,packaging and stand - take a trip to city hall and fork out the dough for a permit. Suburbia requires a permit for sneezing!!!

November 15, 2010 at 4:28 pm

WOW

WOW!

November 15, 2010 at 3:04 pm

btillson

Come On John, Look I agree we are over limit with rules and regulations. But, lets target the real issues not the my poor child. My question would be how upset would you have been if the city got sued because the boys cart triped someone and then broke a bone, or the food was tanted and people got sick. When the suite was settled and the city paid out millions, what then? If it ok for young boys them why not the 12 million illegals getting underground untaxed dollars in parks everyday?

November 15, 2010 at 2:56 pm

DJH

It's awfully pathetic - the lengths some will go to, to protect their government pensions or standing in the community. And, some have the audacity to wonder why so many kids are basically slugs? I mean, these poor souls have no real chance to succeed. And, by succeed, I don't mean in the progressive sense of the word; more like the traditional definition. If I were a kid now, I'm afraid I would probably be in jail before age 24 because I couldn't deal with being held down so obviously.

November 15, 2010 at 2:54 pm

thomas

Persons like Mr. Wolfensohn need real help!! Obliviouse he goes doing his alleged duty to Big Brother Jealous no doubt to the gumption and american spirit these boys have shown.

November 15, 2010 at 2:30 pm

Major

That's what happens when the minority rules.

November 15, 2010 at 2:19 pm

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About this Web Site

  • John Stossel joined FOX Business and FOX News in October 2009. His show, Stossel, airs on the Fox Business Network on Thursdays at 9 PM and midnight ET. It re-runs Saturdays at 9 p.m. and 12 midnight, and Sundays at 9 p.m. (all times eastern).

    He is the New York Times best-selling author of Give Me A Break and Myths, Lies and Downright Stupidity. His "Give Me a Break" commentaries take a skeptical look at a wide array of issues, such as education, the economy, parenting, and more.

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