Tuesday, August 17, 2010

The Cost of Manufacturing in America

Much has been said about "offshoring" manufacturing to PRChina, Mexico, (etc.) Yup, it happens.

A lot of commenters focus on 'labor costs,' which are a factor.

Few focus on regulatory costs (or taxes on corporate earnings) which are much more significant.

...many of the biggest and most expensive challenges are in the form of rules and regulations that most of the public doesn't know are being proposed. The latest is the Industrial Boiler MACT (Maximum Achievable Control Technology) being proposed by the U.S. Environmental Protection Agency.

[The] new Boiler MACT rule includes emission limits for industrial, commercial and institutional boilers using fossil fuels and biomass. Hazardous emissions need to be limited to protect public health; everyone knows that fact. But the new levels being proposed by the EPA in many cases cannot even be measured.

The Very Most Brightest in All the Land made up these rules. They're in Washington, so they are just ........smarter........than ANYONE else in the world.

The levels are so stringent that only a handful of the thousands of boilers in the United States could comply with the proposed rule. Even boilers using clean fuels like biomass will be subject to the unreasonably low emission levels, which will be challenging to meet, if they can be met at all.

Last one to leave, please turn off the mercury-laden flourescent Great Idea....

HT: JoEgelhoff

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