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Don't Believe Trump's Hype: Regulations do Work for Business

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There’s trouble brewing. The Trump Administration and GOP-controlled Congress have joined old-line lobbyists to wipe out regulations that protect our environment, our workplace safety and our financial system's integrity—purportedly to help business. Responsible business leaders know better. Government regulations keep big firms from foisting their costs onto smaller firms and taxpayers, let the market choose winners fairly, reward healthy innovation and give companies of all sizes a chance to grow. Broadly shared prosperity, the market economy and democracy itself depend on fair regulation.

Join Celinda Lake, President of Lake Research Partners and Bryan McGannon, ASBC’s Policy Director for a March 21st webinar. The discussion highlighted polling data and insights on how regulation matters and what changes in health care and energy mean for America’s small businesses.

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Don't Believe Trump's Hype: Regulations do Work for Business

  1. 1. Don't Believe Trump's Hype: Regulations Do Work for Business! March 21, 2017
  2. 2. BRYAN MCGANNON, DIRECTOR OF POLICY, ASBC Bryan McGannon’s political campaign experience spans presidential campaigns, congressional races, and local ballot initiatives. In addition, Bryan has nearly a decade of experience in Washington, D.C. in advocacy roles. Bryan holds a B.A. in Political Science from the University of California, San Diego. asbcouncil.org/webinars
  3. 3. • Represent over 200,000 businesses in 40 states. • Over 80 business organizations are members. • Over 130 companies are members. • Advocate at federal level in Washington, DC. • Advocate in state capitals. • Place Op-eds and Policy Statements in media. • Have Biz leaders be spokes to media on issues. • Bring Biz leaders to DC to testify & lobby Congress & Administration. ASBC’s Reach/Capabilities asbcouncil.org/webinars
  4. 4. CELINDA LAKE, FOUNDER, LAKE PARTNERS Celinda Lake is a leading American political strategist and one of the nation's foremost experts on electing women candidates and on framing issues to women voters. Working Woman says she is "arguably the most influential woman in her field." She is renowned for her groundbreaking research on single women voters in conjunction with Women's Voices Women Vote and has helped elect numerous female candidates. asbcouncil.org/webinars
  5. 5. Upcoming Events April 11 – 21 Event Congressional In-District Carbon Pricing / Climate Change Lobby Day asbcouncil.org/webinars
  6. 6. ATTITUDES TOWARD REGULATIONS
  7. 7. Darker colors indicate intensity *Asked to ½ of the respondents Q14-17: Now I'd like to ask you about some public figures or institutions. For each, please tell me whether you have a very favorable, somewhat favorable, somewhat unfavorable, or very unfavorable impression. If you haven't heard of the person, or if you don't know enough about that person to have an impression, just say so and we will move on. 64 58 41 44 21 29 39 24 24 18 17 15 9 12 19 11 Rules* Regulations* Enforcement of regulations* Standards* Unfavorable Net NO/NH +43 14/1 Favorability Ratings Favorable +29 13/0 +2 17/3 +20 28/4 Despite claims that the public does not view regulations favorably, these data provide a very different picture: a solid majority view “rules” and “regulations” favorably.
  8. 8. SEVEN-IN-TEN VOTERS, INCLUDING COMMANDING MAJORITIES OF EVERY MAJOR SUBGROUP, BELIEVE THAT INCREASED ENFORCEMENT OF THE NATION’S LAWS AND REGULATIONS IS A GOOD THING. Darker colors indicate intensity. *Asked to ½ of sample Perception of Increased Enforcement of National Laws and Regulations* Q27. Generally speaking, do you think that increased enforcement of our national laws and regulations is a good thing or a bad thing? [IF GOOD/BAD] And do you feel that way strongly, or not-so strongly? 71 14 3 49 Good Bad Don't know All Voters 70 71 79 73 63 63 72 76 66 70 71 16 12 10 8 19 15 16 14 9 0 12 14 45 52 53 57 38 48 44 54 46 49 48 Men Women Democrats Indpendent/Don’t know Republicans Northeast Midwest South West Small business employees Not small business employees Bad Good
  9. 9. VOTERS EXPRESS NEAR-UNANIMOUS SUPPORT FOR INCREASED ENFORCEMENT OF LAWS AND REGULATIONS REGARDLESS OF THE WORDS USED TO DESCRIBE ENFORCEMENT. WHILE INTENSITY FOR “TOUGHER” ENFORCEMENT DROPS, IT IS STILL ABOVE 50% AND DRAWS THE SUPPORT OF THREE-QUARTERS OF VOTERS. Darker colors indicate intensity. *Asked to ¼ of sample **Combined results from Q23-26 Q: Do you agree or disagree with this statement: we need [INSERT WORD] enforcement of our laws and regulations in the U.S.? And do you feel that way strongly or not-so strongly. 87 11 72 Agree Disagree Combined** Enforcement of our Laws and Regulations 74 2152 Agree Disagree Tougher* 87 8 78 Agree Disagree Fairer, more equal* 90 8 79 Agree Disagree Commonsense* 94 4 80 Agree Disagree Proper*
  10. 10. December Battleground Poll conducted by Lake Research Partners and the Tarrance Group. Conducted December 8th – 11th among 1,000 likely voters. Margin of error +/- 3.1%. 8 50 43 Fairer and tougher enforcement Fewer burdensome regulations Both/Don't Know Some people say we need fairer and tougher enforcement of regulations in the U.S. to protect American workers and families and to give the little guys, including small businesses, a fair chance to compete Other people say that we need fewer burdensome government regulations because these regulations only work to make things more difficult for small businesses and individuals to create jobs and economic growth OTHER POLLING DATA CONFIRMS THAT VOTERS FAVOR ENFORCEMENT AND REGULATIONS THAT CREATE A FAIR PLAYING FIELD. VOTERS BELIEVE THE GOVERNMENT HAS A ROLE TO PLAY PROTECTING AMERICAN WORKERS AND PROVIDING SMALL BUSINESSES A CHANCE TO COMPETE.
  11. 11. Darker colors indicate intensity *Asked to ½ of sample Q7-13: Now I'd like to ask you about some public figures or institutions. For each, please tell me whether you have a very favorable, somewhat favorable, somewhat unfavorable, or very unfavorable impression. If you haven't heard of the person, or if you don't know enough about that person to have an impression, just say so and we will move on. 57 58 58 52 55 55 36 17 26 31 33 18 25 18 26 21 19 19 18 18 11 6 11 15 18 7 11 7 Occupational Safety and Health Administration* The United States Department of Agriculture* The Food and Drug Administration* The U.S. Environmantal Protection Agency The Consumer Product Safety Commission* The National Highway Transportation Safety Administration* The Consumer Finance Protection Bureau* +40 Unfavorable Net NO/NH +32 16/1 Favorability Ratings Favorable +27 22/5 +19 19/2 +37 VOTERS’ PERCEPTIONS OF SPECIFIC GOVERNMENT REGULATORY AGENCIES ARE BY-AND- LARGE POSITIVE, WITH MAJORITIES OF VOTERS—INCLUDING MAJORITIES OF REPUBLICANS— EXPRESSING FAVORABLE OPINIONS OF THE FDA, THE USDA, OSHA, THE NHTSA, AND THE CONSUMER PRODUCT SAFETY COMMISSION. 36/10+18 +30 11/0 14/1 22/4
  12. 12. 68 66 71 59 63 57 51 47 51 44 26 26 25 24 23 23 23 22 21 21 Can prevent deadly mistakes, saving lives Can protect seniors and children Can protect against deadly mistakes, saving lives Can reduce pollution of our air, land, and water Can prevent pollution of our air, land, and water Can ensure oversight of dangerous foreign imports Can hold big businesses and corporations accountable Can force the government to be accountable Can force big businesses and corporations to be accountable Can prevent the financial markets from harming the U.S. economy VOTERS BELIEVE THAT ENFORCEMENT OF LAWS AND REGULATIONS CAN BE MOST EFFECTIVE WHEN IT COMES TO PROTECTING SENIORS AND CHILDREN, PREVENTING DEADLY MISTAKES, AND REDUCING/PREVENTING POLLUTION. VOTERS ARE MORE SKEPTICAL THAT ENFORCEMENT CAN HOLD BIG BUSINESS ACCOUNTABLE, FORCE THE GOVERNMENT OR BUSINESSES TO BE ACCOUNTABLE, OR PREVENT THE FINANCIAL MARKETS FROM HARMING THE ECONOMY. Very well Very/somewhat well Regulation – Positive Descriptions (Top Tier) Net Persuad. Very Well Q29-48. Now, I am going to read you some words and phrases that have been used to describe the enforcement of laws and regulations. Please tell me how well you think each describes the enforcement of laws and regulations: VERY well, PRETTY well, NOT too well, or not well AT ALL. If you don't know how well a word or phrase describes the enforcement of laws and regulations, just say so and we'll go on. +40 31 +36 +46 22 33 +24 16 +29 33 30 24 +22 +7 +7 18 18+7 -7 30
  13. 13. 81 76 67 71 67 72 67 67 64 64 56 50 49 49 46 46 44 44 Clean water The food and drugs imported from other countries Government officials Civil rights Discrimination The drugs produced in the U.S. Nuclear energy and power plants The products that the United States imports from other countries Wall Street banks and the financial industry VOTERS SEE A CRITICAL ROLE FOR ENFORCEMENT OF LAWS AND REGULATIONS IN A NUMBER OF AREAS OF AMERICAN LIFE. STRONG MAJORITIES BELIEVE ENFORCEMENT IS EXTREMELY IMPORTANT WHEN IT COMES TO CLEAN WATER, FOOD AND DRUGS FROM OTHER COUNTRIES, AND— AS WE HAVE SEEN IN PREVIOUS RESEARCH—GOVERNMENT OFFICIALS. OTHER AREAS WHERE VOTERS BELIEVE ENFORCEMENT CAN PLAY AN IMPORTANT ROLE INCLUDE CIVIL RIGHTS, DISCRIMINATION, PHARMACEUTICALS PRODUCED IN THE U.S., NUCLEAR ENERGY, IMPORTS AND THE FINANCIAL INDUSTRY. Rated 10 Rated 8-10 Importance of Enforcing – First Tier Mean Persuad. Rated 10 Q55-72 Now, I am going to read you a list of entities where enforcement of laws and regulations can take place. For each entity, please tell me how important you think enforcement of laws and regulations is, using a scale from 0 to 10 with 10 meaning you think enforcement is extremely important, 0 meaning you think it is not important at all, and 5 meaning you don’t know or are undecided. You can be anywhere in between. If you’re unsure about a particular item, just say so, and we’ll go on. 8.7 58 8.4 8.0 35 40 8.2 43 41 45 8.1 8.2 8.1 40 388.0 7.9 34
  14. 14. 67 73 67 67 59 57 60 52 56 43 42 41 40 39 39 37 34 33 Clean air The safety of workplaces The food grown and produced in the U.S. Credit card companies Oil companies Gas prices The lending industry Special interests and lobbyists The home mortgage industry A SECOND TIER OF PRIORITIES FOR ENFORCEMENT INCLUDES CLEAN AIR, THE SAFETY OF WORKPLACES, FOOD GROWN IN THE UNITED STATES, AND CREDIT CARD COMPANIES. VOTERS PLACE LESS EMPHASIS ON ENFORCEMENT WHEN IT COMES TO OIL COMPANIES, GAS PRICES, THE LENDING INDUSTRY, AND THE HOME MORTGAGE INDUSTRY. Rated 10 Rated 8-10 Importance of Enforcing – Second Tier Mean Persuad. Rated 10 Now, I am going to read you a list of entities where enforcement of laws and regulations can take place. For each entity, please tell me how important you think enforcement of laws and regulations is, using a scale from 0 to 10 with 10 meaning you think enforcement is extremely important, 0 meaning you think it is not important at all, and 5 meaning you don’t know or are undecided. You can be anywhere in between. If you’re unsure about a particular item, just say so, and we’ll go on. 7.9 40 8.2 8.1 29 34 7.8 31 29 30 7.7 7.4 7.7 18 247.0 7.4 25
  15. 15. CLEAN ENERGY
  16. 16. VOTERS WANT ALL LEVELS OF GOVERNMENT AND AMERICAN BUSINESSES ENGAGED IN CLIMATE CHANGE. How much do you think each should do about climate change: a great deal, some, a little, or not much at all? The Federal Government State or Local Government American Businesses A great deal Not much at all Some A little 48 34 8 9 46 36 9 9 5630 6 7 % A Great Deal Base 91 Persuasion 46 Opposition 12 % A Great Deal Base 82 Persuasion 44 Opposition 14 % A Great Deal Base 88 Persuasion 57 Opposition 12 82% 82% 86% Source: ecoAmerica survey of 1000 registered voters nationwide. August 12-19, 2016.
  17. 17. AMERICANS STRONGLY FAVOR POLICIES THAT WOULD REDUCE THE POLLUTION THAT CAUSES CLIMATE CHANGE. THEY PREFER “RULES” TO “GOVERNMENT STEPS” THOUGH OVERWHELMINGLY SUPPORT BOTH, AND STRONGLY SUPPORT FINING COMPANIES FOR THE POLLUTION THEY CREATE. Government taking steps to put limits on the pollution that causes climate change. Rules that put limits on the pollution that causes climate change. A proposal to reduce carbon pollution by imposing a fine on large companies for the pollution they create. 49 9 56 7 60 8 72 20 75 20 80 17 Favor Oppose Favor Oppose Favor Oppose Not so strongly favor Not so strongly oppose Strongly favor Strongly oppose Do you favor or oppose:
  18. 18. Source: “Widespread Public Support for Renewable Energy Mandates Despite Proposed Rollbacks”, National Surveys on Energy and Environment, June 2015 As the American electorate grows increasingly concerned with rising global temperatures, public support for energy industry regulations is on the rise. 74% of Americans believe that state governments should require a set portion of all electricity to come from renewable energy sources such as wind and solar power. This support holds steady across race, income, education level, religion, political, and region of the country, and has been shown to be strongly linked to the understanding that average global temperatures are getting warmer.
  19. 19. Source: “Public support for regulation of power plant emissions under the Clean Power Plan”, National Surveys on Energy and Environment, January 2015 The majority of Americans back government regulation of greenhouse gases emitted by new and existing power plants, across party affiliation – Democrats, Republicans, and Independents all indicate support for federal and state government regulated reductions. 12% 6% 22% 13% 16% 9% 29% 16% 29% 31% 20% 33% 73% 83% 55% 73% The federal government now requires that any new power plant reduce their greenhouse gas emissions significantly. Strongly oppose Somewhat oppose Somewhat support Strongly support 12% 7% 21% 12% 21% 14% 30% 19% 30% 35% 24% 33% 67% 76% 60% 67% The federal government has introduced a Clean Power Plan that is designed to reduce greenhouse gases from existing power plants. It gives each state flexibility in deciding how to reduce these emissions through negotiations with the federal government. Strongly oppose Somewhat oppose Somewhat support Strongly support O V E R A L L O V E R A L L D E M O C R A T S D E M O C R A T S R E P U B L I C A N S R E P U B L I C A N S I N D E P E N D E N T S I N D E P E N D E N T S
  20. 20. Source: “Public support for regulation of power plant emissions under the Clean Power Plan”, National Surveys on Energy and Environment, January 2015 Americans have clear preferences on how the government should reduce power plant emissions. In large numbers, they support 1) Requiring a set portion of all electricity to come from renewable energy sources such as wind and solar, and 2) Requiring increased energy efficiency standards for new homes and appliances. They are less enthusiastic about increasing taxes on fossil fuels and cap and trade. M a j o r i t y S U P P O R T M a j o r i t y S U P P O R T M a j o r i t y O P P O S E P l u ra l i t y O P P O S E
  21. 21. HEALTH CARE & PRESCRIPTION DRUG PRICES
  22. 22. MOST AMERICANS FAVOR POLICY CHANGES TO LOWER DRUG COSTS. 22 Source: Kaiser Family Foundation Health Tracking poll (conducted September 14-20, 2016)
  23. 23. PEOPLE STRONGLY SUPPORT PLACING REGULATIONS ON PRESCRIPTION DRUG COMPANIES. 23 Source: Lake Research Partners online survey of 1,503 adults. May 17-22, 2016.
  24. 24. 24 IN THE SEARCH FOR THE RIGHT HEALTH INSURANCE PLAN, MOST SMALL BUSINESS OWNERS THINK THEY ARE AT A DISADVANTAGE COMPARED TO LARGE BUSINESSES. Thinking about the process for finding the right health insurance plan for your business, do you think small and large businesses face the same challenges equally, or do you think small businesses are at a disadvantage compared to large businesses? 79 16 5 Small businesses are at a disadvantage Small and large businesses face same challenges equally Not sure During Process For Finding The Right Health Insurance Plan… Source: Lake Research Partners online survey of 504 small business owners (September 28-October 4, 2016). Margin of error is +/-4.4%.
  25. 25. 25 Proposed Policy Solutions % Strongly Agee % Total Agree [PAYING FOR DELAYS] It should be illegal for a drug company to pay another company that makes generic drugs to delay the release of a generic drug. 56 88 [TAXES PAY FOR R&D] Prescription drugs that are developed with taxpayer dollars should be made affordable to every American. 54 90 [REIMPORTATION] Americans should be allowed to purchase their prescription drugs from Canada. 50 85 [NEGOTIATE] The federal government should be able to negotiate with drug companies to get lower prices on prescription drugs for people on Medicare. 48 85 [TRANSPARENCY] Drug companies should be required to justify their prices by disclosing how much they spend on research, manufacturing, and marketing. 41 82 SMALL BUSINESS OWNERS WIDELY AND INTENSELY SUPPORT PROPOSED SOLUTIONS FOR ADDRESSING RISING RX DRUG COSTS. Now you are going to see a series of statements about prescription drugs. Please indicate if you agree or disagree with each one on a scale of 0 to 10 where 0 means you strongly disagree and 10 means you strongly agree. You can use any number between 0 and 10. Source: Lake Research Partners online survey of 504 small business owners (September 28-October 4, 2016). Margin of error is +/-4.4%.
  26. 26. MESSAGING ON REGULATION
  27. 27. 27 Base (21% of voters) Persuadables (63% of voters) Opposition (16% of voters) • Strongly believe increased enforcement of nation’s laws and regulations is a good thing • Say the enforcement of our laws and regulations in the U.S. generally works/ succeeds • Disagree that excessive regulation is costing Americans money and costing the economy jobs • More likely to be female, Democrat, and residents of the Northeast than counterpart groups and electorate overall • Hold conflicting and sometimes contradictory positions with regards to their perceptions of—and support for—increased enforcement of laws and regulations • Support enforcement, but worry about potential for excessive regulations to cost Americans money and jobs • More closely mirror popular vote margin in 2016 vote, but skew more likely to be comprised of Millennials and from the West than all voters • Believe increased enforcement of nation’s laws and regulations is bad- -or at best only somewhat good • See enforcement of our laws and regulations in the U.S. generally not working/ failing more often than succeeding • Agree that excessive regulation is costing Americans money and jobs • More likely to be male, Republican, older, white and from the Midwest than electorate overall
  28. 28. Increased Enforcement of Regulations Restore Balance: Prevent Economic Disasters Enforcement Works Protect Health & Safety of Americans • Proper enforcement of our laws can ensure everyone plays by the same set of rules. Regulations that ensure things like clean water, clean air, and financial responsibility, create good jobs and put money in the pockets of working families, helping entire communities not just shareholders. • Whether prohibiting big banks from destroying our economy, stopping the credit card industry from charging billions in hidden fees, or preventing the tax cheats from hiding trillions in offshore tax havens, or preventing polluters from poisoning our air and water, tough but fair enforcement of our laws helps keep Americans safer from physical and economic harm. • System is out of balance, favoring wealthy & powerful over ordinary Americans & small biz. • Can’t trust big business to police itself when penalties are so low. Employers who have workplace death fined avg. of $7k. Wall St. execs responsible for financial collapse avoided prosecution, got bonuses instead. Execs should be held to the same standards as the rest of us--incl. criminal penalties, even jail. • Taxpayers spent millions of dollars bailing out auto industry while some of the same companies deliberately broke US laws, jeopardizing lives. VW lied about dangerous emissions for millions of vehicles, GM ignored evidence of fatal defects in its cars. Until they were caught, hundreds of drivers died and untold damage was done to our air quality. • Flint not the only example of lax enforcement, lead-contaminated tap water is national problem; 18M use water systems with lead levels that violate current standards—not incl. schools. • 2014: est. 10,000 gallons of toxic chemical waste leaked into WV river, contaminating drinking water for over 300,000 residents, putting pregnant women, seniors, and children at risk. Water system hadn’t been tested in over a decade, in violation of the laws, and warnings of contamination were ignored. • 2013: explosion at a fertilizer facility in West, TX killed 15, incl. 12 first responders, and destroyed three schools, a nursing home, and hundreds of homes. Last time facility was inspected by OSHA was 1985, despite serious violation got just $30 fine. (Note, in May 2016, the West Texas incident was ruled arson, but officials have still blamed the explosion in part on a lack of regulatory enforcement.) WORDS THAT WORK & MESSAGE TRIANGLE
  29. 29. 29 #1 Message – Safeguarding Americans w/Examples Enforcement of our laws is about safeguarding Americans. And when done properly, enforcement can prevent economic catastrophe, protect our health, and save lives. When enforcement of public protections is neglected, the results can be disastrous. In 2013, an explosion at a small fertilizer facility in West, Texas killed 15 people, including 12 first responders, and destroyed three schools, a nursing facility, and hundreds of homes. In 2014 an estimated 10,000 gallons of toxic chemical waste leaked from a private storage facility into a West Virginia river due to lax enforcement. The leak contaminated the drinking water supply of over 300,000 residents, putting pregnant women, seniors, and children at risk. The water system hadn’t been tested in over a decade, and warnings of contamination were ignored. We need strong and improved enforcement to prevent deadly situations like these from threatening American communities. Tough but fair enforcement of our laws helps keep Americans safer from physical and economic harm. 0 10 20 30 40 50 60 70 80 90 100 Base Opposition Persuadable
  30. 30. 30 30 Strengths of Our Side We can’t trust big businesses and corporations to police themselves (esp. when penalties are so minimal) Protect health, save lives Big corporations promoting profits above the health and safety of Americans Big corporations, not just ordinary Americans, need to be held accountable for their actions System is out of balance, favoring the wealthy and powerful over ordinary Americans and small businesses Industry lobbyists are easily able to buy politicians Effective enforcement of regulations can create jobs & good wages Safeguarding Americans from an economic catastrophe Investment in water infrastructure will create hundreds of thousands of well-paid jobs Benefits of fair regulation far exceed the costs Vulnerabilities/Strengths of the Opposition Staggering costs of Federal debt costing taxpayers and small businesses Regulations often put too much power in the hands of a few out of touch bureaucrats Case studies are isolated examples not indicative of a systemic problem, and more government is not the answer Small business are crushed by the weight of bureaucratic red tape and burdensome regulations
  31. 31. Washington, DC | Berkeley, CA | New York, NY LakeResearch.com 202.776.9066 Celinda Lake clake@lakeresearch.com
  32. 32. Working with ASBC Richard Eidlin, Vice President/Co-founder reidlin@asbcouncil.org 303-478-0131 Bryan McGannon, Policy Director bmcgannon@asbcouncil.org 202-650-7678

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