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The main problem is the fact that government over-regulates to death small businesses. Small businesses are crucial to employment in this country, and this over-regulation serves as a disincentive to start a new business, in addition to the other risks involved with starting a business.

Clamper's right about this one. Overqualified people are inherently unhappy. They are doing work that they feel (or know) is beneath them. Given just half a chance they will bail with no notice.

A manager's worst nightmare is someone, or a group, walking out. When a manager working 60 or 70 or 80 hours a week in the middle of a project has key people walk out without notice it is something they will never forget. It's the manager who has to cover. Then they have to find a replacement. Then they have to bring the replacement up to speed. No thanks, this has happened to me too often. I'll take a chance on a drooler every time. You just can't fit a square peg in a round hole.