"A wise and frugal government which shall restrain men
from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government."
(Thomas Jefferson)

Sunday, March 11, 2012

JOBS Act would Create More than 10 million Jobs -- Will Obama Sign?

Will the Senate pass this bill and then Obama sign it or will he pull back his support since it was not his idea?  Time will tell.  The fact that Congress recognizes the red tape of federal regulations is hampering companies in creating new jobs is a huge win.  There are way too many regulations in every sector of the Government that need to see File 13 and never see the light of day again.  Does anyone even know how many regulations each agency even has?  Latest numbers I can find are from 1999.  Does that mean that no one in the Government knows exactly how many regulations there are on the books?

If you want more details on the various agencies, please check out the Federal Bureaucracy which answers a lot of questions but also makes you realize that the growth of the Federal Government is out of control.  Since Federal regulations are a topic of discussion recently, we found this explanation which seems to fit what we are seeing in the Federal Bureaucracy today:

Federal regulations are the actual enforceable laws authorized by major legislation enacted by Congress. The Clean Air Act, the Food and Drug Act, the Civil Rights Act are all examples of landmark legislation requiring months, even years of highly publicized planning, debate, compromise and reconciliation in Congress. Yet the work of creating the vast and ever-growing volumes of federal regulations, the real laws behind the acts, happens largely unnoticed in the offices of the government agencies rather than the halls of Congress.
Regulatory Federal Agencies 
Agencies, like the FDA, EPA, OSHA and at least 50 others, are called "regulatory" agencies, because they are empowered to create and enforce rules - regulations - that carry the full force of a law. Individuals, businesses, and private and public organizations can be fined, sanctioned, forced to close, and even jailed for violating federal regulations. The oldest Federal regulatory agency still in existence is the Office of the Comptroller of the Currency, established in 1863 to charter and regulate national banks. 
Read more about Federal Regulations at US Government Info
Reading those two websites makes your head spin and you realize just how far out of control agencies of the Federal Government have become with their governing by regulation.  Many of the regulations issued by the agencies Congress never sees.

This is no way to run the Federal Government and hope that this initiative by the House will result in more regulations going away in the months ahead.

JOBS Act would Create More than 10 million Jobs
by John Berlau on March 8, 2012 · 
At long last, some truth in advertising in Congress! Today, the U.S. House of Representative is poised to pass a bipartisan “jobs bill” that will actually create jobs — or rather cut away the red tape that is preventing the private sector from creating them. 
By liberalizing regulations that hold back emerging growth companies, the Jumpstart Our Business Startups (JOBS) Act — set for a strong House vote today after backing from both the GOP leadership and the Obama administration — would add more than 10 million jobs to the U.S. economy over the next decade. This is my conservative estimate based on the rate of jobs created by startup firms and the loss of jobs due to the regulation-induced dearth of IPO over the last decade. 
As I testified last month before a House Energy and Commerce Hearing hearing on “Where the Jobs Are,” data from the respected Kauffman Foundation that have been embraced by the president’s Council on Jobs and Competitiveness show that “over the last three decades, young firms less than five years old have created 40 million new jobs,accounting for all net new jobs during that period.” “But “according to the Treasury Department’s IPO Task Force the long-term decline in IPOs over the last decade may have cost the economy as many as 22 million jobs not created during that period.” 
The bill combines six bills that almost unanimously passed the full House or House Financial Services Committee, but have stalled in the Senate for months. One part of the bill, based on a bill from Reps. Stephen Fincher (R-Tenn.) and John Carney (D-Del.), would exempt all but the biggest firms going public from some of the most burdensome provisions of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank financial “reform” of 2010. These rules would only kick in after the company has been public for five years. 
Other provisions would lift barriers to innovations such as “crowdfuning,” in which smaller firms can utilize social networks to raise seed capital, and make it easier for entrepreneurs to connect with venture capitalists and angel investors through general advertising. (CEI filed an amicus brief in a First Amendment case challenging the advertising and solicitation ban.) 
I am arriving in Austin, Texas, today where some of the most innovative entrepreneurs are displaying their products in the South by Southwest trade entertainment show. For these and other innovators, the Senate must, in President Obama’s words, “pass this bill now.” 
Source:  Competitive Enterprise Institute

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