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The JOBS Act turns one, and letís be honest, itís a failure
QZ ^ | 4-5-2013 | Zachary M. Seward

Posted on 04/05/2013 5:43:16 PM PDT by Sir Napsalot

On April 5, 2012, .... Barack Obama signed the Jumpstart Our Business Startups Act, one of those distinctly American pieces of legislation that hits you over the head with an unequivocally positive acronym—in this case, JOBS. The law, parts of which went into effect right away, was intended to help startups grow and, in the process, add more jobs to the US economy. Exactly a year later, it’s worth taking stock of how that’s going.

Fewer small companies are going public

.... But in the year since the law went into effect, just 63 such firms have gone public, down from 80 in the previous 12 months. That’s a 21% drop despite improving economic conditions.

But more companies are avoiding scrutiny

.... But while JOBS Act hasn’t led to more IPOs, more than 100 companies have taken advantage of the on-ramp provision, which allows them to secretly file papers with federal regulators while exploring the option of going public.

But guess who is going public under the JOBS Act

Oh, just a little emerging-growth company named Goldman Sachs.

The investment bank is creating a new finance company (paywall), Goldman Sachs Liberty Harbor Capital, to invest in the risky but potentially high-yielding debt of small US companies.... Goldman isn’t the only company that the JOBS Act’s framers probably didn’t have in mind when they drafted the law. Several “blank check” firms, or shell companies, have filed for IPOs (paywall) under the law. These aren’t job creators; in fact, shell companies typically have zero employees and are used instead to facilitate mergers and acquisitions, often utilizing offshore tax havens. ....

More fun on the way

There are other provisions of the JOBS Act that haven’t taken effect quite yet, so it’s only fair to reserve judgement. ....

(Excerpt) Read more at qz.com ...


TOPICS: Business/Economy; Government
KEYWORDS:

1 posted on 04/05/2013 5:43:16 PM PDT by Sir Napsalot
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To: Sir Napsalot
It was never meant to actually work...

2 posted on 04/05/2013 5:47:58 PM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
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To: Sir Napsalot

Documentation File on the negative impact of the Obamanation Counterculture on America.


3 posted on 04/05/2013 8:03:40 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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To: Graewoulf
I am glad some one is keeping count/score.

Every day, a new insult, and another knife wound.

People are getting numb.

4 posted on 04/05/2013 10:44:07 PM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: Sir Napsalot

Yup, and that is just what King of the Gullible B. Hussein Obama is hoping that they become: ZOMBIES!

BTW, what would General Patton do?


5 posted on 04/06/2013 12:59:56 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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To: Sir Napsalot

Yup, and that is just what King of the Gullible B. Hussein Obama is hoping that they become: ZOMBIES!

BTW, what would General Patton do?


6 posted on 04/06/2013 12:59:57 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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