Senate’s phony “JOBS Act” not about jobs, deregulates Wall Street

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AFL-CIO president Richard Trumka came out with a blistering statement on the Senate's passage of the so-called "JOBS Act" Mar. 22:

"The bill will do nothing to create good jobs and stabilize the U.S. economy. Instead, it will deregulate Wall Street - voiding investor protections put in place after Enron and the 2008 financial crisis to protect the retirement savings of America's workers from fraud and other risks."

The Senate passed the deregulation bill 73-26, despite testimony against it from financial market regulators, law professors, institutional investors and consumer advocates.

Last year, the Economic Policy Institute presented guidelines for evaluating a job-creation plan, which "should be measured against specific criteria."

When examining a jobs-creation plan, the EPI says ask:

1. Will it make a real difference in job creation in the next 12 months?
2. Is it effective and efficient?
3. How is it funded?
4. Is it at the appropriate scale to produce a substantial number of jobs?

Not only does the bill just passed fail to meet these basic criteria, it follows dangerous examples that have already been discredited after doing damage in Canada and countries of the European Union.

Trumka warned that deregulation has terrible consequences for workers:

"Workers' retirement savings will be in greater risk of fraud and speculation if securities market deregulation once again is railroaded through Congress. Once again our economy will be at risk from the folly of policymakers promoting financial bubbles and ignoring the needs of the real economy. The AFL-CIO calls on Congress to set aside the politics of the 1%, the old game of special favors for Wall Street, and turn to the business of real job creation. The labor movement strongly opposes the JOBS Act and any other effort to weaken the Dodd-Frank Act."

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) was signed into law by President Obama on July 21, 2010.

The calculated cynicism of naming the deregulation bill a jobs act inspired Richard Eskow of the Campaign for America's Future to blast it as the "dumbest 'bipartisan' move since repealing Glass-Steagall." Glass Steagall was the 1933 bank reform act that was overturned in 1999 by an act cynically named the "Financial Services Modernization act" that, as Eskow pointed out, turned back the clock to 1929.

Simon Johnson, an MIT economist, was quoted on nasdaq.com as saying this on the JOBS Act, "Bipartisanship is greatly overrated. Whatever else it does, it's not going to create jobs."

Photo: Chicago 2011. People's World photo.

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  • Former SEC Chief Accountant warns that the JOBS Act - sponsored by one of the most corrupt Congressmen in Washington - won't increase employment but will simplify swindling.

    JOBS ACT OF 2012: WILL H.R. 3606 JUMPSTART OUR BUSINESS STARTUPS OR OPEN THE CROWDFUNDING FRAUD FLOODGATES?

    U.S. Representative Stephen Fincher (R-TN-8) is a Big Ag businessman whose company has received over $8.9 million in government subsidies (corporate welfare) over the past ten years, a politician flagged but never penalized for federal election law violations by the Federal Election Commission last July, and a legislator the political watchdog group Citizens for Responsibility and Ethics in Washington (CREW) cites as one of the Most Corrupt Members of Congress:

    http://www.crewsmostcorrupt.org/mostcorrupt/entry/stephen-fincher

    His latest contribution to the corporate greed pervading our government is sponsorship of the Jumpstart Our Business Startups Act, HR 3606, which has been passed with massive bipartisan support by both the House and Senate, but was sent back to the House to approve some Senate changes on Thursday (22 March 2012):

    http://www.govtrack.us/congress/bills/112/hr3606

    http://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups_Act

    As is so often the case in Washington DC, the label on this Pandora's box says nothing about its true contents. Euphemistically referred to as the "Jobs Act of 2012", former Chief Accountant of the Securities and Exchange Commission Lynn E. Turner warns this bill would destroy small investor protections dating back as far as the creation of the SEC itself. "It WON'T create jobs, but it WILL simplify fraud," Turner said in an interview last week. "This would be better known as the Bucket-Shop and Penny-Stock Fraud Reauthorization Act of 2012."

    http://www.bloomberg.com/news/2012-03-13/job-creation-legislation-seen-eviscerating-shareholder-protections-in-u-s-.html

    Mr. Turner is not alone in his assessment of HR3606. Crooked Congressman Fincher's summary claims the goal is to "increase American job creation and economic growth by improving access to the public capital markets for emerging growth companies [e.g. crowdfunding]", but President of the North American Securities Adminstrators Association (NASAA) Jack Herstein warns otherwise:

    "Expanded access to capital markets for startups and small businesses can be beneficial, but only insofar as investors can be confident that they are protected, that transparency in the marketplace is preserved, and that investment opportunities are legitimate... Small businesses are important to job growth, and to improving the economy. However, by weakening investor protections and placing unnecessary restrictions on the ability of state securities regulators to protect retail investors from the risks associated with smaller, speculative investments, Congress is on the verge of enacting policies that, although intended to strengthen the economy, will in fact only make it more difficult for small businesses to access investment capital."

    http://www.nasaa.org/wp-content/uploads/2011/07/NASAA-Letter-to-Senate-Leadership-on-H.R.-3606-FINAL-3-12-2012.pdf

    Personally, I'd wager that the only jobs created by the JOBS Act of 2012 will be for Wall Street brokers who didn't meet quota and other con artists pitching worthless penny stocks from telemarketing boiler rooms and Internet scam sites.

    Posted by ironboltbruce, 03/26/2012 9:31am (2 years ago)

  • How about a REAL jobs act? One that actually puts people to work?

    Posted by bobbie, 03/23/2012 4:25pm (3 years ago)

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