If Washington Wants To Create Jobs, It Should Get Out Of The Way In Silicon Valley

from the lead,-follow-or-get-out-of-the-way dept

It's already quite clear that Sarbanes-Oxley has done very little to actually prevent fraud of any kind, but it has been a tremendous burden, especially on smaller, innovative companies that help grow the economy and create new jobs. It's basically become a huge tax on tapping into public financial markets for growth. Michael S. Malone is now making the argument that if the incoming presidential administration is serious about creating jobs, it's time to roll back SarbOx and other accounting rules that have acted more for theatrical purposes rather than any legitimate reason. Basically, all they've done is create new reporting requirements that do little to nothing to either prevent fraud or clarify a company's actual financial position (its intended purpose). Regulators love these sorts of bogus rules because it makes it look like they've done something, when really all they've done is put up huge hurdles for actually doing anything. I'm all for radical transparency in financial info, but that's not what has been done. Instead, we've made it burdensome to actually grow a company -- and that doesn't help create jobs. It helps kill them.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: economic growth, jobs, sarbanes oxley

Reader Comments

Subscribe: RSS

View by: Time | Thread

  1. identicon
    Xiera, 23 Dec 2008 @ 1:00pm

    Job Creation

    This is only slightly off-topic, but the idea of government getting in the way of job growth is particularly disturbing to me after the recent presidential election, during which the winner ran on the premise that higher taxes for businesses (and families) making over $250k annually would be a good thing for the country. It would seem to me that this would destroy the economy (even more).

    An article I read recently suggested that over 90% of our annual GDP growth comes from small companies that experience rapid growth (and job creation), and cited that these companies usually earn over $250k annually, but not a substantial amount more than that mark. Unfortunately, I do not have a link, have not done the research myself, and therefore cannot provide support for that claim, so take it as you will.

    The so-called SarbOx situation seems to be just another way government is obstructing innovation and providing incentive NOT to start a business.

    Government, you CAN have a positive role in the economy, but not by providing hoops to jump through, hurdles to leap, or other obstacles to avoid. Your role is stimulate the economy, not to regulate it. Your role is to enable growing companies to create jobs, not to penalise growing companies and stifle job growth.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown. Use plain text.
  • Make this the First Word or Last Word. No thanks. (get credits or sign in to see balance)    
  • Remember name/email/url (set a cookie)

Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it

Email This

This feature is only available to registered users. Register or sign in to use it.