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Jobs, Jobs, Jobs

November 30, 2016

The litany sung by the GOP from the Nixon Administration to Donald Trump has been jobs, jobs, jobs.  Unfortunately, by “jobs” the GOP means corporate jobs.

The complaint that the GOP is the Party of the wealthy is half-true. Corporations have an undue influence in Party circles even as the Party base is made up of small business owners, entrepreneurs, and working class conservatives of all races.

The notion that the American economy can be revived by tariffs placed on businesses that move “jobs” to foreign countries is nonsense. Protectionist economic policies simply preserve the status quo.

Economic growth comes from the actions of entrepreneurs who create markets by taking risks, starting new enterprises, and creating employment opportunity.

The banking crisis of 2008 destroyed risk capital that our entrepreneurs depend upon and, for the past eight years,  it has been impossible to find capital for new business enterprises. Many existing companies that thought they could survive eight years of slow economic growth were wrong and were forced to close. Others are still around but are not in good condition.

There is nothing in the President Elect’s policy to “Make America Great Again” that creates economic opportunity for our entrepreneurial classes. Not one mention has been made of “Crowdfunding” and freeing up the ability to invest in start-ups by non-accredited investors.

I will bet $100 that Donald Trump, Wilbur Ross and Steven Mnuchin never understood that the American people, since 1935, are segregated between “accredited” and “unaccredited” investors and the American economy was forced into a mold regulated by government agencies that give lip service to protection of “widows and orphans.”

That explains, as I  have observed on numerous occasions, why the Initial Public Offering of Krispy Kreme was successful.  People could relate to a company whose products they ate on a regular basis and bought Krispy Kreme stock.

Remove the barrier that prohibits the ordinary Joe from investing in a local company and you free up capital that businesses and new enterprises can tap to grow wealth. Here is my analysis of this situation that was published last year about this time when the SEC announced important rules changes.

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