Politicians say they want to help America create jobs. If they really want to help, they would get out of the way and let the real job creators create jobs.
In my syndicated column this week, I write about how CEOs who created hundreds of thousands of jobs have now formed a group called the Job Creators Alliance. One of the Alliance's goals is explaining how regulation prevents job creation:
[Tom Stemberg, founder of Staples] complains that government mostly creates jobs -- that kill jobs.
"They're creating $300 million worth of jobs in the new consumer financial protection bureau," Stemberg said, "which I don't think is going to do much for productivity in America. We're creating all kinds of jobs trying to live up to Dodd-Frank ... and those jobs don't create much productivity."
Now, Stemberg runs a venture capital business. "I helped create over 100,000 jobs myself," he said. "Pinkberry and City Sports and J. McLaughlin are growing and adding employment."
"All that we get is grief and more hoops to jump through and more forms to fill out and more regulations to comply with," complained Stemberg. "Fastest-growing investment segment in venture capitalism: compliance software."
Compliance is the big word in business today. Every business has to have a compliance department. But resources are scarce, so these departments suck away creativity. It's one reason that these successful businesspeople don't think they could do today what they did in the past.
Mike Whalen, CEO of Heart of America Group, said he got started with loans from banks that took a chance on an unknown: "It is not an underwriting standard that can be dictated by Dodd-Frank with 55 pages. It's kind of a gut instinct."
But John Allison, who built BB&T Corp. into the 12th biggest bank in America, says that "gut instinct" is now illegal.
The rest of my column here.