All Posts Tagged With: "Financial Services"

Massive Regulation Hurts Small Business

Joshua B. Lantz, True CapitalismJosh Lantz joins us today as a new writer.  He also writes for True Capitalism. – Ed.

 

A study done by the Small Business Administration (SBA) said that in 2010 the annual cost of Federal regulations was $1.75 trillion.[1] Our annual GDP is over $15 trillion, meaning the cost of these regulations amounts to about 11.5% of GDP.[2] That’s a lot of money. Think of the impact on our struggling economy if we were able to cut those costs in half.

Why do regulations have a cost?

When government creates a rule (regulation), they often have to hire more public sector workers to enforce it. This expands government and pulls more people out of the private sector where goods and services are produced.…


New Fed Powers Plan Needs Careful Thought

Let Friday, early news about a plan to broadly expand the power of the Federal Reserve was released.  Evidently the plan will be formally announced in a speech by Treasury Secretary Paulson.

I’m a bit out of breath.

McGehee was the first I saw to make mention that something like this was seriously in the works.  He expressed some concern which I share.

Seeing some more details of the plan (in the Des Moines Register Saturday morning) gave me reason to sit back and think.  The plan calls for 3 regulators, essentially eliminates any distinction between banks and thrifts, and would make the Fed the “primary regulator of market stability”, overseeing all segments of the financial services industry.

And the Democrats love it.  That should …


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