Yesterday morning, Peter Schiff, CEO of Euro Pacific Capital, testified before the House Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending hearing. Schiff offered a comprehensive old-school dismantling of the notion of “government job creation.”
A full transcript and video is here, but this part where Schiff described how his company has actually been fined for trying to create jobs in the United States speaks volumes as to the kind of idiocy we’re up against in Washington:
In my own business, securities regulations have prohibited me from hiring brokers for more than three years. I was even fined fifteen thousand dollars expressly for hiring too many brokers in 2008. In the process I incurred more than $500,000 in legal bills to mitigate a more severe regulatory outcome as a result of hiring too many workers. I have also been prohibited from opening up additional offices. I had a major expansion plan that would have resulted in my creating hundreds of additional jobs. Regulations have forced me to put those jobs on hold.
In addition, the added cost of security regulations have forced me to create an offshore brokerage firm to handle foreign accounts that are now too expensive to handle from the United States. Revenue and jobs that would have been created in the U.S. are now being created abroad instead. In addition, I am moving several asset management jobs from Newport Beach, California to Singapore.
Sure, Mr. Schiff, but they wouldn’t have been union jobs, so unfortunately your words will fall on deaf ears at 1600 Pennsylvania Avenue.