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.

Obama and the Democrats will of course counter by arguing that regulations create jobs, as do food stamps and unemployment checks.

Comments

8 Responses to “CEO Explains Why ‘Government Job Creation’ is a Myth and How Regulations are Killing the Economy”

  1. sizemorew on September 20th, 2011 12:03 pm

    Thank you, Mr. Schiff, for speaking out.

    And you're right, Mr. Powers. The Administration will stick their fingers in their (large) ears and go "La la la I can't hear you!"

  2. The Zoo Keeper on September 20th, 2011 12:10 pm

    Hey, think of all the folks that were hired to enforce all this nonsense.

  3. Dexter_Alarius on September 20th, 2011 12:54 pm

    "…Schiff…has actually been fined for trying to create jobs in the United States… "

    That's because they're private sector jobs. Can't have that!
    You must be assimilated into the Collective.

  4. Marshall_Will on September 20th, 2011 5:23 pm

    Thanks for featuring this Doug. I've been ON about this forever and a day. Mr. Schiff's track record and reputation are in tact where I'm concerned and he called the Housing Bubble to the t.

    Well, actually he knocked off a lot of our work but he was very instrumental in getting the word out and for that we thank him! In his comments, I'll note the ranks of the securities industry continues to thin. Many of my friends and long time assoc. keep telling me "it simply isn't worth the HASSLE any more!"

    Latest Headcount shows a reduction of about another 10% over the last two years. And it's striking across the board, wirehouses like Merrill, Independents, banks.., you name it. Everyone is migrating more toward an advisory model. More later!

  5. Reggie Greene on September 20th, 2011 8:10 pm

    President Obama recently unveiled his job creation proposal. It was roundly criticized in a number of circles from various angles. The private sector "job creators" essentially took many of the jobs previously held by Americans and transferred them to China, India, and other countries where they could find workers willing to work for far less than most Americans. An argument has been made that the regulatory and tax environment here in the United States is what drove them to transfer the jobs elsewhere.

    While listening to the criticism of the President's proposal, several questions occurred to us:

    1. Assuming no change in regulations and the reduction of corporate and capital gain taxes here in the United States, will they create new jobs here or bring those jobs back here to the United States?

    2. Assuming regulations are eliminated, but taxes remain the same, will they create new jobs here or bring those jobs back here to the United States?

    3. Assuming regulations are eliminated, AND taxes are reduced or eliminated, do you think that the private sector "job creators" will create new jobs here or bring the jobs back home?

    The ultimate question is whether we have a guarantee from the private sector "job creators" that if the government gives in to their requests, it will inure to the benefit of middle-class American workers.

  6. Marshall_Will on September 20th, 2011 9:15 pm

    Reggie,

    Sport that I am, I'll help you out. The answer is a resounding *NO* across the board. Once industries -leave- a first world economy ( they're NOT coming back! ) So let's not be disingenuous here.

    What's at STAKE here is cutting edge, newly formed ( read non-labor intensive ) Intellectual Property. What amount of "incentives" will bring the Textile Industry back to the NE? What amount of preferential treatment and fabricated "barriers to entry" will bring the furniture ind. back to the Carolinas?

    More importantly.., SHOULD it!? Can't recall ever hearing anyone say they wanted to toil away in a TOY factor for min. wage their whole life!?

  7. Marshall_Will on September 20th, 2011 9:23 pm

    Part II:

    Let's not villify Outsourcing for the SAKE of villifying! Recently there's been a number of studies and articles that suggest there ARE upsides for American Workers. Once liberated from redundant, low skill tasks they can move their careers forward.

    Mrs. Will works for a hi-tech med. equipt. co. Basic assembly was done by Temps and later outsourced. Not that THAT didn't have it's problems. ( Never assume Outsourced Labor automatically translates to greater profits! ) It doesn't.

    Low skilled, uneducated workers have been Officially "On Notice" since the 70's. Many, MANY "temps" have worked their way up the ladder and are now ME's and QC's. EVERYONE started there as a Temp. If you're looking for a world where you don't have to COMPETE ( please let me know? )

  8. Marshall_Will on September 20th, 2011 9:29 pm

    Part III:

    Without proper controls in place, accelerated cutting edge industries will continue their Misadventures In Outsourcing, to disastrous results. Insofar as most of US here are concerned.., we said NO to the Bailouts.

    We said HELL No to the Porkulus ( 'stimulus' ) so the DEBT that's been run up, and nearly ALL of it in the form of payoffs and Picking Winners & Losers ( See Michelle Malkin's links to Solyndra ) this. isn't. OUR. problem! Let Blue State Beneficiaries figure out how to keep their State gov's afloat. We're out!

Leave a Reply

You must be logged in to post a comment.