Buried in Facebook papers for its initial public offering this week are concerns about the burden of government regulation. In the S-1 form submitted to the Securities and Exchange Commission, Facebook described how the rules and regulations governing public companies could affect the company:Keep in mind that Facebook is doing a $5 billion plus IPO. They will have the money be able to handle the regulatory burden. But these same regulations apply to small firms as well, who don't have the resources of a Facebook to handle the burden.
As a public company, we will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (Exchange Act), the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the [sic?], and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming, or costly, and increase demand on our systems and resources.
This is why the richer (in this case Mark Zuckerberg) get richer and others fall behind, creating an elitist class. The regulations are a burden for Zuckerberg, but he will pay to get it handled. The upstart guy doesn't have that ability and is kept out of the game (unless he somehow ends up with big money elitists backing him)
It is unfortunate that the entire system will collapse before people realize that the federal government and its central planning were a bad idea from the get-go.
ReplyDeleteBut after USSA's collapse, and the great decentralization takes place, people will be a lot freer to start their own business without the regulatory fascists breathing down their necks.
People will finally have the freedom to serve others with their talents and abilities, with goods and services, and there won't be an SEC, IRS, FTC, EEOC, FBI, FCC, EPA, DEA, BATF, etc. harassing and assaulting them.
Fortunately, the tech industry is still the freest sector of our economy.
ReplyDeleteHowever, like weeds in a garden, the government incessantly tries to move in.
I was saddened on the day that Google revealed that they would begin lobbying in Washington. And now we read that they spent (i.e., wasted) 88% more in 2011 then 2010.
http://news.cnet.com/8301-1023_3-57364074-93/google-nearly-doubles-lobbying-spending-in-2011-tops-microsoft/
These brilliant geniuses, that start from scratch and change the world, are forced to "play the game."
Tech is one of the last things we have in the U.S....If that goes to the State, we're toast.
Well, I've whined about this before here, but...
ReplyDeleteWe're in the Medical device business (and what a shitty business it is).
We (as a small company) spend 90% of our manpower (and the precious time we need to get to market before our competitors) on FDA, IEC B.S. paperwork, testing, and waiting for responses from our Overlords in D.C.
This leaves pretty damn bugger-all for R+D and salary raises..!!!
Wish I had stayed with drug-runnin!! (JOKE!! for peeties sake!!)
Finally, my generation has an oligarch to call our own.
ReplyDeleteThis hits close to home for me. I work for a mining company that is headquartered in the US but public in Canada. We have tried to avoid filing in the US until the bitter end.
ReplyDeleteMy understanding is that once our ownership in the US hits 5% here then we'll be forced to become a US filer. The additional requirements will likely force us to either hire more people or use more consultants and lawyers just to exist.
It is going to be brutal and will hit our bottom line one way or another.
There are many who say that without government regulations, consumers would get either ripped-off, sick, killed, or maimed by the greedy "unregulated free market" businesses' products and services. For those who've stumbled upon this site, I have a question for you:
ReplyDeleteHow many GOVERNMENT REGULATORY AGENCIES have ever been sued for damages cause by their ineffective and/or negligent regulatory conduct?
If your local electrical inspector is negligent and misses an obvious electrical fire hazard that results in a fire, neither they, nor the city that demands the inspection, is liable for the damages.
This works its way up through the state and federal level to the largest regulatory agencies that have all sorts of cool eagles and stuff on their logos.
Conclusion: The government "stamp of approval" buys me zero piece of mind.
Second question: How well do you think "The airline who crashes more than anyone else 'cause we skimp on safety" would perform in a free market?
Here's something you may not understand: Those who advocate for the free market do not object to free market businesses being prosecuted and/or sued for fraud or criminal negligence.
Nice!!!!
DeleteConcise summary.
hopefully a convert or two.
"cool eagles" ha!