By Sahil Kapur, TPM
A new small-business law spearheaded by House Majority Leader Eric Cantor is harming relations between the White House and its labor allies. Unions objected strongly before the legislation was enacted, and several weeks later, they’re continuing to air grievances.
The Jumpstart Our Business Startups (JOBS) Act, which passed with broad bipartisan support earlier this year, loosens regulations on small-business capital formation. Proponents on Capitol Hill say it will encourage entrepreneurship while a growing number of critics, including worker advocates, worry that it incentivizes fraud and will diminish the government’s ability to police bad business practices.
AFL-CIO President Richard Trumka said he was “disappointed and angry” that the bill received so much support. “This is a vote against investors in the real economy and for Wall Street speculators,” he said in a scorching statement after the bill passed in late March. “When the next bubble bursts, Americans will know who to blame.”