Cantor’s JOBS Act Drives Wedge Between Obama, Labor

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.”

One thought on “Cantor’s JOBS Act Drives Wedge Between Obama, Labor

  1. In my opinion it would be more useful if Obama gave more protection to small businesses that are threatened by the biggest companies holding a monopoly such as Monsanto. I’m talking about small farmers who are all too often ignored by the government today. As a big fan of organic farming I would welcome some more initiative to protect this particular industry sector which also involves a number of small businesses but their owners are often left with little alternative but to respect the rules set by the bigger players. I think if the right solution were found to this problem it would be more useful for small business than the Jobs Act.

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