Carl Person, who is seeking the Libertarian Party’s nomination for President, has announced his jobs plan stating, “There are 3 micro-economic switches (or regulatory restraints) which, if turned off, would result in the creation of 10,000,000 new, high-paying jobs.”
Person went on to explain, “Congress and the President are in control of two of these regulatory switches, and the third regulatory switch is controlled by the President and the IRS.”
First Micro-Economic Switch – Raising Capital: “Since enactment of the federal Securities Act of 1933, small business has been effectively precluded from advertising or soliciting investors for capital”, according to Person. “The difficulties, costs and delays in trying to comply with the requirements of the 1933 Act have been sufficient to prevent more than 99.9% of the nation’s 26,000,000 small businesses from advertising for capital. Congress should switch off this restraint with an appropriate amendment to the 1933 Act and exempt (under the interstate commerce clause) all efforts by a small business to raise capital up to a specified dollar amount.” Person continued, “Regulation would be limited to civil and criminal lawsuits for fraudulent offerings or sales. Small business would then be able to obtain the capital many of them need to expand their activities and hire millions of new employees.”
Second Micro-Economic Switch – Payroll Regulations: Person states that “the nation’s 20,000,000 self employed businesspersons do not hire a first employee because of the substantial increase in work required to comply with the laws applying to large national and multi-national corporations. The time and costs of payroll compliance is too much of a leap for self employed persons to take, so they refuse to hire and expand their businesses. President Obama should direct the IRS to adopt a regulation that exempts the first three designated employees of any business from all regulation, and to treat such designated employees as ‘independent contractors’”. Person continued, “this means that in order to hire up to 3 employees, a small business or self employed person would not have to obtain a workmen’s compensation insurance policy, or a disability income insurance policy, or withhold taxes from wages, or make period deposits and reports with the IRS, or post employee notices, or comply with minimum wage requirements or be subjected to a state Insurance Commission audit. Instead, the self employed or small business person could use that time and money to build the business and create even more jobs.” Person estimates, “If my 1st 3 Are Free idea is adopted by the President and IRS, about 3 million new jobs would be created over a period of about 12 months.”
Third Micro-Economic Switch – Post-Secondary Vocational Training: ”Regulation of education is the most destructive regulation of all”, according to Person.
The nation needs persons trained to work for small business, but there are no such training programs in the country.
The training needed, according to Person, “is in such diverse fields as driver training, programming telephones and other devices, spreadsheets, press releases, direct mailing, mailing lists, robot-dialing systems, list scrubbing, spam laws, blogging, website creation, search engine optimization, other marketing, content management systems, looking out for liability, reducing costs, management techniques, telephone etiquette, managing leads, understanding what the owner wants done, preparing budgets, handling bank accounts, writing checks, purchasing, shopping, new products, competition, Google alerts, Skype, purchasing telephone services and equipment, purchasing computer software and equipment, and more than 270 other things, within a single vocational program.”
“The nation’s colleges and universities do not provide this type of instruction, and their professors and instructors aren’t qualified to teach the program,” according to Person.
Person went on to explain that “this means that private business and free enterprise are required to provide the instruction, but they are prohibited from doing so by state laws which prohibit any instruction before a long, costly and dubious course of licensing in which the applicant is required to spend $250,000 to $1,000,000 or more and not able to accept any students until 1 to 1-1/2 years later, if licensed at all. Even if licensed, the license could be revoked at will by the licensing authority. Under these circumstances, no schools have been started, and the required instruction does not exist.
This third micro-economic regulatory switch needs to be turned off, to enable free enterprise to create programs to train Assistants to the Owner of a Small Business, to fill the 10,000,000 skilled, high-paying jobs waiting for them.
Person states that “the federal government, to turn off the micro-economic switch, needs to pass a statute preempting (i.e., voiding) all state regulation of post-secondary vocational training, to encourage private enterprise to commit the time and money to create the schools and training programs needed to prepare students to become the # 2 person in approximately 25 million of the nation’s 26 million small businesses.”