The Rich Continue to Use Government to Cut Out Their Competition

By David Kramer, LewRockwell.com
May 4, 2010

One of the scams that the rich use the government for in order to stop less wealthy people from getting richer is to promote the lie that, since venture capital is “riskier” than investing in public securities on the NYSE (another lie), individuals with less than a certain minimum net worth should not be allowed to invest in these “riskier” VC investments.

Bankster puppet Sen. Chris Dodd (D-CT) has inserted into the upcoming financial “reform” bill a clause that would more than double the minimum net worth of a potential venture capital investor from $1 million to $2.5 million, or require an annual salary of $450,000 for the past two years to the current annual salary requirement of $200,000 [the article mistakenly says it is $250,000] for the past two years. (Here is a link to the current minimum net worth regulations.)

Putting aside the libertarian principle that my money is my property -- and, therefore, just like the property of my body, it is up to me to decide what I want to do with it as far as my personal subjective risk is concerned -- an important issue here is that this new rule forcibly prevents people from investing in an area that not only can bring them much higher returns than publicly-traded stocks, but it cuts down the supply of investment funds for smaller, innovative new firms.

These smaller, innovative new firms generally find it much more difficult to raise funds compared to an established big corporation, because the start-up firms’ products have not yet proven themselves in the marketplace.

The bill insert also requires that a start-up firm wait up to four months to get permission from the Bankster-controlled SEC to accept the investment funds. And, get this:

“…this proposed bill also seeks to change the rules for a federal pre-emption [sic] for state regulation. Under the proposed bill, start-ups would be subject to state regulations from the 50 different states. Right now, start-ups & investors are not subject to 50 different state regulators. This would likely lead to more cost & risk for the start-up.”

Yes, this is just what our depressed economy needs now -- even less businesses to employ people and provide new products to improve our lives.

[Thanks to Shelly Roche]