About a month ago, I wrote about a provision in the “finance reform” bill that had the potential to do great harm to venture capital and angel investing, and hence to America’s economic growth and productivity. I’m happy to note that this provision has now been removed from the Senate bill.
I refer to this as a small victory, despite its importance, because this is only a single win against the flood of virtually insane regulatory and tax policy that threatens to engulf the entire American economy. As the WSJ article notes:
“…the fact that such a destructive provision made it that far shows how little the Members and staff now running Congress understand about wealth creation and the sources of American prosperity.”
Even more disturbing than the lack of understanding of the economy is the lack of understanding of their own limitations. Indeed, this Congress and Administration seem to me like someone who holds an administrative job at an airline–establishing flight schedules and ordering the in-flight meals, let’s say–who decides that his executive title gives him the right to fly a 777 with passengers. Or a political appointee at the Department of Transportation who goes out to the Potomac Approach facility, sits down at a radar screen, and starts directing traffic.
There appears to be no limit to the arrogance of those now dominating our political process.