Unit 4: Institutions of National Government

“House Passes Bipartisan Bill to Help Small Businesses”

http://constitutioncenter.org/NewsWire.aspx?title=House+Passes+Bipartisan+Bill+to+Help+Small+Buisnesses

Synopsis: The House of Representatives passed the JOBS Act, which is a package of bills that make it easier for small businesses to raise the capital that they need to grow and hire new workers. The bills make it easier for small businesses to go public by providing temporary reprieve from Securities and Exchange Commission regulations. It removes restrictions that prevents small businesses from using advertisements to solicit investor and removes restrictions on “crowdfunding” so entrepreneurs can raise equity capital from a large pool of small investors. Also, the bills raise the ceiling for shares a private company can sell as part of a public offering from $5 million to $50 million before having to register with the SEC and the SEC registration threshold from 500 to 1,000 shareholders and they increase the number of shareholders permitted to invest in a community bank from 500 to 2,000. Republicans praised the legislation and President Obama supports it.

Analysis: This article shows exactly what we are doing in class by the House of Representatives voting and debating on a bill. Also, the article shows that Congress can pass bills even though we have a divided government. Currently, the Democrats are in control of the White House and the Republicans are in control of the House of Representatives. As I learned in class, once a party has a majority in the House it is easy for them to get their way. The Republicans could have easily passed this bill without the approval of the Democrats, but what illustrates the idea of a united government is that President Obama supported this bill. Obviously, economic and job growth is a concern for both parties.