Unintended Consequences Of The Financial Reform Bill

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The National Jeweler website is reporting today on a provision of the Financial Reform Bill recently passed that will make life very difficult for small, independent jewelers. 

According to the article:

"A legislative addendum that aims to regulate the gold industry to keep "conflict gold" out of the United States passed as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a financial reform bill that was approved by the Senate Thursday and is poised to become law."

The article further states:

"On Friday, JA (Jewelers of America) released a statement in response to the bill's passage, saying "While we strongly believe in the goals of this legislation, we are very concerned that the bill--as passed--could encourage jewelry companies to avoid trading in gold from the region, in order to bypass the issue completely. Of course, this unintended consequence will help no one, and end up hurting legitimate miners and their communities. Therefore, we hope to work with the U.S. Securities and Exchange Commission (SEC) regulators and both industry and non-industry stakeholders to ensure that implementation achieves its goals, without hurting jewelry businesses or the very communities in DRC and neighboring countries that it is meant to benefit and protect.""

The problem is that Congress keeps passing 2,000-plus page bills that no one has read.  No one has has any idea what gems (no pun intended) are included in these bills.  The intention here was good, but how good will the intention look when thousands of small jewelry business go out of business because the regulations are too complex for the size of their companies?  This is another instance of Congressmen not protecting their constituents from extreme government regulation.  Instead the Congressmen are responsible for the extreme regulation.  As Ronald Reagan once said, "Government is not the solution--it's the problem."

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This page contains a single entry by Granny G published on July 17, 2010 2:22 PM.

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