Washington Post Op Ed: Richard Rahn : The innovation destroyers

[linenoise]

http://www.washingtontimes.com/news/2017/jul/31/innovation-killed-by-politicians/

Which government agency has done the most to destroy innovation? The American Founders tried to create an environment to foster innovation, because they understood new inventions would increase the well-being of the citizens. And that is the reason the Constitution enabled Congress to create patents of limited duration.

Most politicians say they favor innovation, but at the same time they create regulations, taxes and government agencies that hobble or prohibit that same innovation. One of the most notorious innovation killing agencies is the Securities and Exchange Commission (SEC), whose mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

In reality, it far too often denies investors the opportunity to invest in new and promising technologies and in new companies — all which undermine productive capital formation and economic growth.

Last week, according to The Wall Street Journal, the SEC “moved to restrain a hot new fundraising method involving sales of digital coins.” The method is known as ICOs, (initial coin offerings), and more than $1 billion has been raised this year through ICOs. After the announcement, Bitcoin lost 7 percent of its value and Ether (another digital coin) lost 12 percent of its value. So, here again, we have the SEC, in its lust for control and power, not protecting consumers, but destroying wealth for investors in the whole new field of digital coins....

More at link. Interesting Opinion from a well known economist.

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[iluvpie60]

http://www.washingtontimes.com/news/2017/jul/31/innovation-killed-by-politicians/

Which government agency has done the most to destroy innovation? The American Founders tried to create an environment to foster innovation, because they understood new inventions would increase the well-being of the citizens. And that is the reason the Constitution enabled Congress to create patents of limited duration.

Most politicians say they favor innovation, but at the same time they create regulations, taxes and government agencies that hobble or prohibit that same innovation. One of the most notorious innovation killing agencies is the Securities and Exchange Commission (SEC), whose mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

In reality, it far too often denies investors the opportunity to invest in new and promising technologies and in new companies — all which undermine productive capital formation and economic growth.

Last week, according to The Wall Street Journal, the SEC “moved to restrain a hot new fundraising method involving sales of digital coins.” The method is known as ICOs, (initial coin offerings), and more than $1 billion has been raised this year through ICOs. After the announcement, Bitcoin lost 7 percent of its value and Ether (another digital coin) lost 12 percent of its value. So, here again, we have the SEC, in its lust for control and power, not protecting consumers, but destroying wealth for investors in the whole new field of digital coins....

More at link. Interesting Opinion from a well known economist.

Yes the SEC is likely overreaching.

I do not know how they can go against ICOs. ICOs are just funding with a different way. It completely is outside of the system of stock markets, so the SEC wants to come in and take their cut or something?

That is what it seems like to me. Get their taxes from ya! If they can't tax it, they jail you for it.

[pitham1]

Scamsters are making a bee line for ICOs these days. If the SEC's statement makes them think twice before doing an ICO with the intention of running away with your money, that isn't a bad thing after all.

[Hydrogen]

Prior to 1913, when the income tax was passed in america, there were years where the economy grew 10%.

With taxes much higher today, we're lucky to achieve 1% economic growth per year.

Not many know that taxes and state regulation can cripple innovation and progress.

[CryptoBry]

This is a very good op-ed piece coming from Washington Post and I am personally resonating with the idea that maybe the government through the SEC in its quest to protect the people so they can never be scammed is at the same time killing innovations.

There has to be a balance between the two concerns that is putting a regulation -- not a burdensome regulation but aimed to protect the investors -- has no problem with me but it has to be in consultation with the stakeholders and must not be done in haste and done from the top.

The government should realized that innovations are not coming from them and must come from the private sector...its job is to make sure that innovations are not killed in the bud but encouraged to grow and flourish as long as things are not done illegally and not done to snatch money from the people.

Again, a big balance has to be made here.

[Sadlife]

Absolutely this SEC has done more destruction rather than innovation the real reason why ICO's for bitcoin hasn't been accepted by this government agencies is that they cant regulate it and track users who's making the transactions in order for them to tax it and control their money and apply hidden fees like why they in centralize payment method like paypal, credit card with ridiculous high fees but whether this government agencies accept or denies bitcoin this digital currency will continue to move forward and increase in value and dominance. Bitcoin will continue to surge.