Impact of Recent Accounting and Financial Scandals on Regulatory Bodies
Abstract
This essay has concentrated on the broad subject areas of the Impact of Recent Accounting and Financial Scandals on Regulatory Bodies and reducing regulatory burden and undue litigation—because these are the topics that innovative entrepreneurs tell us are the most important to them and what they believe will be most important to innovative entrepreneurs in the future. At the same time, however, other policies clearly will have an important impact on innovative entrepreneurship and the U.S. economy in the years ahead.
Two prominent examples are how federal policymakers deal with future budget deficits looming because of entitlement programs for the soon-to-be-retiring baby-boom generation, and whether the United States and other countries will backslide or move forward toward further trade liberalization in an environment where increasing numbers of citizens are nervous or skeptical about the value of globalization. Dealing with the long-term budget deficit is important, if not essential, in order to maintain a low-interest rate environment (which makes it easier to finance new ventures) and to avoid financial crises. Open trade is vital because it ensures that all firms (including entrepreneurs) and consumers have access to the least expensive inputs and goods and services, while being able to sell into other markets.
There are two other policy subjects, perhaps closer to entrepreneurs’ daily experiences, which also could have an important impact on future entrepreneurial patterns: taxes and access to capital. Yet for reasons elaborated in the next sections, the impact of policies in these arenas is more complicated than may first appear, and each will benefit f ...