This bill is another nail in the coffin of American small business. -- Will Spencer, MemeBridge CEO
Denver, Colorado (PRWEB) July 11, 2012
Entrepreneur-Support.com, a web portal built to assist entrepreneurs and small business people, condemns a little-known portion of HR8438 which will force up to seventeen thousand American businesses to close.
The provision raises the surety bond requirement for freight brokers and forwarders from $10,000 to $75,000. This is the bond that these small businesses have to put up, in cash, in order to be legally allowed to negotiate deals between shippers and carriers.
Susan Wilson, the editor-in-chief of Entrepreneur-Support, explains "The majority of freight brokers are small one-person businesses. The bill makes no distinction between these small companies and the large freight brokers who move billions of dollars worth of freight. The $75,000 bond requirement will put the majority of small brokers out of business. The few large brokers have effectively bribed the government into putting their competitors out of business."
With fewer competitors in the marketplace, prices for shipping should be expected to rise. This will, in turn, raise the cost of every product which is shipped. When the freight costs of a truck full of lettuce doubles, the price of each head of lettuce must rise to cover the increased costs of shipping.
James Lamb, the president of the Association of Independent Property Brokers & Agents (AIPBA) explains the new law in clear terms, "It’s not about fighting fraud. It’s about creating an oligopoly for big brokers under the guise of fighting fraud."
Entrepreneur-Support is a publication of MemeBridge, Inc. MemeBridge is a company with a mission: Spread Good Ideas. A meme is the smallest unit of thought and the job of MemeBridge is to build bridges to help good memes overcome obstacles. MemeBridge has extensive experience creating and managing web publications, including the SmallBusinessMoney.org, JobPrimer.com, and Political_Humor.org. MemeBridge web sites serve several million visitors per month and provide information and guidance to people from all over the globe.