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What does the JOBS Act actually do? Six questions answered.

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2. Wait, how do those things promote jobs?

None of these provisions puts a shovel in an unemployed construction worker’s hand or cuts taxes to allow employers to have more money to hire employees. So how do they support jobs? The idea is that if you’re Small Widget Co., a good way to get more capital to fund your growing business is to sell stock in your company. To do so, however, you must comply with regulations that many lawmakers have concluded are too onerous: If you’re hiring people to comply with SEC regulations, you’re not hiring people who actually improve your widget-making business. Cutting back on regulations would allow business owners to grow bigger businesses before they have to comply with securities laws that also apply to much bigger firms, the sponsors of the legislation say, 

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