A Stronger, Not a Weaker, S.E.C.

20.07.2011
It's perfectly natural for Americans --- whether Republicans or Democrats --- to be concerned about government spending.

Even among those who believe that federal stimulus spending has been insufficient to counter the recession --- the plea of some liberals -- it's a matter of faith that any pumping up of the economy must be done wisely. And, of course, anyone who wants to tighten federal spending on general principles will always be looking carefully at the federal budget.

But as , it's crazy to think of the current drive to starve the S.E.C. budget as part of the "too much government spending" drive.

He points to a comment in a House Appropriations Committee report saying that with "the federal debt exceeding $14 trillion, the committee is committed to reducing the cost and size of government," in part by cutting back the S.E.C.

But taxpayer dollars don't fund the commission, he notes. Its work is paid for by those it regulates, as no one knows better than corporate finance executives.

Regulators must act carefully and judiciously, of course. But the scandals of recent years certainly illustrate beyond all doubt that we need a stronger watchdog, not a weaker one. Both individual investors and companies are victimized by the corporate abuses that the S.E.C. is charged with rooting out.