They Call This A Stimulus For Small Biz? Pshaw!
(Forbes.com) -- Chris Carey
OK, let me get this straight: The Small Business Administration's Office of Advocacy reports that 27 million small businesses in the U.S. account for 50% of the Gross National Product and employ over 50% of the workforce, and Washington figures $30 billion in loan support and some tax credits will get things done.
What's that, $1,100 per company? Wow, where do we sign up!
Our fearful leaders gave $50 billion to General Motors, and $185 billion to AIG. According to the Congressional Budget Office publication, The Budget & Economic Outlook: An Update August 2009, big business has been showered with more than $10 trillion (that's a "T") in funding and commitments, including: $1.3 trillion disbursed by the Federal Reserve, with another $2.8 trillion committed (including aid to AIG, Citigroup, Bank of America, Bear Stearns); $800 billion from the Treasury, with $3.6 trillion committed (including guarantees for Money Market Funds and TARP); and over $2.1 trillion committed by the FDIC (including increased depositor insurance and more Citigroup guarantees).
Um, does $30 billion to small business make a difference?
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Small businesses continue to struggle mightily in the latest, tenacious downturn. As customer demand shrank, terrified banks loaned to only the best of credits, if they loaned to anyone at all. (This while the federal government showered credit on busted banks, mortgage providers and auto companies.) Tax credits for new hires? Those don't plug holes in working capital. In short: The Obama administration's small-business stimulus plan is like dumping a cup of water on a forest fire...MORE...LINK