Small businesses around the country have struggled to survive through one of the greatest recessions in modern times, and they fear that any hopes for recovery will be routed by the policies of the Obama administration:
The number-crunchers at the Treasury Department have been celebrating what appears to be the end of the Great Recession as told through rising GDP, higher business profits and a buoyant stock market. But owners of small businesses — the usual engines of economic growth — are still refusing to hire back workers as they normally do when the economy turns up from a sharp decline.
Talk to them, and they’ll gladly tell you why: Having weathered the recession, they now fear the administration will choke off the nascent recovery and increase their costs through higher taxes to pay for the myriad of programs President Obama has in store for us, including the hyperexpensive health-care overhaul.
If the president wasn’t so busy looking to score cheap political points when he met with the heads of the big banks last month, he’d have listened to their warnings on this very issue. At one point, JP Morgan CEO Jamie Dimon politely interrupted Obama’s monologue on how the banks should be lending more to small businesses to explain that many businesses simply don’t want to borrow to expand their operations and hire more workers.
The fear of small business owners is well founded, as it has become clear that President Obama’s administration and the democrat led Congress have no intention of supporting the most important segment of the economy.
Lending more to small businesses through stimulus programs is not the answer. What business wants to be strapped with debt in an economic contraction? What business owner is willing to take a risk of expanding when a host of new taxes is clearly on the horizon?
The answer that will allow small businesses to hire new workers and expand their operations is to take less of what they earn and let them keep more of their money.
Yes, it’s a novel and risky idea that socialist leaning elected officials have never tried before, but it just might work!