Small businesses: Too big to fail
During this financial crisis, the federal government has become a generous and a reckless creditor to failing companies at the painful expense of taxpayers. In addition to buying corporate bonds and providing short-term loans worth billions of dollars, the government is giving away money in hopes that its largess will resuscitate an economy with failing vitals. Its reasoning: the companies are too big to fail. I think the government has got it wrong.
While I agree that saving the big corporations is important—especially to avoid major unemployment surges—I also believe that small businesses are just as important. According to the Small Business Administration (SBA), small businesses represent 99.7 percent of all employer firms (firms with payroll). Furthermore, they have generated 60 to 80 percent of net new jobs annually over the last decade. There are plenty of statistics that support the claim that small businesses are, in fact, too big to fail.
In short, big corporations and small corporations are struggling to tread water in this maelstrom of an economy. However, the government’s corporate triage gives priority to big companies when both big and small firms are crucial to a sound economy. By not providing help to small businesses, which many experts say are the backbone of this country’s economy, the government is missing a huge opportunity for tremendous growth and a speedy recovery.
Greetings! I’m Kevin D. Johnson, a small business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica last October, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
Puh-lease, Kevin. Don't fret about saving the big companies. They've helped themselves quite enough already, and they're the ones sending so many jobs overseas.
It would be far better to let the big companies collapse under their own weight, because this will create opportunities for smaller businesses to expand and hire. The economy will be better off from the restored competition, and anyone who gets laid off will probably get a better deal out their next employer!
Posted by: Timothy Jones | November 04, 2009 at 04:56 AM
While politicians pay lip service to small business; in reality it's big business that calls the shots in DC.
Remember that when Ronald reagan came into office; one of the very first things he wanted to do was gut the Small Business Administration.
When the GOP controlled Congress; the K Street project was their brainchild to get lobbying bucks: for evryone else; the "free market" would have to suffice.
Posted by: Commie Stooge | June 06, 2009 at 06:47 AM