Unemployment Rate Can't Drop without Business Successes

Caroline Baum of Bloomberg wrote a piece today about how pessimistic and disenfranchised small businesses are by the actions of Washington and the Obama administration. Small businesses have good reason to angry. Their having difficulty getting loans, even when they have good credit. Health care legislation causes concern about the amount of money they may be required to spend in the future. The Bush tax cuts are due to expire, which will inevitably affect many small business owners. From energy policy to economic policy small business owners are getting ulcers from an administration that doesn't seem to grasp the importance of businesses in an economic recovery. The only way for jobs to return is for businesses large and small to succeed. There are legitimate reasons to be angry at Wall Street, and corporate greed. However, Washington is throwing the baby out with the bath water when it seeks to restrain or punish all businesses. The most fundamental economic truth is that businesses can only hire people when their company is succeeding. If Washington can't grasp this simple concept there's no hope for them to aid an economic recovery.

From Bloomberg Clueless in the Capital Meets Small-Business Ire: Caroline Baum

Feb. 11 (Bloomberg) -- “Washington doesn’t get it.”

That generic statement is tripping off the tongues of populists and Tea Partiers, business groups and bankers alike. In short, the public is peeved at the politicians.

I heard it this week from William Dunkelberg, chief economist of the National Federation of Independent Business, who used his group’s latest survey to opine on Washington’s deaf ear for helping small business.

The president and Congress “pay lip service to the fact that small business generates half of private-sector GDP and employs 60 percent or more of private-sector workers,” Dunkelberg says. As far as Washington’s efforts to help this sector of the economy, “instead of stimulus, give consumers a tax cut,” he says.

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Washington Comletely Missing the Boat When it Comes to Small Business