Support for small business
by Milota Sidorova
Five weeks before U.S. Congressional elections and President Obama finally pushed long-expected bill that aims to help small businessmen. Although it was blocked several times by Republican party, two of them George Vojinovich of Ohio and George LeMieux of Florida turned on the lights to the proposal. What could be better for smaller businessmen? At first they tax expenses should be reduced and then they should have easier access to the governmental fund of $30 billion. Money would be transferred down to regional or community banks that will make them more affordable via loans. The step seemed to be necessary for Democrats who were missing their popularity last years. Howe! ver, the step should be real injection to the economy, since small business employ crucial majority of people and create competitive different environment. And the objection from Republicans seems to be almost cheap excuse. First of all they compare $30 billion fund to the 2008 industry bailout. That time the government released around $700 billion and adressed them just to several, chosen financial organizations. But there are great differences – these banks were selected and while some of them were rationally let to the bankruptcy, some were given generous, perhaps too generous load of money. And according to statistics they were going well and while real people, real businesses were struggling in this never ending crisis, they made bigger fortune than before the crisis. So this time the impact for the economy will be more direct, since the money will come to real people. These real people can hire another real people who will generate another income. This is very i! mportant point, if there is an unemployment around 9 percent. ! What's more Republicans seemed to forgot that the fund would be around 23 times smaller than the financial banker's gift. Another importance of this step is a transparency, while banks accepted the money without any restriction or regulatives, the passage of this bill was followed by time and energy killing process. And it could be dead in the end. So the question is, how can one compare $700 billion packet given to financial organizations that are producing virtual money with $30 billion fund to small businesses that create the anchor of real economy. Only a fool would think that virtual money and banks can decide so long-expected and feared elections that will be decided by real people.
related story (sgx18277): http://news.yahoo.com/s/ap/us_obama_small_business;_ylt=AkCl...
by Milota Sidorova for Cantell TV (http://cantell.tv) |
Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.
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