New companies will be crucial to the strength of any economic recovery. Businesses in their first 90 days of life accounted for 14% of hiring in the U.S. between 1993 and 2008, according to the Bureau of Labor Statistics.
But this recession is taking a particularly heavy toll on business creation, as sources of small-business funding dry up…
And why are sources of small business funding drying up? Two things:
1. Government is on a borrowing binge…each dollar borrowed by Obama is a dollar which can’t be borrowed by a new business.
2. By bailing out the big banks, all we did was allow them to cover their losses…and they are holding on to what we gave them, because they’ve got even more losses to come in the next wave of home foreclosures and the surging commercial foreclosure rate.
Now, bailing out the banks was a bi-partisan bit of idiocy, but Obama is driving the last nail in the coffin by soaking up all remaining funds for his various “stimulus” projects. We’re taking away money for new start ups and giving it to people to buy cars they don’t immediately need, thereby hiring back – for a few weeks – a few thousand auto workers at the same, old dinosaur companies. Ditto with the credit for new home buyers – its nice to help youngsters in to homes, but people need jobs more than new homes right now: we can get new homes once the economy is back on track.
On and on it goes – its all just a waste of time. Of course, Obama and Co are getting ready to scream “recovery” at the top of their lungs once the numbers for the third quarter come in…I mean, just wait for it. As far as the left and the MSM will be concerned, this will be the biggest boom in human history, all ushered in by Obama and his Spendulus. Relentlessly it will be hammered home that everything’s great and we all owe Obama our very lives…meanwhile, the concerns about rising unemployment and continued contraction by everyone not receiving a government hand out will be ignored or downplayed.
And it all may work, for a while – Obama’s popularity might rise, Democrats might start feeling a bit bullish about the political future…and then its all going to come crashing back down. We can’t spend our way to wealth, and when you’re broke, the worst thing you can do is borrow more money. This is not opinion – this is basic, common sense.
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