Weekend editorials lament the Connecticut’s $100 million dollar small job creation bill. The reason the “journalist” wrote is that two Chicago Academics did a study, that showed “small business was a job destroyer” so any money granted is bound to be wasted.
This is a great example of why people have lost faith in the media at large.
70% of the jobs created in recovering from a recession are produced by “small businesses”. This is verified by the US Chamber, The National Federation of Independent Businessmen, and by the US Commerce Department.
70% of our total economy is driven by consumer spending. It’s the money you and I and the millions of us who work spend that make the overall 70% number either good, if we’re spending more or poor if we’re spending less.
If Government allows us to keep more of our own money, we’ll spend more than we are now. If we do that, the grocer, the cleaner, the liquor store will see more of us and they can afford to hire people to handle the increase in business.
Tax Credits or small business loans, will not create any sustainable jobs, in what has become a static recession. Government “green energy” has an 80% bankruptcy rate, and an average cost of well over $1 million dollars per job, for the surviving 20%.
State and Federal Government are incapable of making the kinds of decisions that a bank commercial loan officer makes when he or she either approves or denies a loan.These Governments have a lousy track record when it comes to loaning money to or investing in private businesses.
Our State has been nationally recognized as one of the poorest places to try and startup a business. Not the kind of National recognition one would hope for.
Our Government ignores historical lessons. The Reagan tax reforms, the reductionof business regulations and generally business friendly Government that came to exist created a 25 year economic rise. There were up and downs during that period, but the downs were manageable, and the trend line continued up.
The CEO’s of Home Depot, Staples, and the head of the largest Bank in the south, all havesaid, that given today’s Government regulatory climate, and lacking any “long-term” direction from Government, they couldn’t possibly start a business today and succeed.
Comprehensive tax relief has proven effective in triggering recovery in the past. Do we ignore it, because it works?