I shudder every time I hear politicians say they want to free up loans to small business so they can meet the payroll.
While his children wonder why we cant have a new car like their neighbors, the small-business man has acquired a new machine that hopefully will make him more competitive next time he bids a job. Small businesses survive, expand and prosper on profits.
When you overtax them, as the present administration seems prone to do, they sicken and die. An old economics professor I had once said, The more you pluck the golden goose, the harder she is to catch.
Most bureaucrats dont have a clue about how to start or run a business. But these are the people who write the regulations that flesh out those 2,700-page laws our Congress passes so we can find out what is in them.
The author Nevil Shute Norway, an aeronautical engineer who started a small aircraft manufacturing company, said in his autobiography Sliderule, that a start-up company cant get capital from banks. Risk capital comes from your mortgaged house, loans from naive relatives or racetrack money.
This type of speculative money has to come from those who have it: wealthy people. Wealthy people dont keep their money under the mattress. They invest it. And they invest it where the climate is most favorable. President Obama seems intent on running class warfare, against the very people who can help get us out of this mess.
People dont invest money when they dont know what the rules are going forward. What are taxes going to be? What are the obligations under health care going to be?
Obama has had two years to do something about this but has frittered them away while pursuing his social agenda. This recession will last and unemployment will continue until these concerns are resolved.
Reg Read, Durango