Posted by Tina
The Washington Post is reporting a new plan to boost small businesses and create jobs:
The Obama administration is developing a major initiative to tackle the economic and political problem of unemployment by getting federal bailout funds into the hands of small businesses. The proposal involves spinning off a new entity from the Troubled Assets Relief Program that could give banks access to the government money without restrictions, such as limits on executive pay, as long as they use it to make loans to small businesses.
There’s only one problem with this plan. Not too many small businesses want to take out a loan when the government is promising to tax them six ways from Sunday. A loan for equipment or expansion does not ensure new business, especially in this down economy. Instead it represents more money going out, more debt, with nothing more coming in. How could that possibly help to increase job opportunities? This administration just doesn’t get it.