The Recession Affects Small Business

Small business cannot get sufficient credit from banks who are worried about strict regulators who look over their shoulders to see that the books show little risk.

Yet, small business employs 50% of the U. S. work force. It makes up almost 40% of the GDP. The easy money policy of the Federal Reserve makes it far easier for banks to borrow at little cost from the Fed and invest in government bonds. So why bother to make risky small business loans?

Worse, small business cannot get meaningful relief from Washington in the form of lower taxes and less restrictive wage regulation. (See the Earl J Weinreb NewsHole® comments.)