Obamas plan is to take 30 billion dollars out of the Trouble Asset Relief Program (TARP) which was originally designed for bailing out Wall Street Investment banks and create new small business lending fund that will help provide capital for banks on main street. Also originally Obama was said to allow for 47,000 loans to small businesses so that entrepreneurs and business owners can start business and help finance current businesses from being shut down. Finally, a new tax credit for more than one small businesses that hire new workers or raise wages. Hopefully, this plan will help spark the economy and allow small businesses to prosper in a weak economy.
Sunday, February 7, 2010
Obama proposes measures to shore up small businesses
Obama says that the key to boost the economy out of the recession is to make sure that small businesses are going to be successful. Small businesses make up a large percentage of the economy it is essential for them to be successful.
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I think an interesting aspect of this article is in regards to what we talked discussed in class about tax increases. Prof Skosples talked about how even mentioning a tax increase puts the general public into a frenzy. So instead of raising taxes Skosples said you can could take money from other things, but he said that also makes people angry becuase they get used to having certain things. I think this is a good that Obama is proposing becasue while he is taking money away from the Trouble Asset Relief Program he isn't just getting rid of it. Obama is putting the money into another program that may have a better ability to work.
ReplyDeleteIn economics the term, "niche marketing", is used to refer to small businesses and it talks about their importance in an economy. We usually tend to ignore small businesses due to their small size. However they exist in huge numbers and hence employ a large number of people. Its like what difference does it make if one person does not vote, but if many people individually decide not to vote it can make a huge difference. Hence its extremely important to help these businesses remain afloat.
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