Small Businesses 4
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President Obama spoke briefly from the Rose Garden this morning about the economy. He acknowledged that the recovery is still fragile, but offered assurances that his team was, “hard at work on additional measures.” He offered few details, but pulled no punches in blasting GOP leaders for their obstruction of relief for small business. “I ask Senate Republicans to drop the blockade,” the President urged, referring to the persistent GOP filibuster of a small business aid bill that’s been stalled in the Senate since shortly after the House passed similar legislation this past March.

The small business aid bill, last blocked from going to the Senate floor at the end of July, includes $12 billion in tax relief and also creates a $30 billion fund intended to facilitate lending to small businesses. The tax breaks, designed to stimulate growth, include deductions for capital equipment investment and credits for new hires. With the large banks still withholding any funding for small business, the loan fund is designed to allow community and regional banks, those with assets under $10 billion, to fill the void. Small businesses need money to expand, and according to Bob Coleman, publisher of the Coleman Report, which provides information on small-business lending, many businesses are postponing expansion while they wait on the outcome of this bill.

Republicans in the Senate have spoken out against the bill, likening it to the TARP, which they all supported, but which has since fallen into disrepute. They label the bill as more Democrat spending, even though it’s fully paid for. Senate Minority Leader, Mitch McConnell explained that the Republicans had already been given 3 amendments to the bill, but that “three amendments is not enough.” Democrats countered that the border security provision offered by Republicans had nothing to do with small business, and that they would not allow the Republican maneuver to add a permanent extension to the Bush tax cuts. Republicans also complained about the $1.5 billion in aid to farmers contained in the bill, so Democrats removed the provision, but were still not able to sway any Republican support.

In his speech today, President Obama stated of the bill that, “there’s no reason to block it besides pure partisan politics.” Dean Baker, of the Center for Economic and Policy Research seems to be in agreement. Speaking in July, he characterized the standoff like this, “The Democrats want to hand money out to small banks and win some support among traditionally Republican backers, while the Republicans don’t want the Democrats to have any achievements to show when they campaign.” Even the U.S. Chamber of Commerce, who typically sides with Republicans, is fully in favor of the legislation.

So, how is it that the Party who purports to be a champion of small business, comes to resist, so adamantly, a bill designed to help that very segment? This is the same party that bases their defense of extending the Bush tax cuts for the rich on the detriment their expiration would have on small business, yet they won’t support this fully funded stimulus. Conservative voters should take heed, because this is just another piece, amongst a vast body of evidence that indicates where Republican loyalties are tied.

President Obama did mention a few other examples of efforts being pursued by his administration. He emphasized that they were still fighting for the extension of the Bush tax cuts for the middle class. Although he gave no indication of how they might achieve that without also extending the cuts for the rich. They are incapable without GOP support, and thus far, Senate Republicans remain firm in their resolve to force an across the board extension, that adds $678 billion to the deficit from relief for the rich, or nothing at all.

The President stated that further tax cuts to encourage businesses to create jobs in the U.S. were being considered. He also listed initiatives being pursued, such as, “rebuilding more infrastructure for the future” and “redoubling our investment in clean energy and research and development.” But he gave no details on these items, nor did he even mention the current stimulus, which is actively moving these initiatives forward. The stimulus which is so often maligned by conservatives, but credited by economists for avoiding 2 addition percentage points of unemployment and adding millions of jobs, is also providing a critical service in moving our nation into a clean, alternative energy future and building infrastructure in the areas of public transportation and a smart grid.

Much to the disappointment of many progressives, the President’s speech failed to clearly identify the severity of our current economic problems or the details of the administrations plan to address them. With both consumers and businesses tucking their money away, there’s little hope that things will change without further stimulus, but in an election year where the deficit hawks are out hunting for prey, Democrats appear to lack the resolve to promote such a bold action. The alternative is obviously a very slow recovery in which the middle class foots the lion’s share of the bill — and minus the public wherewithal to understand that the deficit has merely been presented to conveniently block further corrective action, we appear to be doomed to stew in this status quo.


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John-Boehner
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The man who wants to be Speaker of the House, John Boehner, spoke out against Democratic leadership earlier this week. A string of cheap attacks and tired one-liners, Boehner’s diatribe was pure substance-free political posturing. He called for President Obama to fire his economic team, extend tax cuts for the wealthy and to put the brakes on spending. Lacking any shame, the congressman actually had the temerity to suggest the nation needs a “fresh start,” with “people willing to accept responsibility” in charge — as if he or any of his big-business Republican cronies have accepted one iota of blame for crashing the economy and killing millions of jobs, or for doing everything within their power to stall recovery.

The would-be Speaker, obviously intent upon leveraging public concern over jobs, used every opportunity to label the administration’s programs as “job-killing.”  Weaving the term into every topic, “job-killing tax hikes,” “job-killing regulations,” “job-killing agenda,” Boehner evoked the reaper 12 times in all. Condemning the recent $26 billion stimulus bill, Boehner stated that it, “funnels money to state governments in order to protect government jobs.” Of course, he was referring to 161,000 teacher jobs, as well as 158,000 jobs for police, firefighters and healthcare workers. But those jobs weren’t worth saving to John Boehner. He continued his criticism with, “Even worse, the bill is funded by a new tax hike that makes it more expensive to create jobs in the United States and less expensive to create jobs overseas,” which would be alarming — if it were true, which it’s not. His “job-killing tax hike” was actually the closing of a loophole that encouraged corporations to ship jobs overseas.

What Boehner did reveal of the Republican plan for creating jobs appeared to be vintage Bush. It’s the same old recipe that drove the nation off a cliff the last time around — more tax cuts for the rich and less regulation. Conveniently ignoring the fact that President Obama wants to extend the Bush cuts for everyone making under $250,000, Boehner told the crowd that, “Raising taxes on families and small businesses during a recession is a recipe for disaster — both for our economy and for the deficit. Period. End of story.” He’s right, so if he truly believes what he says, he should stop fighting for cuts for the top 2% and join the Democrats in providing relief to everyone else — including all but 2-3% of small businesses.

Boehner is truly a master at the art of double-talk. He claims to advocate for small business, stating that expiring the cuts for the top 2% would, “affect half of small business income.” But he fails to mention that the “half” he wants to protect are “small business” only in terms of the number of employees. Boehner’s half makes 50% of the money, but consists of the wealthiest hedge funds, law firms and lobbying outlets, and comprise no more than 3% of the actual small businesses.

Amongst the newly formed ranks of Republican deficit hawks, Boehner also called upon President Obama to, “submit to Congress for its immediate consideration an aggressive spending reduction package.”  Of course, being a good Republican, Boehner did specify that the freeze should only be for non-defense spending.  But that’s just the tip of his forked tongue. Avoiding the disproven claim that tax cuts pay for themselves, Boehner is left with no explanation for his logical inconsistency in demanding spending cuts to fight the deficit, yet supporting $678 billion in millionaire tax cuts to choke revenue.

One lie after another, Boehner’s critique of the Obama Administration was as fact-free as his economic plan for the future. But possibly his most egregious distortion was regarding the stimulus. A critic from the beginning, according to Boehner, the program, “has gotten us nowhere.” Sadly, many voters will believe this whopper, even though it has absolutely no basis in reality.

Perhaps Boehner had not yet read the nonpartisan Congressional Budget Office (CBO) report on the stimulus. The CBO analysis found that the stimulus had raised the GDP by 1.7% to 4.5% and increased the number of people employed by 1.4 to 3.3 million. In response to Boehner’s fallacious claim, Mark Zandi, former economic advisor to John McCain, took issue and stated that, “Without the stimulus spending, instead of a 9.5 percent unemployment rate, we’d have an 11.5 percent unemployment rate.”

But, the facts regarding jobs and unemployment really only scratch the surface. The real impact of the stimulus is still in process. It is creating jobs in the present, but it promises to create far more in the future. The program is investing in research and infrastructure, providing seed money to jump start alternative energy, modernize transportation, fund ground-breaking medical advancements and enhance technologies such as broadband and smart grids. And in so doing, the program is also transforming the way government works.

Ever the champion of the status quo, it’s easy to see why John Boehner doesn’t appreciate the progress funded by the stimulus. When Boehner says it, “has gotten us nowhere,” what he means is that it has prevented the huge drop in wages his corporate cronies so desperately desire, and that it’s also paving the road away from dependence on fossil fuels. A green America with well-paid Americans working in new industries is Boehner’s worst nightmare. He and his Republican brethren are just fine with things the way they are.

In Boehner’s own words, “It’s time to put grown-ups in charge,” and since it’s obvious that the congressman never even learned the most basic rules of adulthood, like telling the truth and practicing what you preach, he must not be referring to himself. So, let’s all hope he gets his way and voters make the intelligent choice in November —  they put the grown-ups in charge and vote Democrat.


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This White House has “vilified industries,” complains the Chamber of Commerce. America is burdened with “an anti-business president,” moans The Weekly Standard.

Would that all presidents were this anti-business: according to the St. Louis Federal Reserve, corporate profits hit $1.37 trillion in the first quarter—an all-time high. Businesses are sitting on about $2 trillion in cash reserves. Business spending jumped 20 percent last quarter, and is up by 13 percent against 2009. The Obama administration has dropped taxes for small businesses and big ones alike. Maybe the president could be anti-me for a while. I could use the money.

Ezra Klein, Newsweek

Wall Street, Manhattan, New York, USA
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It doesn’t matter how much Obama does for business, or how well business is doing. Republicans have proven that they care nothing about truth, facts or the American people — so as long as conservative voters will buy their lies, they’ll keep spinning Obama as anti-business. This is all a given; the perplexing part is how to get conservative voters to actually look at the facts.

As Ezra Klein stated, “corporate profits hit $1.37 trillion in the first quarter — an all-time high.” Business is doing fine and the GDP continues to rise, but average Americans see no improvement. It’s a jobless recovery, and it’s being sustained by Republican obstruction and subterfuge.

The Republican message is that, although business is sitting on a ton of money, $2 trillion according to Klein — they will not hire until there is more certainty about the future. There’s much truth in this statement, but it falls short of telling the “whole truth,” which includes the fact that it’s the Republicans who are creating the uncertainty, and they’re doing so for their own selfish gains.

They could work with the President toward real solutions, but instead they block anything that can help anyone except the upper 2%.  The vast majority of Republicans have voted against extending unemployment benefits, against providing aid to prevent teacher layoffs, against funding COBRA benefits for the unemployed, against providing stimulus to the economy . . . all in the name of fiscal accountability. Yet those same elected officials support extending the Bush tax cuts for the rich, a move that all economists agree will increase the deficit and do very little to stimulate anything but the further concentration of wealth in America.

Conservative voters would be well served to understand that you can support business without completely sacrificing the wellbeing of The People. Being pro-business does not require solidarity with the Republicans who consistently show their total devotion to profits over people. Republican unity against increasing the liability limits for the disaster in the Gulf, against reforming the Wall Street casino, against disclosure of campaign donations . . . against anything that might reduce corporate profits, is not pro-business — it’s pro-mega-business.

Since the Wall Street thieves and gamblers brought down the economy, there have only been 3 initiatives to gain strong Republican support: bailout the banks, cut taxes for the rich, and fund the Military Industrial Complex. If this is where your priorities are, then by all means vote Republican, but do so knowing that you’re supporting only the biggest businesses and the most wealthy people. The real truth is that both parties are pro-business, but the Republicans stand alone in being anti-American-People — well, really only 98% of the people.


Read the Article at Newsweek

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