What we can do to stimulate job growth NOW . . .
9 commentsFebruary 26th, 2009 | 10:56 am
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What we can do to stimulate job growth NOW . . .February 26th, 2009 | 10:56 am 9 Responses to “What we can do to stimulate job growth NOW . . .”Leave a Reply |
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February 26th, 2009 at 12:04 pm
Chris,
As usual, a well thought out, logioal and rational plan. Good job! Allow me to present my own thoughts which have as much chance of seeing daylight as do yours.
1. Federalize the Banks.
2. SBA - Direct Lending
3. Automakers - Let them fail and emerge from a prepackaged Bankruptcy free of the UAW; killing Pension and Health plans; obsolete facilities; and with a mandate to build cars people really want or face Chapter 7.
4. Create a new Federal Bureau, the Bureau of Pork. Install a vegetarian as the Secretary.
5. Propose a Constitutional Amendment to reduce the size of Congress by 50% across the board. Approtioned representation will continue; we will save the Billions now being wasted on these slugs; and the only real economic fallout will be the large number of unemployed hookers in the District.
As Al Pacino said in "Scent of a Woman", "I'm just getting started!"
Hope you enjoyed my thoughts. Keep fighting.
Howard
February 26th, 2009 at 5:53 pm
Well thought out and presented.
I believe that our auto maker's engineering staffs developed fuel efficient engines just after the Arab Oil Embargo in the early 70's but the management of the companies decided we really didn't need them at the time and guess where that engineering effort got utilized.
Anyone remember the inventor and original patent holder for the transistor that jump started the electornics industry? Mr. Leer could not find a manufacturer in the U.S. that was interested and sold it to the Japanese.
Is it not time that we learned to let these ideas flourish in our own country through new start up manufacturers?
From the hit I have taken on my investment portfolio, I believe that a start up is no more risky than the big company that can't seem to visualize the future.
Keep telling them, Mr. Hurn. Some positive media is all that we need to get rolling again. Some of the talking heads need to hear a loud sucking sound when they get their heads out of where they have them. People have to work. Goods have to manufactured. Cash has to flow.
February 27th, 2009 at 3:26 pm
Chris,
Your first paragraph sums up part of the problem in that "politicians claim to be for small businesses" but do not show up when they need to. Could part of the problem be that small businesses do not contribute enough to successful political campaigns. Follow the contributions to politicans and then reconcile there efforts based on contributions. There is why they talk well for small business but do not provide help.
Your suggestions on the SBA programs are well stated, but not glossy enough to ever happen. Until people wake up and realize that wealth creation occurs through making it (producing), growing it (producing), or extracting something for use by others then wealth in the United States is not being created and all that is happening is that the wealth that does exist is being reapportioned by government intervention as it deems right. Until politicans understand basic economics the governments will continue to cause crisis rather than solutions. What can be done? Take good ideas as you suggest and champion them in the public sector to try and force change through rather than government being allowed to determine the change.
It is sad that the FDIC is not offering to insure deposits for new institutions such as Mercantiles. Here in South Carolina we have a similiar case of a savings bank being approved by the regulator but not being able to open because of awaiting insurance coverage. The Independent Bankers Association or someone should be making this a pubic issue but the members are scared of retaliation by regulators. Have you considered chartering Mercantile as a Credit Union now that they have commercial lending authority.
Keep up the voice as I will support you. (Also, keep hitting them straight as you did in Vegas where we played)
February 28th, 2009 at 11:06 am
Question: Won't a 100% guarantee have an unintended effect of artificially inflating commercial property values?
The idea of making the 504 loan the only source for commercial real estate financing within SBA programs is stunningly visionary, and I totally agree that 7a would then have its proper focus for start-ups and working capital.
Plus, the 504 would soar in awareness and popularity among the banking community that still looks at it as the ditching ground for marginal credit deals.
Really, the idea is too smart and too practical to ever see implemented.
Lastly, I so totally agree with raising the cap on goodwill financing, one of the most important ways to stimulate business sales and economic activity.
Great post sir.
March 7th, 2009 at 7:16 am
I enjoyed this article so much I am placing the post on my own blog site, as I am certain it will be of interest to anyone involved in the business of blogging.
March 12th, 2009 at 1:00 pm
I like your comment about how we are spending so much money to prop up these failing companies and nothing to stimulate growth for newer smaller companies.
March 12th, 2009 at 9:42 pm
Chris, your comments, suggestion and Ideas are on target. The Small Business Growth Act of 2009" reminds me of a concept paper perpared for SBA over 20 years ago on the concept of a Small Business Stock Market. I think we should come up with a strategic to selling the Small Business Growth Act concept to those that can make it happen. I think there is a direct relationship between some of your ideas for the Small Business Growth act and the mandates given to community banks in their charter. If we add to that some CDFI reaources for the US department of The Treasury, this would be a real win-win for small business and our country.
March 24th, 2009 at 8:39 pm
I don't usually comment on blog posts… but this was a good post.. keep up the good work
April 15th, 2009 at 6:39 am
Hey, nice tips. I'll buy a glass of beer to that man from that forum who told me to go to your blog