Fear Itself Is the Problem Holding Back Job Creation - Bank Think Article - American Banker

Fear Itself Is the Problem Holding Back Job Creation - Bank Think Article - American Banker

This the big issue in job growth, fear, does the Government know that a small business can not even develop a budget in many cases because no one fully understands the cost of new regulations. It is fairly apparent that even the Government does not under stand the costs involved. Not just health care but lots of regulations, that are mandated, yet no one knows who all they will effect. It used to be that a business could develop a business plan up to 50 employees with out having to worry about crushing regulations that the big boys have to face, then it went down to 20 employees, sometimes 12 employees, so it you have 5 folks working hard, and you are growing, you want to limit growth to 12, or 20 so that your budget is on target.

The the crux of this article is on the banks, I golf with bankers all the time, they laugh at the Governments moving more money to Small banks to lend out. They have lots of money, they just can not find businesses that can meet what looks like crushing regulations. Even the Banks have not fully been told what regulations are in effect, and what they can lend to who.

Lastly, many businesses started their companies with funding from credit cards, personal credit cards, since they did not have a track record for a starting business to get a company credit card. The new credit card rule that have been made to protect us, now make it so limits on cards are so low you can not fund enough to get a small business started. Unintended consequences, all these rules to help protect us small business, has and is killed small business growth, in may cases small business altogether.

Stop protecting us so much, and we will take the risks needed to grow. The whole issue of corporations that make to much money is that we take risks, sometimes they make a lot of money, sometimes they fail, so when they do make it, they deserve what they can make, to payback all the times they failed. But if you do not let the small business take a risk, then it will never grow fast enough to get the US out of this problem we are in.

Risk has a bit of fear in it, but the real fear is that why try and take a risk, when the Government is just going to penalize the small business for making it.

Rich