From the Mail Bag: Getting small business votes


The Economy

By admin, Section Of Public Concern: Open Forum
Posted on Mon Jun 26, 2006 at 06:34:16 AM EST

By championing small business, the Democrats could pull some votes away from the Republican Party. 

My recommendation is the following three, but perhaps some other people could think up some additional ideas.

1. A law which would require that wholesalers give the same price to small businesses and larger corporations, and the same prices regardless of volume of the purchases. At the moment, the playing field is tilted against small business and in favor of large corporations because small businesses pay much higher wholesale prices. That is one of the things which is destroying small business in America, and delivering the nation into the arms of huge corporations. Wal-Mart, for example, is already larger than Poland, or Turkey, or Indonesia, economically.

2. A campaign that points out that a Democratic universal health care plan would provide health care to employees of small businesses which cannot afford to give employees health care now.

3. A small business manufacturing loan program. This program would provide people with loans to start small family sized manufacturing businesses which would manufacture products that could be exported. Then, the government would also establish agencies to help small businesses find export markets for their products. That would also help prevent an economic collapse of the United States. 

A majority of small businesses fail in the first year or two because their sales don't rise fast enough to pay their expenses. For that reason, the loan program would make it easy for new small manufacturing businesses to get through the first few years. The loans would be zero-interest loans, and the repayment rate would be 10% of receipts, whether receipts were large or small. Notice that a number of these new small manufacturing businesses would grow into larger companies, providing many new manufacturing jobs. 

People would be chosen to receive the loans in a fair way that would appeal to many lower and middle class families, so gain some votes there. The loan recipients selected each year would be those who obtained the highest scores on a business test. However, failing would be no problem because people could take the test once a year for as long as they liked. Thus, people who failed could do some additional study. The test would be based on a reading list of a couple of dozen college level textbooks. The testing would select people who were willing to work hard, which is important in someone starting their own business. To get the highest score on a test would require a lot of work studying. 

If the average loan were $500,000, a program which provided 100 billion dollars per year in loans would create 200,000 new small manufacturing exporting businesses per year. That would quickly put a dent in the massive trade deficit which will destroy the American economy in about ten years if nothing is done. That is less than a modest war and occupation would cost, and the collapse of the American economy is a much more serious danger than any group of terrorists.

Jim

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