By Sally Mulder
“Underemployment” is directly related to the Obama administration’s bankrupting of small businesses.
Small businesses, half of the private sector (and the most important part as far as jobs are concerned), have been heavily impacted by this credit crisis. Small businesses created 64% of new jobs over the last 15 years, but they have cut five million jobs since the onset of this credit crisis.
Small businesses continue to struggle to gain access to credit and cannot hire in this environment. Thus, the full weight of job creation falls upon large businesses.
Unless Obama expects the government to create jobs! Ms Whitney explains earlier in her article why government will not be able to hire the unemployed. In a nutshell, nationwide, hugh state budget shortfalls that states find impossible to balance, even with sky high tax increases, will lead to lay offs, not new hires.
Unless real focus is afforded to reengaging small businesses in this country, we will have a tragic and dangerous unemployment level for an extended period of time.
If banks are not allowed to effectively price for risk, they will not take the risk.
Small businesses are funded, basically, with credit cards and home equity loans. As small business owners, we see the ripple effect caused by banks slashing small businesses’ credit. Ordering basic supplies has become ludicrous. Dried up credit results in our suppliers being unable to order products from their suppliers because those suppliers are unable to order the supplies they need and on and on and on.
If the regulatory reform passes with rate-cap and interchange regulation amendments incorporated, small businesses will be hurt rather than helped.
Business vilification is a favorite “shift the blame” technique employed by Obama and the Democrats. Democrat policies – health care “reform”, financial regulation, crushing business regulation – have real consequences for all Americans. While these policies solidify Democrat’s power, they also impoverish Americans resulting in ever increasing government dependence. Democrats are eager to destroy America, as we know it, to achieve Democrat elites’ empowerment at the expense of their fellow Americans. Elections DO have consequences. (Read the rest: The Small Business Credit Crunch)
The improvement in underemployment, as measured by Gallup, seems to have come to a stop,at least temporarily, in mid-May. Gallup’s underemployment rate is 19.1% for the week ending May 16 — showing little change since it was 19.2% during the week ending April 18.
Gallup’s underemployment measure includes both the unemployed and those working part-time but wanting full-time work.