Political Uncertainty Puts Freeze on Small Businesses
Now 22 months after the recession started, small-business owners are still dealing with banks not lending and consumers not spending. But another major reason that these owners are not hiring, expanding or maintaining benefits is government uncertainty. They do not know the future of health care cost and tax increases or of the transportation-appropriations bill, preventing them from making decisions for growth. Additionally, banks may further restrict lending due to government uncertainty on regulatory reform. Considering that small businesses produce 60 percent of jobs, according to the Small Business Administration, all of this uncertainty could seriously hinder economical recovery.
Source: WSJ.com | October 28, 2009