Trust My Instincts, "Small Business Aid Package" Edition

Yesterday I noted a big push in the press for Republicans to allow a 'help out the small businesses out there' bill to the floor. Today the press has continued. I was sure it must be bad for the country if there was such a press from the Leftist media, but nobody was giving any details. I was right; today Boortz brought the details and my suspicions were confirmed.

The bill is a $30B subsidized/guaranteed loan measure, supposedly to help small businesses. The Republicans are being painted as the bad guys for not letting the bill come to a vote. Missing from the MSM reportage: Democrats have refused to allow Republicans to bring any amendments to the bill. Is that a Republican blockade? Hmm. Fill in the blank: The ____________ Party has a majority in the Senate.

Hold on there.

Small businesses are able to get loans, if they can prove they will probably be able to pay them back. This has always been the case, even through the credit crunch in late 2008/early 2009. If you are a bad credit risk, you can't get a loan because banks are not charity organizations. Putting up taxpayer money for borrowers who that can't qualify for private loans is a good way to lose the taxpayer that $30B.

When a business is struggling to stay open due to an unsustainable business model or undesirable/obsolete product, and they get yet another loan, it is not helpful. The American economy is NOT going to recover and make them viable again in the near term future. All making loans to non credit-worthy businesses will do is deepen their debt, eventually causing greater losses for the lender, and prolonging the companies' and the country's economic pain.

Also not mentioned: 8% of small businesses are about to have a tax hike in January. This is bad for those businesses. The President and his surrogates are trying to say these tax increases affect only a minority of small businesses. Not mentioned is that those 8% generate 75% of all small business income, and pay 80% of the taxes paid by small businesses.

Of course it would just be silly to expect them to mention the Fair Tax proposal, which would immediately bring a huge pile of money into the economy and have the almost-immediate effect of creating huge numbers of jobs.