Awakened Interest

There's a not-so-subtle difference between Republican and Democratic economic policies which can be illustrated via architecture:

The Democratic economic model is to build from the basement up.

The Republican economic model is to build from the penthouse down.

It sounds stupid but that's what "trickle-down" economics is all about, and it's what's led to the current worldwide slide in the economy.

Remember the Go-Go 90s, that eight-year period that featured the fastest economic expansion in U.S. history? That was fueled in no small part by President Clinton allocating tons of cash to the Small Business Administration in the form of loans. In fact, over the eight years he was in office the SBA loaned over $77 billion to small businesses, more than the previous 25 years combined. Cutting taxes for small business also didn't hurt.

That policy ended when George Bush hit town. You can't man the check-out counter at Wal-Mart if everyone is out running their own business. Now can you?

So what did we find in Mr. Obama's love-note of a Credit Card Bill? A big, fat valentines to small business in the form of interest-free relief for overburdened credit cards. Small Businesses can, beginning in June, borrow up to $35,000 to pay off credit cards at zero interest, and take up to six years to pay it back.

I have two friends who run small businesses. One, with relatively minor debt who said, upon hearing of the bill, "I wanna go BUY stuff!". Buying stuff is good for the economy.

My other friend runs a successful textile business that's been around for years, but it was hit hard by this recession/depression and she was stuck with so much debt that she had no option but to prepare for bankruptcy. This bill may save her company, but it's too early to tell.

But it's a start. So thank you, Mr. President.

=mike=