When You Find Yourself in a Hole—Stop Digging

Over this past weekend, the Obama administration rolled out their small business stimulus plan, or whatever they are calling it. All it looks like is a reduction in costs to borrow. Bad idea. Has anyone in the White House ever had to make a payroll? I doubt it.

There are two major problems with this plan. Access to money is not a problem for many small businesses. Community banks and credit unions are willing partners. Citibank and Bank of America are not lending money, but they won’t deal with small business during good times—forget it now. The problem is sales and profits. Our sales are way down and therefore our profits are too.

The other problem with this plan is debt itself. Our country got into this mess because of too much debt. So, now the suggestion is more debt? Really. Mr. Geithner, when you find yourself in a hole, the first thing to do is stop digging. Don’t make things worse than they are.

How about my plan? Cut government spending, cut personal AND business tax rates, and cut regulation. Make it easier to a little guy to make a buck. This social engineering program makes us nervous. Raise tax rates on one hand and make it easier to get deeper in debt with the other. Small business is not buying. The financial big shots got us into this mess, Now Washington, get out of the way of the little guys to clean it up.