Why Small Business is Key to Recovery

Scarcely a day goes by without more ranting from each side of the spectrum about more either bestowing union friendly policies on the country or instead supporting the massive corporations  on Wall Street with tax breaks and government subsidies. While occasionally these tactics may work, the poltiicians are missing a decisive cure to this economic crisis: small business.

When our nation came together more than 200 years ago it was built largely on the hard work of farmers, entrepreneurs, and plantation owners. Because of the contributions which all these hardworking immigrants to the United States gave, our nation built from only a humble agrarian society to the powerful industry that provides milions of jobs to college graduates and middle class Americans to this day.

Unfortunately, in the last  20 years the government has become so close to the extremes of organized labor and corporations that they no longer understand the power of the resurgent entrepreneurs and their courageous bouts with the markets. Democrats largely seek to give concessions to union members, as well as some large business interests, and Republicans follow a policy of just giving beneficial breaks to the major financial and energy firms in our country.

But the question is, where are the long term jobs? Truthfully, corporations provide jobs for a long time, but at a certain point, they lose their expansionist mindset. Caught in a monopolistic competition environment, major firms vie to become a monopoly, and yet are kept at bay by the dangers of such a move if their plan backfires. And while they are not even in oligopolistic status, they still have enough market influence that a brash move can sink them horrifically. So their innovation ceases, and they remain fixed in place on their market share, afraid of adding more opportunity to the economy. 

For this reason we need the small business owners, all who bravely venture out into sole proprietorships with the hopes of success both for themselves and their family, and this country. It's not enough that the government simply provides loans through the Small Business Administration; it must also instead actively pursue applicants and bring in private sector sector experience to grow opportunity and help business people succeed.

This course of action will have multiple repercussions on the market, and all of them positive. Primarily, it will provide new firms which can purchase inventory from larger companies, thus increasing profits for major companies. Such a policy keeps the businesses expanding, which helps create more jobs for the next  generation, and gives further employment options to the nation's new graduates. Due to the innovation of new competing firms, life saving technologies will be developed, helping world health, and the existing large companies will be forced to stay in pace with the better employee treatment of newer firms, benefiting labor.

Only a drastic change in policy will help our country economy into the state of surging prosperity once more, and small business is that market shifting option. As a nation, we will benefit, and it will also help the world, as more growth means more commerce and less unemployment. For all these reasons, the National Alliance firmly endorses small business as our path to worldwide economic recovery.