Small Business

Having a robust small business market in the US is vital to the health of our nation. It is what our nation was built on, I continually struggle with the notion that either of our two party system actually helps small businesses. Both have done so much to help drive this important facet of our nation into the ground. Democtrats love to say that thru regulation/taxation of large corporations our small business sector will thrive, when all it does is cause is cause more mergers. If you squeeze these large companies than they feel that they need economies of scale. It is happening right now in healthcare. We are seeing large companies go into massive aquisition stances and they are gobbling up all the small players. Now there is some inherint benefits, but there is also some costs. With less competition, comes more control of costs. If you only have one company to choose from, they own the market and they have complete control of pricing. Versus the customer having that control thru their buying habits.

The right side of the aisle seems to forget that there actions also inhibit small businesses. Thru limited regulation, the small guys now have less worry about ramifications of their actions. A great example is the cable/internet market. Comcast has been able to essentially take control of what we watch, how we watch it, and what we pay for it because of the lack of oversight. There is not motivation to offer better internet speeds at a competitive price. We are very far behind on internet speeds as a nation. Another more extreme case is the housing market, lenders were not regulated to offer sound loans to people who could afford them. So what you have is a market preying on people to take out massive loans they cannot afford to take. Essentially crushing the market and causing a recession. We have to have some sort of regulation to protect the population.

So what is the answer? Not really sure, maybe a hybrid of the two? How do you tell which tactic is going to to work? Is deregulation going to help strengthen the economy or hurt it? Is it really that bad that we have the ultra rich as long as we have a strong middle class? These are all the questions that we need to answer as a nation. A friend of mine owns a small fabrication business (www.flatlinefabrication.com/laser-cutting/)  where i had some parts made for a car I am restoring, and he had a pretty good idea of what would help him at least. He mentioned that he does not really see too much of an issue of having to pay taxes, granted less is always best, but reducing the barriers to entry would be huge. The regulations and complexity of the tax system is what would help. He has to spend a lot of money to make sure that 1. He is paying enough, and 2. He is getting the breaks he needs. He would rather just pay a flat tax rate every year based off his revenue and call it day. No more saving every receipt for every expense, or having to worry about how many employees he has for tax purposes. Just pay to play. Its a novel thought for sure, just not sure our government can make it that simple. 

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