I read an article in The New York Times Monday titled "Trying to Rein In 'Too Big to Fail' Institutions". This article by Stephen Labaton talks about the options that congress and the Obama administration are exploring to change policies for big business. Barney Frank said that they are working on legislation that would "make it easier for the government to seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution."
Some say that this would make it more costly to run a big business, but it will help to create balance and make them a more stable part of the market. The government fears these huge companies because if they fail they put the whole market at risk. However, voters fear the government expanding its power in this way. Much of this fear is based on distrust of the government. People say that they have not produced many successful programs and this would be to much power for them. Federal Reserve chairman Ben Bernanke has said he would prefer to take a more subtle approach to this situation.
I looked at some small business trends from this last year. One article said that up to 7% if the recently unemployed people could start their own business. Over the years big business and outsourcing has lead to huge changes in costumer service levels and has helped to disconnect business from the community. Some people would like to see a decrease in the amount of big business and a shift to more home town business. In some fields we are seeing this shift take place. For example one of the construction industry has taken a huge hit in the economy. So if you need some work done instead of looking in the phone book you call up a friend that needs work. This saves you money and helps your friend at the some time.
Has the Internet and big business made it impossible to go back to small town living? Do you think that family owned business will increase as a result of these now government previsions?
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I think this would be interesting to see if big business practices result in an emergence of small business owners. Problem is, no one (especially small business) can get start-up loans because of the economy. So unless people start doing it under the radar, they might just have to bite the bullet and stick with big businesses.
ReplyDelete^^^^^ I agree, the current economic environment is tough for small businesses. In my fantasy world, I would love of taxes are eliminated for all small businesses. The Walmarts are taking over everything.....I now get my groceries from Walmart as I feel for small businesses...but as a consumer, I seek out the cheapest gas station/stores and it seems like only big businesses can afford to sell products cheaper.
ReplyDeleteI think it would be interesting to see if established small bussinesses are getting more costomers. I live in Ball Ground and it is a small town, but there have been several new bussinesses start this year. I think some people had planned to open them and when they lost their jobs the thought it now or never.
ReplyDeleteI agree with the other comments in the sense that it is extremely hard, especially now, for small businesses to even get started. As "eazycrat" stated, monopolies such as Wal-Mart are taking over all aspects of consumer spending. Now, Wal-Mart has expanded to include groceries, gas, etc. With big businesses like this one, it makes it near impossible for small businesses to stay afloat for too long, given that they are even able to get started.
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