So this is off topic from what I usually like to write about. But it's my blog so tough luck.
With the current economic crisis caused in large part by banks making loans to people who really couldn't afford them - and because of people being overly optimistic about the value of their property increasing YoY - a lot of people are quickly finding themselves in a personal financial crisis. Large companies in turn have been shedding jobs which puts even more pressure on the economy. As a business owner I see this first hand in trickle-down results as buyers delay purchasing, customer stretch payment terms out further, etc.
What worries me the most is that the bottom is still a long ways down. Why? Because as people start getting cash strapped they start floating more debt on credit cards. Eventually those short-term loans will get defaulted on and either written down by the credit card companies or force pennies-on-the-dollar payments for the debt. This in turn causes even more problems.
In my opinion one way to address this would be to ensure the government is doing everything possible to incentivize the creation of more jobs so people have the means to cover the debt they've created. With slowdowns in hiring and layoffs we will only exacerbate the current problems as more debt will get written down.
So who is best equipped to fix this? McCain or Obama? My political views are fairly independent, but frankly I don't like a lot about either candidate.
What I've looked for, but have yet find, is a clearly articulated strategy for how both these candidates intend to fulfill the promise of 'creating more jobs' which they so readily promise. Responsible and accessible credit availability for small businesses, tax relief for the entrepreneurs willing to take the risk, making the R&D tax credit permanent, etc. would all be good starts - but what I see instead is defensive posturing related to off-shoring and union support. Not to mention the onerous plans to have employers pay for healthcare [1]. Frankly I think these types of defensive plans make America less competitive and not more competitive in the global market. More importantly they make it much harder to do business.
Our economy in America is driven in large part by small businesses. Government, in my opinion, should keep their hands out of small businesses and not dictate expenses and instead do everything possible to enable those small businesses to hire people and grow. Neither candidate seems to appreciate this point of view though.
[1] Note, Telligent pays 100% of health benefits for employees and families - well over $1m/year. But this is a benefit not a 'right'.
Posted to Personal
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