There are many versions of the old adage, “When the economy catches a cold, the poor have pneumonia.”
A poll on LinkedIn asking about business spending patterns shows a wide range of responses to how much the economic downturn is effecting spending patterns (self-reported) of businesses. At last look, 100% of those in large enterprises reported that the economy had no effect on their spending, while 76% of those in small businesses report that they are scaling back or operating on necessities.
I hate to be grumpy about this, but I have to make these two points:
- An awful lot of money was pumped into the economy – guess where it went. Large enterprise, though it is easy to write just one large check rather than thousands of small ones, do not represent either most of the spending or most of the jobs in the economy.
- The small businesses are the ones that innovate, create substantial new value, and are most at risk of failure.
Healthcare socialism would benefit small business substantially. Bail-out socialism helps only those at the top.