Almost immediately after taking office President Obama launched an initiative to help jump-start our economy by making it easier for small businesses to gain access to the capital they need in order to start up or expand their businesses and add jobs.
“Small businesses are the heart of the American economy,” said in announcing the measures. “They’re responsible for half of all private-sector jobs, and they created roughly 70 percent of all new jobs in the past decade. . . . But today, too many entrepreneurs can’t access the capital to start, operate or grow their business. Too many dreams are being deferred or denied by a form letter canceling a line of credit.”
The simple, but ugly truth is that the big banks are not lending small businesses the money they need. This is in spite of sitting on trillions of dollars, some of which was the result of the massive Government funded bailout, or ‘transfer of wealth’ from the average American taxpayer to Wall Street banks, compliments of former President George W. Bush.
As pointed out by staff writers from the Washington Post, Treasury Secretary Timothy Gitner, “admonished the nation’s largest banks for withholding loans to many small businesses, telling the banks that they helped create the current mess and “bear a special responsibility for helping America get out of it” by increasing the flow of credit, especially since they have benefited from massive federal bailouts.
As a result of the big banks failure to help small businesses get access to the capital they need, President Obama stepped in and attempted to jump-start small businesses in this country by providing financial stimulus to the tune of $15 billion dollars in order to encourage the big banks to lend us our own money back! (with interest)
What this means is that the Government must intervene in order to coddle the big banks into lending small business owners money in this country.
This is truly unbelievable!!!
So, what are the Conservatives saying about all this?
Well, naturally, they are using “frames” to argue their point. Conservative politicians also point out that small businesses are being denied access to the capital they need. However, they must misinform the public by claiming that Government regulations, red tape and bureaucracy are to blame instead of the real culprit, which is the ‘Big Banks on Wall Street’.
Here are just a couple of illustrations of the “frames” being used by Conservative politicians in relation to the repackaged House bills that form the basis of the Republican Jobs Act.
This is just a snap shot of what it looks like when Republican politicians literally “frame” ‘Big Government’ for the actions being committed by the ‘Big Banks.’
As pointed out in the Washington Post article, “some critics said the government is relying on a broken program that may end up benefiting big banks and lenders more than small businesses. Through the SBA, lenders would see larger profits and take fewer risks than they would through ordinary loan programs. As a result, lenders could steer borrowers into the SBA program even when they qualify for ordinary loans, said Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University. “This is a system that rewards banks,” she said.”
In the end, should we be more upset with the fact that we are all being “framed” to believe that ‘Big Government’ is to blame instead of ‘Big Banks’ for restricting access to capital for small business owners, or the fact that Conservative politicians in Washington are abusing their power by allowing ‘Big Banks’ to take advantage of Government programs such as the SBA to enrich members of the “privileged sector” at the expense of ordinary taxpayers.