President Barack Obama signed a $42 billion bill on Monday that would provide aid to small businesses by granting tax credits and helping community banks increase loans to local companies. The bill is the latest in a series of pieces of legislation that Obama hopes will reduce unemployment in the struggling economy.
The passage of the bill can be counted as a victory for Obama and the Democrats, who desperately needed some success in passing legislation in the lead-up to the critical midterm elections this November, especially considering their recent failures to pass the "don't ask don't tell" repeal and the DREAM Act due to a Republican filibuster. The passage of the bill gives the impression that Democrats are getting things done in a time when voters want to see progress.
The bill had previously been delayed for months due to blocks from Republican senators, many of which objected to the bill on the basis that it was reminiscent of the 2008 bailout of the bank industry. This comparison fails to hold water because of the differences between small businesses and the banking industry as a whole, an industry that had acted very irresponsibly in its lending policies. Businesses have learned their lessons since then, and although it is still important to be conscious of how much money banks are lending, we can't let past problems prevent us from responsibly helping businesses in the future.
The amount of money included in the bill is chump change when compared to the $787 billion stimulus package passed in early 2009. It is not going to make a huge difference in the federal budget or drastically affect the deficit. It does, however, have the potential to truly help out small business owners who have struggled throughout the recession.
One of the most pressing problems facing the American economy today is undoubtedly unemployment. If the passage of the bill provides small business owners with the capital needed to hire more workers and combat this problem, then it will have been a success.
In a troubling economic time, anything that the government can do to help struggling small businesses keep from floundering is a good thing. It is one thing to assist large corporations that got themselves into financial messes through the greed of wealthy executives. It is quite another to aid individuals who are doing everything they can to keep their business on its feet.
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