The dust has finally settled on the invective-laden midterm elections (I sure won't miss those automated phone messages), and the Republicans (and the Tea Party) are claiming a major victory on Capitol Hill. (Although AA&B readers taking a website poll are skeptical that Congressional changes will improve the economy -- 42 percent of them didn't think things would change for the better.)
Say what you will, one good outcome is the fresh new influx in Congress of small businessmen -- 20 of them. Consider Robert Dold, newly elected representative for the 10th Illinois district. His family business is Rose Pest Solutions, a well-recognized name in the Chicago area. Or new Florida Rep. Steve Southerland, who owns a funeral home.
Although none of the new crop of legislators seems to be an independent insurance agent, as small businessmen they all feel the same pain that everyone who has to meet a payroll has been struggling with over the past two or more years. And although all are Republicans, the political idealogy of most seems to be more centrist than extreme.
With the megabusiness bailouts and the Fed's focus on Wall Street, small business has gotten the short end of the stick throughout the recession. Ironically, it's these businesses that over the years have proven to be the real engines of the economy. According to SCORE, the estimated 29.6 million small businesses in the U.S. account for more than half of the private sector workforce, represent 97.3 percent of all goods exporters, and generate most of the innovations that come from U.S. companies. Yet banks are still hoarding profits instead of loosening the purse strings for small business.
According to a recent Federal Reserve report, more than three-quarters of small-business loan applicants in the first half of this year received only "some" or "none" of the credit they required. And since the recession began, small business loans dropped from more than $710 billion in the second quarter of 2008 to less than $670 billion in the first quarter of 2010, according to bank financial reports submitted to the government.
Of course, you can make the argument that the Supreme Court's January ruling eliminating many corporate campaign financing restrictions means that all our elected officials are bought and paid for by Big Business. But the fact that small business will have a significant voice in Congress is a hopeful sign that the little guy might at least stand a fighting chance.
