Meadow CreekNews

Too Small to Survive

Filed under Economy, Small Business, Venture Capital and Start Ups on June 26, 2010

What has The Man done for you lately? If you’re Too Big to Fail, you picked up some TARP money and paid yourself a big fat bonus. Pretty much hush money for not telling the world whose idea it was to have Fannie and Freddie go into the sub-prime loan business. If you’re out of work, you’re getting an endless series of unemployment benefit extensions. Not particularly good for you or the country, but sure to get your vote. If you’re an entrepreneur trying to ride out hard times by dipping into savings, the only thing you got was a 10% penalty from the IRS on an early withdrawal.

There are a lot of people and businesses out there that fit into the Too Small to Survive category. Middle class and upper middle class displaced workers that previously enjoyed comfortable life styles. They soon find that unemployment benefits cover utilities and groceries, but not mortgages, health insurance, car payments and college tuition. Entrepreneurs and small business owners hoping to ride out a six-month recession are now into it for a year and a half or more depending upon when bad times hit their business. If you didn’t have deep pockets, you’re toast by now.

It’s time for the government to start thinking about those caught in the middle. The Too Big to Fails have been taken care of. The long-term unemployed are in danger of becoming unemployable and permanent wards of the state. In the end, suffering some pain and being induced to accept a position that may seem unattractive is a better alternative. The Too Small to Survive are in need of relief, but they are the ones that will suffer the most when the Bush tax cuts expire at year-end. This is on top of being the most at risk victims of the piling on of new regulations.

Richard Gabel

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