One of the reasons the right wing despises Obama so much is his focus on small business. Which is the same reason they despised Bill Clinton. Follow my logic here –
After the Civil War, the majority of skilled artisans in the South were black. The people who built wagons, coopers, dressmakers, furniture makers – and many of the skilled labor jobs prior to the industrial revolution were done by either slave, or free black labor. By 1860, there were more free blacks in Virginia than black folks slave or free in most of the northern states.
What Jim Crow really was about was stopping these people’s economic progress, such as to preserve white supremacy. Ergo though the destruction of the black artisan class businesses, Southern whites prevented the emergence of a new, black merchant class – who by nature of existing skills was in position to dominate certain industries when freed from the “Black Codes”. A merchant class, who would have followed the logical progression of gaining a piece of political power through wealth.
In America today, according to Forbes Magazine and numerous other sources, black folks a 3 times more likely to start a business than their white counterparts. And despite receiving only .3% of the Venture Investment in this country, are – according to the same studies 8 times more likely to succeed when they do get Venture financing. Only in America does that not translate into quickly shifting 30% of the investment money into more successful enterprise.
Indeed, the Bushit Administration was quite possibly the most hostile administration in history to small business, and was especially toxic to Minority owned business, as I have documented in previous articles, in reducing the quantity of SBA Loan Grantees to black owned business by 60% over 8 years, while holding it the same or increasing it to non-Minorities. The Bushit administration was also adamantly pro BIG business. So much so as to flat-line R&D and emerging technologies in a number of previously competitive industries like Telecom and Energy.
So why don’t Republicans want small business to succeed? Because the wrong color folks just might make a success at it, and in doing so threaten the old-boy power structure.
The New Jim Crow… Not much different from the old.
President Barack Obama turned the spotlight to his small business agenda Friday, urging congressional passage of legislation meant to boost federal assistance to a key segment of the economy.
Among the proposals highlighted by the administration is a $30 billion government lending program offering capital to community banks that boost their small-business lending. Banks with assets worth less than $10 billion would be able to borrow money from the Treasury at a dividend rate as low as 1 percent provided they use the cash to make more small-business loans this year than they did in 2009.
Other proposals being pushed by the president include an elimination of capital gains taxes on certain small business investments.
“Ensuring that small businesses can thrive is about more than our economic success,” Obama said at the White House after a meeting with small business leaders. “It’s about who we are as a people. It’s about a nation where anybody with a good idea and a willingness to work can succeed. That’s the promise of America.”
Legislation enacted in March included new business tax credits for hiring additional workers, as well as a measure allowing companies to write off, instead of depreciate, new equipment.
Many small businesses, however, are still struggling to regain their footing in the wake of the recent recession. The Commerce Department reported Friday that retail sales fell for the first time in eight months in May, widely missing analyst expectations.
Total retail sales fell 1.2 percent to $362.5 billion last month, compared with April’s upwardly revised 0.6 percent increase. It was first decline since last September, when retail sales fell 2.3 percent.
Data from the Small Business Administration (SBA) show that small companies have generated 64 percent of the net new jobs every year over the past 15 years. Those businesses, however, were particularly hard hit by the economic downturn. A Senate report last year found that American businesses with fewer than 20 employees have suffered steeper job losses than larger companies.