During
World War II, American government spending as a percentage of GDP was
about 45%. It is over 20% now, with the administration's spending
habits. We can, in fact, become another Greece-like world
mendicant.
What
does this mean for small and large businesses? Especially those who
cannot compete with big government competition, in
politically-favored industries?
Government spending
displaces funds available for the private sector, particularly as
interest rates rise. When that occurs, firms seeking funds are less
likely to get them. Yet, they are the entities which mainly create
worthwhile jobs.(See the Earl J Weinreb NewsHole® comments.)
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