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The Nation's Pulse
Big Government vs. Small Business
For once, small really is beautiful.
As the owner of a small restaurant, it felt good the other morning to open the newspaper and read this sentence: “Be proud, small-business owners! You’re now the most trusted group in America. Listen up, federal government! You’re neglecting small business — and most people think so.”
That was how Rhonda Abrams summarized the findings of a recent study by the Pew Research Center in USA Today.
“Small business is the most trusted institution in America,” explained Abrams. “More than churches. More than colleges. More than technology companies. And certainly more than labor unions or large corporations.”
Maybe that’s because we operate in a competitive environment and can’t force people to deal with us. The interchanges with our customers are basically voluntary and mutually beneficial, unlike what happens to people when they’re dealing with monopolistic agencies in the public sector and the less competitive sections of the private sector.
We’re also not too big to fail so we aren’t draining billions out of taxpayers’ wallets for any bailouts. And unlike the cushy retirement deals for “public servants” that are bankrupting America’s cities and states, we don’t have cooks and servers who expect to retire at 50 and live off the taxpayers for 35 years.
Small business was at the top of two lists — the most highly regarded institution by the public and, in contrast, the most disregarded and neglected by the politicians.
“When asked about which groups were getting too much or too little attention from the government, Americans felt small business was getting dealt the worst hand,” reported Abrams. “Small business is one of the few groups that Americans want to get more government attention.”
The survey’s respondents might be wrong about that. Being overlooked by the politicians and bureaucrats might well be the best hand to be dealt. As Reagan said, “The nine most terrifying words in the English language — ‘I’m from the government and I’m here to help.’”
In any case, during this era of growing polarization and harsh partisanship, the favorable ratings for small business cuts across party lines, with 72 percent, 70 percent and 73 percent of Republicans, Democrats and Independents, respectively, saying that the small business sector plays a key and positive role in how things are going in the United States.
“What’s really interesting is that large corporations are viewed almost as negatively as Wall Street,” explained Carroll Dougherty, Pew’s Associate Director. “The contrast between large corporations and small business is enormous.”
Banks, the federal government and large corporations ranked at the bottom of the pile in public approval, receiving favorable ratings, respectively, from only 22 percent, 25 percent, and 25 percent of respondents.
Also ranking poorly in public approval were federal agencies and the national news media, each receiving positive ratings by only 31 percent of respondents. Also at the bottom in approval, labor unions and the entertainment industry received positive ratings, respectively, by only 32 percent and 33 percent of the public.
Nancy Pelosi, ranked in the cellar of the bottom-ranked Congress, attempted to tie her faltering wagon to the top-ranked small business community by going to the podium in the House chamber shortly after the health reform bill was rammed through and declaring that the unpopular legislation would “unleash tremendous entrepreneurial power” and create millions of new jobs.
I’ve never met an entrepreneur, current or potential, who was keeping his entrepreneurial power on a leash because Congress hadn’t passed a bill.
More specifically, Speaker Pelosi, with no expertise or experience in small business or economic forecasting, proclaimed that the health reform legislation would be a government-granted stimulant to entrepreneurial growth, a special Congressional gift to America’s mom-and-pop enterprises, creating “4 million jobs in the life of the bill,” i.e., 400,000 new jobs per year for a decade.
About the Author
Ralph R. Reiland is the B. Kenneth Simon professor of free enterprise and an associate professor of economics at Robert Morris University in Pittsburgh.
Letter to the Editor View all comments (26) | Leave a comment
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Pingback| 5.4.10 @ 6:25AM
Twitter Trackbacks for The American Spectator : Big Government vs. Small Business [s links to this page. Here’s an excerpt:
Deborah D | 5.4.10 @ 7:04AM
A general rule of thumb -- if a Democrat says something, the opposite is most likely true. Especially when it comes to Pelosi, Obama and Reid -- the triumvirate of liars (oh, and Obama's spokesweasel too -- so a square full of crap.)
MishaMI| 5.4.10 @ 5:22PM
You are so right, Deborah. I continually say to my husband that "No matter what Obama is saying...he really MEANS the opposite". And his actions bear this out. Total Liar. I think he believes that the people are way to stupid to look at his actions (and those of his advisers, policy makers) . He may just believe he is untouchable because the MSM also reports his propoganda. Hopefully, he will slip up soon, and the media will eventually stop being his lap dog. Maybe not though, because the MSM really does believe the U.S. should look like a European country.
Purpleguy| 5.4.10 @ 8:25PM
The Republican party is great and has all the answers. They are God's gift to the world and they can do no wrong... You are a brilliant theoretician and your pearls of wisdom radiate throughout the ages.
Bazza McKenzie| 5.4.10 @ 9:09PM
Purpleguy, I admire your support for the Republican party, but I think you take it a bit far. Bush certainly made errors in his adoption of Democrat policies on illegal immigration, and his general tendency to support big government at the expense of the community, including allowing Paulson to push TARP through, which Obama and his minions have expanded and used corruptly.
But your general position that Republicans (esp non RINOs) are far better for the country than the crony socialist Democrats is to be commended.
JohnD| 5.4.10 @ 8:41AM
The current administration is partnering government and big business to wage war on small business and the consumer. As the bailouts of banks, Wall Street giants, and car manufacturers destroy the dollar, consumer purchasing power declines, small business revenues drop while expenses soar, and government mandates raise costs further while providing rents for big insurance companies, GE, and large agribusinesses.
Purpleguy| 5.6.10 @ 4:09AM
GE? Don't you mean GM, Einstein?
Nick| 5.7.10 @ 6:36PM
Can't you be original, PurpleJackass?
Scott| 5.4.10 @ 10:54AM
Ever heard of the term "job-lock"?? Go look it up.
Ken (Old Texican)| 5.4.10 @ 12:25PM
Scott,
heh, you certainly will never suffer from "job-lock.
...except perhaps job-lock-out except for perhaps a gubmint job.
Folks,
We all know the answers. Wrapped up, a commenter here used the best term I've read anywhere...heh...and I forgot it.
SO, I shall use "business growth climate" with solid predictability.
Our manufacturing base would move back home, our domestic energy industry would hire millions, and working capital would flow.
Mary Eddy| 5.4.10 @ 5:05PM
Big Government obamas not good, why:
1. Under bill clinton 911 hijackers able to train for 4 years at american pilot schools in florida.
2. the recent nyc time square would be bomber able to assemble and pack and suv with explosives...obamas government didn't stop it.
3. recent detroit airline bomber tackled by copenhagen gentlemen...goverment didn't stop it.
4. ft hood moslem terrorist promoted to sargeant by obamas appointment then able to kill americans at hospital.
5. fannie and freedie and maxine walters complaining about red lining her welfare voters. see what happened there...old retires and futures retires lost 40% of their 401K retirement funds.
6. gulf oil derrick sabotage by environmental group supported indirectly with government money from obama. try to win votes by blaming big business for oil on the sandy shores of florida.
in conclusions, the democrats willing to destroy your retirement as the october 2008 suprise, blow up oil derricks, and let terrorist operate freely within the USA. Even giving them US Constritutional rights in American Courts. If democrats are willing to sacrafice american treasure like this...it has worn out the blame on republican and independent games and the american people see thru it clearly.
Purpleguy| 5.4.10 @ 8:27PM
Not worth refutation... you have been measured and found lacking - you can't even repeat your own talking points properly. Yep, a tea bagger is spotted. Feel good? Have a nice day!
Gr0w1er| 5.5.10 @ 12:53AM
Spoken like the true, open-minded free thinker you are. Don't go away mad- just go away.
pjthornton| 5.5.10 @ 3:12AM
Not one intelligent comment here from either side. It didn't used to be this way. Pretty pathetic.
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