Big Government Overregulation Threatens Small Business Lifeblood of the Economy

Peter Ferrara Dec 08, 2018

Dodd-Frank overregulation caused increased concentration in banking, squeezing out smaller banks in favor of bigger banks that could more easily absorb increasing regulatory costs. That naturally restricted credit to smaller businesses that were more regularly served by smaller, more regional banks, more likely to have developed relations with small local businesses.

But in typical abundance of centralized bureaucrat overcaution, Dodd Frank over regulation also clamped down more harshly on small business lending as inherently more risky. More risky it is. But small business is also the lifeblood of the economy, as small business has long generated most new jobs in the economy.

Small business accounts for 99% of all employers, hiring nearly 60% of all private sector employees, 58.9 million workers as recently as 2015. Small business finance overregulation was one reason why Obama’s recovery from the 2008-09 recession was so weak and slow, with high unemployment persisting for years and years, well behind the pace of recovery of other post war recessions going back to World War II.........To Read More.....