Ed Driscoll

Small-Business Bankruptcies Rise 81% In California

obamaville_12_12_09

What happens when the Orwellian-named “Stimulus” plan of the Obama administration meets the leviathan government-loving ultimate RINO Governator of California?

Pretty much exactly would you’d expect:

The Obama administration’s new plan to give a boost to small businesses reflects continued trouble in that sector, which is facing new failures even as much of the nation’s economy is stabilizing.

As credit lines have shrunk and consumers have cut back on spending, thousands of small businesses have closed their doors over the last year. The plight of struggling firms has been aggravated by the reluctance of banks to lend money, said Brian Headd, an economist at the Small Business Administration’s office of advocacy.

“While bankruptcies are up, overall, small-business closures are up even more,” Headd said.

California has been particularly hard hit. The latest data show small-business bankruptcies up 81% in the state for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis firm Equifax Inc.

The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.

Or as  J.P. Freire wrote last month in the Washington Examiner, “California is overregulated, overtaxed, and just plain over.” Detroit, here we come!

Victor Davis Hanson writes that the “California model is important because Obama is adopting it as a blueprint on a national scale.” As the Obamaville sign from Colorado’s News Channel 13 highlights above, those blueprints are being implemented most expeditiously:

11-09-unemployment1