May 9, 2011


Small companies are heavily dependent on spending within the U.S. at a time when domestic demand, especially by consumers, is fighting strong headwinds, as households shed debt and rebuild their savings. Since the recession ended nearly two years ago, U.S. domestic demand, which includes imports, has not regained its pre-recession peak. Neither have small business payrolls. Meanwhile, big global companies are taking advantage of strong demand in fast-growing economies outside the U.S.

All this suggests that Washington policies that support small businesses, both directly and indirectly by strengthening overall demand, would pay big dividends for U.S. job markets. Likewise, if the U.S. is going to get its share of global growth and new jobs, policies that enhance the attractiveness of America as a place to invest will be imperative, as the structure of the global economy continues to shift.

In the meantime, expect continued bad economic news.

Unexpectedly, of course.

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