Even More Large Corporate Dominance
A largely unnoticed consequence of the current economy will be large corporations dominating an even larger share of America.
Large corporations are sitting on mountains of cash. Due to low interest rates, some are borrowing large amounts and sitting on those reserves waiting for opportunity. Their managements are cautious about making new investments with such a hostile anti-business administration. I don't blame them, for there's no telling what industry the administration will attack next week. Just to name a targeted few: automobiles, oil, insurance, investments, fast food restaurants, internet (sales taxes), tanning salons and drug companies.
So the wise corporate CEO waits for a real bargain or a change in administration. In the meantime, small businesses are struggling, many closing. The little guy who prospered when the economy was strong cannot compete with the large companies' advertising budgets and economies of scale. The large corporations have the ability to absorb regulatory cost, and have the advantage of well-known brand names and dominance in their fields. There is just not enough to go around anymore for the little guy to survive.
Now, the crux of the matter: when the time is right, the big corporations will be able to buy up the inevitable great deals coming as things grow worse, thereby significantly increasing the large corporate share of the GDP within the next five years.
What is to be done? The answer is to not increase the Small Business Administration and other "government is your partner" programs. The problem started with government meddling in the economy, and the answer is political leadership that is willing to reduce regulations and bureaucratic red tape. Only big business can afford to deal with big government. Other solutions could include tort reform which also helps small businesses. Furthermore, ending corporate subsidies also helps to level the playing field.
I think most Tea Partiers have a sense of this in their hearts. I believe this is part of the frustration that many feel. We need to remember the American Dream and that the small business person embodies that dream. We need to fight to keep that dream alive by doing everything we can to eliminate government regulations.
The way to win that fight is at the ballot box. I look forward to the day when government is irrelevant to quality of life and business decisions. That's hope and change I would believe in.
John Tsarpalas is the former Executive Director of the Illinois Republican Party and President of the Sam Adams Alliance. He currently serves as the principal of Tsarpolitics, a candidate and campaign coaching organization. Learn more at www.tsarpolitics.com