Hey Ben – Small Business Does Not Need Lending – They Need Customers

6.9.2010

In the captain obvious department, William Dunkelberg, chief economist for the National Federation of Independent Business tells Bloomberg that small business needs customers, not loans:

See video here

Why is this assigned to the captain Obvious department? because chief blind mouse himself Chairman Ben Bernanke and his cohorts feel that interest rates must remain at zero and he must find a way to get businesses to borrow so they can hire more people (see story here for more color on this idea).

Bottom line though is that Mr. Dunkelberg is right – small business owners tend to be people that don’t like debt and likely won’t incur debt to hire people – this should be OBVIOUS – especially to someone as educated as Uncle Ben. So either Bernanke is clueless or perhaps this is just a line to cover for his real goal – allowing the big banks to¬†re capitalize¬†on the backs of bank savers (for those of you making 0.25% on your bank account, Ben is to blame).

One more point – Dunkelberg brought up another good point that was on my mind and follows up an article I wrote recently – government leaders call in Google CEO Eric Schmidt or other large company CEO’s when they hold job summits or such – these guys have no clue what the small pet store owner is dealing with; small business people are NEVER heard. It is really about time that small business people unite and vote as a block on these issues – because the issues facing big companies are just not the same – and besides, big companies are usually looking for ways to lay off people and cut costs.

Something to think about…