This is important! You can in fact create some business with low to zero investment. But how can they grow? The answer is reinvested profit. Internal or external investment are the same principle. If you want to slow the economy, take that profit away from them or take away external investment dollars. Either one has similar effect.
Anyway, if that changes your opinion about the importance of small business as an employer, then great. I think a telling statistic is that so many of them are considered small.
Lack of small business importance wasn't part of my argument in the least. This is getting to be a long thread but my statements haven't strayed from:
The rich invest much of their excess, often in business. Business uses investment for expansion. That's where jobs come from. Hurting the rich results in hurting the poor.
All of this in response to several statements that condemn the rich and want to punish them.
I can agree with that, then. For some reason I took your comments to mean that we were dependent on banks and limited liability investors were the lone source for venture capital, as if the rich were somehow merely allowing the poor to start businesses as an act of charity. But that isn't true, and not what you meant. So hopefully we at least cleared up that issue.
no worries mate!
Well Capitalism is working and cleaning house. WaMu collapsed today but was acquired by Jp Morgan Chase. This entire crisis is changing the face of the banking industry. What seems very different in this crisis is that some banks are actually in very good positions since they do not have a large share of toxic assets. Only those who dabbled a lot in the now toxic assets seems to be hurting for cash. But Capitalism means that there is another bank to step up and will be in a better position to shoulder the debt and that is exactly what is happening. Bank of America and JP Morgan Chase are becoming very very big banks almost overnight.
I will get fearful when we see banks that do not have toxic assets begin to crumble under the weight of those who do. So far that does not seem to be happening.
It is unfortunate that so many have to lose their jobs because of the actions of a select few. I'm not sure we have hit rock bottom yet in this crisis but after it has passed we should see a very different job and credit climate.