How misgovernment discourages economic growth

Small business sidelined in slow recovery from recession reports the L A Times (via Chicago Tribune). The article clearly states some of the reasons that independent businesses are reluctant to expand.  Of course, one is the uncertainty of the economic outlook, which is largely a result of mismanagement of the economy. Another concern is the increasing regulatory thicket, particularly difficult for those too small to make significant lobbying or campaign funding efforts. Impending increases in tax rates are also a problem.

One thing that isn’t a problem is the availability of loans, altho “”In olden days, many of the start-ups got financing by refinancing their homes. That’s gone.”

Beyond that, here’s a classic land speculator as “businessman”

…a small auto dealer in Los Angeles who made most of his money not by selling cars but by frequently refinancing the mortgage on his lot, which until recently kept rising in value.

The article doesn’t say whether this guy’s business was ever viable, or merely helped support the speculation.

Of course, had the land bubble been minimized by public collection of land rent, financing would have had to come from some other source, but less financing would be needed.

None of the businessfolks interviewed in this article are accountants nor attorneys. Probably their revenue is doing pretty well.

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