Happy Anniversary for Finance, Not Small Business - Up and Down Wall Street Daily - R. Forsyth - Barrons.com
If one just thinks of GDP as a pie and realizes that the government had decided to "up" its share of the pie (be that pie taken in taxes or borrowed out of the economy), then the increase in government's share has to come from somewhere.
An example is what is going on now in California with respect to education and tuition in State colleges (as reported in the Wall Street Journal in the last few days).
The State put through extremely generous pension plans for state employees. The cost of these plans has grown so much, that the State had to transfer $3 billion dollars more than planned from the State's funds this year to pay these pensions (as said, 15,000 California pensioners receive over $100,000 per year and can retire at 50). So the State took $800 million from the universities and they are hiking tuition by roughly 30% to make up the shortfall. (A shortfall brought about by paying excess pensions under union contracts.)
As Obama and Pelosi are taking more money to pay entitlements and trying to unionize the world, this distortion is rippling through the economy.
If small business is the most vulnerable sector, is it a surprise they are feeling the most pain? (Somewhat like young people/college students!)
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