Up   |  October 07, 2012

Myths in job creation under small business

The Up w/ Chris Hayes panelists discuss the real needs of small business owners, the difficulties they face in a tough economy, and the truth about whether these startups spur job creation.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> your plan is to take the tax rate on successful small businesses from 35% to 40%. the national federation of independent businesses said it will cost 700,000 jobs. i don't want to cost jobs. my priority is jobs.

>> that was a moment in the debate last night on wednesday night that almost made me climb out of my chair. this has become common place in the election. scott brown cited a study. what could be more -- businesses themselves are independent. it is essentially a right wing interest group that is out there to, you know, destroy democrats at every opportunity. i don't think i'm overstating things when i say that. it's like me getting up here saying the occupy wall street group came up with a study saying, you know. it's not an independent source .

>> these folks just don't hate obama enough. if i was split from the u.s. chamber of commerce , it's the baby brother .

>> they have been incredibly opposed to affordable care act and fought the obama truth. they thought the chamber of commerce was too soft.

>> yes.

>> on a more basic level, too, they oppose regulations of every kind. they oppose affirmative action. it's interesting. the corporations all filed. they support these things as necessary things for diverse and highly competent work force for the 21st century . it's radical. anytime anyone references that, it's a red flag .

>> here is the irony. if you forget the statistics and talk to small business owners and say what do you need, almost every small business owner will tell you their biggest issue is access to capital. how do they get loans? how do they survive the valley of death? the biggest place to help them is the small business administration providing the loans. three of the people that spoke at the republican convention received loans from the sba. the president increased the loans they are providing. he increased the limit from $2 million to $5 million. let's have a real debate.

>> they expanded the category of enterprises and the amount of loans.

>> that's true.

>> the sba works with local banks. the smaller the bank, the better. i think the whole debate on small business is a metaphor for big, bad government. democrats always have a burden of trying to convince people what we are trying to do can be in partnership with creating jobs and helping businesses. to the extent the government is the enemy. so, when we talk about small business trying to provide reassurance. it's what president obama is trying to do. we want to be your partner. when they talk small business , they are pegging us as the one who is the enemy.

>> j.j., do you agree with what he said? you spend all your time talking to small business owners. the category is so murky. i watch your show and i have a retail shop and seven employees.

>> access to capital is an issue. i don't find it as the biggest issue. i think the nifb does say this. in my expeernls i agree with it. a lot of people aren't going out trying to get loans because they are not sure they can pay them back. sba increased the number of loans but there are a lot of issues with banks being able to issue loans to small businesses . that's the issue.

>> sba doesn't give money, it just guarantees loans. you have to go to the local bank to qualify. there are a ton of business owners as you know, who don't have the collateral or good credit to get a bank loan and then get a guarantee.

>> talking about regulations, there are regulatory issues making it harder for banks to loan.

>> can i ask this question? why should i care? we all presume that helping small business is an obvious policy goal. the government should be doing -- you touted the small business administration . we don't have those subsidies for other loans. we do for students. what is special about small business that we should be concerned with its survival either way?

>> most businesses are geographically small. they are small scale. there's a number of people they employ and also their range of services and products. they are often neighborhood, maybe town, city based businesses. if they are going to employ people, it's people from the local economy . that is inher antly good. if a business comes in and hires from outside, i'm talking the suburbs versus inner city philadelphia. i'm concerned about businesses coming into my city. i'm interested they employ people who are chronically underimployed. that is the biggest bang for the buck . if we want a policy, target areas where you have the greatest distress in terms of economic socioissues.