Obama said this
today: "If [small businesses] can get the bank loans to boost their payroll... they will do so."
No, they will fire Gordon in accounting if they can't make payroll. They will reduce employee perks. They will charge the customer more. They will not incur debt to cover expenses. Commercial debt is for business expansion, creating more sources of income, not for maintaining variable costs that the firm is capable of cutting.
Labels: Economics, Politics