Small Business Federation Says Firms Are Facing a Crisis of Demand

Via Ryan Avent, the National Federation of Independent Businesses gives its view (PDF) of why firms can’t expand:

Unfortunately, Washington, D.C. and many state legislatures seem determined to undermine any economic forward momentum for small business owners. And even though small business owners continue to plead their case for policies that will help foster economic growth, many lawmakers are unwilling to listen. Small business owners keep saying that poor sales (“It’s the consumer, stupid!”) is their most pressing problem and the reasons they aren’t interested in expanding are due to current economic conditions and the political climate. Unfortunately, Congress is fixated on credit and special favors for unionized firms, and that wont sustain or support faster growth.


As Avent says, “the problem is a lack of demand, not some imagined looming American debt crisis.”