Government give big corporations life preservers; tells small business to sink or swim

EDITOR:

I am writing as both as a taxpayer and as a representative of a small company in Youngstown. I find it preposterous that billions of dollars were spent last year to bail out large corporations while the owners of small companies are facing the same end results on smaller scales. There is no excuse for using my tax money to bail out CEOs who take private jets to Washington, while owners of small businesses risk losing their livelihood from their decisions. Why do some companies get billions of dollars in government money while others are left to perish?

The only available assistance for small business owners is loans and grants. However, once a small business is in the kind of trouble that GM and AIG got bailed out for, they are facing criminal charges and no longer qualify for such assistance. How is this fair?

When small businesses go belly-up the owners and their families face homelessness, child support payments don’t get made, and children are humiliated by their parents circumstances. The most frustrating aspect of this is that if the owners were corporate CEOs, the government would simply give them the money to rectify the situation. GM received tax dollars from the work performed and products purchased by small businesses.

The automakers were hurt by the weakened economy, the credit crunch and consumers’ shift away from profitable sport utility vehicles. Small businesses were hurt by the weakened economy, the credit crunch and consumers’ shift away from profitable home improvements.

GM and Chrysler asked congressional leaders for $25 billion in loans to help it survive the economic decline and another $25 billion to help cover some of its health care obligations for 780,000 retirees and dependents. The funding could come from the $700 billion government federal bailout of the country’s financial sector, or from the Federal Reserve.

Small businesses need thousands in funding to help them survive the economic decline. Where is their share of the $700 billion?

Congress bailed out the auto industry to save jobs. For every job in an assembly plant, there are 7.5 jobs with auto parts suppliers and other companies, meaning the industry accounts for millions of jobs. Congress should help small companies to save jobs.

For some small business owners time has run out. Where is help for them?

Small business owners continue to struggle to make ends meet while major corporate executives are being slapped on the wrist.

MEGAN VUTECH

Youngstown