Tags: Trump Administration | Barack Obama | Democrats 2016 | anxiety | small business | job | creation

Obama-Fueled Anxiety Is Hurting Small Business and Job Creation

Obama-Fueled Anxiety Is Hurting Small Business and Job Creation

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By    |   Saturday, 06 August 2016 10:22 AM

Due to the lack of good-paying jobs, there is so much anxiety today in our country. You can see it on display everywhere. It is coming from both the left and the right. We have never seen anything like this in our political process. It has everything to do with the lack of opportunity. This has been manifested by a growing anger that could boil over at any moment.

We must start doing something about it.

The National Criminal Justice Reference Service (NCJRS) suggests that those who commit crimes tend to be out of the labor force or unemployed. “The communities in which crime, particularly violent crime, is so heavily concentrated show persistently high jobless rates.

Increasing employment and the potential for employment for individuals and communities currently at high risk of persistent joblessness may have a substantial preventive effect on crime. Thus a comprehensive assessment of crime prevention programs should include those aimed at increasing employment.”

Italy’s University of Sassari Criminal has proposed that criminal activity acts like a tax on the entire economy: it discourages domestic and foreign direct investments, it reduces firms' competitiveness and reallocates resources creating uncertainty and inefficiency.”

Illinois could be the poster child for this, especially for Chicago, where murders are up about 72%, while shootings have surged more than 88% in the first three months of 2016 compared with the same period last year, according to data released by the Chicago Police Department.

What is the root cause for this violence? The black unemployment rate in Chicago is 37 percent. Without jobs and without hope, violence is inevitable.

It’s not a coincidence that a Center for Government Studies report shows that between 2000 and 2010 the number of people employed in Illinois actually declined by 115,000 (1.5%). The decline in manufacturing jobs dropped by a whopping 311,000. Those were jobs which had been Illinois’ growth foundation for 60 years. And they were the employers who provided the network effect of business-to-business growth that kept the state’s economy moving.

According to data from U-Haul, Illinois ranked 50th with the most net departures of any state.

The upshot is that Thumbtack, an online service that connects consumers with various professionals, gave Illinois failing grades in overall friendliness, ease of starting a business, employment, labor and hiring, tax code and licensing.

Illinois is not alone. Small businesses throughout the country face similar problems relating to anxiety and security.

As the Houston Chronicle explains, during an economic slowdown, many small businesses face a number of challenges. Consumers become concerned about their job stability and, in turn, are more likely to be cautious with expenditures, which leads to decreased revenue for small business owners.

A slow profit stream can make it difficult for a small business to repay creditors, which can negatively impact its long-term viability. A business facing financial struggles is far less likely to qualify for loans for capital expenditures and operations, which limits growth opportunities.

Many small businesses also are forced to downsize their workforce during a slow economy. This limits their ability to serve customers and contributes to the unemployment rate, which furthers slows the economy.

When people are anxious, businesses are less apt to hire and invest in the economy.

In this environment, the president of the United States should be able to alleviate this anxiety with solutions. But our current president has no answers or solutions.

The National Review, quoting President Obama, took great exception to remarks he made in Baton Rouge after six police officers were shot, in which he said: “Five days ago, I traveled to Dallas for the memorial service of the officers who were slain there. I said that that killer would not be the last person who tries to make us turn on each other. Nor will today’s killer.”

This self-applause for his prediction of more violence is so inappropriate. It is based on the notion that Obama has “ingested the steady diet of anti-police agitprop that for two years that has been peddled by the Black Lives Matter movement and endorsed in the media, on college campuses, and among the more unscrupulous politicians.”

America cannot move forward until the nation, and particularly small business, can reduce its anxiety over the upsurge in violence against the police and the spike in murders and violence in many communities.

Leadership is the tonic for reducing anxiety. If we want to see businesses reinvest in black communities so that jobs can be created for those hit hardest in these communities, we need a leader who can restore the hopes of small business.

When there is hope, anxiety is reduced, and jobs come back. That should be our goal for the next election.

Neal Asbury is chief executive of The Legacy Companies. To read more of his work, CLICK HERE NOW.

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When there is hope, anxiety is reduced, and jobs come back. That should be our goal for the next election.
anxiety, small business, job, creation
Saturday, 06 August 2016 10:22 AM
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