Recently, our president has issued a massive challenge to the GOP in an effort to help small business and as we know….they are the engines of our economy (or at least that is the slogan these days)…it is election time and all the silliness has come to a head….small business is getting more attention that some idiot in Florida…..

Massaging the egos of the small business owners….both parties are not being forthcoming with the truth…..

But will these benefits create the demand that is needed to bring this economy back?

The problem with the small business tax breaks is two-fold: small businesses are incredibly diverse in their craft, and consequently, no single break works for every small businesses. The second issue with the proposed tax breaks is that many in the business see them as too producer driven, as the Small Business Job Act fails to address (and encourage) some much-needed consumer spending. Simply put, businesses do not need more equipment to produce items that are not selling, or selling at lower levels than in the past.

As Billy Rys explains, “Even if they’ll be able to write off their investments in just a few months, they don’t have the customers coming through the doors. They don’t have contracts to fill.” In the end, the usefulness of the proposed tax breaks will depend on the size and type of businesses, in addition to the financial state of the business.

I have been bitching since this whole debacle started with the economy….the Bush bailout only accomplished bank liquidity and the Obama stim plan was to help create demand……neither one of these plans have created the demand needed to jump start the economy….if tax cuts do not make inventories go up then No one will be hired…..if NO one goes shopping then NO amount of tax cuts will jump start the economy…..without DEMAND there will be NO easy recovery…..it is not rocket science!