Can the Government Really Help Small Businesses?

May 18, 2012

It seems to me that most people would agree with the following statement: "Small businesses are the job growth engine in this country." You've probably heard it in the office, at the ballpark, or on the nightly news broadcast. It’s accepted as common wisdom; and in today's mindset, that means government intervention will only bring further growth and improvement.

But that raises two important questions: "Do we really know what a small business is?" and "Can the government pick companies that are poised for growth?" As further investigation shows, the definition of a small business is so flexible that the government is able to wrap it around a wide variety of companies. And as the events surrounding Solyndra illustrate, the government is not always able to effectively pick winners and losers.

So we are left with a puzzle: Where does job creation come from and what role should the government have in it? The view from ITR Economics is that there are changes the government can make that will enable more private sector job creation. We'd like to hear your thoughts on this topic, and if you'd like to learn more about this subject, we have explored it in more detail in the upcoming issue of our monthly economic newsletter, the ITR Advisor.

About the Author

Alan Beaulieu Blog | President

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and 60 years of correct calls. In his keynotes, Alan delivers clear, comprehensive action plans and tools for capitalizing on business cycle fluctuations and outperforming your competition--whether the economy is moving up, down, or in a recession.

Since 1990, he has been consulting with companies throughout the US, Europe, and Asia on how to forecast, plan, and increase their profits based on business cycle trend analysis. Alan is also the Senior Economic Advisor to NAW, Contributing Editor for INDUSTRYWEEK, and the Chief Economist for HARDI.

Alan is co-author, along with his brother Brian, of the book MAKE YOUR MOVE, and has written numerous articles on economic analysis. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends.

Prior to joining ITR Economics, Alan was a principal in a steel fabrication company and also in a software development company.