Debate Hangover – Small Business and Energy

I scanned through Google News this morning to get a feel for the reaction to last night’s debate. I was astonished that the consensus was so positive for Mr. Romney. Personally I felt like this debate was a draw. This is especially in the light of how vague Romney was on policy. It sounded like the same old campaign BS. Education is important, energy is important, the deficit blah blah blah. On the other hand the President droned on for many points and did not seem to have a clear forward policy direction. Mr. Obama seemed to hearken to his past whenever he was cornered a bit.

The overwhelming reason I feel this was a draw is that neither candidate expressed any sort of knowledge that makes me confident that they really understand how to help small business. Mr. Obama touched on energy independence, especially green alternatives, but my feel was that he did so not as an emerging American industry, but only as the counter to America’s energy crisis. Yet, energy represents a grass roots industry that could do more for the economy by creating jobs then by creating cheap energy. Actually that is not fair, I am hopeful it will do both. In addition, energy costs are built into the prices of good and services. This is where small business comes in, they sell these goods and services.

Small business is the middle man between major corporations and the public. Costs for goods and services  have gone up with every fuel surcharge. An energy solution would surely help in this area. Especially if that solution was not traded on the stock market as a commodity. Although I do believe that one day the SUN might be a stock market commodity option…I digress. A non-commodity energy solution would cause deflation. The price of food, clothing, water, energy, and just about everything else would fall. This puts more money in the pocket of consumers, and lowers the bills of small business. Big business does not have to rely on deflation to keep costs steady, they simply outsource to a country that gives them a virtual deflation. Large business has already had deflation, but they are hoarding the profits from their deflation in operating costs. It is in the best interest of large business not to pass on their gains from deflation leaving America in a perpetual artificial bubble.

Small business cannot take advantage of multinational virtual deflation. Thus, a real energy solution is the only solution for small business. And so to my point…. Tax cuts, although nice, mean nothing to small business. Small business invests when opportunities are there for growth. The necessary foundation for this growth is lower costs associated with good and services that they buy from larger business, and a costs of living shift that allows frees credit and creates expendable income for the middle class. Tax codes are already favorable to small business, especially when compared to an individual. Taxes are not the problem, energy is.