The Small Business Survival Committee, one of the nation’s leading national small business advocacy organizations, has released its list of developments that had the best and worst impact on small businesses in 2001.
Yesterday, a list of the developments that had the best impact on businesses ran. And now the bad:
WORST IMPACT
1.September 11th. Needs little elaboration. The horrifying terrorist attacks in New York and Washington, combined with anthrax scares, dealt a crushing blow to an already weak economy and were particularly devastating to the travel and hospitality industries.
2. The Recession. It wasn’t declared official until the end of the year, but its presence was felt throughout 2001. Private investment in the economy took a nose-dive along with the stock market.
3. Blackouts in California. The California electricity blackouts not only crippled countless California businesses, it showed the nation the kind of disaster that can happen when energy policy is botched. It also unfairly damaged the idea of deregulation, which if done right, would be a huge help to the U.S. economy.
4. The Resurrection of the Death Tax. While the Bush tax package deserves tremendous praise for eliminating the death tax, the bad news is that after ten years, the death tax is scheduled to rise from the dead and wreak havoc on small businesses once again. Permanently driving a stake in its heart should be a top priority next year.
5. Change in Senate Leadership. At the beginning of the year, the U.S. Senate was lead by Senator Trent Lott (R-Miss). During that time, an historic tax cut package was passed and votes on trade promotion and an energy plan seemed certain. Then, after Sen. Jim Jeffords bolted from his party, Sen.Tom Daschle (D-SD) took charge of the Senate and the agenda changed overnight. Senate votes on an energy plan, trade promotion and economic stimulus were ultimately blocked.
6. No Trade Clause. With small businesses accounting for 96 percent of all exporters, expanded free trade is vital to the future. While the House voted to give President Bush trade promotion authority to improve the prospects of new trade agreements, Sen. Daschle refused to even bring TPA up for a vote.
7. No Energy Plan. Troubles in the Middle East have once again raised awareness of the hazards of heavy U.S. reliance on foreign oil. While the president and U.S. House worked together to pass an energy plan, Senator Daschle once again refused to allow an energy bill to come to a vote.