Matthew Bandyk at US News interviewed me for a column he wrote on how the Stimulus Package will impact small business in our economy. I told him that I doubted the package would work and that a recession was probably going to happen either way. On the other hand, I am more worried that it will work. The pressures for a large burst of inflation are still out there -- wage, healthcare and fuel price pressures and falling interest rates. If we over-stimulate the economy right now, we may end up in an even worse condition economically. Either way, be it a recession or a period of inflation, I see a tough period ahead for small business owners in America:
But Congress has chosen a different stimulus strategy, and while small-business owners will appreciate the extra cash, many are heading into uncharted territory. "There are a lot of young entrepreneurs who have never really experienced a deep recession," says Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University. "And almost none have experienced a period of inflation, so they're not really sure what those words mean in their day-to-day business." They may be about to find out.
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