Small businesses that are contractors to the Federal government derived 36.1% of their revenue from government contracting. White business owners derived 26.5%, while Native Americans derived the largest share (96.8%). Given the fiscal austerity, these businesses must diversify.
The country is celebrating the 50th anniversary of Dr King’s speech and the second inauguration of of a Black President. However, for the vast majority of African-Americans, Dr. King’s dream is still far from a reality. In December Black Adult unemployment was 14% and teenage unemployment, 40.5%.
Failing to raise the debt ceiling will have serious short-term and long-term consequences. The Administration must decide whether will pay Social Security benefits, Medicare, etc or interest to government bond holders. It would also cause a loss of global leadership.
If Congress fails to compromise on the debt ceiling another downgrade of the country’s credit rating will occur. We must also choose among who will and will not be paid. Globally expect a move away from the dollar as the reserve currency and loss of statue as the world’s leading economy.
Small businesses owned by Black Americans grew less than average in comparison to all US small businesses between 2007 and 2010. Black business revenue grew by 26.5% and employment grew by 6.3%%. Revenue and employment in all small businesses increased by 39% and 11%.
The new jobs report December 2012 suggests little progress was made in job creation over the last month. The unemployment rate for December and November was 7.8%. After surprising declines over the last five months, decreases in unemployment have stopped.
Had we hit the fiscal cliff, the effects would have hurt but not nearly as much as advertised. There would have been time and opportunity to cut a deal to remove more uncertainty regarding the country’s current and future debt. Instead, we panicked and struck a very problematic deal.