After much fuss, congressional Democrats managed to push through a modest jobs bill that will have to do in the place of anything grander with which to campaign. The package of tax breaks and cash is directed toward small businesses, with the hope of creating employment.
It is taken as gospel among politicians of both parties that small business is the engine of job creation. Obama, McCain, Bush, Kerry, Clinton and Reagan have made that claim. Only one problem: The assertions are overblown and simplistic.
The government-run TARP program is preparing to shift its focus from large banks—such as Citigroup, JPMorgan Chase and Bank of America—to smaller banks, noting that small businesses are still struggling to get access to credit.