Consumer Credit Card debt costs americans 15 billion dollars a month. So when Barack Obama talks about a 30 billion dollar credit stimulus program for small business , I somewhat chuckle.
It would be far better to simply incentivize the reduction of consumer credit card debt. Offer super low interest rates on existing credit card debt to anybody who can pay down their debt. This would instantly begin to stimulate local economies all over the country and act as a customer creation model for small business.
No matter how easily one loans money to small business, if the customers are not out there because they are already steeped in credit card debt, it just won't matter.
Compared to record breaking consumer credit card default rates that have been ongoing for well over a year now, it seems to me that getting the largest number of consumers to pay down their overall credit card debt would be the best, fastest way to stimulate our economy.
And it would not require the government riding in to give us money that was already ours to begin with. Barack Obama's state of the union address seemed to be big on government intervention rather than creating pure stimulation of local economies through consumer credit card interest rate reductions.