My name is Oliver Rosenberg. I am running for U.S. Congress to represent New York’s 10th District. Today I am calling for a $1 trillion lending facility from the Federal Reserve for lending directly to small businesses. That would amount to $50,000 loans to 20 million people to pursue the businesses of their dreams.
Small businesses are the engine of our economy and they are dying out all over our district. When we lose small businesses we lose the middle class, and with it the American Dream. So I want to propose my plan to offer federal funding to those who want to start or invest in their own business, and 20 million loans for the nation would be half a million loans for NYC and approximately 50,000 small business loans for our district.
We are facing a crisis. It was recently uncovered that federal reports of new small businesses were at their lowest rate in more than 30 years. This revelation comes with the backdrop of stagnating wages and anemic economic growth. It is no surprise that distressed family enterprise equates to a floundering national economy, because these businesses are the bedrock of our national financial system and employ millions of Americans with good family wages. So in order to reverse this trend we must stimulate economic growth through small business creation.
If we look to the past we can see that small businesses were facilitated through lending from community banks that were the primary entities providing loans to local, small and medium-sized enterprise. But now small banks have either been acquired or collapsed due to the inability to compete with mega banks. For example, five of the nations largest banks control 80% of all deposits, and 75% of all of their loans go to large corporations. This paints an increasingly bleak picture for entrepreneurs. So it is time for the Federal Reserve to step up to the plate and fill the role that the big banks have not.
The Fed’s role is to stimulate the economy. While unemployment has fallen, the labor participation rate is low and millions of Americans are not included in this statistic because they have simply stopped looking for work. The Fed has spent trillions stimulating Wall Street since the financial crisis in 2008; now its time to stimulate Main Street.
The Fed has the power to implement this plan because they have done it in the 1930’s and 1940’s by lending directly to small businesses during the New Deal period. Their balance sheet is large enough to accommodate my lending program. Ten years ago, the Fed had $800 billion in assets with $700 billion in liabilities. Today the Fed has nearly $5 trillion in assets with only about $3 trillion in liabilities. With nearly $2 trillion in excess capital I call on the Federal Reserve to stimulate the economy for all Americans. Best of all, none of this stimulus will cost the taxpayers any money to fund.
This innovative program is one of the reasons why I believe that I should be your candidate on June 28th. Its time we take an honest look at how toxic the environment has become for entrepreneurs. It is clear the deck is stacked against us. So the next time you see a closed business or vacant storefront in your community, think of what the future holds for the middle class.
Our Future Together