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Panel: Obama too much of a supply-sider
May 16, 2010 - Mike Maneval
A federal oversight panel is criticizing the Obama administration's efforts to improve small business lending, and says the sector suffers from both low demand and low supply.
Shahien Nasiripour of Huffington Post notes a Thursday report from the congressional panel observing attempts to shore up the financial sector. The report relates that interest in borrowing by small businesses with solid credit is down, as is the number of institutions interested in lending and their resources for doing so. But the Obama administration, the panel claims, is too focused on the supply-side. Chairwoman Elizabeth Warren said the results of the supply-side approach, even as the target of assistance shifts to smaller businesses, which the panel says account for 99 percent of employers in the private sector, employing more than half the country's work force, is "Not encouraging."
"Supply-side solutions that rely on bank balance sheets ... may not increase lending," the report claims, according to Nasiripour.
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