Is Main Street on Strike?

Is What’s Happening Reminiscent of John Galt’s Strike in Ayn Rand’s Atlas Shrugged?

August 8, 2008 – The economic recession has had a devastating effect on America’s Main Street.  There is little question that the first so-called stimulus bill failed to stimulate the U.S. economy.  Perhaps it did lessen the likelihood of a deeper economic downturn, but it definitely didn’t provide the 8 million new jobs the president promised. 

Since then, major focuses of the administration have been to force through healthcare and financial regulatory reform, and “get even” with Wall Street and the major banks.  Obama has ignored the problems of main street.  He has also ignored what has been, is and will remain the major issue, that of jobs, and more importantly decent paying jobs. And, the problems in the housing sector, including the continued record number of foreclosures and homeowners stopping in paying their mortgages is, at its roots, about jobs.  If Americans have decent paying jobs, most will pay their mortgage payments and remain in their homes.  If they don’t they won’t. 

In virtually every shopping mall and shopping street in America the number of closed stores and restaurants, and for rent signs continue to increase.  Main street has been ignored by Washington and the Obama administration, and the number and frequency of store closings is increasing at an alarming rate. 

Prior to the current recession, job creation and economic growth had been fueled by small business and consumers. Job growth wasn’t about large employers, such as GM or for that matter the governmental sector, it was about entrepreneurial business owners.  But, now, Main Street seems to be imploding.

Small and middle sized businesses have been the key to what has been, up until now, the American dream.  Small business owners took risks, hired employees and worked hard to improve their standard of living most importantly with the objective that their children could have a better life.

Numerous entrepreneurial business owners I’ve recently met with, from owners of restaurants, to mall manufacturers and retail stores, unilaterally don’t feel good about the direction they see the country headed.  They’re uniformly concerned about a Pelosi-Reed-Obama environment of increased taxes,  increased governmental regulation, and a prolonged period of minimal economic growth.  They’re also uniformly disgusted with Washington and the lack of attention that the administration and Congress have given the entire jobs issue and problems of small business owners. 

One has to wonder if main street is on strike.  It reminded me of John Galt and his fellow industrialists in Ayn Rand’s epochal book, Atlas Shrugged.  Have main street business owners taken the same direction as Hank Rearden and the other industrialists in Atlas Shrugged, who gave up and went on strike?  Many small and medium sized businesses have definitely closed down due to the effects of a downturn in the economy and the recession on their businesses.  But, many have simply decided to throw in the towel, made the decision to not take on further risk, or are refusing to hire additional employees for one main reason.  They don’t feel good about the direction the U.S. is headed.  If this becomes a trend, it will end the fulfillment of the American Dream for millions, and also, increase the likelihood of years of  economic stagnation.

Author:  Jeffrey Friedland