Apr 13, 2010

The Government Effect: More Bankruptcies Than Ever

Has government intervention and the must-have stimulus program helped or hurt the average small to medium sized business owner the last year and a half?

Of the Approximate 147,000 businesses in and throughout Maricopa County, Arizona, 2,846 (about 2 percent) have filed for bankruptcy within the last 3 months of 2010 (Jan-Mar 2010), up from 1,731 that were filed within the first 3 months of 2009, a 64% increase.  These bankruptcy figures fail to mention the many other businesses that have gone belly-up on account of the owners simply closing up shop once and for all.

20,411 bankruptcies filed in 2009 for the year - that's about 14 percent of businesses going under in one year, again not counting the many who don't file who simply close up shop.

The rising bankruptcy issue isn't just hurting Phoenix of course.  158,000 Bankruptcies were filed in March nationally - a rise of 35 percent from February, and 19 percent from March 2009.  (http://www.nytimes.com/2010/04/02/business/economy/02bankruptcy.html)

To those in ivory towers in government power making decisions to saddle us with greater debt and bureaucracy, in vein attempts to "help the little guy," those measures appear to be failing...yet again.

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