.
November 24th, 2009
11:17 AM ET

Charity is an insult to small business

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/06/22/art.goldman.jpg caption="Goldman Sachs announced last week that it will set aside $500 million for 10,000 Small Businesses. "]

Samuel Sherraden

Special to CNN

Goldman Sachs, the most profitable firm on Wall Street, announced last week that it will set aside $500 million for "10,000 Small Businesses," a charity co-sponsored by famed investor Warren Buffett and devoted to helping small American businesses survive the economic crisis.

While Goldman may see this as a generous move, its charity is an offense to struggling entrepreneurs and a symbol of failed government policy.

The $500 million allocated to fund the initiative is a small share of the massive profits Goldman has earned on the back of huge government subsidies it has received since the onset of the financial crisis.

When the financial system collapsed in fall 2008, the federal government supported "too big to fail" firms like Goldman Sachs with generous lending conditions, government guarantees, and outright subsidies.

Keep reading...


Filed under: Economy • Finance • Wall St.
soundoff (4 Responses)
  1. terry horn

    Ive got an Idea ! If the government can bail out Goldman sach's and bail out ,GM, and so on, why not small buisness owners, how about a stimulus for them. How about a huge tax cut, for small buisness. Why ?because thats not the plan. Ive got another Idea why not take that 500 million dollars and pay down on the deficit. Small buisness doesnt need or want charity, these are hard working proud Americans. what they need are sound policies from washington.

    November 24, 2009 at 1:05 pm |
  2. Enough

    We don't need charity or loans, we need business. We need the economy to recover and start working again. Obama and company just don't get it. Obama needs to understand his tax and spend ways are preventing the economy from recovering and none us want to take any risks right now.

    November 24, 2009 at 12:08 pm |
  3. kieraChang

    When is charity ever bad? Charities help other organizations and affiliations that aren't capable of standing on its own!!

    November 24, 2009 at 11:49 am |
  4. cyndie

    I guess Im confused y businesses r offended by this gift of charity? We would have welcomed a gift to keep our business afloat in this economy but we didnt get one. We would not have been insulted at all.

    November 24, 2009 at 11:33 am |