Good essay from a small business owner. The latest hobgoblin offered to scare us into supporting the bailout is that small business can’t get access to credit.
http://www.lewrockwell.com/orig9/fairfax3.html
Easy credit distorts business models into ones that rely on rotating credit lines rather than savings, just as the same scheme incentivizes individuals to buy now and pay over time. Relying on reserves rather than credit to get through cash flow problems takes a great deal of discipline, and taxation of income and monetary inflation doesn’t help matters.