1NR- No Companies
More evidence- this magnifies our risk arguments
Baily, Brookings Institute Economic Studies Senior Fellow, July 2010 [Martin Neil, Karen Dynan, Vice President and Co-Director, Economic Studies Douglas J.
Elliott, Fellow, Economic Studies, Initiative on Business and Public Policy, "The Future of Small Business Entrepreneurship: Jobs Generator for the U.S. Economy",
http://www.brookings.edu/papers/2010/0604_innovation_small_business.aspx, accessed: 9-30-10]
The venture capital market. Historically,
venture capital has financed only a relatively small portion of small businesses, but those financed
have tended to be the ones with the greatest growth potential. In recent years, firms that eventually grew to where they
could issue initial public stock offerings generally relied more heavily on venture capital financing than the
average small business.
The dollar value of venture capital deals funded today is only about one-fifth the size it reached at its peak. While
the peak amount may have been too large, today’s value is probably too small. With their capital heavily invested in a small range of industries and locales, it seems
likely that venture capital firms have missed a high proportion of potential investment opportunities. Further, “once burned, twice shy” funders have increasingly
focused on larger, later-stage ventures. Consequently, mezzanine financing, which new companies need to survive and thrive in the critical early stages, is scarce.
The funding problems partly stem from venture capital firms today having less money to invest. Some investors
who formerly contributed to such firms have become more risk-averse, and worse performance figures have
discouraged new investors. Lack of venture capital affects some industries more than others, and even some green energy
companies—viewed by some as one of the nation’s more promising industry sectors—have moved to China,
where financial support is more readily available.
Bank lending. In contrast to large businesses, which can turn to capital markets for funding, many small
businesses are dependent on banks for financing. Although the worst of the 2008–09 credit crunch is behind us,
many small businesses still find it difficult to obtain bank loans. Community banks, a key source of small business financing, have
been hard hit by losses in commercial real estate, which have limited their lending capacity.
1NR- Heg Defense
More evidence
William Wohlforth (Professor of Government at Dartmouth College, where he is also the Chair of the
Department of Government) Spring, 2007 "Unipolar Stability," Harvard International Review Vol. XXIX, No. 1 p 47-8
U.S. military forces are stretched thin, its budget and trade deficits are high, and the country continues to finance its profligate ways by borrowing from abroad—notably from the Chinese government. These developments have prompted many analysts to warn that the
"imperial overstretch." And if U.S. power is overstretched now, the argument goes, unipolarity can hardly be sustainable for long. The problem with this argument is that it fails to
distinguish between actual and latent power. One must be careful to take into account both the level of
resources that can be mobilized and the degree to which a government actually tries to mobilize them. And how much a
government asks of its public is partly a function of the severity of the challenges that it faces. Indeed, one can never know for sure what a state is capable of until it has been seriously challenged. Yale historian Paul Kennedy coined the term "imperial
overstretch" to describe the situation in which a state's actual and latent capabilities cannot possibly match its foreign policy commitments. This situation should be contrasted with what might be
termed "self-inflicted overstretch"—a situation in which a state lacks the sufficient resources to meet its current
foreign policy commitments in the short term, but has untapped latent power and readily available policy
choices that it can use to draw on this power. This is arguably the situation that the United States is in today. But the
United States suffers from
U.S. government has not attempted to extract more resources from its population to meet its foreign policy commitments. Instead, it has moved strongly in the opposite direction by slashing personal and corporate tax rates. Although it is lighting wars in Afghanistan and
Iraq and claims to he fighting a global "war" on terrorism, the United States is not acting like a country under intense international pressure. Aside from the volunteer servicemen and women and their families, U.S. citizens have not been asked to make sacrifices for the
The country could clearly devote a greater proportion of its economy to military spending: today it
spends only about 4 percent of its GDP on the military as compared to 7 to 14 percent during the peak years of the Cold War. It could also spend its military budget more efficiently, shifting resources from expensive
weapons systems to boots on the ground. Even more radically, it could reinstitute military' conscription, shifting resources from pay and benefits to training and equipping more soldiers. On the economic front ,
it could raise taxes in a number of ways, notably on fossil fuels, to put its fiscal house hack in order. No one knows for sure what would happen if a U.S. president undertook such drastic measures, but there is
sake of national prosperity and security.
nothing in economics, political science, or history to suggest that such policies would be any less likely to succeed than China is to continue to grow rapidly for decades. Most of those who study U.S. politics would argue that the likelihood and potential success of such
power-generating policies depends on public support, which is a function of the public's perception of a threat.
And as unnerving as terrorism is, there is nothing like the threat of another hostile power rising up in opposition
to the United States for mobilizing public support. With latent power in the picture, it becomes clear that
unipolarity might have more built-in self-rein forcing mechanisms than many analysts realize, it is often noted that the rise of a peer
competitor to the United States might be thwarted by the counterbalancing actions of neighboring powers. For example, China's rise might push India and Japan closer to the United States—indeed, this has already happened to some extent. There is also the strong
a peer rival that comes to be seen as a threat would create strong incentives for the United States to end
its self inflicted overstretch and tap potentially large wellsprings of latent power.
possibility that
AT: Perm Do CP
Perm is severance
A. Counterplan doesn’t mandate an increase – if labor market conditions don’t require it, less
immigrants will be let in – Increase means to make greater
Merriam Webster, 9 (Merriam Webster Online Dictionary, “increase,” Date Accessed: 6/29/09, http://www.merriamwebster.com/dictionary/increase[1])
intransitive verb1: to become progressively greater (as in size, amount, number, or intensity)2: to multiply by
the production of youngtransitive verb1: to make greater : AUGMENT2obsolete : ENRICH
2NC Solvency Wall
CP puts businesses in the driver’s seat – it’s their demand that determines the level of the cap
Peri 10 [Peri, Giovanni. 2010. Professor of Economics @ UC Davis. The Impact of Immigrants in Recession
and Economic
Expansion. Washington, DC: Migration Policy Institute]
A redesigned system could address this problem in several ways. First, it could allow employers' demand for work visas to play a
stronger role in determining the actual number of visas issued. A basic thought experiment suggests that US workers across the
skill spectrum would benefit if new entries were allowed to increase by about 300,000 in years of economic
expansion, and remain constant in times of economic stress. In addition, a share of the visas should be allocated to less-skilled workers,
especially those who perform primarily manual work that native workers increasingly shun. This would help to reduce the incentive for less-skilled workers to come to
the United States illegally. Economics alone cannot be the only criterion to guide immigration policies. However, if
the goal is to make immigration
more responsive to US economic needs (on average and over the business cycle), shifting the balance of permanent
immigration in favor of employment-based channels would also be one way to accomplish it.
Businesses and immigrants like the counterplan- it prioritizes best immigrants
Orrenius and Zavodny 10 [Pia, research officer and senior economist at the Federal Reserve Bank of Dallas
and adjunct professor at the Hankamer School of Business at Baylor University, and Madeline, professor of
economics at Agnes Scott College, PHD Economics @ MIT, Beside The Golden Door, Rowman and Littlefield,
Lanham, MD, 2010, p. 85-86]
Permit Auctions Plan: Auctions are structured as a sealed-bid, single-price for-mat, much like auctions for
Treasury securities. The federal government creates or encourages a resale market in permits. The federal
government will hold auctions for new permits quarterly or semiannually. Frequent auctions are preferable,
since they allow the number of permits and their prices to respond more quickly to economic conditions. As
permits expire, they will either be auctioned off again or "retired" from the market if demand is relatively low.
The government can increase the number of permits simply by making more permits available for sale at a
given reserve price (or by lowering the reserve price for a given number of permits if the reserve price is
binding). The auction's sealed-bid, single-price format works as follows. Employers submit bids indicating how
many permits they would like to purchase and the price they are willing to pay. The bids are "sealed,'1 or secret,
to reduce possibilities for collusion. Permits are then allocated from highest to lowest price until the total
number of permits is filled or the reserve price hit, whichever happens first. Winners pay the price of the lowest
filled bid, so there is a uniform, or single, price for all permits of the same type sold at a given auction. Most
permit holders thus end up paying less than their actual bid. This auction structure helps reduce concerns about
the "winner's curse." The fact that most bidders will pay less than their bid makes them more willing to
participate in the auction and to bid their true willingness to pay20 As we discuss below, moreover, the
existence of a resale market also reduces bidders' risk, and should increase the number of participants and their
willingness to pay.