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Show The monetary policies of the Fed have kept the Interest In-terest rates high as a weapon against Inflation and the devaluing de-valuing of the dollar abroad. The cost of these high Interest In-terest rates (now hovering around 17 percent) to the American people has been a virtual postponement of any business or private plans which require the borrowing of funds. They are having a dlsasterous affect on our economy ec-onomy and the ability of small businesses, farmers and others to continue operating. opera-ting. In addition, reinvestment reinvest-ment by industry is dampened damp-ened and the creation of new jobs will be seriously affected. af-fected. The Impact of high interest rates on Small Business simply cannot be underestimated. underesti-mated. Most of the 13 million jobs which should result from the economic Incentives Incen-tives brought about by the recently adopted budget and tax cuts will come from small businesses. If these businesses cannot expand and new business starts are hampered, this type of activity ac-tivity will never occur. High interest rates are already taking their toll. The number of car dealerships has declined by more than 1,900 dealers, home sales have dropped significantly and housing starts are down 34 percent from this time last year. Jobs lost due to these business failures will not be regained until Interest rates drop. I believe the policies of the . Federal Reserve System are a major roadblock to economic econo-mic recovery and If this nation Is to fully recover from its economic infirmities, infirmi-ties, a change in these policies poli-cies is imperative. High raioo iliscearago recovery The combination of reduced re-duced taxes and a drastically sliced federal budget should ease the financial burden which has hampered individuals indivi-duals and small businesses and farms over the past decade. de-cade. But, there is one more beast to slay before we can claim victory on the econom -ic front. That is the high interest in-terest rates that are discouraging dis-couraging business ventures and expansion and denying our children the privilege of owning a home. Much of the blame for high interest rates belongs to the Federal Reserve System. mmmmmMmKm9nimsZiXcammwmmmmmmwmmi |