Trade creditors play a key role
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Re: “Economy is growing again,” Oct. 30:
The news that the U.S. economy returned to growth may signal the technical end of the current recession, but sustaining real growth demands support for trade credit.
Federal policy and bank practices must empower businesses that manufacture goods on the promise to pay their suppliers when those goods are sold. These trade creditors make more than half of our economic activity possible and they generate jobs that build sustained economic strength.
Yet economic policy continues to focus almost exclusively on secured credit. When banks receive federal funds but fail to move those funds to Main Street and industrial parks, too many businesses languish and too many people remain unemployed.
When the headlines say “Job market is growing again,” it will be because the vast network of trade creditors finally got the support and attention that a smart economic plan requires.
Mike Mitchell
President Credit Management Assn. Burbank
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