newjerseynewsroom.com

BY ROHIT ARORA

COMMENTARY

The death of Osama bin Laden has lifted the spirits of 9/11 victims’ family members, U.S. political and military leaders, and the majority of Americans. The determination and persistence in pursuing the Al Qaeda leader reflects this country’s “can do” spirit and work ethic. The road was long and difficult, but the United States has always taken on difficult challenges and overcome them with its resolve.

Stocks rose after bin Laden’s death, and his demise certainly has lifted the mood of the large majority of Americans, many of whom thought the U.S. might not ever get its Public Enemy No. 1. Optimism is always good for the economy; it boosts consumer confidence, helps stimulate spending, and inspires entrepreneurs to take risks. These are all things that bode well for business.

The newspaper industry, one that has struggled of late, has gotten a bump from the news of bin Laden’s demise. A number of them printed thousands of extra copies to accommodate anticipated demand for them as collector’s items. eBay sellers are offering copies of Monday morning's New York newspapers at premium prices.

While some small businesses, t-shirt makers and flag vendors, for instance, might get a quick boost from printing up patriotic or anti-Osama merchandise, they are unlikely to a fortune based on his death. In fact, a Chicago bar has already encountered backlash for promoting cocktails named “The Floating Terrorist” and “Osama Been Shot.”

What would benefit the economy in the long-term would be an eventual scaling back of the costs of fighting three wars. Iraq is moving forward in the post-Saddam Hussein era, and the death of bin Laden could provide the opportunity to start calling troops home. This could significantly reduce spending on weaponry, transport, supplies, and the human toll, including physical and psychological healthcare costs. The reduction of this portion of the government’s budget would be more significant than anything currently on the chopping block as Republicans and Democrats debate how to cut federal spending.

Recent positive events are counter-balanced by high oil prices, however. Transportation costs have increased significantly in 2011, and we are beginning to see that effect in other areas, such as commodity prices. When people pay more for basic necessities, it reduces their disposable income, and increases their uncertainty. These factors hurt small businesses. But perhaps the news of bin Laden’s death and perhaps a resolution of the problems in Libya can combine to bring oil prices back down again.

The U.S. has always shown the world what it possible when innovation and hard work combine – whether it is sending rockets into space, building the Internet or nabbing a long suspected terrorist. The opportunities to become successful in America are boundless for those who take risks, embrace technological advances, and put in sweat equity. It is what makes this country great and why immigrants come here from all over the world.

A frequently quoted expert on small business lending, Rohit Arora is CEO of Biz2Credit (www.biz2credit.com), which connects small business owners with 300 lenders, credit rating agencies and service providers via its safe online platform. Since 2007, Biz2Credit has secured $400 million in funding for small businesses in New Jersey and across the U.S.

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