Small business took a big hit from the Supreme Court’s recent decision on campaign cash. When the justices ruled -- in Citizens United v. Federal Election Commission -- that companies and unions can spend as much as they want, they gave big business, with its far richer coffers, a huge advantage over small firms with no money to spare.
The court’s ruling will further undermine fair market competition between large corporations and independent business owners, says Jeff Milchen, founder of the American Independent Business Alliance, a national nonprofit organization created to support independents.
More big-company pressure is almost a given. While no one expects firms to start spending all their profits backing political candidates, they don’t need to. Imagine the effect if they got together and defeated a critical committee chairman or swing vote. Or imagine a big-box store pressuring zoning officials to back a move that would overwhelm nearby smalls.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One probable result: Continued lax enforcement of federal contracting rules. Small business advocates have long railed at the Small Business Administration for failing to meet federal procurement goals, which mandate that 23% of the total value of federal prime contracts go to small business. There’s a bill in the hopper on Capitol Hill that would give this mandate more teeth through tougher rules and more transparency, but the court decision may boost opposition.
Also possible: Repeal of a key law -- the Robinson-Patman Act -- that helps keep large firms from using their buying power to negotiate lower prices. Moreover, the ruling could bolster opponents of legislation intended to strengthen the Sherman Antitrust Act.
Federal research money is at stake. There’s already a move afoot in Congress to loosen eligibility rules in the federal Small Business Innovation Research program. Doing so would hurt independent little firms because they’re sure to find themselves losing out to small rivals backed by big venture capitalists. The court ruling enhances the climate for looser rules.
Another potential battleground: Stricter food labeling laws favored by some small organic food products makers but opposed by megacorporations, says Milchen.
For weekly updates on topics to improve your business decisionmaking, click here.
-
'Boomer Candy' Investments Might Seem Sweet, But BewareProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
What to Expect from the Global Economy in 2026The Kiplinger Letter Economic growth across the globe will be highly uneven, with some major economies accelerating while others hit the brakes.
-
The AI Boom Will Lift IT Spending Next YearThe Kiplinger Letter 2026 will be one of strongest years for the IT industry since the PC boom and early days of the Web in the mid-1990s.
-
Amid Mounting Uncertainty: Five Forecasts About AIThe Kiplinger Letter With the risk of overspending on AI data centers hotly debated, here are some forecasts about AI that we can make with some confidence.
-
Worried About an AI Bubble? Here’s What You Need to KnowThe Kiplinger Letter Though AI is a transformative technology, it’s worth paying attention to the rising economic and financial risks. Here’s some guidance to navigate AI’s future.
-
Will AI Videos Disrupt Social Media?The Kiplinger Letter With the introduction of OpenAI’s new AI social media app, Sora, the internet is about to be flooded with startling AI-generated videos.
-
What Services Are Open During the Government Shutdown?The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
