On Wednesday, the country reached a disheartening milestone: Inflation has surged by a total of 20 percent under President Biden’s leadership. The value of the dollar has sharply declined during his tenure. The Bureau of Labor Statistics has additionally verified that the consumer price index is on the rise, surpassing the growth rate of average wages. This, coupled with sluggish GDP growth, indicates that the U.S. economy is once again facing the challenges of stagflation.
Under Biden’s presidency, the country is experiencing a cost-of-living crisis due to historic inflation. Grocery prices have surged by almost one-third, while gas prices have skyrocketed by 50 percent. This surge in prices has affected the daily conveniences we rely on, such as a simple turkey sandwich or hiring a handyman, both of which have seen a price increase of 50 percent or more.
In a recent CNN interview, Biden responded to the inflation numbers by suggesting that Americans have the money to spend. However, this statement seems to be out of touch with the reality faced by the average American family. Since Biden took office, it has actually cost families an additional $12,000 to maintain their previous living standards.
When addressing the issue of consumer pain, Biden attempted to shift the blame by suggesting that he inherited high inflation. However, it is important to fact-check this claim. In reality, inflation stood at a relatively low 1.4 percent when he assumed office.
Joe Germanotta, a New York restaurateur, shares the struggles faced by small businesses during these challenging times. He notes that customers who used to visit his restaurant on a weekly basis now only come in every three weeks. This sentiment resonates with small businesses across the country, as people prioritize essential expenses and opt to eat at home or do their laundry instead of dining out or using professional cleaning services.
Small businesses are facing a multitude of challenges, including a credit crunch and an increase in crime. The Federal Reserve’s decision to maintain high interest rates due to resurgent inflation has made it difficult for entrepreneurs to obtain the capital they need to grow and succeed. Furthermore, a significant number of small businesses report that the rise in crime has had a detrimental impact on their earnings, further exacerbating their economic woes.
The regulatory and tax actions initiated by Democrats are poised to increase the burden on businesses. In a recent move, the Biden administration introduced a set of rules that expand overtime pay, prohibit noncompete contracts, enforce the use of electric vehicles, and impose regulations on internet access. Additionally, the Corporate Transparency Act, which has come into effect this year, places cumbersome reporting obligations on every small business, with the added concern of potential imprisonment for noncompliance.
Biden made a recent pledge that if he is reelected, he will implement a substantial tax increase on small businesses. This would be accomplished by allowing the Tax Cuts and Jobs Act to expire in 2025 as planned. Consequently, small businesses would be subjected to a 20 percent tax hike, the elimination of bonus depreciation, and higher tax brackets for their earnings.
According to a nationwide poll conducted by JCN’s SBIQ, an alarming two-thirds of small business owners believe that the current economic conditions could potentially lead to the closure of their businesses. The implementation of significant tax hikes will only exacerbate this situation, pushing many entrepreneurs beyond the brink of survival.
Biden lacks the experience of running a business, having spent fifty years in government. This is a common trait among Democrats, who often haven’t experienced signing the front of a paycheck. They tend to treat small businesses as natural entities, similar to the Great Lakes or Rocky Mountains.
Small businesses require a favorable policy environment to not only thrive but also survive. However, Democrats have not been able to implement a mandate that prevents small businesses from shutting down in the face of various challenges and opting for less productive alternatives. At least, not at this point in time.
Alfredo Ortiz, the CEO of Job Creators Network, is not only an accomplished author of “The Real Race Revolutionaries” but also a co-host of the Main Street Matters podcast.
