Biden’s Presidency: Small Business or Small Potatoes?
A recent tweet by President Joe Biden made the claim that it is a “jobs presidency and a small-business presidency.” It would be marvelous if this were true but looking at the state of the American economy suggests different. While it is true that the most recent jobs report showed an increase of jobs added and a decrease in the unemployment rate, Biden does not have bragging rights to these statistics. The main reason for the jobs increase is a decrease in the pandemic related unemployment benefits and not from anything that the President did. To the contrary, Biden has done more to demolish jobs than to create them.
The Keystone Pipeline and Losses Present
His cessation of the Keystone pipeline project which was supposed to add 20,000 jobs was shut down which put those already working on the pipeline out of work as well as to kill the potential jobs. Other estimates projected that the pipeline could have created as many as 250,000 permanent jobs, but this is no longer a possibility now that Biden shut down the project. Small businesses also saw a negative effect on their bottom lines due to Biden’s tax policies. He reduced tax deductions that would have reduced tax rates for small business owners. Instead, the tax rates were comparable to rates that large companies pay. Small businesses are paying the top 39 percent of taxes. As a result, many of these business owners were forced to sell their family businesses to avoid these un-affordable high tax rates.
More Federal Contracts for the “Disadvantaged”
Another piece to the puzzle is the increase in federal contracts for “disadvantaged” businesses. This is supposed to be due to “systemic racism”, however there were already programs in place to help minority businesses. The effect that these new programs have is creating a disadvantage for white, male-owned businesses rather than removing disadvantages for minority and female-owned businesses.
More Structural Job Loss?
In a report by USA Today, Nikki Haley who was former President Trump’s ambassador to the United Nations was quoted as saying, ““Biden’s plan would eliminate about five million jobs over the next decade. Simple logic explains why: By raising taxes and regulatory burdens on job creators, companies of all sizes will find it harder to expand or stay in business.” This is due mainly to regulations that will be imposed upon energy, environment, consumer finance and healthcare. Haley’s information is based on an analysis by the Hoover Institution at Stanford University.
More Money – More Problems
An Associated Press report stated that while Biden praised the US for its economy being better than other parts of the world, Americans have been pessimistic about our economic future due to continuing inflation. This has been indicated by several Republicans winning state elections. The regular infusions of stimulus and money printing does not seem to create a bit of value, instead it seems to driving prices upward, and this is being felt by American consumers.
Biden continues to be optimistic, and this is reflected in a statement he made saying, “We still have to tackle the costs that American families are facing, but this recovery is faster, stronger and fairer and wider than almost anyone could have predicted,” Biden said. “That’s what the numbers say.”
Despite Biden’s claims, he still has a long way to go in claiming bragging rights to an improving US economy. Regulations and increased taxes for small businesses will only serve to exacerbate the problem, and only time will tell if Biden realizes this and makes the necessary positive changes to turn our economy around.
