The COVID-19 pandemic is ending, but the economy is still sick. Thursday’s second-quarter GDP growth figure significantly missed expectations. Nearly seven million fewer Americans are currently employed than before the pandemic. Weekly initial jobless claims remain stubbornly around 400,000, about twice the pre-pandemic rate.
According to Federal Reserve economists, around 200,000 small businesses closed last year. Our Monthly Monitor small business poll finds that only one in ten small businesses has fully recovered.
To return the economy to its pre-pandemic level, we must first bring small businesses back. Small businesses create two-thirds of all new jobs and drive economic growth. Yet President Biden and Congressional Democrats are waging war on these job creators, threatening to kill the economic recovery in its cradle.
Ordinary Americans must fight back to defeat the big threats to small businesses.
Just as generals go to battle with the army they have — rather than the one they might have hoped for — so, too, do policy-makers encounter the economy they happen to be given. Yet policy-makers typically walk onto White House grounds with ideas that they’ve formed over the course many years, if not decades. If the economy happens to be a less-than-ideal environment for shepherding your favorite policy from theory into practice, you then face a dilemma: Either abandon the agenda you’ve spent years hoping to implement, or attempt to do it anyway. The Biden administration has chosen the latter. The predictable effect has been a consumer price inflation that’s begun to erode the value of an hour’s work across the income distribution.