Recent studies alert that 48% of all small businesses still operating are about to close for good. These businesses account for over half of the U.S. labor force and amid a second round of lockdowns, these jobs are bound to disappear very soon. This year, over one hundred thousand small companies have permanently shut down their activities. According to the latest estimates, every day 800 medium-size and microenterprises are being forced to close due to the economic fallout of the health crisis. Moreover, with new strict regulations and unfavorable policies, what once was the core of our economy now has been left to die.
It seems that America’s small businesses are being attacked by several different fronts and large corporations have been largely benefiting from it. In this video, we provide tangible evidence that there’s indeed an insidious plot against small businesses and policymakers have been expressly enabling their downfall to favor big conglomerates.
We have been experiencing the effects of the multiple rounds of lockdowns for almost a year, and every time a new policy comes into place it primarily affects the existence of smaller companies, while the largest retailers, tech giants, and pharmaceutical manufacturers continue to register record-high profits. Almost every piece of legislation designed to control the spread of the virus and protect workers has jeopardized the survival of small businesses. The devastation caused so far has put 110,000 small enterprises out of business. A recent study has shown that this accounts for 800 closures a day.
Just a couple of days ago, the attorney and economy analyst Ash Staub has published an insightful assessment which gives us proof that America’s small businesses are currently facing an attack on all fronts. His sharp argumentation elucidates how lockdowns, social distancing regulations, and mask mandates directly impact the functioning of small business, while on the other hand, major chains and corporations do not have their operations compromised.
Since restaurants and small retailers do not dispose of the same amount of space as big companies, nor have the same financial structure to launch online platforms or pickups and take-away services, following social distancing measures usually becomes a much harder task to comply. Additionally, when these companies do not obey the mandates, the fines tend to be a lot more detrimental to their finances.
Over the past three months, over 10,000 more restaurants closed across the country. The National Restaurant Association informed that up until now, 17 percent of all U.S. restaurants, which account for more than 110,000, have been closed permanently or long-term. But Congress didn’t seem to bother to help saving these businesses. Instead, they have been increasingly issuing employment regulations that unfairly expose small businesses to lawsuits and the consequent legal expenses and damages that may arise.
Regardless of the clear evidence that these policies disproportionally harm small businesses, they can rely on the excuse that their enaction is necessary to ensure the health of the public amid a ravaging sanitary outbreak, in that way, they’re shielded from any sort of criticism.
That’s the case of programs such as FFCRA, the program is exclusive for businesses with less than 500 employees and determines that employers must provide weeks of paid sick leave in several circumstances. That is to say, the FFCRA has explicitly enforced financial obligations on small businesses while exempting big corporations.
A recent poll has signaled that 48% of all small businesses still operating fear they won’t make enough revenue during the rest of Q4 to stay afloat, and now they are about to be wiped out from our economic landscape. On the same note, the NYPost has informed that the conditions of small businesses in New York and New Jersey is increasingly deteriorating. As of now, 27.8% of small businesses in New York remain closed. The same goes for New Jersey, where 31.2% of small businesses had not reopened. At the very least, this portrays an intentional lack of concern on the part of lawmakers to the struggles of small businesses.
Ultimately, what that means is that the elites have found the perfect loophole to swallow up smaller companies while also smashing their competition. Policymakers have been expressively facilitating this upward transfer of wealth to Big conglomerates at the expense of small businesses and millions of jobs. If their real intention was ever to protect workers they wouldn’t let hundreds of thousands of companies that are placed at the very basis of the American economy to tragically collapse. This winter will be marked by a dramatic wave of lay-offs and bankruptcies, and this whole calamity is happening by design.