Bidenomics Hurts Small Businesses and the Middle Class
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Bidenomics Hurts Small Businesses and the Middle Class

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Bidenomics Hurts Small Businesses and the Middle Class

by Alfredo Ortiz

“That’s Bidenomics in action,” boasted President Biden on Thursday in response to the monthly inflation report that showed prices rose by around twice the Federal Reserve’s target rate over the last year. That’s nothing to brag about. In fact, over the course of Biden’s term, prices of goods and services are up by nearly 20%. The price of a gallon of gas is up around two-thirds since he took office.

What’s more, due to the Federal Reserve’s efforts to tame Bidenflation, mortgage rates are nearing 8%, and small businesses are paying double-digit interest on new loans — if they can get credit at all. As Laura Lacy, who owns Attic Brewing in Philadelphia, explained recently, “Everybody I’m talking to who needs a loan right now isn’t able to get one.”

As a result of these Bidenomics, Americans face a cost-of-living crisis and a credit crunch. This painful inflation is reducing real wages and eroding living standards. It’s eliminating small businesses already-thin profit margins. According to JCN’s most recent national SBIQ poll, half of small business owners say inflation is a top concern, and two-thirds are concerned about accessing credit due to rising rates.

As the Denver Post reported recently, “Finding a way to pay the monthly bills is forcing small-business owners to consider all options: from cutting back staff and hours of operation, to changing a business’ focus and raising prices, to moving into a smaller space, and even to making the difficult decision of closing up shop.”

Saga Pastry and Sandwich in Las Vegas was forced to close last year due to what owner Gert Kvalsund described as “skyrocketing” prices. The Scandanavian eatery couldn’t pass these increased costs on to its consumers. “When it comes to prices, there’s only so much that people will pay for a sandwich and a waffle,” said Kvalsund.

The Den Smokehouse & Brewery near Fresno, California, was also recently forced to close because it couldn’t keep up with Bidenflation. “We were buying tri-tip for $3.89 a pound, now we are up $8, maybe $9 a pound,” said owner Caleb Walker, whose deep fryer oil costs also increased from $20 to $44.

Walker tried to offset these costs by raising the price of his tri-tip sandwich from $11 to $16. Yet at those prices, middle-class customers eat at home. “It’s pretty depressing,” said Walker. I “spent a lot of time, a lot of effort, a lot of money.”

No wonder only 28% of Americans are satisfied with the economy, according to a new NBC poll. The poll revealed Republicans hold a 21-point advantage over Democrats on the economy, the party’s largest lead in 32 years.

Even some Democrats are beginning to turn on Bidenomics. “Dems pressure White House to change economic message,” reports Politico. Axios explains, “The Biden re-election campaign’s decision to brand the economy under the president’s name is looking like an early blunder that misread the public’s deep pessimism about how things are going on that front.”

I’d go further and say Bidenomics is the worst branding fail since the New Coke debacle of 1985.

Bidenomics’ reckless spending, including the projected $1.7 trillion 2023 deficit, has led to too many dollars chasing too few goods, bidding up prices, and diluting the currency already in existence. This spending comes on top of several trillion dollars worth of unneeded spending packages passed during the first two years of his presidency.

Biden is also partly responsible for the $4 gas burdening families, consumers, and businesses. He recently blocked hundreds of millions of barrels of oil in Alaska that could increase supply, rebuild the depleted strategic petroleum reserve, and bring down prices. From Day 1 of his presidency, when he canceled the Keystone XL pipeline, Biden has waged a war on traditional energy, contributing to today’s pain at the pump.

As a result of these higher costs, small business bankruptcies are surging, credit card debt is at record levels, and ordinary families are financially stressed.

Declining living standards. Consumers tapped out. Families struggling to make ends meet. And small businesses closing. That’s Bidenomics in action.

Alfredo Ortiz is president and CEO of Job Creators Network, author of The Real Race Revolutionaries, and co-host of the Main Street Matters podcast.