PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Weak GDP a Predictable Outcome of Damaging Policies, Says Small Business Group

By at 28 October, 2021, 2:57 pm

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. – Weak GDP numbers released today by the U.S. Bureau of Economic Analysis reveal a fragile economy that, according to the Small Business & Entrepreneurship Council (SBE Council), is the result of federal policies that are fueling doubt and significant hardship for many Americans and small businesses.  SBE Council president & CEO Karen Kerrigan said the economy and business sector need time to heal and reset from the COVID-19 crisis, but tax, regulatory and spending policies being pushed by President Biden and his allies in Congress are causing only more disruption and pain.

(See SBE Council’s GDP analysis, Third Quarter GDP: The Economy Slows Dramatically.)

Kerrigan said: “What’s sad and frustrating is that the negative trends and weak growth revealed in the GDP data did not have to happen. Our economy was poised for solid growth and recovery, but costly and intrusive government policies have chipped away at optimism, along with household and business resources. President Biden and his team are doing so many things wrong, as demonstrated not only by today’s GDP data but also by the severity of other problems facing small businesses and our economy, such as the supply chain mess, inflation, labor shortages, high gas and energy prices and more. Instead of fixing these things, Biden Administration policies are making matters worse, and breaking more things.”

SBE Council chief economist Raymond J. Keating added:

“More big government dressed up in ‘Build Back Better’ will not pull the U.S. out of the pandemic economic woes. The recovery has been happening and expansion will happen thanks to entrepreneurs, businesses, investors and workers innovating, creating, building and producing. Vast increases in government expenditures will only drain resources from the private sector, whether via taxes or borrowing, which works against economic growth, to be used for a laundry list of political preferences. And the current round of tax increases – albeit they are much less harmful than what was previously proposed – are still very damaging. These worn-out class warfare ideas, such as increased taxes and tax rates on upper-income earners who also happen to overwhelmingly be entrepreneurs and/or investors, and a global minimum tax among other measures will only damage our economy. This amounts to a ‘Don’t Bother to Build’ plan.”

SBE Council has encouraged the Biden Administration and Congress to proceed slowly on the policy front given the massive economic damage and dislocation caused by COVID-19. They plan to double down on that message.

Kerrigan added, “From the very beginning of this Administration and the current Congress we have urged policy restraint and certainty. What is happening in our economy – slower growth and troubling conditions across markets – is exactly what happens when government sends an anti-business policy signal.  We can only hope the Administration heeds the warnings and begins to listen to the business community.”

Contact:

Karen Kerrigan, kkerrigan@sbecouncil.org

Raymond J. Keating, rkeating@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 27 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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