PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

White House Needs to Reverse Course on Policy to Temper “Scorching Inflation”

By at 12 April, 2022, 12:50 pm

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. – In response to the Consumer Price Index data released today, which reported that inflation came in at a hot 1.2% in March and a scorching 8.5% over the past year, Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan and chief economist Raymond Keating offered the following observations:

Kerrigan said:

“Unfortunately, President Biden continues to blame the incorrect causes and push the wrong policies, which will only fuel inflation’s severity and longevity. Small business owners, Main Street entrepreneurs and their employees are getting hammered by rapidly-rising prices. Policies need to be providing as much relief as possible to dig the economy out of this mess. That means a full reversal of the burdensome regulatory and tax policies advanced and being pursued by President Biden that have created massive uncertainty and are driving costs higher. The longer this inflation mess goes on, the harder it will be to dig out of.”

Keating added:

“Inflation is a real and significant problem for entrepreneurs, for small businesses and their employees, for their customers, and for investors. Therefore, it hits all sides on the entrepreneurial undertaking, from raising funds, to the costs of inputs, to compensating employees, to pricing products, to dealing with uncertainties. It is critical, therefore, that policymakers get the policy response right, and that means the Fed getting focused exclusively on price stability, and President Biden and Congress turning to pro-growth policies, including tax and regulatory relief, and advancing free trade.”

As noted by Keating in his analysis of the CPI report The Inflation Genie and Looming Stagflation, he is worried about stagflation. A combination of tighter monetary policy and pro-growth tax and regulatory policies were deployed to beat it “the last time around.”

“That’s the policy combination needed today,” Keating adds.

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org

Raymond Keating, rkeating@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 25 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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