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Is the US Government Waging a War on Small Business: Unchecked Inflation and Rising Costs Threaten Entrepreneurs

Posted by Sugga on Aug 8th 2024

Is the US Government Waging a War on Small Business: Unchecked Inflation and Rising Costs Threaten Entrepreneurs

In the beginning of 2022 we sold our products in almost 200 stores across 10 states. Since then we have witnessed almost 80 “mom & pop” stores close their doors. The majority said they were just not making the profits needed to stay open and they were just tired of fighting the constant up-hill battle. It is hard enough to compete against giants like Amazon and Walmart. But it is impossible to compete against our very own governments. I am not just talking about the Federal Government, but state and local as well, who has stacked the deck against small business to favor those giants.

Look in the current economic climate, small businesses across the United States are feeling the squeeze as unchecked inflation, rising postal rates and skyrocketing material costs create an increasingly hostile environment. Many voices argue that the federal government's policies are disproportionately harming the backbone of America's economy. With inflation rates hitting unprecedented levels, the costs of goods and services are escalating, making it harder for small businesses to maintain profitability and remain competitive.

Inflation, now at a multi-decade high, is eroding the purchasing power of consumers and businesses alike. The Federal Reserve's monetary policy and the federal government's excessive spending are seen by many as primary drivers of this inflationary surge. As the cost of living increases, so does the operational cost for small businesses, which struggle to keep pace with the rising prices of everything from raw materials to energy. This inflationary pressure is particularly detrimental to small businesses, which often lack the financial flexibility to absorb such rapid cost increases.

Compounding the problem of inflation are the rising rates of the U.S. Postal Service. As postal rates climb, small businesses that rely on affordable shipping options are finding their profit margins increasingly squeezed. For many, especially those in e-commerce, the cost of shipping can make or break their business model. Adding to these woes, big businesses like Amazon and Walmart have strangled off almost all local merchant foot traffic and sales, making it even harder for small businesses to compete. The recent rate hikes are perceived by many critics as another example of the federal government's mismanagement, further burdening small business owners who are already grappling with a host of economic challenges.

The rising cost of materials is really hurting small businesses these days. Global supply chain disruptions, made worse by certain government policies, have caused shortages and driven up prices for essential goods. This situation hits small manufacturers and retailers the hardest because they typically work with thinner profit margins and can’t just pass these extra costs onto their customers without losing business. Manufacturing is really feeling the pinch, as they’re dealing with unprecedented material costs that threaten their ability to keep going in the long run. For example, a local builder might find it nearly impossible to stay competitive when the price of lumber or steel skyrockets. Similarly, a small soap manufacturer may struggle to source affordable ingredients, putting their entire operation at risk. Without some kind of relief or change in policy, the future looks pretty uncertain for many of these types of businesses.

Unchecked inflation, rising postal rates, and increasing material costs are straining small businesses in the U.S. While some blame federal policies, the real issue lies with we the people prioritizing cheaper and more convenient options for purchasing our goods, allowing large corporations to dominate both the economic and political landscape. This has created a most challenging environment for small businesses. The American entrepreneurial spirit is at risk without significant policy changes. It's crucial for everyone to support each other and advocate for what's best for the community and the American Heartland.

Stay Suddys My Friends.