UPDATED 7:23 AM PT – Friday, April 29, 2022
President Joe Biden recently touted his economy as the GDP continues to shrink under his watch. On Thursday, the Democrat met with small business leaders to praise his administration contribution to the backbone of America. Biden noted the important role smaller enterprises play in the economy.
“Small businesses typically account for more than 40 percent,” he stated. “People don’t realize that 40 percent of the gross domestic product in the United States, they create two-thirds of all new jobs. They employ nearly half, nearly half, of all the private sector workers.”
Biden did not, however, mention the toll inflation and surging fuel prices has taken on the country’s entrepreneurs. A Goldman Sachs survey of 10,000 small business owners found 80 percent of respondents claimed to have suffered under the burden of inflation in the past six months. Furthermore, 60 percent of those surveyed said they had no choice but to pass those costs on to their customers.
However, Biden instead pointed to government aid as a saving grace of ailing businesses. He specifically praised his American Rescue Plan, which some economist believe kick started the country’s inflationary problem. The former vice president then pivoted to criticize the economic model proposed by Sen. Rick Scott (R-Fla.), which he claimed would hurt small businesses.
“Not only do they oppose making big corporations pay their fair share, they want middle class families and small business owners to pay more,” Biden claimed. “Our administration estimates that the Republican proposal would raise taxes on 6.1 million small business owners, including 82 percent of small business owners who earn less than $50,000 a year. It is just not right.”
In response, a spokesperson for Sen. Scott said Biden could learn a thing or two from the Republican. As the governor of Florida, Scott cut taxes 100 times during his tenure and balanced his state’s budget. In contrary, the Biden White House has overseen rising inflation, surging gas prices and costs for necessary goods.
Additionally, former Papa John’s CEO John Schnatter said Biden has put his heel on the neck of small businesses with over regulation, an artificial labor shortage and an overall hostility to entrepreneurialism. Meanwhile, a recent Commerce Department report shows the US economy shrank by 1.4 percent in the past quarter.