The Biden economy is killing small businesses and seeing personal savings accounts dwindle to historic lows as Americans deal with another round of depleting wealth.
The last significant blow to personal wealth and U.S. small business owners came during Covid pandemic when lockdowns instantly closed over 30 million small businesses and depleted individual savings accounts. In June 2020, during the height of the pandemic response, CNBC Mad Money host Jim Cramer said the U.S. was going through “one of the greatest wealth transfers in history.”
Inequality.Org reported that U.S. billionaires amassed an extra $1.5 trillion in wealth during the nation’s Covid response. “There are 728 billionaires with a combined wealth of $4.48 trillion, an increase of $1.5 trillion compared to mid-March 2020,” the group reported on Nov. 21. “Combined U.S. billionaire wealth prior to the pandemic was just under $3 trillion.”
President Joe Biden’s policies continue to help billionaires gain assets while regular Americans are witnessing their personal savings accounts hit historic lows. October 2022, personal savings data from the Federal Reserve Bank of St. Louis found Americans have spent over $20 billion out of their personal savings accounts since September.
This is fine. pic.twitter.com/Q4FzSWg83e
— Sven Henrich (@NorthmanTrader) December 1, 2022
“Actual personal savings levels have plummeted to the lowest levels since the GFC (Global Financial Crisis),” warned financial market strategist Sven Henrich. “So when the Fed claims there [are] all these great savings out there, I don’t know what they are talking about.”
While analyzing the first three months of data from the pandemic for the National Bureau of Economic Research (NBER), Robert W. Fairlie, a research associate for the University of California, Santa Cruz, found the effects of the nation’s Covid response caused the largest drop in small business owners still able to operate.
“The number of active business owners in the United States plummeted by 3.3 million or 22 percent over the crucial two-month window from February to April 2020,” the NBER report found. “The drop in active business owners was the largest on record, and losses to business activity were felt across nearly all industries.”
Similarly, Biden’s economy is making it hard for small business owners to afford to pay their rent, according to the latest Alignable rent report. Alignable’s poll of 6,326 small business owners from Nov. 19-22 found that 41% reported they could not pay their rent on time or in full in November. This marks a record high, according to the poll.
U.S. small business owners said economic pressures such as ever-increasing inflation, reduced consumer spending, and higher rents are forcing more delinquent payments. The concern over small businesses affording their rent payments is only trending up, according to the poll. In September 2022, 30% of small business owners reported to Alignable about being delinquent on their rent. That increased by 7 points in October and another 4 points in November, the data showed.
This is all at a time when small business owners would historically have an easier time paying their rent in full and on time due to U.S. Christmas spending habits. But rent is only getting more challenging to pay, proved by delinquency rates climbing 11 points in two months.
Among small and medium business (SMB) owners, 52% reported to Alignable that their rent was higher than last month, a 1-point increase from October. As the price of rent has increased, small business owners have been noticing a drastic decline in earnings. Thirty-four percent of SMBs in October told Alignable their monthly revenue was half or less of their pre-COVID income. There was a 7-point increase in November, with 41% of owners reporting making half or less than before Covid.
A significant portion of the decline in revenues can be connected to reduced consumer spending, according to small and medium business owners in the poll who reported it being at historic lows. Fifty-nine percent of small and medium businesses told Alignable that customer spending had decreased from September. That number shockingly increased in November despite being prime Christmas shopping season. Over 7o% of SMBs reported that consumer spending in November was less than in the previous month.
Small Businesses collapse under Biden.
41% of small firms couldn’t pay Rent this month.
73% report that Consumers are spending less.
It’s imperative that the incoming House GOP start fixing this mess!https://t.co/6Zz6mlVWdf pic.twitter.com/LAhNOL2lcf
— Steve Cortes (@CortesSteve) November 26, 2022
Although inflation is slightly lower than earlier peaks, 60% of SMBs told Alignable it still affects and is hurting their business. Just 24% of small businesses told Alignable they were earning as much, if not more, in October 2022 than before the Covid lockdowns. By November, that number hit an all-time low, with only 14% saying their revenues were at least back to pre-Covid levels.
Inflation is hitting small retail businesses hard, with 10% reporting they might have to shut down due to inflation and another 1% claiming that inflation has already shut them down. Forty percent of retail shop owners expect their current fourth quarter revenues to be lower than their earnings in the same quarter of 2021, with 41% saying fourth quarter sales have been disappointing so far, Alignable found. Even worse, 52% say their financial standing won’t be getting better soon.
The poll also found that 44% of retailers could not afford their November rent payment, a 1-point increase from October’s percentage. Only 8% of retail SMBs owners reported to Alignable that their 2022 quarter-four sales would be better than the previous three.
Real estate, construction, and beauty SMB owners told Alignable their businesses were still experiencing issues causing concern. November did not bring improvements for real estate businesses due to rising interest rates, which in turn has caused home sales to continue declining.
Over the last two months, 37% of real estate agents complained about being unable to pay their rent. The construction industry fared worse than real estate, with a record high 42% of construction company owners delinquent on their rent payments, a 3-point increase from October.
And all without firing a shot….just as planned.
Time to make use of the Parallel Economy so that we give as little as possible to big Corp backing the Communists.
Here is something interesting. If the history of Israel as recorded in the old testament will shed light on government corruption, then let us apply the lessons to our current situation. When the Israelites demanded a king to rule over them, God told them that if He allowed a king, then the government would demand more taxes and draft their sons to fight wars more so than what His current plan under the judges He appointed would do. Nevertheless, they demanded a king, and Saul was put in power in accordance with the will of God. Since that time, the government(s) of all the nations of the world have evolved into an industry to rob the people it is supposed to serve, and force their sons and now daughters, into service during war. The government has effectively replaced the church as the beneficiary of our local communities. We have watched our own county decompose from the inside out to the place where the extremely wealthy are the recipients of the blessings of government while the common folk pay the bill, and scrape by with what the government allows them to keep. It’s not going to get better. It’s going to get much worse…all because our elected leaders have embraced immorality in the form of gay rights, same sex marriage, abortion on demand, bribery, kick backs, back room “brother in law” deals, and have kicked God out of schools and government! We are reaping what we have sewn as a nation, even if a majority of us are Christians. God has removed His glory from our nation. “Ichabod” has been written over our door.