Small businesses are the lifeblood of the American economy. They employ the majority of the country’s employees and are part of the character of their community. However, small businesses are becoming endangered, as evidenced by the growing number of closings. There are many reasons for the trend, and most are the product of Left Wing policies. The Democrats have all but declared war on small businesses.
Portland, Maine, has become a mecca for restaurants and is a destination for fans of dining and drinking north of Boston. Portland is an example of a national dilemma. These restaurants employ dozens of people, from waitpeople and kitchen staff to chefs and bartenders. The success of Portland has bred its own issues. There is a tremendous housing shortage in Portland, as in most cities in the country, which is driving up housing costs, making it prohibitive for employees to live near their jobs. This is one of the factors in the worker shortage that is plaguing all business sectors in America. Not enough people are willing to work to fuel the economy that desperately needs to grow.
The boom that we saw in the last five to ten years is starting to show signs of reversing. In the last month, at least six restaurants in Portland have closed their doors or announced closings. Just today, 7-11 announced it would be closing 400 locations. 7-11 operates over 9,000 stores in the U.S., but that is down from nearly 13,000 in 2023. There does not appear to be a day that goes by without some national company announcing closings. It is discouraging and perplexing as simultaneously with these announcements, the stock markets hit new high marks. It is also difficult to rely on government statistics as every job, unemployment, or inflation number published gets adjusted negatively the following week.
One of the most significant new policies putting a stranglehold on small business profits is skyrocketing minimum wage. In most cases, you are looking at the high side of $20 for unskilled entry-level personnel. The minimum wage began as a protection for young people starting their first job. Now, Democrats want the minimum wage to be a living wage. What must a head chef or bartender expect for an hourly rate if you pay $23/hour for the person washing the glasses? Democrats do not understand basic business practices and certainly do not comprehend what the minimum wage restructuring has done for owners who may still be recovering from COVID-19 and are also trying to absorb the hit from inflationary cost increases.
If Harris pulls off the upset in November, there will be more closings as broad-based tax increases take hold. Harris is not a business-friendly politician, and Tim Walz sat by and watched Minneapolis burn. The final element to discuss here is the increase in crime gripping America due to overcrowding, mental/emotional issues, and illegal immigration. This crime trend hurts inner-city businesses that people are not visiting at night because of fear. Democrats point to the stats that show crime is down, but the numbers are tainted. If you do not report crimes, hold people responsible, and have ramifications for those who violate the law, then, of course, you can lie and say crime is down.
This wide-scale problem is not easy to fix. We need the government to handle the safety issue and then get out of the way and let businesses be creative and prosper. The free market will resolve wages through competition, and we need to start thinking about Americans first before we spend a dollar on illegal migrants. We need a moratorium on new regulations and laws impacting small businesses and let the sector find its equilibrium.
