Inflation's Impact on Small Businesses and the Role of Government

With the current inflation rate hovering around 3.36% during Biden's administration, many small businesses are facing unprecedented challenges. Much of the blame is being placed on the government's economic policies and regulatory oversights. This article delves into the key drivers of inflation, the impact on small businesses, and the role of government regulations in exacerbating the situation.

Understanding Inflation's Drivers

Several factors contribute to the current inflationary environment:

1. Trump's Economic Policies

During the previous administration, the combination of massive tax cuts for the wealthy and an increase in the national debt without a corresponding decrease in spending led to a significant devaluation of the dollar. This phenomenon, unfortunately, contributed to higher inflation rates. Additionally, poorly thought-out import tariffs created artificial scarcity, leading to steep increases in the prices of many goods. These tariffs particularly benefited foreign producers while heavily burdening American consumers.

2. The OPEC Oil Deal

The deal with Saudi Arabia to cut OPEC oil production by 25% led to a dramatic increase in the price of crude oil, which in turn pushed up the price of gasoline. This decision, the most inflationary action any president has ever made, significantly impacted the American economy.

The Current Inflation Rate

It's essential to distinguish the current inflation rate from historical highs. The actual inflation rate during Biden's administration is around 3.36%, with a peak at 9%. For context, the annual inflation rate has only reached 20% once in 1918. These figures, which can be verified through multiple reputable sources, offer a reality check on the current inflationary environment.

Regulations and Their Impact on Small Businesses

Regulations, both legal and illegal, play a crucial role in inflating costs for small businesses. When government regulations are excessive, they can stifle growth and innovation, ultimately harming businesses and consumers alike.

1. Excessive Government Regulations

Regulations created to protect certain groups or industries can often create artificial barriers to entry, leading to higher costs for consumers. For example, stringent environmental regulations can increase operational costs for small businesses, potentially pushing them to the brink of failure.

2. Removal of Illegal Regulations

Illegal regulations, such as those that force individuals off their properties or remove people from their homes and farms, are not only harmful but also unethical. These practices should be immediately addressed and reversed to ensure fair treatment of citizens and businesses.

The Constitution and Government Overreach

Reading the Constitution reveals that it limits government's role and specifies areas where government cannot intervene. When government overreaches, it can diminish individual freedoms and liberties, effectively creating a state of slavery. Bill Gates' influence in installing individuals who may not prioritize Constitutional obedience in government positions underscores the need for vigilance and accountability.

Ultimately, the balance between economic stability, regulatory compliance, and individual liberties is critical. By understanding the drivers of inflation and the role of government, we can better navigate these complex issues and work towards a more stable and equitable economic environment.