Main Street USA remains under siege from the Democrats’ inflation crisis. With inflation remaining at a level unseen for forty years, Democrats continue to spin falsehoods. Whether it’s reckless spending or out-of-touch policymaking, President Biden and Speaker Pelosi have pushed the United States economy into a recession. American families are feeling the pressures of the Left’s inflation crisis, especially at the grocery store. Inflation is here to stay if Democrats continue their radical policymaking.
The below September 2022 Small Business Snapshot features numbers and news updates to provide more insight into the current small business economy.
MAIN STREET MEASUREMENTS:
CONSUMER PRICE INDEX (INFLATION)
- The prices consumers paid for goods and services increased .1 percent in August as compared to July but totaled an 8.3 percent increase when measured over the last 12 months.
PRODUCER PRICE INDEX
- The producer price index decreased .1 percent in August but registered an increase of 8.7 percent year over year.
JOB OPENINGS
- At the end of July, businesses were unable to fill a staggeringly high 11.2 million jobs and a near record 4.2 million workers quit their jobs.
UNEMPLOYMENT RATE
- 315,000 jobs were created in August, and the unemployment rate increased to 3.7 percent. 5.5 million Americans are unemployed.
LABOR FORCE PARTICIPATION RATE
- The labor force participation rate increased to 62.4 percent in August.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
- For the week ending September 10, 2022, the Department of Labor reported that initial unemployment claims were 213,000.
PERSONAL CONSUMPTION EXPENDITURES PRICE INDEX (CORE PCE which excludes energy and food)
- The core PCE price index decreased to 4.6 percent in July when measured year over year.
BUSINESS FORMATION STATISTICS
- Business formation applications totaled 421,503 in August marking a decrease of 1.0 percent over last month.
HIGH PROPENSITY BUSINESS FORMATION STATISTICS
- New businesses categorized as having an increased likelihood of having employees and a payroll, otherwise known as High Propensity Businesses, totaled 138,533 (a decrease of 1.7 percent) in August.
CONSUMER SENTIMENT
- The initial consumer sentiment reading for September registered 59.5. In comparison, the September 2021 reading was 72.8.
COMMERCIAL AND INDUSTRIAL LOAN DATA
- Through August, commercial and industrial loans totaled $2.733 trillion.
SBA LENDING DATA
- The SBA approved a total of $23.5 billion 7(a) Loans through September 9, 2022.
NEWS YOU CAN USE:
Job Creators Network: “Job Creators Network Small Business Monthly Poll” (HERE)
- “The majority (54%) [of small business owners] continues to be concerned that economic conditions could force them to close their business.”
- “A majority of small businesses are concerned about crime (65 percent). That jumps to 85 percent for minority-owned businesses.”
- “Seven in ten (70%) [of small business owners] oppose Biden's plan to double the size of the IRS, causing more audits of individuals and small businesses.”
Heritage Foundation: “Heritage Expert on New Inflation Numbers: ‘American Families Still Losing Ground’” (HERE)
- “Despite the striking rise in prices during the Biden administration, the White House has announced a plan to bail out student loan debt holders, which could cost upwards of $1 trillion and make the inflation problem even worse.”
- “After casting blame in every direction for the inflationary storm they created, the Biden administration now wants to take credit for an inflation rate that remains nearly six times what it was when Biden took office. The reality is that American families are still losing ground because of his policies.”
- “People are demonstrably worse off today than when Biden became president. Real wages have fallen 5.5%, the annual equivalent of $3,000 for the average American.”
The New York Times: “Inflation Report Dampens Biden’s Attempt to Celebrate the Economy” (HERE)
- “Hotter-than-expected inflation in August was unwelcome news for President Biden, who has sought to defuse Republican attacks over rising prices in the run-up to November’s midterm elections.”
- “Republicans were quick to criticize Mr. Biden after the report on Tuesday. ‘Every day, Americans endure Biden’s economic crisis,’ said Representative Blaine Luetkemeyer of Missouri, the top Republican on the small business committee.”
- “‘The Democrats’ inflation continues to drive up costs and leads more and more small businesses and families questioning their future.’”
The Wall Street Journal: “Consumers Show Signs of Uncertainty Amid High Inflation” (HERE)
- “U.S. consumer sentiment ticked up in early September from historically low levels as Americans felt slightly better about the economy while expressing uncertainty about the future.”
- “The consumer sentiment index, a reflection of consumer attitudes on the state of the economy, rose slightly in early September but is well down from a year earlier, the University of Michigan said Friday.”
- “While consumers were more optimistic about the near-term economic outlook than earlier in this summer, when inflation touched a four-decade high, they expressed more pessimism about long-run economic prospects.”
Fox Business: “President Biden Argues About Inflation in ‘60 Minutes’ Interview: ‘It Hasn’t Spiked’” (HERE)
- “President Biden attempted to downplay the U.S. inflation crisis during a ‘60 Minutes’ interview, claiming that the month-to-month rate has "hardly" risen – which prompted his CBS interviewer to dispute his response.”
- “CBS correspondent Scott Pelley asked: ‘Mr. President, as you know, last Tuesday, the annual inflation rate came in at 8.3%. The stock market nosedived. People are shocked by their grocery bills. What can you do better and faster?’”
- “Biden quickly told Pelley he needed to ‘put this in perspective’ and that the inflation rate month-to-month was ‘up just an inch, hardly at all.’”
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