Small Business Bankruptcies Reach Worrisome Level As Biden Touts Rising Business Formation | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    Small businesses impacted by the current economic tumult are filing for bankruptcy at levels last witnessed at the outset of the lockdown-induced recession, even as President Joe Biden touts an uptick in new business ventures.

    Economic phenomena such as inflationary pressures, as well as the rising interest rates caused by monetary tightening from the Federal Reserve, had produced an increase in the number of small and medium-sized businesses filing for bankruptcy, according to a note from investment bank UBS obtained by Business Insider. Fears of a credit crunch amid the failure of multiple banks worsened the rise in bankruptcies. The number of business closures surpassed the peak witnessed three years ago when governments implemented lockdown mandates.

    The number of monthly bankruptcy filings reached nearly 32,000 as of February 2023, an 18% rise from the 27,000 bankruptcy filings seen in February 2022, according to data from the American Bankruptcy Institute. Chapter 11 bankruptcies, which are typically used by larger businesses because of their more complex nature, increased by 83% over the same period.

    Communications from the White House have nevertheless downplayed the present economic challenges and the burdens they create for small businesses. Biden has repeatedly cited the overall higher rates of new business formation over the past three years, as noted by data from the Census Bureau, without noting the phenomena which have simultaneously weighed upon entrepreneurs.

    "When I came into office, this economy was reeling. Small businesses were hurting. Literally hundreds of thousands of small businesses had closed across the country. Millions of Americans, many of whom worked in small businesses, lost their jobs through no fault of their own," Biden said last week. "To jumpstart American economic recovery, we needed to help the small businesses and we needed to help them fast. So we got to work."

    The commander-in-chief claimed that the American Rescue Plan boosted the economy by delivering emergency loans to millions of businesses. Critics have asserted that the stimulus package worsened labor shortages by extending enhanced federal unemployment benefits established amid the recession, a reality which thereby increased price levels.

    The budget proposal unveiled last month by the White House would increase the corporate tax to 28%, which would split the difference between the current 21% rate and the previous 35% rate that was in effect before 2017. One in four businesses registered as corporations are small businesses, according to data compiled by Americans for Tax Reform, implying that the higher taxes would negatively impact smaller employers.

    Biden has likewise contended that his policies have lowered inflation in recent months while neglecting to mention that price level increases are currently four times higher than the rates observed when he assumed office two years ago. "We are making progress in the fight against inflation," he said last week in a statement. "The fight against inflation isn't over, and every day my administration is working to give families more breathing room."

    Inflation has a more severe impact on low-income households, which typically allocate a greater portion of their monthly income to core living expenses relative to wealthier families. Real wages plummeted 1.9% between February 2022 and February 2023, according to data from the Bureau of Labor Statistics.

After one full year of the Biden /Harris Administration: Does Joe Biden have the intellectual capacity, and, or the energy to lead the United States of America through the mess that he predominately created ... in just one year?
1,043 total vote(s)     What's your Opinion?

With the Midterm Elections less than one week away: What do you consider the top issues that you will be voting on to be corrected by your better representation?
  Big Government getting Bigger
  Biden /Democrat controlled Spike in Energy Cost
  Inflation created by Legislation of Majority in Power
  Gender Reassignment
  Corrupted Bureaucratic /Service (DOJ, FBI, etc.) Institutions
  Discredited Legacy Media
  Ending the Corruption of Dishonest Politicians
  Corruptive Influence of Social Media
  Wide Open Southern Border
420 total vote(s)     What's your Opinion?

Go Back


Latest State and Federal

Fox News is reportedly set to replace its entire primetime lineup with three of the network’s biggest hosts, according to a new report.
The U.S. Food and Drug Administration finalized its recommendations to expand eligibility for blood donation to include gender-inclusive, individual risk-based questions to reduce the risk of transfusion-transmitted HIV.
President Joe Biden and House Speaker Kevin McCarthy (R-CA) each said on Tuesday that they made progress on debt ceiling negotiations, indicating thaws in an impasse as the nation faces a possible debt default in two weeks.
Congressmen Jim Jordan (R-OH) and Lance Gooden (R-TX) issued a joint letter calling attention to the potential use of federal funds to enable illegal immigration into the United States.
When the North Carolina Supreme Court ruled on our state’s voter ID law on April 28th, the justices only had to answer one narrow question: “[Does the voter ID law] violate the meaningful protections set forth in Article I, Section 19 of the North Carolina Constitution?”
A top House Republican wants the Internal Revenue Service (IRS) to clarify what is happening with the criminal investigation into Hunter Biden after lawyers for a whistleblower within the agency claimed his team got removed from the case.


Fox News settled a bombshell defamation suit stemming from the 2020 election by paying Dominion Voting Systems nearly $800 million just hours after the the beginning of a trial that would have seen some of the cable news behemoth’s biggest stars take the witness stand.
North Carolina Republicans voted to override Democratic Governor Roy Cooper’s veto of a 12-week abortion ban, using their supermajority to put the pro-life measure into law.
House Speaker Kevin McCarthy (R-CA) defended the tentative agreement on the debt ceiling he made with President Joe Biden during a press conference Sunday after criticism from some Republicans on the concessions, saying the deal is “worthy of the American people.”
A federal judge is allowing a Cleveland County Emergency Medical Services worker to proceed with a potential class-action lawsuit dealing with overtime pay.
“The world needs more fossil fuels,” according to Alex Epstein, founder of the Center for Industrial Progress. Epstein argues that the benefits of energy sources such as oil, coal, and natural gas far outweigh the costs.
Two recent news stories about educational institutions in our state illustrate the truth of that statement.


As lawmakers in the General Assembly are poised to consider a bill that would streamline the process of approving new charter schools, a statewide charter advocacy organization reports that more than 77,000 students remain on waitlists to join charter schools.


Back to Top