Trump’s Policies May Be Exactly What American Small Businesses Need
Although it is relatively early into Trump’s Presidency, the current mood among small business owners and entrepreneurs is one of tentative jubilation. Even steadfast opponents of his administration must admit that Trump is staunchly pro-business. His promises to repeal healthcare reforms, roll out tax breaks and introduce significant stimulus packages, could be extremely positive for those in the business sphere.
Healthcare reforms under Obama, although beneficial to the 30 million previously uninsured Americans, were not so positive for SMEs. Since 1999, the premiums that companies pay have increased by 119 percent, leaving business owners feeling the strain. Budgeting and forecasting software can help with these issues but at the end of the day higher premiums mean less capital to re-invest into future ventures. Trump’s promise to revoke these reforms has been music to the ears of those with small to medium businesses. You can almost feel their optimism returning and it may just lead them to begin investing seriously again.
Considerably more controversial is Trump’s promise to cut income-tax across the board, benefiting the mega-rich. There are those who will recoil at the thought of lining the pockets of the wealthy instead of focusing on the population living on the bread line. However, tax cuts increase business confidence leading to growth, job creation and a healthier economy. Though a difficult pill to swallow for some, decreasing tax for the affluent will benefit SME owners the country over.
Left-wing commentators who were pro-borrowing and pro-debt under the Obama administration are now warning that Trump’s stimulus packages may lead to economic disaster. Aside from being astonishingly hypocritical, their fears could well be completely unfounded. Since the financial crisis, we have seen a rise in global austerity and if anything, it appears to have prolonged the struggle for business, particularly smaller enterprises. Trump’s approach to recapitalizing the American landscape will create jobs thus increasing the buying power of the population. With more cash-rich consumers to sell to, the future for small-medium business may be a bright one after all.
Trump’s election was divisive to say the least and his policies look to be going the same direction, yet Trump’s strategies could be exactly what SME’s need. Of course, if Trump’s leadership is erratic and dysfunctional, market confidence will quickly sour. Only the future will tell.