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What Would A Biden Presidency Look Like For Small Businesses?

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Trump’s recent impeachment has surely played with the masses’ minds on who could potentially take his place, and no stranger to the nominees is Democratic frontrunner and former Vice President Joe Biden.  In his recent debate, many considered him to be the current field’s best candidate to take President Trump’s position. With the myriad of possibilities, The Marks Group founder Gene Marks expressed his opinions on what the small business sector could expect if Biden ever supersedes the presidency.

ObamaCare Would Be Back

If the Trump administration brought about a six to eight percent surge on the nation’s health care costs, Biden’s would likely differ slightly. After unveiling a public health insurance plan that builds on ObamaCare and known as a strong supporter of the Affordable Care Act, a Biden presidency could trample Trump’s initiatives and health plans by largely depending on and expanding former ObamaCare rules, such as the individual mandate. Odds are, the approach would address health care challenges faced by small companies by potentially stabilizing health care costs or even provide affordable options for those seeking to veer from their company’s health plan in an attempt to minimize expenses.

Small Business Tax Hike.

Here’s the twist. Although Biden’s health care plans sound hopeful, it is evident that his spending plans are quite extravagant, more so his environmental and infrastructure initiatives. This could mean that as he works to effectuate these blueprints, higher taxes would be demanded. A known contender of Trump’s 2017 tax reform package, Biden’s tax plans are more directed on imposing higher tax rates on wealthier individuals and corporations. This means that if you belong to the highest earning tax brackets with your investments’ capital gains or your plans on selling your business, filing a C-corporation tax return would bring you less benefits tax-wise as your rates increase.

Employment Costs Will Rise

Biden’s support of a $15 hourly national minimum wage (that would dramatically increase pressure on all wages), mandated paid time offs, and labor plans that would strengthen unions’ negotiating power, eliminate workers’ non-compete agreements, and reboot the classification of employees as independent contractors (all while a multitude of small businesses depend on outside contractors for specific duties) would mean that a Biden administration would call for higher employment costs. Picture this: America’s low-unemployment economy with small employers shaking at larger competitors’ ability to generously compensate workers would negatively affect employment and labor costs for small businesses as wages hoist and time offs become charged.

China Trade Wars, Big Tech, & Wall Street Would Stagnate

Biden’s large inspiration from anticompetitive Big Tech giants; call for “new rules” and “new processes” on China; and his link to the Dodd-Frank Wall Street Reform and Consumer Protection Act infer quite a notion that Biden’s administration would largely ‘settle’ with the current’s activities rather than significantly improve those. For the record, his long relationship with credit card industries and the financial services sector could already hint a bias. For small companies, this would mean that their use of Big Tech could result to their abuse by this; the state of the financial services they receive would likely stay put; and whatever Trump’s trade deal with China would proceed.

Lastly, Biden Would Be An Entrepreneur’s Choice

As a seasoned politician himself, he favors the dropping of oppressive licensing regulations for certain specialized occupations and for immigration. Biden would also make investments in education and provide more funding for small businesses and entrepreneurs supported by local and regional organizations.

In summary, Biden’s big-budget presidency, like some other major Democratic candidates, could replace the current administration’s pro-business but controversial president. For small businesses, in short terms, this just means more expenditure to be imposed by a politician yet more welfare services, too.

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The latest weekly indicators indicate a significant decline in consumer confidence due to mounting debt

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Weekly Indicators: Consumer Confidence Drops Sharply As Debt …

Introduction

Welcome to our analysis of this week’s economic indicators! In today’s blog post, we will focus on the sharp decline in consumer confidence and its impact on the economy. Also, we will explore growing concerns about increasing levels of consumer debt. We will dive into ten different aspects that provide a detailed view of the current market scenario and its potential consequences.

Consumer Confidence: A Decline Worth noting

In recent weeks, consumer confidence levels have seen a sharp drop across various regions. This decline is intrinsically linked with the overall health of the economy, as it reflects how optimistic consumers are about their household financial situation and the job market. When consumer confidence is low, spending decreases, investments falter, and ultimately economic growth slows down. It is essential to understand what factors contributed to the drop in consumer confidence recently. Some causes include inflationary pressures, global economic uncertainties, and fluctuations in financial markets. These challenges can lead to a decrease in disposable income, rising unemployment, and increased anxiety over future prospects. To illustrate the significance of the drop in consumer confidence, consider: – A nation grappling with high inflation rates and stagnant wages inevitably experiences a decrease in consumer confidence, resulting in lowered spending habits. –

  • Higher prices for everyday goods and services

  • Wage growth not keeping pace with inflation

  • Limited disposable income

  • Growing consumer pessimism

  • Reduced consumer spending on non-essential items

  • Lower demand for products and services impacting businesses

Debt Concerns: A Growing Menace

Simultaneously, there has been growing concern about the increase in consumer debt levels. High debt can negatively impact the economy by making it difficult for borrowers to manage their financial obligations and affecting the stability of the financial system. It can also lead to a vicious cycle, with debt-laden individuals finding it harder to access credit or save for the future. Higher debt levels result from various factors such as the ease of obtaining credit, low-interest rates, rising cost of living, and slow wage growth. When consumers are unable to keep up with their debt payments, default rates increase, which affects the lending institutions and can potentially send ripples throughout broader economic sectors. Imagine a scenario where consumers take on substantial debt over time, fueled by easy credit access: –

  • Shopping sprees financed through high-interest personal loans

  • Frequent use of credit cards without timely repayments

  • Struggling with multiple loans and debts repayments

  • Increased default risk on loans

  • Lenders becoming cautious around loan approvals

  • Credit score decline impacting future borrowing prospects

Summary Table

Indicator Trend Impact
Consumer Confidence Declining Decreased spending, slowed economic growth
Debt Concerns Rising Financial instability, higher defaults, restricted credit access

As we continue to monitor weekly indicators, it’s essential to assess both consumer confidence and consumer debt levels. Understanding their causes and potential consequences can help formulate policy decisions aimed at mitigating their impact on the economy. An astute evaluation is vital to ensure steady economic growth and prevent unwanted setbacks or crises in the future.

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Keeping End-of-Year Finances in Check

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Sometimes, the holiday season is not full of wonder and merriment. The gift-giving culture associated with the holidays can be a source of stress and frustration, especially with the ongoing pandemic, economic downfall. Here is how you can keep your finances in check to cap off 2020 by being financially aware.

Holiday Questions

It is no secret that the ongoing pandemic has affected the economic lives of people. While the holiday season promises a short relief from the doom and gloom of the pandemic, more and more individuals are located on opposite sides of the spectrum when handling finances during the holidays. Others want to go all out to celebrate the hardships that 2020 brought, while others are more practical and tend to be more frugal in their holiday spending.

Here are some of the frequently asked questions about how to manage money during the end-of-year season to have a balance between sharing your love and care to the people you love while not breaking the bank.

How Do I Keep from Overspending during the Holidays?

Give the gift of your time and talents.

Gifts come in many shapes and forms, and while the gift-giving culture primarily revolves around how much money you have spent on a gift… Gifts can also come in the form of time and talents! For example, if one of your friends desperately need time for self-care activities or a date with her husband, you can volunteer to babysit their kids in one evening! If you know your friend is getting married and you have an amazing voice, you can ease up their burden of looking for a wedding band and volunteer to become a wedding singer free of charge!

Make your wish list before going shopping online.

While shopping online is becoming more efficient, it can be distracting to put more in your cart than earlier anticipated. One way to not spend more on your holiday gift list is to make a wish list first and, most importantly, stick to it!

Spend within your means.

Yes, with the pandemic, money may be tight, and it is more practical to let go of luxury items (because who needs a $5000 designer bag if you are not a Kardashian, right?) and make do with practical and useful gift items.

I Will Be Using My Credit Cards for All My Holiday Shopping. What Are Your Thoughts on Best Practices?  

With cashless payments slowly becoming a trend, more and more people are attracted to pay using credit cards. Credit cards are a great way to pay for bulk holiday items because most credit card holders provide a generous cash-back system that can pay you back from 1% to 5% of your purchase fees. You have to look out for sure that your chosen credit card has no annual fees, which means you will not pay any interest in your purchases. Another word of caution is to again spend within your means so that your credit card debt will not be carried out through the spring season.

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Airbnb Bounces Back amidst Covid-19 Pandemic

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It comes as no secret that the Covid-19 pandemic has severely affected the tourism industry, including the hotel and accommodation sector. Despite the initial setback, Airbnb’s are slowly starting to rise with the trendy Airbnb nomadic culture work from home individuals are starting.

Airbnb Nomads

When the Covid-19 pandemic started, the first industry to take the brink of the economic downfall was the tourism industry. With flight and movement restricted by lockdown protocols, fewer people are checking into hotels and booking at Airbnbs. While the industry initially felt the effects of the lockdown protocols, they are slowly bouncing back with the Airbnb nomad trend.

So what exactly is the Airbnb nomad trend? Because more and more companies are encouraging people to work from home to control the spread of the virus, people are ditching their apartments and are starting to hop from one Airbnb to another as an opportunity to explore the world (within the confines of their Airbnb) while they are working from home.

Working in Style

Take, for example, Tess Pawlisch, who has been working in San Francisco for four years. She can only take a few vacation leaves amidst her busy schedule in her previous office work set-up with her demanding job. However, now that she is working from home, she can balance working from her Airbnb even when she is on a sunny beach in Mexico sipping tropical-flavored shakes. Pawlisch is only of the many individuals who decided to seize the opportunity to “travel” while working from home.

Bouncing Back

With the initial setback to minimal to zero bookings for Airbnb during the early half of the year, this trend comes at a perfect time for the accommodation giant as Airbnb sales skyrocketed to twice their original sales start of the year. Airbnb’s market value is almost at par with another booking giant, booking.com, with the Bnb having $83.2 billion and booking having $85.6 billion. Airbnb has been doing so well in the past few months in terms of shares and stocks that they even surpassed Marriott hotel, which has a projected $41.7 billion valuation.

Exciting Opportunities Await

The work from home set-up is advantageous for people who are bitten by the wanderlust bug, but it is also advantageous for individuals with families or those who want to be nearer their families during these trying times. For example, Trey Ditto was working in Brooklyn, New York, because of his job. Because his company encouraged him to work from home, he decided to move in with his wife (who was also working from home) and their 2-year-old son when they found a bigger apartment near the upstate portion of New York City for about two months. When they realized this would be the new normal soon, they moved to another Airbnb in Texas to be closer to their families—an opportunity that would not have been available if they were back in the office.

Pain Points

However, hopping from one Airbnb to another is not all luxury and glamor. First, the stress of hauling all your things to settle for a month and then moving to another house the next. It can be extremely exhausting. Second, there will always be the element of surprise. For example, even if the unit’s photos are very enticing (it’s called marketing for a reason), the actual unit may be smaller or more run-down than earlier anticipated and can be quite stressful for picky individuals. Lastly, since the Wi-Fi connection is essential for work from home individuals, not all Airbnb units have the best Wi-Fi access to work with. In fact, the Wi-Fi connection is the number one complaint of individuals who are slowly adapting to this lifestyle.

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