Don’t Call It a Recovery Yet: Small Business Growth Still Lags
Like the consequences of the shutdowns, the recovery is far from uniform. Booming growth, bull markets, crypto surges—these have little relevance to the real-world health of our economy.
By Kathryn Petralia, co-founder of Kabbage, an American Express Company.
Lawmakers have pointed to stabilized GDP and a surging stock market as evidence that the nation is poised to return to “normal” after 2020’s economic catastrophe. But GDP and the S&P are not adequate proxies for real world conditions, especially for the smallest businesses, the ones that define our neighborhoods and communities. After the crash of 2008, the government emphasized stabilizing financial markets over assisting small businesses and struggling households. Even if well intentioned, the resulting redistribution was so profound that analyst Karen Petrou called these policies The Engine of Inequality as they aided mostly the top few percent…..