Biden’s $ 1.9 Trillion Covid Stimulus Has Main Street Support – tech2.org

Biden’s $ 1.9 Trillion Covid Stimulus Has Main Street Support


Vice President Kamala Harris, from left, US President Joe Biden, and Senate Majority Leader Chuck Schumer, a Democrat from New York, wear protective masks as they meet with Democratic senators in the Oval Office of the White House in Washington, Wednesday, February 3. , 2021 to discuss relief from the Covid-19 stimulus.

Stefani Reynolds | Bloomberg | fake images

America’s small business owners have been hard hit by the Covid-19 pandemic, and despite two rounds of federal loan programs aimed at helping smaller employers, the majority of Main Street continues to ask for more help. .

Sixty-three percent of small business owners support Covid’s $ 1.9 trillion aid package currently being pushed by President Joe Biden’s administration and being debated in Congress, according to the latest quarterly survey of small businesses. CNBC companies | SurveyMonkey.

That includes 46% of Republican small business owners showing support for the first major legislative proposal from the new Democratic administration. In fact, Biden’s aid package has far more Republican support than Biden himself. Only 14% of Republican small business owners say they approve of the way Biden is handling his job as president.

Support for further relief comes as confidence among small business owners plummeted to a new record low since the quarterly monitoring survey began in 2017. The small business confidence index fell from 48 out of a possible 100 in the fourth quarter of last year to 43 this quarter. Additionally, the number of small business owners who say they believe they can continue operating for more than a year under current business conditions fell from 67% in the fourth quarter to 55%.

The CNBC Small Business Survey | SurveyMonkey for the first quarter of 2021 was conducted from January 25-31 using the SurveyMonkey platform and included responses from 2,111 small business owners nationwide.

The debate over more federal aid has become more partisan among small business owners now that former President Donald Trump has left office. In the fourth quarter, a whopping 83% of small business owners voiced their support for what became a $ 900 billion package approved by Congress and signed by Trump in late December.

“There are more Republicans than Democrats who own small businesses,” said Laura Wronski, SurveyMonkey’s manager of scientific research. “When we sent the last poll it was after the election, but it was still in this in-between period where … maybe there was still a bit of doubt in people’s minds. [about the outcome]. I think people’s perceptions may have hardened, whereas in December they were a bit more at stake. Because this is the Biden administration’s keynote address, it’s easier to say yes or no. “

Support for the latest package may also have waned, says Wronski, due to the possibility that it includes an increase in the federal minimum wage, a move that is generally unpopular with business owners. The poll found that 54% of small business owners oppose raising the federal minimum wage to $ 15 / hour, while 44% support the increase.

Steep decline in Main Street business outlook

Overall, small business confidence was affected by a sharp decline in the number of small business owners who said general business conditions are “good” (from 39% in Q4 2020 to 29% this quarter ), as well as large increases in the number of small business owners who expect potential changes in tax, trade, regulatory, and even immigration policies in the coming year to negatively impact their businesses, all as a result in large numbers. part of a “collapse” in confidence among Republican small business owners.

Wronski noted that a year ago, only 17% of Republicans said they expected government regulations to have a negative impact on their business. This quarter, that number is 82%, essentially more than a quadruple year over year. Meanwhile, in the first quarter of 2020, 40% of Democrats said they expect changes in regulation to negatively impact their business, and this quarter that number dropped to 12%. “That’s a good example of how the increase in confidence from Democrats cannot compensate for the decrease in confidence from Republicans. The magnitude is so different between the two groups in terms of how much their perceptions changed year over year,” he said .

Confidence among Republican small business owners has completely collapsed since Trump lost the 2020 election to Biden. The Small Business Confidence Index for Republicans is 32, which is 25 points lower than in the third quarter of 2020, the latest survey conducted before the election. It’s also 9 points lower than the lowest confidence reading for Democratic small business owners during the presidency of Donald Trump.

By contrast, confidence among small business owners who identify as Democrats has risen to 63, 17 points higher than the pre-election poll.

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