New president, new policies, new economy?
As of last week the United States of America elected a new president. Presidents are in full control of the foreign policy which has proven to dictate much of our economy. A new president can perhaps, mean a new economy. Though we admit we do not know exactly how it works, we do know that executive orders are the documents that effect foreign trade, gas, import & export, etc.. During the 1st Trump administration the president claimed to have gotten very aggressive with foreign leaders in regards to taxes, tarrifs and especially what we import and export. Hate him or love him we all can admit that prices of goods & services were the best we’ve seen in many years.
When our current president took office, he signed a record number of executive orders, claiming to “reverse” Trumps policies. At this time, especially, President Trump was a highly controversal figure whom the media attacked every single day. The motto MAGA or Make America Great Again, startled many. It wasn’t the best choice of marketing, although Trump’s definition was to manufacture more in our country than buy from foreign countries. Many Americans did not like the president at this time despite prices being very low, people celebrated the “un-doing” of president Trump.
As a result of Biden’s executive orders, inflation skyrocketed. Supply chains got jammed up in spots, and the cost of goods, services and living went up over 50% in many areas. Though we don’t know the exact details of what happened, we do know the answers lie in those executive orders. President Trump vows to set things straight for economic stabilization. Will this mean we get a new economy?
Small business funding during these era's
There were dramatic changes in small business funding during these 2 presidential era’s. While the economy was thriving, small business owners seemed to have been operating with ease. Underwriting guidelines were very loose, and capital was aggressively allocated to businesses of all industries. Things dramatically changed. Inflation and supply chain shortages, for example, crippled the smaller trucking companies. There was a truck shortage at 1 point, doubling the cost of a truck, higher gas prices and market values, all together. This caused many defaults driving funders to stop funding the smaller trucking companies. Same went for construction, but not as futile. On the flip side, many larger companies who weren’t borrowing private money were now borrowing. Taking advantage of 7-8 figure, private capital rounds. Those are record breaking funding rounds in our space. This balanced out the investors in the small business funding industry.
The question is, what’s next for our economy?
