Here’s Why Small Businesses Are Filing Bankruptcy in RECORD Numbers
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I do not like to see this federal program designed to help small business owners, small American businesses cut debt and get out from underneath it is well, it’s hitting records right now. It’s a new subchapter bankruptcy, subchapter five. And the rules originally allowed for for businesses under what I think was seven million dollars in debt to file under this.
They lowered it to 3 million and we’ve got a record amount of businesses that are using this part of the bankruptcy code to close down their business. Top of that, we had the ADP jobs numbers come out today. They were down, but not as bad as they were supposed to be outside of the fact that the most important number that I look at
when it comes to the ADP numbers, when it comes to any jobs numbers is small businesses. Small businesses is the major point of weakness. Major point of weakness, continue, small businesses continue to lay people off. Again, I know I’ve said this a million times here on the program, but that’s the engine of job growth in this country, always has been. That’s what’s made our economy dynamic.
often talked about creative destruction, know, Joseph Schumpeter idea, you know, that something is destroyed, something else is created, build a better mousetrap, people will be a path to your door. Small businesses without a doubt, as we foretold that we told them this is going to happen most certainly hit by tariffs, and some of the uncertainty that continues to surround tariffs, and without a doubt, a weakening
economy. That’s where we’re at right now. And I’ve said that this needs to be a major focus of this administration. Obviously, cutting costs, bringing prices down, seeing that gasoline prices right now, hopefully that will filter its way through to the economy. It will, there’s no doubt it’s going to help, know, transportation costs, that’s going to help.
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but we still need to do more. We’ve already talked about grocery costs. Insurance is another thing. Some great ideas put forward. Again, no one’s following through on any of this stuff. But another thing as well is making the burden on lessening the burden on small businesses out there. I’ve described it as such, because I’m a small business owner. Small businesses, you you’re faced with
tons of regulations, tons of regulations, rules, things you have to abide by. Again, because you’re a small business, it’s more costly for you, it’s economy scale, more costly for you to go ahead and deal with many of these things. Now, look at these regulations, look at these rules, look at taxes, look at them as you would if you were looking out over a demilitarized zone or a minefield, okay? So imagine a small business owner is living in a house, okay? Living in a house, he’s gotta go to work every single day.
Okay, leaving his house, but he’s gotta go across this minefield, this demilitarized zone. But he knows where the mines are. Okay, he knows where not to tread because you’re gonna step on a mine, boom, you’re done, your business is over. Well, what if every morning he woke up and those mines are in different places? They move overnight. Well, it’s gonna take him.
hell of a lot more to get to work, right? Because he’s got to locate these mines, he’s got to figure them out, what do I have to do? And this is what ridiculous regulations are all about. This is why when you get these massive cure all bills, whether they be Sarbanes, Oxley, or whether they be Dodd, Frank, whatever it may be, there are thousands and thousands of pages that are, you know, a pimple on the ass.
of a major corporation, quite frankly, you even call that actually benefits major corporations because it puts their competitors out of business, small business, the upstarts. They can’t afford to deal with it. Again, cleaning the deck, getting rid of ridiculous regulations. Okay, it’s going to help. Lessening the burden with tariffs because that’s been real. Okay. It’s real. It’s affected small businesses. It’s there in the numbers and numbers don’t lie.
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Administration needs to focus on this. And then they got a shot at holding everything in 2026. Watchdogonwallstreet.com.
