Over the next few months, Joint Economic Committee Democrats will highlight cutting-edge policy solutions that empower small towns and rural communities across the nation. Starting a new business is often not simple; it can involve high start-up capital costs and risk. Most entrepreneurs have limited resources and must seek capital from outside sources. Access to this start-up capital, however, is a primary obstacle to those wishing to start a business. This is all the more true in underserved and rural communities.
Congress should also build on current models — including SCORE and mentor-protégé programs — that leverage private-sector expertise to boost entrepreneurship. These models, complemented by culturally competent skills training, have made a big difference in New Mexico and can make an even bigger impact with strong backing from Congress.
Broadband access is as important as ever, but small businesses highlighted the need to balance infrastructure development and environmental stewardship. Resource providers like the Small Business Administration need to work with communities to make sure they fully understand the economic benefits of online participation while also tailoring programs to local needs. Doing so will allow rural communities to tap into the economic growth that the digital economy fuels and to share their innovative products and services with customers across the globe.
As rural communities continue to hold tremendous promise in innovation and small business development, Congress should capitalize on their ingenuity and fully support resources centers like VBOCs and the Minority Business Development Business Agency. In addition, Congress should ensure that capital providers that rely on federal funds and specialize in relationship lending, such as Tierra del Sol and WESST, can maintain large footprints in high-need communities that mainstream banks fail to serve.
Sep 04 2018
Growth is Increasingly Concentrated at the Top
Growth in Gross Domestic Product (GDP) is often held up as the primary measure for the health of the economy. But with widening income gaps, it is increasingly less representative of what most American households are experiencing. For example, between 2003 and 2005, real GDP growth was 3 percent or greater each year. But during that span, average income for half of Americans fell. To better measure what households are actually experiencing, Senator Martin Heinrich, JEC Ranking Member, joined Democratic Leader Chuck Schumer to introduce a bill that would require the Bureau of Economic Analysis to report on how income is growing across the economic ladder.
Aug 31 2018
Rising Student Debt and Tuition Costs
Aug 29 2018
Soaring Living Costs Outweigh Wage Gains
Most American workers are still waiting on the $4,000 pay hike they were promised from the Republican tax bill. Eight months since the tax cuts were enacted, wage growth for the average worker remains minimal, while the cost of living continues to grow and eat into family pocketbooks. In fact, recent data from the Bureau of Labor Statistics shows that after accounting for inflation, wages for most Americans have actually fallen for the third month in a row.
Bank profits have never been higher. The FDIC reported last week that profits at the commercial banks and savings institutions that it insures have ballooned since the tax cuts. In the second quarter of the year, FDIC-insured institutions earned $60 billion. The reduction in their effective tax rate due to the Republican law added $6.4 billion to banks’ bottom lines.