Are Progressive Policies Bad for Small Business Owners?

During the last two election cycles Bernie Sanders ideas were slowly heard by nearly every American Conservative and Liberal alike. Shockingly his ideas seemed to gain steam across the Democratic party then started gaining popularity across the aisle as well. However, the idea of so many radical changes seemed to scare small business owners. The Conservatives narrative of low taxes being the savior of small businesses has been extremely successful. Despite the fact that Conservatives couldn’t care less about small business owners, they are feeding large corporations, with the rest of us begging for table-scraps. Let’s do a play by play on each supposedly “Radical” idea of the Sanders campaign.

  1. Medicare for All

Perhaps the most debated and lied about program of all time. This is undoubtedly due to the insane amount of lobbying by insurance and large pharmaceuticals to both Republicans and most successfully to democrats. People like Pete Buttigieg and President Elect Biden took this money and spouted talking points from the Lincoln-Project(Conservative think tank). Before we get into the corruption weeds lets talk small business. 

First, Warren Buffett has voiced support for the plan, but more importantly he views the current system as a massive competitive disadvantage for American businesses. Not only does this hurt every large business, other than Insurance companies, it is often largest deterrent from starting a business. If you have a family the risk is so great when leaving a large company because you will likely pick up $1000-$2000/month in healthcare with the worst plan on the market. One medical emergency will bankrupt the family. Then think about the entrepreneurs who are successful, having to provide insurance to workers can literally be the difference in being profitable and making a living. With M4A small business would flourish as risk lowered and growth would accelerate as the burden was lifted of medical expenses. Keep in mind we are choosing to pay more than any other developed nation just to fund the millionaires and billionaires that own these healthcare companies. Oh yeah, and we don’t even make the top 10 for quality of care!

  1. Making Public Universities and Colleges Tuition Free.

First lets be honest here, if you are the older retired person with no children, this wont directly benefit you, other than by improving society at large. However this can impact small businesses in two big ways. This would really blow the doors off opportunities that have only been available to a small elite group of the country(since the 80’s or so). Essentially anyone with the drive and tools to make it in the college environment would no longer be held back by their parents financial situation. We understand there are still many other factors that will leave even the ambitious no chance to really make through college(poor primary schooling). However, taking money out of the picture would allow many ambitious potential small business owners to expand their knowledge and skills.

On the back end of this is the crippling cost of send children through college. If you are a small business owner with inconsistent income or even consistent income, paying for 3 kids college tuition is going to devour your savings, if you have any! Most small business owners don’t have the luxury of a company matching their 401k retirement plan. Not only do you have to be a great business owner or craftsmen, but also a financial advisor to navigate shark infested waters. Taking the burden of paying for children’s college would be a massive boon to the economy. Imagine all the baby boomers and gen Xer’s cash that would be distributed through the system. And holy sh*t not to mention student debt. You think someone will take the risk of starting a business with $300-600/month student loan payment, forget about it! 

3.)Free Child-Care and Pre-K

Maybe you hadn’t noticed but most other advanced nations have acknowledged this is the most critical time in child development and provide quality child care to working parents. If you don’t have a college degree and can’t earn over $30,000 it will not even justify taking the job to pay for childcare. Imagine starting a business paying the highest possible rate for insurance and $1,000-$7,000/month in child care. One down month and you are absolutely screwed. Not only would we see many more workers enter the work force, their checks would circulate in the economy.

When you really step back and compare all the expenses put on individuals in America vs. other nations there is no comparison, we are extremely disadvantaged. Today in Germany, France, Japan and countless other countries their citizens are not footing all these bills without benefits. They pay taxes but the personal gains are enormous. On average M4A would save the average house hold $1200/month. Then take away anywhere from $80,000-$500,000 in student loans that a given family/individual will pay(already the case in so many countries). Then take away the $1,000-$5,000 in child care. To be conservative a small business owner will have an additional $3,000/month. Their retirement fund will have $100,000 more in it from not paying for two children’s college. Or their children will be able to buy a house after college because they don’t carry that student loan debt. 

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