Fact-Check: Biden Says Americans Are Starting Small Businesses at ‘Record Rate’

Claim: Joe Biden says his presidency has seen record small business creation.

“I’m proud to say if you look at my presidency so far, it’s a jobs presidency, and it’s a small business presidency,” Biden said on Monday. “Here’s what the record shows. Record job creation. Record economic growth. Record new small business creation. That’s the story that should give us confidence about the economy that we’re building. Confidence in ourself. Confidence in the future.”

“Our economy is creating new businesses — lots of new businesses. In fact, Americans are starting small businesses at a record rate — up 30 percent compared to before the pandemic,” Biden added.

Verdict: Lacks context.

The highest monthly number of business formations was in July of 2020, under President Donald Trump, when Census Bureau data show 552,748 thousand applications for new businesses were filed.

That number was high because so few businesses were started in March and April, when much of the economy was locked down and entrepreneurs put plans on hald. Many other businesses closed because of the pandemic and lockdowns. The combination of pent-up demand for business formation and people restarting economic activity led to historically high levels of business formation in the latter half of 2020.

If we look at business formation from July through October, both the total and the monthly average were higher under Trump. Total formations for the period added up to 1.89 million in 2020 and 1.74 million under Biden. The monthly average for the period was 472,543 under Trump and 435,242 under Biden.

Of course, the year-to-date totals favor Biden because the depressed numbers from the early months of the pandemic dragged down start-ups. So this year has seen record-high start-ups, that is mainly for the same reason Trump saw record high startups in the second half of 2020: pent up demand, restarts, and an economy accelerating as the pandemic’s drag fades.

Put in the proper context, the recent small business growth is mainly a reflection of an economy recovering from the pandemic rather than a result of either president’s policies.

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Posted by Bekah Lyons

"The simple step of a courageous individual is to not take part in the lie. One word of truth outweighs the world." Aleksandr Solzhenitsyn

I was born and raised in the enigma known as "The Big Easy." There, rooted along the banks of the great Mississippi River between the creeping bayou and Lake Pontchartrain, I was conscripted on all things pertaining to human nature.  I am the quintessential southern woman, that is to say, I defy most could never accurately define what that label truly represents.  Brined below sea level where one respects; the haunts lingering about, the force of storm surge, the ethos of Mardi Gras, and the sanctity of generational family-I know what it is to belong to an organically diverse culture.

Early on in life, my career path serpentined and led to brief stints of living varied experiences as I indulged my passions for painting, musical theater, and the culinary arts. My young experiences evolved my purpose and honed my intuitive skills and I became a Medical Professional specializing in mental health with a focus on child/adolescent needs. After living decades in NOLA, and after hurricane  Katrina unearthed the realities of modern-day inner cities, I made the pivotal decision to relocate to where my family and I spent our summers in a quest to find security and civility in my life.

High up on one of the "grandfather mountains" I now perch in a Smoky mountain community in East Tennessee. Although, I would not trade my formative years in Louisiana, unfortunately,  that era of  America  is  no longer obtainable in the times we live - changing course was the best decision "Evah!"

I am a warrior  for freedom and truth , steeped in my ancestral history ,I am constantly reminded that stillness and introspection expands the mind and heart to possess a more nuanced understanding of all things in our internal and external world. We are all destined to bash ourselves against the rotted cultural rocks of humanity's unraveling until we recognize that a shared moral tone is essential for a free society. A healthy culture is one comprised of many unique people who offer shading and depth to the experience of living, yet all choose to accept basic truths that bind us all together-a societal moral tone. Intolerance  , censorship, intersectionality, cancel culture, apathy ,and ignorance will only groom oppression and tyranny.  Critical thought, differentiation, and dissent is your individual right granted not by government -and must always be protected, championed, and defended.

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