The Struggle of Small vs. Big Businesses: How Has Trump’s Small Business Recovery Act Fared During the Coronavirus Crisis?

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During the Coronavirus pandemic, much has been discussed about the Trump’s Small Business Recovery Act. However, a critical question remains: has this act truly helped small businesses more than big businesses, or has it become a tool for fine-tuning the economy back to its pre-crisis state?

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The Two Main Problems with the Bill

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The Trump’s Small Business Recovery Act had two main issues: the actions taken by Pelosi, which might have been with benign intent, and those caused by Trump, almost certainly with good intent. These issues have brought into question the effectiveness of the act in addressing the needs of small businesses.

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Concept and Reality: A Boomerang Effect

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The concept of the bill was indeed brilliant. It aimed to get businesses to stay open and retain all their workers to ensure the economy remains intact during the reopening phase. However, reality can often stifle such conceptual brilliance, and the "retain all of your workers" mandate has had some immediate unintended consequences.

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For example, what if a business tries to operate through curbside takeout and drive-through services, which do not utilize all employees? Or what if some employees decide not to wait around for the economy to reopen? Can the employer still access the program despite some employees choosing not to participate?

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Split in Approaches: Pelosi’s Scheme

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However, Pelosi’s actions created a significant counterproductive effect. Her unemployment benefit scheme incentivizes workers to stay home and not work, receiving more money than they would earn if they were working. This is directly in opposition to the Trump’s concept of keeping employers and workers intact.

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Trump aimed to keep the employer-employee relationship strong, while Pelosi’s scheme incentivizes workers to not cooperate with this plan. Her approach uses the crisis to “leverage” policy changes, prioritizing short-term financial compensation over long-term economic stability.

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Unproven Assumptions and the Shutdowns

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The most fundamental flaw in the entire situation is that it was never proven that social distancing measures had to be paired with widespread job losses. Such a combination is not scientifically supported and can be seen as "complete garbage."

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President Trump's decision to allow shutdowns may have been a strategic blunder in this context. While public health measures are crucial, the economic impact can be devastating, especially for small businesses that are already struggling.

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In conclusion, while the Trump’s Small Business Recovery Act aimed to support businesses during the pandemic, the challenges in execution and the opposing interests of Pelosi have made it difficult to achieve the intended goals. The debate continues to highlight the complex balance between public health and economic stability in the face of a crisis.