It is a familiar refrain that small businesses are the backbone of the economy.
In Noblesville, Indiana, it really hits home. Located just north of Indianapolis, our city is home to a dynamic mix of businesses, large and small, that help make up the fabric of our community. We do everything we can to attract and nurture these businesses to help them grow.
When the COVID-19 pandemic took hold, it disproportionately affected the small businesses that bring life to our city and historic downtown square. That’s when the city of Noblesville took quick action, working with the Noblesville Chamber of Commerce to establish the Noblesville Small Business Resilience Grant program.
These grants, while seemingly small compared to the enormous issues facing the country, provided much-needed short-term assistance, which at a crucial time allowed small business grantees to maintain payroll, pay rent or utilities, or even purchase personal protective equipment. They made a difference to keep doors open and jobs intact.
Neighbors coming together to support one another is a hallmark of communities such as Noblesville, and we were proud to be able to lift our small businesses when they needed us most. That’s why it is disappointing that the very businesses that our community came together to save are now facing an unexpected and man-made problem: misguided government policy.
Now, instead of their futures being threatened by government shutdowns and health concerns, these small businesses are increasingly in danger because of a lack of employees to keep the doors open and out-of-control inflation that is driving up costs.
What I hear over and over from these small business owners is that, try as they might, they cannot find new employees willing to come to work while being supported by federal supplemental unemployment assistance that, in many cases, is more than they would receive as part-time workers. This unnecessary federal spending has affected the bottom lines of Noblesville businesses and is holding back our recovery.
The impacts of this spending are felt elsewhere too. It was reported last month that inflation in the United States has surged by over 5% year-over-year, the largest increase since 2008. We see it every day: food prices are up over 30% and gas prices are up over 40%. This is a hidden tax that is increasing costs for Noblesville families and businesses, which are now finding it more expensive to buy essential items they use every day. In 2020, amid the pandemic, Noblesville announced over $145 million in public-private investment in downtown economic development projects. However, that investment has been delayed in taking shape due to one key factor: inflation.
While there may be several factors affecting prices and inflation, it seems hard to deny that federal legislation spending trillions of taxpayer dollars, with larger expenditures being contemplated for the near future, has significantly contributed to the current situation.
Though certainly well-meaning, these federal actions have created a myriad of unintended consequences that are hitting home here in Noblesville and in cities and towns across our country. Just as our city stepped in to provide much-needed assistance when the pandemic began, the federal government has its own role to play as the pandemic ends.
Noblesville will always do everything it can to support our employers, both large and small. By taking positive steps to reduce inflation and its root causes while ensuring that unemployment assistance policy is better aligned with workforce needs, the federal government can do its part, too.
Chris Jensen is the mayor of Noblesville, Indiana.
