The latest employment data reveal a concerning trend: the U.S. economy added only 143,000 jobs in January 2025, falling short of expectations and signaling a slowdown in job growth.
While the unemployment rate edged down to 4 percent, this decline is partly attributed to a decrease in labor force participation, masking underlying weaknesses in the job market.
In addition, huge increases in government hiring have masked weaknesses in the private-sector economy in recent years.
Those who own small businesses, the backbone of the American economy accounting for 46 percent of private-sector employment, have been acutely aware of the economy’s softness for some time. Over the last year, we have faced a multitude of obstacles, many stemming from policy decisions at the federal level.
The Biden administration’s aggressive and extensive appetite for imposing a more daunting regulatory environment was and continues to be particularly burdensome for small businesses with its increased compliance costs and complex labor regulations. Bureaucratic red tape has strained resources, making it difficult for small businesses to thrive.
At the True North Family of Companies, we are involved in diverse businesses and industries. The examples of how our companies are burdened by government are endless. Whether it be licensing requirements for our transportation companies, fees imposed on our consumer-facing brands, regulatory hurdles for our precision manufacturing companies, taxes at every level on all the businesses, and so on. These increasing burdens dramatically affect our businesses and, ultimately, the economy. Our companies are far from the only ones so burdened.
Moreover, the expected expiration of the Tax Cuts and Jobs Act in 2025 poses a significant threat. Without legislative intervention, small businesses could face a 20 percent tax hike, the end of bonus depreciation, and higher tax brackets on their earnings. Such a massive tax increase would exacerbate the current economic challenges, potentially pushing the economy into a recession.
The disconnect between policy initiatives and the burdens faced by small businesses calls for a reality check among policymakers. We need greater accountability from our government — especially the federal government — and a return to commonsense economic policies that bolster small businesses.
Despite facing more and more hurdles and barriers over the years, small businesses have contributed 55 percent of the overall job growth over the past decade. That track record is in peril if policymakers fail to wake up.
Furthermore, increases in the government workforce in recent decades have put undue strain on private-sector employers, especially small businesses. It seems as if policymakers don’t connect the increased spending they advocate and the burdens under which small businesses struggle — and often fail. Indeed, the expansion of bureaucracy can obscure the struggles the private sector faces — for example, through unjustifiably rosy job reports — particularly by small businesses that do not benefit from much government support.
The emphasis on public-sector growth should raise concerns about the sustainability and balance of the economy. Here’s the point: When job growth comes from government hiring, it does not provide the sustainable and lasting economic expansion or growth that American small businesses do.
The DOGE era of accountability demands that policymakers recognize the critical role that small businesses play in the economy. This includes reassessing regulations that disproportionately affect small businesses and ensuring that tax policies do not hinder their ability to compete and grow.
Many small business owners applaud what Elon Musk is spearheading at the federal level. It’s refreshing to see a successful business owner applying basic business management principles to weed out waste, cut spending and stretch our tax dollars to pay for what’s essential.
The inspection of federal spending has begun to reveal an incredible amount of waste within the government — it’s often jaw-dropping to any small-business owner. We grind and sweat for every nickel, work around the clock, and sacrifice so much only to see the government squander the resources they suck out of us!
By aligning economic policies with the needs of small businesses, the nation can throw off the shackles and work toward a more robust and equitable recovery. We need more of Musk’s thinking to protect our country — and the world — for generations.
