2025: Businesses Hopeful but Wary of Policy Shifts

As the year 2025 approaches, business owners, economists, and researchers are preparing for potential changes in economic policies under a new administration in Washington. The economy has been a hot topic during the recent election campaign, with the Biden Administration's handling of the COVID-19 recovery being heavily criticized for skyrocketing inflation and high interest rates. However, inflation has since dropped to between 2% to 3%, and interest rates are now below 5%, setting up a promising environment for business growth in the new year. The economy seems to be recovering well from the impacts of the pandemic and overseas conflicts, with small business owners expressing optimism. But this optimism is tinged with worry about the potential policies of the incoming administration. One key concern is the implementation of tariffs, which could significantly impact businesses that rely on imported goods, especially from China. Small businesses, with their tight profit margins, might struggle to absorb these additional costs and could be forced to reduce employee hours, benefits, or even jobs.Another looming policy is the proposed mass deportation of undocumented workers. Many small businesses heavily depend on these workers for tasks in agriculture, construction, hospitality, and elderly care. If such a large-scale deportation were to occur, it could leave a gaping hole in the workforce, harming the economy and potentially forcing small businesses to close or fail to meet consumer demands. “Small businesses are in a tough spot, ” said Frank Knapp, the president and CEO of the South Carolina Small Business Chamber of Commerce. “They are hopeful about the economic outlook, but they’re concerned about how these new policies might affect them. If there are major policy shifts, it could be very challenging for them to adapt. ”