The stock market continues to break new ground, but for the majority of Americans and in particular for small and minority business owner, this development has little meaning. Congress lifted the sequester regarding cut back on airport security, but it did nothing for low income Americans.
Black Americans comprise 11.9% of the U.S workforce, but make up 20.2% of unemployed workers. Now that there are even fewer resources, unemployed blacks can forget about assistance from Washington. The sequester means blacks must develop non-governmental solutions.
Small-business pessimism is consistent with the declining number of new jobs created in March. Although the unemployment rate fell in March from 7.7% to 7.6%, the decline was caused largely by almost one-half million fewer workers participating in the labor market.
The SBA made a commitment to increase lending through the 7a Program as a way of offsetting credit market tightening caused by the recession. Since that time, guaranteed loans to black-owned businesses have declined by 47%, while loans to Asian businesses increased by 21%.
The Labor Department’s March jobs report was a bad outcome. The market expected 190,000 new jobs to be created. Instead, only 95,000 jobs were added. The stock market euphoria was premature as the economy must now deal with the real effects of sequester.