The U.S economy is turning into a tale of two worlds: the world of large businesses that are thriving and a world of small businesses that are struggling, with inflation, high interest rates, and a tight labor market the critical driver behind this divide.
The U.S. enjoys new prosperity. The Gross Domestic Product (GDP) grows well above the trend. Job growth remains robust. Unemployment hovers near multi-year lows. Large corporations listed in major equity exchanges report solid profits. Investors chase after their shares, which race to new highs on optimism about the nation's economic prospects.
The situation is quite different for small businesses. Economic prosperity has not touched them. As a result, they don't share Wall Street's optimism.
