The Daily Rundown

SMB News Daily Rundown: Update for September 24

Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.

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Small Business News Highlights for September 24: 

  • 870,000 additional jobless claims filed last week. 
  • Speak Pelosi renews focus on passing stimulus legislation 
  • New research studies economic costs of systemic racism and inequalities

870k jobless claims filed last week

“Bottom line, we have a mix of people going back to work because they are now greater incentivized to do so without the extra $600 per week and those that are still challenged in finding a job that matches their skills in this unfortunate pandemic landscape,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

New jobless claims for the week ending on September 19th reached 870,000, coming in slightly higher than economists anticipated.  

The total number of people claiming unemployment dropped by 3.5 million to 26 million overall. 

As one economist noted, “The data [is] so messed up that it’s important to not make too much of individual movements week to week, but the broad story really is we still have a lot of people needing new UI claims and that are depending on that.”

Pelosi renews focus on passing stimulus legislation, Republican Senators fail to renew negotiations

“I think we’re headed towards a resurgence of the virus in the fall, and until we defeat the virus, you’re not going to have a full economic recovery.”

House Speaker Nancy Pelosi has changed course and begun the process of creating a smaller piece of legislation addressing a narrower scope of economic issues brought about by the ongoing pandemic.  

The new bill is set to come in around $2.4 trillion dollars, down from the $3.4 trillion HEROS Act passed by the House in May.

The White House has indicated that they are willing to resume negotiations to pass legislation, though it’s unclear where the Senate falls on the matter. Congress is scheduled to adjourn at the end of next week. 

New research studies economic costs of systemic racism and inequalities

“Racial inequality has always had an outsized cost, one that was thought to be paid only by underrepresented groups. What this report underscores is that this tariff is levied on us all.”

Citigroup released a new study that attempts to quantify the economic impact of systemic inequalities between Black and White Americans over the past 2 decades. 

The study found that racism has cost the U.S. economy $16 trillion over the past 20 years. The financial group has vowed to dedicate $1 billion to closing the racial wealth gap in the U.S. 

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