Nearly Half Of Small Businesses Forced To Raise Prices In May

The National Federation of Independent Business June 2021 Small Business Optimism Index found that nearly half of America’s small businesses are raising prices because goods are getting so expensive. 


  • The net percent of owners raising average selling prices increased 7 points to a net 47%.
  • This is the highest reading since January 1981, which was OVER 40 years ago
  • 46% of owners reported job openings that could not be filled.
  • 53% reported capital outlays in the last six months, down 6 points from May. 
    • This is bad news for GDP growth but also for future productivity growth.
    • This is consistent with the owner’s dismal view about the economy in the second half, bad news for capital spending and economic growth.

Why are so many small businesses raising prices? 

It’s simple. Inflation is taxation.

President Biden’s reckless spending caused inflation to surge in June. This is a tax hike and a pay cut for every American.