A decline in tourism, fewer young customers, higher prices for goods, and a shortage of workers are negatively impacting The New World Tavern. With Trump’s tariffs and his war on immigrants, this restaurant is peek into our near future for most small businesses. Tariffs will cause virtually everything to go up in price for businesses, while reducing disposable income for consumers. Small businesses operate on razor thin margins and can’t absorb additional cost, so those costs get passed on to the customer further reducing consumption. The consumer gets hit both ways with higher prices and less discretionary income. With immigrants disappearing off the streets, labor is hard to find, thus raising the cost to hire more expensive help. Then there is the very real backlash from residents of other countries who are boycotting American products, services and visits to our country. This is the perfect storm for a severe recession (all self-induced) and a disaster for small businesses.
Beware: Trump is taking control of economic reporting, so he can make up the numbers, and don’t be fooled by the irrational exuberance on Wall Street driven by AI mania. We are all in for high inflation and tough times ahead with the captain of the Titanic leading our economy into iceberg territory.
– Robert Antall