In the 1970s, America’s 100 largest companies earned 49% of the earnings of all public firms. By 2015, that number was 84%. In the same time frame, the rate of new business creation has declined by half.
The COVID-19 pandemic has only accelerated this shift. Since March, 21% of all U.S. businesses—most of them small or midsize—have closed for good. And according to data from Gravity Payments’ 20,000 business clients, small-business revenue is down roughly 30% for the year. Meanwhile, the stock market is at a record high, and corporations like Walmart, Target, and Amazon have seen their profits spike 80% to 100%. Apple, the first company to ever receive a $1 trillion valuation just two years ago, recently became the first to be valued at $2 trillion.
If nothing is done to reverse this massive wealth transfer, we risk losing our independent businesses for good.
This is a crisis