Import, export, and trade data reveal a narrowing of the trade gap. While this positive movement is beneficial, we still have a long way to go to resolve the overall deficit. Therefore as we read the news let us also think about ways to improve the overall system. That will help to ensure that a broader portion of society receives the benefits of growth as well as improve the overall deficit and future innovative capacity (In theory. Perpetual Sustainable Economic Systems)
*It is absolutely ok to disagree with everything said here as it is more or less for exploratory discussion and it could change, be tweaked, modified, or discarded. Its called cognitive flexibility.
However, we face a structural challenge: an overconcentration of wealth and power as well as concentration of large corporations. This may be from years of access to law makers that small businesses and local communities do not have. Fortunately, we are seeing a recent emergence of small business development, which is critical for strengthening local economies. Research consistently shows that small businesses drive employment, foster innovation, and fuel community development.
Because of this, we must critically evaluate public policy. When policy caters primarily to large corporations or the already wealthy (sometimes not earned by skill, values or ability alone)—often driven by large pots of money and campaign donations—we miss vital opportunities to invest in our hometowns and revitalize our downtowns.
Illustrative Only
Could local businesses
work together
to improve export
branding and
find ways to get
products online
and overseas?
We have a hungry generation seeking opportunities to succeed and innovate. Supporting them through downtown startups makes sense. Many young people want to own their means of production and chart their own course. When communities partner to train, mentor, and support these entrepreneurs, everyone grows.
For example, in Escanaba, interested stakeholders and local community members actively work to make downtown a hub for tourists, small businesses, startups, fun events, farmer's markets, social clubs, housing, and young families. A new lease on the life of the downtown that coincides with market trends and growing digital existence.
We need to think outside the box and ensure our economic policies focus on balance. This is not about being for or against large corporations; it is about addressing overconcentration and rebalancing our system toward a more broad-based, inclusive form of capitalism. A large corporation mixed with many many small and medium businesses can increase economic activity when structured properly (We can think of this as clusters but it is more of a theoretical idea that seems to have support in bits and pieces in science.)
*If you like these articles feel free to buy advertising space, buy a product, etc.
- Exports grew by $5.8 billion to reach $321.5 billion, which outpaced the $5.2 billion increase in imports and caused the overall monthly trade deficit to decrease.
- Capital goods exports drove the expansion on the export side, rising by $3.8 billion due to increases in computers, computer accessories, and civilian aircraft.
- Agricultural exports contributed to the growth as foods, feeds, and beverages increased by $1.9 billion, largely propelled by higher soybean shipments.
- Services exports also grew, rising by $0.7 billion to reach a record $110.5 billion, led by increases in travel and intellectual property charges.
- Imports grew overall due to a $4.4 billion increase in goods imports—specifically higher volumes of capital goods and pharmaceutical preparations—alongside an increase in services imports.
A Microscope on Small Businesses: Spotting Opportunities to Boost Productivity
Micro-, small, and medium-size enterprises (MSMEs) serve as the backbone of global economies, accounting for roughly two-thirds of business employment in advanced economies and nearly four-fifths in emerging economies.
Small business productivity averages only half that of large companies in advanced economies and drops even lower in emerging markets, creating a massive economic opportunity if closed.
Raising MSME productivity to top-quartile levels relative to large firms is estimated to be equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies.
Productivity growth in small and large businesses frequently moves in tandem within specific subsectors, demonstrating that supportive frameworks and symbiotic business relationships can create a win-win economic environment.
Capturing this potential requires fine-grained, stakeholder-driven strategies that target infrastructure improvements, policy adjustments, and robust business networks tailored to specific subsectors and countries.
McKinsey Global Institute. (2024). A microscope on small businesses: Spotting opportunities to boost productivity. McKinsey & Company.
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