Trump’s Economic Decisions Hurt Latinos and Small Businesses
by alejandra y. castillo economic commentator
Alaska is going through difficult times. What happens in Washington, D.C., doesn’t stop there: it is felt on our tables, in our local businesses, and on our families’ bills. The Trump administration’s economic decisions, especially government shutdowns and cuts to social programs, are directly affecting working communities across the country, and here in Alaska, the impact is profound.
The state, with a high cost of living and an economy heavily reliant on both the public sector and natural resources, suffers significantly when the federal government grinds to a halt. Food aid programs, such as SNAP, which benefit more than 42 million Americans, have been disrupted by irresponsible policy decisions. In Alaska, where food prices are 30 to 50 percent higher than in the rest of the country, thousands of families, including many Latinos, face the anguish of not knowing if they will be able to feed their children next week.
Added to this are cuts to Medicaid and rising medical costs. For rural or low-income families, access to health was already limited. Now, with higher premiums and less coverage, many are forced into debt or postpone treatments. Health and economic stability are deeply connected, and when one fails, the other suffers as well.
But perhaps the quietest blow has been to the economic core of our communities: small businesses. According to the SBA, Latinos in Alaska make up about 7.2 percent of workers, but only 5.0 percent of Hispanic-owned businesses. This shows that, despite their participation in the labor force, Latino entrepreneurs face more barriers to becoming business owners.
Overall, the Alaska Small Business Profile indicates that 52.3% of the state’s employment comes from small businesses (fewer than 500 employees), which is above the national average, highlighting their vital role in the state’s economy.
These Latino businesses, from restaurants in Anchorage to service businesses in smaller communities, bring dynamism and diversity to the local economy. But many depend on loans, federal contracts, and technical advisory programs that are now threatened or suspended. When the government goes down, the help windows close as well. This leaves entrepreneurs without access to credit, without opportunities for expansion, and in many cases, on the verge of closure.
As the daughter of a small businessman, I know that every day without income or support can mean losing years of effort. In Alaska, where distances are long and operating costs are high, economic uncertainty can be devastating.
Our leaders must understand that we need policies that protect working families, support local entrepreneurs, and strengthen our economy, rather than weakening it. Alaska deserves a government that listens, acts responsibly, and prioritizes the people over politics.
Alejandra Y. Castillo, former U.S. Assistant Secretary of Economic Development, provides expert analysis on how inflation, trade policies, and shifts in the labor market are impacting minority-owned small and medium-sized businesses and the U.S. economy as a whole.
