Small businesses have struggled through the last 8 years, first after the crushing recession and then after piles of onerous regulation and taxes from the Obama administration. Companies have been forced to not hire workers because of Obamacare’s brutal restrictions.
How are they feeling now with Obama heading out the door and President-Elect Trump preparing to lead?
The National Federation of Independent Business has researched an optimism index since the November 8th election and has found some startling data.
According to Wikipedia: “The National Federation of Independent Business (NFIB) is the largest small business association in the country and is headquartered in Nashville, Tennessee, with offices in Washington, D.C., and all 50 state capitals. NFIB is a non-profit that works to defend the right of small business owners to own and operate their business without undue government interference. Its political action committee is called Save America’s Free Enterprise Trust. NFIB has a membership base of more than 325,000 small business owners.”
As you can see, they are serious and they are organized. What it has found in its latest survey is that it appears small businesses across the nation appear to enjoy a united Republican government. Information gathered that indicates data directly following the election shows a jump in the optimism index from 94.9 to 98.4, its sharpest increase since 2009.
Chief Economist Bill Dunkelberg explains: “This month we bifurcated the data to measure the results before and after the election. The November index was basically unchanged from October’s reading up to the point of the election and then rose dramatically after the results of the election were known.”
A small glance at the stock markets lately will attest to the optimism of American businesses. But the news didn’t stop there. NFIB also found a “whopping” 38-point improvement in the category of business expectations to skyrocket. Sales expectations also jumped a full 10 percentage points. Additionally, the survey “highlighted that the NFIB’s index fell in November 2012 — when Obama won re-election — but recorded a solid rise in November 2004 after voters granted George W. Bush a second term.”
Bloomberg Markets concludes:
The NFIB reading is the latest in a number of gauges tracking sentiment in the U.S. economy to have soared since the election, including the University of Michigan’s December report which showed that consumers’ assessment of current government economic policy rose to its highest level since 2009.
This is a no-brainer. Cutting taxes equals a stronger economy. More money in the pocket of the consumer means more money spent. More money spent means more profit for small and large businesses. More profit equals more hiring to keep up with additional demand. More hiring equals less unemployment, equals less government subsidies, equals government surplus, equals debt reversal. It’s a win-win for everyone! Now if we can only convince the Republican Establishment of this, we’ll be in for a great 4-8 years.
Source: Bloomberg Markets