This afternoon, as President Obama hears from the public during his Twitter Town Hall, he should address how he plans to boost economic growth and get people back to work. President Obama has failed to spur economic growth, and is now calling for tax increases on the very small businesses he expects to create jobs. Today, the Wall Street Journal highlights how President Obama’s backward economic policies have hindered growth for small businesses.
- 70% Of Small Business Owners Say They Have No Plan To Hire In The Next Year. The owners of many small businesses say economic uncertainty and inflationary pressures have led them to delay hiring and capital expenditures. Seventy percent have no plans to expand their staffs over the next 12 months, according to a recent U.S. Bancorp survey of 1,004 U.S. companies with annual revenue of $10 million or less. (The Wall Street Journal, 7/6/11)
- 78% Of Small Business Owners Believe The Economy Is Still In A Recession and Many Feel It Will Remain There For At Least The Next Year. ... 78% said the U.S. economy is still in a recession, and many expected it to remain there next year. In May, for the third month in a row, the optimism index of the National Federation of Independent Business declined. At big public companies, cost-cutting and a rebound in sales, particularly overseas, have provided a boost. But because small businesses account for more than half of private-sector employment and gross domestic product, their owners' caution bodes ill for the broader economic recovery. (The Wall Street Journal, 7/6/11)
- Uncertainty Caused By The Growing Deficit, Unemployment, and the Housing Market Has Made Small Businesses Hesitant To Hire. Phoenix Products Inc., an Avon Lake, Ohio, faucet maker, is also proceeding with caution, putting hiring, system upgrades and product updates on hold to conserve cash in case of another downturn. "Things are OK right now, but I'm acting as if we're in the midst of the recession because of all of the economic uncertainty," Phoenix President Raymond Arth says. His caution stems from recent unemployment and housing-market data, as well as the growing federal deficit. (The Wall Street Journal, 7/6/11)
- And Even If Small Businesses Want To Hire More Workers, They Are Unable To Get The Proper Financing Necessary To Do So. BleachSafe Towel Co. negotiated a larger line of credit in August, but it was only enough to keep the business afloat, not to help fund more hiring, beef up inventory or make other long-term investments. "Small business is really affected by the bank teller," says Morris E. Sitt, founder of the New York company. "I've never seen banks like this. It's so hard to get the proper financing." (The Wall Street Journal, 7/6/11)
Last Month: American Small Business League: President Obama and His Economic Team Have Completely Ignored The Role Of Small Business Job Creators. "It's no surprise that unemployment has jumped from 7.6 to 9.1 percent since President Obama was elected," ASBL President Lloyd Chapman said. "He and his economic team have completely ignored the fact that small businesses are the primary job creators in America.” (CNBC, 6/21/11)