Economy

Small Business Optimism Through the Roof

Business optimism soars to 1980s levels. Good news for America. Good news for Trump.

Thomas Gallatin · Jun. 13, 2018

Thanks to President Donald Trump’s aggressive agenda of cutting onerous regulations coupled with the passage of the GOP tax cuts — which not a single Democrat voted for — the U.S. economy has blasted out of the eight-year doldrums that Barack Obama once labeled the “new normal.” The National Federation of Independent Business (NFIB) noted that, this past May, optimism among small businesses hit the second-highest level ever recorded, just shy of the record set in 1983. And who was president in 1983?

The NFIB gave credit for the optimism primarily to Republican tax reform, writing, “The new tax code is returning money to the private sector where history makes clear it will be better invested than by a government bureaucracy.” But it also pointed to Trump’s policies, noting, “Regulatory costs, as significant as taxes, are being reduced.” NFIB Chief Economist Bill Dunkelberg explained just how well small business is doing: “Small business owners are continuing an 18-month streak of unprecedented optimism, which is leading to more hiring and raising wages. While they continue to face challenges in hiring qualified workers, they now have more resources to commit to attracting candidates.” NFIB President and CEO Juanita Duggan added, “Main Street optimism is on a stratospheric trajectory thanks to recent tax cuts and regulatory changes. For years, owners have continuously signaled that when taxes and regulations ease, earnings and employee compensation increase.”

Meanwhile, Democrats and leftists can only see negatives. Nancy Pelosi continues to decry the Republican tax cuts as bad for America and pledges to roll them back if Democrats regain control of Congress. And yet, the government isn’t hurting for tax revenue — the Fed just collected a record high in individual income taxes through May. Do Democrats really believe that Americans are longing for the years of next-to-no growth in the overly regulated Obama economy?

And then there’s #Resistance leader Bill Maher, who acknowledges the fact that the economy is doing great but whose leftist desire for greater government control over the lives of citizens trumps any joy he has for the growing economy. In fact, he’d rather Americans suffer under a bad economy if it gets the Left back into power. For leftists like Pelosi and Maher, the real issue is one of power.

It would seem that Trump and Republicans have been the ones listening to Americans, while Democrats and leftists are focused solely on preaching their socialist ideology, irrespective of reality or the Constitution.

(Source: NFIB, BEA, Haver Analytics, Natixis)

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