SBE Council President & CEO Karen Kerrigan issued the following statement in response to today's dismal jobs report:
"As long as President Obama continues to push for more regulations, higher taxes, empty 'incentives' and ineffective spending programs there will be no meaningful reduction in unemployment for the remainder of his first term. Small business owners -- those folks who create the jobs -- have been telling the White House time and again that intrusive government, higher taxes and more burdensome regulations will raise their costs and keep them from hiring.
"President Obama claims to be in listening mode, but the pleas of business owners are falling on deaf ears. His Administration continues to crank out regulations at a record-breaking pace while pushing for higher taxes. The White House policy shop reminds me of that definition of insanity -- doing the same thing over and over again and expecting different results. The grim jobs and economic news will continue as long as President Obama keeps doing the same thing.
"There is still time to not only listen to small business owners, but implement their priorities and solutions. President Obama must stabilize taxes, reign in the regulatory agencies and undo the damage caused by his health care and financial overhaul laws. Current policies are sucking capital and confidence out of small business owners, and it is time to make drastic changes to his policy agenda."
SBE Council Staff Post
Showing posts with label small business and jobs. Show all posts
Showing posts with label small business and jobs. Show all posts
Friday, September 02, 2011
Friday, July 08, 2011
June's Anemic Jobs Numbers
SBE Council issued the following statement on June’s employment data, which showed an anemic 18,000 jobs gain. The U.S. Department of Labor also reported a downward revision (-44,000) in the job numbers for April and May.
“The jobs numbers are not surprising given low business confidence, increased government costs, increased health coverage and energy costs and the fact that small business owners are not generating enough new or sustained revenues to justify adding employees. A sputtering economy, the lack of pro-growth policies from Washington, along with economy-wide regulations and the threat of new taxes do not create the type of environment conducive to job creation. The White House needs to wake up,” said SBE Council President & CEO Karen Kerrigan.
According to a May 31 “Entrepreneurs and the Economy Survey” released by SBE Council, 76 percent of small business owners were dissatisfied with federal economic policies, and many expressed a grim outlook for their firms. Small business owners said they were being hammered by higher gas prices -- 26 percent have had to cut employees or their hours worked; 47 percent reported that higher gas prices were affecting their plans to hire new employees; and 41 percent raised their prices because of high gas prices. All-in-all, ineffective and costly government policies combined with rising business costs and anemic sales growth are taking their toll on small business confidence and their bottom lines.
SBE Council Chief Economist Raymond Keating observed: “Why are so many people surprised by the abysmal jobs data released this morning? Perhaps it’s because they fail to understand the fundamentals of how the economy works and creates jobs.”
According to Keating, no matter how you slice it, the jobs data were simply terrible. According to the payroll survey, for example, job growth effectively was nonexistent. More importantly, the household survey, which better captures start up and small business activity, showed a loss of 445,000 jobs. While household data tends to be more volatile month to month, since its recent high in March of this year, employment is down by 530,000.
“More government spending, increased regulation and higher taxes are not economic tonics. But that is what small business owners are getting from Washington,” said Keating.
Keating added: “The only way this economy is going to get back on a path of consistent, robust GDP and job growth is if the policy agenda shifts in the direction of substantive and permanent tax and regulatory relief, sound monetary policy, expanded trade, and smaller government.”
SBE Council Staff
“The jobs numbers are not surprising given low business confidence, increased government costs, increased health coverage and energy costs and the fact that small business owners are not generating enough new or sustained revenues to justify adding employees. A sputtering economy, the lack of pro-growth policies from Washington, along with economy-wide regulations and the threat of new taxes do not create the type of environment conducive to job creation. The White House needs to wake up,” said SBE Council President & CEO Karen Kerrigan.
According to a May 31 “Entrepreneurs and the Economy Survey” released by SBE Council, 76 percent of small business owners were dissatisfied with federal economic policies, and many expressed a grim outlook for their firms. Small business owners said they were being hammered by higher gas prices -- 26 percent have had to cut employees or their hours worked; 47 percent reported that higher gas prices were affecting their plans to hire new employees; and 41 percent raised their prices because of high gas prices. All-in-all, ineffective and costly government policies combined with rising business costs and anemic sales growth are taking their toll on small business confidence and their bottom lines.
SBE Council Chief Economist Raymond Keating observed: “Why are so many people surprised by the abysmal jobs data released this morning? Perhaps it’s because they fail to understand the fundamentals of how the economy works and creates jobs.”
According to Keating, no matter how you slice it, the jobs data were simply terrible. According to the payroll survey, for example, job growth effectively was nonexistent. More importantly, the household survey, which better captures start up and small business activity, showed a loss of 445,000 jobs. While household data tends to be more volatile month to month, since its recent high in March of this year, employment is down by 530,000.
“More government spending, increased regulation and higher taxes are not economic tonics. But that is what small business owners are getting from Washington,” said Keating.
Keating added: “The only way this economy is going to get back on a path of consistent, robust GDP and job growth is if the policy agenda shifts in the direction of substantive and permanent tax and regulatory relief, sound monetary policy, expanded trade, and smaller government.”
SBE Council Staff
Wednesday, October 13, 2010
New York's Jobs-Killing Pols
SBE Council chief economist Ray Keating has the lead opinion piece in today's New York Post. The piece is based on SBE Council's "Small Business Scorecard for the 111th Congress."
The article begins:
If our elected officials in New York love small businesses as much as they claim, then why do they keep voting to make life so difficult for entrepreneurs?
The overriding issue in the coming election is a poor economy devoid of job creation. If we're to get things back on track, small businesses must lead the way. After all, small firms with fewer than 500 workers represent 99.7 percent of US businesses, employ half the private-sector workforce and generate 65 percent of net new jobs.
From their rhetoric, you might get the idea that New York politicians understand these straightforward economic facts of life. But that is overwhelmingly not the case with our congressional delegation -- including some who are now facing tough re-election efforts...
Read the rest of this article here.
Monday, August 30, 2010
Small business confidence “plummets” in July 2010…only 6% plan to hire
Discover Small Business Watch just came out with its July 2010 report. The results are pretty horrible, but not at all unexpected from our vantage point at SBE Council. “The Watch index dropped to 73.0 in August from 83.0 in July. August marks the third straight monthly decline in the index, which is the lowest it has been in 18 months on the 4-year-old index.”
The Watch reported that 75 percent of small business owners expected a second recession to occur before the country sees a full recovery. Other indicators found:
• 62 percent of small business owners rate the current state of the U.S. economy as poor, up from 58 percent, in July; while 28 percent it fair; 6 percent rate it good; and 3 percent rate it excellent.
• 55 percent of small business owners expect economic conditions for their businesses to get worse in the next six months, while 20 percent expect them to stay the same, and 21 percent think things will get better.
• Confidence was at a record low among small business owners who sell directly to consumers. Those small businesses slid 17.4 points since last month to a record-low 65.5 points on the index, compared to business-to-business operators who marked 79 on the index in August, down only 2.2 points from July.
• An indicator that dropped to its lowest point ever is that only 17 percent of small business owners said they would increase business development spending in the next six months, down from 28 percent in July; 52 percent said they would decrease spending, up from 45 percent in July; and 29 percent don't plan any changes.
• 53 percent of small business owners are experiencing cash flow issues, up from 47 percent in July; 43 percent said they are not; and 4 percent aren't sure.
• 62 percent of small business owners say the economy is getting worse, up from 57 percent last month; 24 percent see it getting better; and 12 percent said it's staying the same.
• On the job front, 78 percent of small businesses have no plans to do any hiring. When asked about hiring over the next few months, 72 percent of business owners had no plans to add or subtract jobs, 20 percent said they were laying off workers and 6 percent planned to do some hiring. The percentage of small business owners planning layoffs is the lowest in the history of the Watch.
Wait – let’s revisit that last bullet again – only 6 percent planned to do some hiring!
Unfortunately, the sentiment expressed by small business owners in July’s Watch will likely show up in the jobs data that will be released by the federal government later this week. Small businesses will not hire until they see that Washington puts an end to its hyperactive regulation and legislation that is driving (and threatens to drive) business costs higher.
I am in full agreement with the President when he says our nation’s economic crises will not be solved by a “silver bullet.” However, he needs to start shooting down some of the anti-growth and anti-business legislative and regulatory proposals that continue to move through the Congress and government agencies. He needs to back off his short-sighted approach in supporting tax increases on small business owners and entrepreneurs if he wants the private sector to begin investing and hiring again.
Karen Kerrigan, President & CEO
The Watch reported that 75 percent of small business owners expected a second recession to occur before the country sees a full recovery. Other indicators found:
• 62 percent of small business owners rate the current state of the U.S. economy as poor, up from 58 percent, in July; while 28 percent it fair; 6 percent rate it good; and 3 percent rate it excellent.
• 55 percent of small business owners expect economic conditions for their businesses to get worse in the next six months, while 20 percent expect them to stay the same, and 21 percent think things will get better.
• Confidence was at a record low among small business owners who sell directly to consumers. Those small businesses slid 17.4 points since last month to a record-low 65.5 points on the index, compared to business-to-business operators who marked 79 on the index in August, down only 2.2 points from July.
• An indicator that dropped to its lowest point ever is that only 17 percent of small business owners said they would increase business development spending in the next six months, down from 28 percent in July; 52 percent said they would decrease spending, up from 45 percent in July; and 29 percent don't plan any changes.
• 53 percent of small business owners are experiencing cash flow issues, up from 47 percent in July; 43 percent said they are not; and 4 percent aren't sure.
• 62 percent of small business owners say the economy is getting worse, up from 57 percent last month; 24 percent see it getting better; and 12 percent said it's staying the same.
• On the job front, 78 percent of small businesses have no plans to do any hiring. When asked about hiring over the next few months, 72 percent of business owners had no plans to add or subtract jobs, 20 percent said they were laying off workers and 6 percent planned to do some hiring. The percentage of small business owners planning layoffs is the lowest in the history of the Watch.
Wait – let’s revisit that last bullet again – only 6 percent planned to do some hiring!
Unfortunately, the sentiment expressed by small business owners in July’s Watch will likely show up in the jobs data that will be released by the federal government later this week. Small businesses will not hire until they see that Washington puts an end to its hyperactive regulation and legislation that is driving (and threatens to drive) business costs higher.
I am in full agreement with the President when he says our nation’s economic crises will not be solved by a “silver bullet.” However, he needs to start shooting down some of the anti-growth and anti-business legislative and regulatory proposals that continue to move through the Congress and government agencies. He needs to back off his short-sighted approach in supporting tax increases on small business owners and entrepreneurs if he wants the private sector to begin investing and hiring again.
Karen Kerrigan, President & CEO
Subscribe to:
Comments (Atom)