On The Big Money Show, Joe Lavorgna, chief economist at SMBC, discussed the December jobs report and the potential economic implications of another Trump administration.
Small Business Optimism Hits Six-Year High Amid Trump’s Potential Return
American small business owners are expressing their highest level of confidence in the economy in six years, fueled by expectations that President-elect Donald Trump will reclaim the White House.
The National Federation of Independent Business (NFIB) Small Business Optimism Index surged by 3.4 points to 105.1 in December, marking the highest reading since October 2018. This is the second consecutive month the index has surpassed its 50-year average, following November’s reading, which broke a 2.5-year trend tied to Trump’s electoral victory.
Meanwhile, the NFIB Uncertainty Index dropped by 12 points last month, falling to 86.
Jamie Dimon Weighs In on Trump’s Victory, Urges Focus on Administration Policies
“Optimism on Main Street continues to grow with an improved economic outlook following the election,” said NFIB Chief Economist Bill Dunkelberg. “Small business owners are feeling more confident and optimistic about the economic agenda of the new administration.”
Dunkelberg added, “Expectations for economic growth, lower inflation, and favorable business conditions have increased in anticipation of new policies and legislation in the coming year.”
The survey results come as the outgoing Biden-Harris administration continues to promote its economic policies, highlighting growth and low unemployment rates. However, small businesses have faced challenges over the past four years due to high inflation and stringent regulations.
Trump’s Commitment to Reducing Regulations and Permanent Tax Cuts
Trump has pledged to reduce regulations, as he did during his first term, and to make his signature tax cuts permanent if he returns to the Oval Office.
Main Street Optimism Reflects Historic Highs
The latest NFIB survey found that a net 52% of small business owners expect the economy to improve, a 16-point increase from November and the highest reading since the fourth quarter of 1983. Additionally, 20% of owners believe it’s a good time to expand their businesses, up six points and the highest level since February 2020.
Sales Expectations and Inflation Concerns
The net percentage of owners expecting higher sales volumes rose eight points to 22%, the highest since January 2020. Despite this optimism, inflation remains the top concern for small business owners, with 20% citing it as their biggest challenge. Labor quality was a close second, with 19% identifying it as their primary issue.
Biden’s Green New Deal Debate: Wisconsin Lawmaker Calls It “Fraud”
As economic policies remain a focal point, some critics have labeled Biden’s Green New Deal as a “fraud,” arguing for a focus on energy dominance instead.
Trump’s Rally Energy: Dancing in the Bronx
During a campaign rally in Crotona Park, South Bronx, on May 23, 2024, former President Donald Trump energized supporters, showcasing his signature enthusiasm.
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