If there is any correlation whatsoever between the presidency and the economy (and we suspect there’s more with this president than there has been in a long while), then Donald Trump’s first year in office has been an astounding success. Not only has this been a year when unemployment hit decade-long lows and the Dow Jones hit unprecedented highs, but a new survey shows that small business owners are more excited about the future of their enterprises than they’ve been since Reagan was in the White House.
According to the National Federation of Independent Business survey, optimism among small business entrepreneurs rose to new highs in January thanks to a record number of owners who say this is an excellent time to expand their companies. The index rose 2 points to 106.9, bringing it near November’s 107.5 metric which was the highest number since 1986. Furthermore, 32% of surveyed owners said now was a good time to expand, which shatters all monthly numbers since 1986 and even quarterly figures going back to 1973. A full 41% of owners think the economy still has room to improve, which is a significant jump from the 37% who said so last month.
Bloomberg reports that these were only a few of the indications that small business optimism is on the rise:
Six of the 10 components that make up the small-business optimism index increased in January, producing one of the strongest readings in the 45-year history of the survey. The figures show sustained, sturdy business sentiment since the November 2016 election. A measure of plans to boost capital spending in coming months increased by 2 points to 29 percent, consistent with other data indicating robust outlays for equipment. One in five small companies said they plan to boost hiring, unchanged from the prior month, as finding qualified workers remains problematic and underscores a tight job market.
The tax reform bill undoubtedly has a lot to do with the renewed confidence, as does the Trump administration’s dedication to removing onerous regulations put in place by the last regime. It is true now, as it always was, that when the federal government takes its oppressive boot off the neck of struggling Americans, you see an extraordinary vein of success light up in the free market. We are a prosperous people – not through blind luck or government handouts, but through the hard work and inventive, adventurous spirit that was ours since the founding. We don’t need the government to “help,” we need it to get the hell out of the way. This administration (and this Congress) understands that, and the results are already speaking for themselves.