Never has the time for small business expansion been this opportune.
According to this year’s National Federation of Independent Business (NFIB) survey, optimism and growth amongst small businesses is the highest it’s been since 1973 – nearly a third of Main Street agreeing that now is the time to upsize.
For many, it’s the new GOP tax plan passed in December that can be attributed to sparking the increase of small business optimism. For others, it’s the equal rise in wages.
In the same study conducted by the NFIB, roughly 31% of small businesses have reported paying more in employee wages, while prices have also risen by 11% – both the highest numbers the nation has seen in years. Job availability, too, has improved slowly over time and continues to climb, giving American workers yet another reason to celebrate.
However, while an increase in money circulation usually means a healthier economy, the rapid growth in wages has some on Wall Street feeling a little apprehensive. With fear of inflation present in everyone’s mind, the DOW has suffered some tumultuous weeks of incredible highs and lows in the past few months, though it continues to remain up by 32% since President Trump came into office.
Meanwhile, the Federal Reserve continues to maintain its eight-year-trend of keeping interest rates low in an effort to help the economy in the delicate stages of growth, and as of now, it seems to be working. Still, with the shortage of workers to fill those new jobs and many employers finding themselves spending more to recruit and retain the employees available, many wonder if its just a matter of time before inflation rears its ugly head.
On the whole, however? The American economy is in the best shape it’s been in for a long, long time. And as small businesses like to show us, that’s a cause to celebrate.
(This post was based off of this article, by Patrick Gillespie, and this one, by Matt Egan.)
