August 10, 2010

Latest Pajamas Media Column (‘The Two-Tiered Economy’) Is Up

Filed under: Economy,Taxes & Government — Tom @ 6:30 am

BigBizVsSmallBiz0810It’s here.

The sub-headline says:

Big and crony-connected businesses are doing okay. The small and non-connected? Not so much.

It will go up here at BizzyBlog on Thursday morning (link won’t work until then) after the blackout expires.

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Related: Here is what the National Federation of Independent Business had to say in mid-July about small business confidence (HT ZeroHedge):

The National Federation of Independent Business Index of Small Business Optimism lost 3.2 points in June falling to 89.0 after posting modest gains for several months. The Index has been below 93 every month since January 2008 (30 months), and below 90 for 23 of those months, all readings typical of a weak or recession-mired economy. Seventy percent of the decline this month resulted from deterioration in the outlook for business conditions and expected real sales gains. Owners have no confidence that economic policies will fix the economy.

“The U.S. economy faces hurricane force headwinds and the government is at the center of the storm, making an economic recovery very difficult,” said William Dunkelberg, NFIB’s chief economist.

… In June, 9 percent (seasonally adjusted) reported unfilled job openings, unchanged from May and historically very weak.

… The frequency of reported capital outlays over the past six months was unchanged at 46 percent of all firms, two points above the 35-year record low (reached most recently in December 2009).

… The percent of owners planning to make capital expenditures over the next few months fell one point to 19 percent, 3 points above the 35 year record low.

… “Owners do not trust the economic policies in place or proposed, and they are distressed by global and national developments that make the future more uncertain,” said Dunkelberg.

Also, there’s this from the survey’s archive page, which has an introductory tease for each month:

The Index of Small Business Optimism lost 3.2 points in June after posting modest gains for several months. The persistence of Index readings below 90 is unprecedented in survey history. The performance of the economy is mediocre at best, given the extent of the decline over the past two years.

I’ll try to be on the lookout for the July survey results, which should come out in a few days. I’m hoping that the on the ground (i.e., not seasonally adjusted) job gains that nobody cares about which occurred in July occurred at smaller enterprises and perhaps boosted confidence a bit.

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1 Comment

  1. [...] This column went up at Pajamas Media and was teased here at BizzyBlog on [...]

    Pingback by BizzyBlog — August 12, 2010 @ 8:51 am

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