Feb. 8 (Bloomberg) -- Small businesses are becoming the Achilles heel of the U.S. recovery by limiting growth and job creation.
Companies with fewer than 500 employees, such as Phoenix Technologies Ltd. and Sonic Corp., helped lead the economy out of the four recessions since 1980. This time, they continue to cut capital spending and dismiss workers, eliminating 3,000 jobs in January, according to Roseland, New Jersey-based Automatic Data Processing Inc., the world’s largest payroll processor.
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Will you have a sustainable recovery a few years down the road without getting some small-business spending? No,” Cary Leahey, senior managing director at Decision Economics Inc. in New York and a former White House economist, said in an interview. “Wall Street gets it.”
“It suggests that a V-shaped economic rebound is even more unlikely than suggested by many standard economic indicators,” said Andrew Tilton, an economist at Goldman Sachs Group Inc. in New York, which sees gross domestic product growing 2.3 percent this year.
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This snowball is rolling downhill and is getting so large it can't be stopped and will simply crash at the bottom and break into pieces. Soon folks, very soon.
ReplyDeleteThe snowball is becoming a frigging avalanche.
ReplyDeleteHow much time before the crash?
ReplyDeletecrash within the next 60 days
ReplyDeleteTax-choke and scare the hell out of a small business owner as he watches his profit margin go to plus or minus zero. He will make the quickest and most effective effort he can to save his business, sometimes the ONLY effort available to him:
ReplyDeleteCUT EMPLOYEES.
Laying off may be the only button he can push. He may HATE doing it. He may wish there was another way. He may even just decide to close.
He used to be so busy he worked his staff 6 days a week. Now, he is working about enough to pay the electric bill, if that.
He talked with his people last week. Sad faces.
Pay cuts wont hold it. Not much is happening. Only one of his three trucks are needed out there, two are sitting in the lot, one with a flat tire, and he is too depressed to have it fixed.
Sort of sad down at Carl's Painting Services.
Feb. 11 seems to be a date to keep a watch on.
ReplyDeleteBack to buying supplies today. A little more every week. I'm probably up to two months of supplies now. Not enough, but more than the three days' that most people have.
ReplyDeleteAll of the above. No amount of tax reductions and zero interest loans does any good without the right amount of good paying customers.
ReplyDeleteCustomers are max out and depressed because too much past borrowing and spending.
Spending more money is a fool on the ground with his pants down!
Paying back the debt and living within our means is the only correct methode but will not bring customers back anytime soon.
A first grader can do the math.
How the hell do you have a depression with 2.3 % GDP growth ??
ReplyDeleteAll these numbers anymore are just useless chips in the Elitest gov't card game that
will end soon - we're all in.
About the crash or total meltdown. It takes time. When you are dealing with this many variables and an economy this large it takes time for the trouble to all hit. Things like crazy high food prices due to shipping a lot of our food to China (because we owe them so much money they have us by the %#!!s) can do it in weeks or just a very few months. When people cannot afford the high price for bread or milk they have to cut off all other spending period. That is what will do it fast. Most of the other issues like bank and mortgage failures etc. will take more time... like maybe several months or a few years before we see complete collapse. My money is on fast as a result of hyperinflation and insane food prices. PLEASE PLEASE start buying extra food now. You should have enough (at least)to get you through the grocery store riots. It will take weeks to restore order and fix prices (stop gouging)etc. and restock grocery stores.
ReplyDeleteIt seems the Feds are jacking with the stock market again by pulling the strings. It is up on open today.
ReplyDeleteI don't expect a "V" shaped recovery. It has taken over 20 years of corruption to get us into this mess and it will take years to get us out. As taxes go up the amount of spendable cash depletes. I have less for housing, gas, utilities and food. Taxes are going up all around. City, County, State and Federal. Our imports are going up as other countries are raising their taxes. Everything costs more and I have less to spend. It won't be a "V" it will be more like a flat line for a few years.
ReplyDelete7:18 & 7:04 are right. It took hours for the Titanic to sink and so it will the U.S.
ReplyDeleteWe have a few more years of which in the meantime expect more wars and the such.
It's not a pretty picture but please stay away from the "imminent collapse" scenario. When I speak of imminent I mean like next month or even in six months.
This dying nation called the USA has a few years left and then the hyperinflationary depression coupled with the mad scramble (WWIII) for the resources.
In fact, I wish it would end in a month so we could get it all over with. However, history will show Rome didn't collapse in one day nor will the good ol' USA.
Stay vigilant and prepare. There is no turning around and bringing this Titanic to safety. However, like the Titanic be the first to get in the life boat. Don’t be one of those who will be left to sink into the icy waters.
Small business
ReplyDelete1) Often we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well……..
www.onlineuniversalwork.com
Small business
ReplyDelete2) The Center for Media Research has released a study by Vertical Response that shows just where many of these ‘Main Street’ players are going with their online dollars. The big winners: e-mail and social media. With only 3.8% of small business folks NOT planning on using e-mail marketing and with social media carrying the perception of being free (which they so rudely discover it is far from free) this should make some in the banner and search crowd a little wary……….
www.onlineuniversalwork.com
Small business
ReplyDelete3) According to the study, the most important tool for small businesses to succeed in 2010 is search engine marketing, while email marketing, public relations and social media cited as crucial for success.
23.8% of all small businesses reported that search engine marketing was the tool most needed for their business to succeed in 2010….
www.onlineuniversalwork.com