JULY 11, 2012
Local reaction to SBET drop
Inability of Washington to help economy puts added pressure on Arizona
PHOENIX – The monthly reading from one of the nation’s top economic barometers showed once again the pressing need for states to take the reins from the federal government if America is ever to climb out of economic abyss.
“Clearly, nothing coming out of Washington is helping the economy, which is further reason Arizona voters must seize the opportunity Proposition 116 offers them to unleash our small business job-creators here at home,” said Farrell Quinlan today in reaction to the monthly release of the National Federation of Independent Business’ Small Business Economic Trends Report. Quinlan is NFIB’s Arizona state director. America’s leading small-business association, NFIB has more than 7,000 members in Arizona.
Proposition 116, the Small Business Job Creation Act, is a referendum on the November 6 Arizona ballot that would set the amount of newly-acquired equipment and machinery exempt from taxes to an amount equal to the annual earnings of fifty Arizona workers.
For almost 40 years, NFIB’s SBET has been one of the nation’s bellwether economic barometers, used by Federal Reserve chairmen, Congress, and presidential administrations.
Release of today’s report shows its Optimism Index falling three points overall in June.
Small business is no small matter, because Main Street enterprises employ the majority of working Americans and generate most new jobs — not big businesses, and certainly not big governments or labor unions.
“All in all, this month’s survey was a real economic downer,” wrote NFIB’s chief economist, William Dunkelberg, in today’s report. “The economy has definitely slowed; job growth will be far short of that needed to reduce the unemployment rate unless lots of unemployed leave the labor force — no consolation.”
June’s report also showed a reversal in earnings trends, chipping in 21 percent of the decline, and expectations for business conditions and real sales gains contributed 40 percent of the Index decline. Click here to view NFIB’s national news release and here for the full SBET report.