Here is an excerpt from the NFIB report:
“In the long run, consumers spend a fairly steady share of their income. The rapid growth in paper wealth and easy credit allowed them to get ahead of themselves, but they are starting to even things out and this will support gains in spending as the economy recovers. The uncertainty now lies with government policies. Just how much of a headwind will new regulations, “nationalization,” higher taxes, spending that diverts private resources to public use and a stunning level of borrowing that could crowd out private investment pose for the economy? Can the Federal Reserve reclaim the liquidity it has created before inflation sets in? Time and politics will tell.” (May 2009, NFIB Research Foundation - NFIB.com, page 5.)
As you read the commentary by the researchers of the National Federation of Independent Business, this message is clear:
We could soon see the light at the end of the tunnel and enter a new era called the “beginning of the end of the recession.”
But it all depends on how the politicians and the staff of the Federal Reserve are acting.
Politicians need to make sure that the economy remains their top priority. Clearly the public is focused on the economy.
I double checked with one of the representatives of the mainstream media. Here is an excerpt from Chris Cillizza’s article, White House Cheat Sheet: It’s Still the Economy, Stupid.
“Over a four-day period last week, which occurred during the heat of the Washington debate over terrorist detainees, 44% of Americans said they were following economic news very closely while just 25% said they were following the back and forth over the abuse photos closely, according to new data from the Pew Center for People & the Press. A Gallup survey conducted earlier this month echoed the primacy of the economy in most Americans’ minds. Asked to name the most important problem facing the country, 47% chose the economy while 3% opted for national security and 2% named terrorism.” (May 21, 2009, Washington Post.)
The economy will remain the priority of the public (and small business owners) for some time. No one should forget that.
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About the Author: Martin Lindeskog is a “trader in matter & spirit” and a small business entrepreneur in Gothenburg, Sweden. He is a board member of the Swedish National Association of Purchasing and Logistics (Silf, Western Region). Martin also writes a long-standing blog called Ego and has a podcast series, Egoist, on the Solid Vox network.