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Don't expect small business to bail the US economy out (Cutting back on new hires drastically)
American Thinker ^ | 12/07/2012 | rick Moran

Posted on 12/07/2012 8:21:22 AM PST by SeekAndFind

Gallup released a disturbing poll that shows US small businesses planning to cut back on new hires drastically over the next 12 months:

U.S. small-business owners expect to add fewer net new jobs over the next 12 months than at any time since the depths of the 2008-2009 recession, according to this November's Wells Fargo/Gallup Small Business Index survey. Small-business owners' net hiring intentions for the next 12 months plunged to -4 in November, down from +10 in July and matching the previous record low recorded by the Wells Fargo/Small Business Index of -4 in November 2008..

The Wells Fargo/Gallup quarterly survey was conducted Nov. 12-16, 2012, with a random sample of 607 small-business owners. The same survey found small-business owners are increasingly pessimistic about their businesses' current situation and their expectations for the next 12 months.

Historically, net hiring intentions have tended to be very positive, with small-business owners expecting to grow and hire more new employees than they will let go over the next 12 months. In good economic years, net hiring intentions have been in the double-digits. This has not been the case since the recession and financial crisis in 2008-2009 with net hiring intentions reaching a low of -4 in November 2008. There was considerable improvement in small-business owners' hiring expectations during much of 2012, prior to the recent November plunge, but now expectations have deteriorated to tie the low recorded in 2008.

In November, 21% of owners say they expect to decrease jobs at their companies over the next 12 months,

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; News/Current Events
KEYWORDS: jobs; smallbusiness; unemployment
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1 posted on 12/07/2012 8:21:36 AM PST by SeekAndFind
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To: SeekAndFind

When will they admit that we are in an economic depression?
When will they admit it is the OBAMA economic depression?


2 posted on 12/07/2012 8:25:52 AM PST by Darksheare (Try my coffee, first one's free.....)
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To: Darksheare

Ever read “1984”?

We’re living it.


3 posted on 12/07/2012 8:28:33 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: MrB

Yeah, I know.
To some, Orwell’s work was a word of caution.
To others, it apparently was a handbook.


4 posted on 12/07/2012 8:30:02 AM PST by Darksheare (Try my coffee, first one's free.....)
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To: SeekAndFind

In other news, Wells Fargo, a leading capitalist pig feeding off the misery of the poor, put out a survey indicating a possible downturn in hiring by small business. Wells Fargo, which has already paid billions in fines for its racist lending practices obviously slanted the study to besmirch the brilliant plans of our Dear Leader.


5 posted on 12/07/2012 8:35:47 AM PST by DeFault User
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To: MrB
I can't stop asking myself "What were all these jag-off who voted for Obama thinking?"

Were they thinking that the wagon pullers would just keep pulling as more and more people said "To hell with it, I think I'll ride too!"

Did they think printing money would just keep the scam going without any consequences?

Did they really think you could just dump millions more customers into the medical system with the same amount of infrastructure and suppliers and still lower costs?

Did they really think somebody who cares about me and makes me feel good about myself is a more important criteria for POTUS than someone who has a reasonable level of demonstrated skill in actually producing something of economic value?

The only conclusion I can come to is that they simply are not capable of rational thought.

6 posted on 12/07/2012 8:37:26 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Vigilanteman

Remember the “Obama money” gals?

They had no idea where the money was coming from other than “Obama”.


7 posted on 12/07/2012 8:44:11 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind
Just heard from a former small business owner, who is also a conservative, that he will be laid off from his part-time job as a consultant to another small business. This is an update form the great state of California whose voters approved tax increases in November.
8 posted on 12/07/2012 8:45:06 AM PST by Huskrrrr
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To: SeekAndFind
There will be several years of doldrums as businesses (large and small) try to sort through the Obamacare bueacracy and try figure out how to absorb the extra costs. Maybe more outsourcing?

Obamacare isn’t even finalized yet. So it is a moving target.

Businesses will have to either charge more for what they make and do or close up shop. Will consumers be willing to pay more? I can certainly get by with a lot less.

All the while, the Chinese and others will be going like gangbusters.

9 posted on 12/07/2012 8:49:42 AM PST by dhs12345
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To: SeekAndFind
How can they?

All of Ubama's policies are strategically designed to destroy small business because the feral government cannot control them.

The only businesses Ubama wants to exist are members of the big-government/big-corporate criminal complex.

10 posted on 12/07/2012 8:55:36 AM PST by E. Pluribus Unum ("The more numerous the laws, the more corrupt the state." - Cornelius Tacitus, Roman Senator)
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To: MrB
... and when the government teat dries up there will be massive riots, hysteria, and lots of finger pointing and blaming.
11 posted on 12/07/2012 9:00:45 AM PST by dhs12345
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To: Vigilanteman
They are either ignorant or zealots. They either don't understand or don't want to.
12 posted on 12/07/2012 9:04:40 AM PST by dhs12345
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To: dhs12345

Prepare for it. Those that caused the problem will effectively blame “the rich”, ie, anyone that has ANYTHING,
for the problem.

Read up on the Argentinian collapse. This is exactly what the govthugs did, and it worked.


13 posted on 12/07/2012 9:15:04 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: dhs12345
Businesses will have to either charge more for what they make and do or close up shop. Will consumers be willing to pay more?

No - the American consumer is already refusing to buy quality. They want the cheapest stuff they can find, instead. We're already seeing a general refusal to buy quality at quality prices just compared to Spring, 2012 - when the quality product was a much easier sell. Mid-level retailers are going to get massacred in 2013. It's Louis Vuitton and Wal-Mart...and nothing in between.

My hiring plans? We'll probably hire 5 to 7 people next year - and fire 6 to 8. :)

14 posted on 12/07/2012 9:21:09 AM PST by Mr. Jeeves (CTRL-GALT-DELETE)
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To: MrB

I am concerned that it could get really bad. On the other hand, it may be a slow death over 20 years or so. A gradual decay.


15 posted on 12/07/2012 10:24:52 AM PST by dhs12345
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To: Mr. Jeeves

Consumers won’t pay more when their wages are stagnant or non-existant because they are unemployed.

Mid-level — what percentage? Bet it is high. 75%?

Good luck!


16 posted on 12/07/2012 10:30:02 AM PST by dhs12345
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To: SeekAndFind

Services getting most of their revenues from government and others with government incomes, no. But just beyond the end of the economic slide, with new leadership and virtually no regulations against real work, new small manufacturing businesses, yes.


17 posted on 12/07/2012 11:21:30 AM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: familyop

If a small corporation such as a manufacturing business had 140 employees, couldn’t they form two more corporations, say, one that does the manufacturing, one that does the adminstration, one that does the sales, support, etc. Divide the employees among the corporations so that none had more than 50 and solve the problem of Obamacare?


18 posted on 12/07/2012 11:31:23 AM PST by Gadsden1st
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To: Gadsden1st

That’s a great idea.


19 posted on 12/07/2012 11:33:58 AM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: SeekAndFind

I think that these predictions are way too optomistic.

I think layoffs and closures will be far more extensive.

We are on the Titanic and are about to hit an ideberg which is only partially exposed.

IF people are smart enough to build a business for multi-generations, they are smart enough to know how to carve it down to family members only.


20 posted on 12/07/2012 11:44:01 AM PST by ridesthemiles
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