I'm catching up on my news this morning reading the paper edition of the Wall Street Journal. I'm a digital guy, but I still love to lean back in my office chair in the quiet of my office on a Friday morning and actually flip through the pages of the Wall Street Journal.
"Recession Fears Recede As Economy Grows 2.5%" is an article in the October 28, 2011 print edition. Authors Josh Mitchell and Sara Murray say that the economic growth is quick enough to blunt fears that the US is about to plunge into recession again but not fast enough to signal that that halting recovery is about to get on a roll. The authors quote Justin Wolfers, an economist at the Wharton School, "If the economy grew at this rate forever, the unemployment rate wouldn't fall." So 2.5% better but still not good enough.
Consumers are spending but not saving, an unsustainable situation (but hardly anything new). Companies are more willing to spend on equipment than on people. Yet, isn't that what Congress is promoting with tax incentives? You get to write off 100% of new equipment, but there's no comparable tax benefit for investing in new jobs [my comment not the authors].
As year-end approaches, consider the future of your small business. Tax incentives favor buying new equipment or spending on starting up a new business this year over next. Consumers are spending money, so position your business to capture some of that spend. Be bold in promoting your brand and position your business to be a winner as the economy rebounds. Hire somebody if you can, even if only part time or contract. Get that stuff done that you've been putting off. Let's get this economy moving in the right direction (up) again.
And have a great day!
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