Today, the ADP Small Business Report showed that 138,000 small business jobs were lost in July - 80,000 jobs in the service sector and 58,000 in goods-producing firms.
According the July report:
We still don't know where the bottom of this will be. I believe the most likely scenario is a long period of sluggishness in the economy, maintaining current unemployment levels with a lack of economic growth. This may become our norm, certainly for several quarters and mavbe even for several years. I believe this is the most likely scenario because we are not doing what we need to if we want to spur entrepreneurial growth -- cut taxes and preserve property rights.
The other scenarios I see cause me even greater concern.
One is that we will experience another steep drop in jobs and highly negative growth. This will most likely be the case if we have some unforeseen economic or political shock.
The other worst case is that we will begin to rebound, which given how we have stacked the deck with deficits, will lead to very high inflation -- potentially hyper-inflation. The long term outlook if this happens would be quite bleak.
According the July report:
This month's employment decline was the smallest in eight months continuing the notable improvement between the first and second quarters of 2009. Employment among small-size businesses is likely to decline for at least several more months, albeit at a diminishing rate.These findings echo the overall job statistics, which seem to show a slowing of the decline in jobs.
We still don't know where the bottom of this will be. I believe the most likely scenario is a long period of sluggishness in the economy, maintaining current unemployment levels with a lack of economic growth. This may become our norm, certainly for several quarters and mavbe even for several years. I believe this is the most likely scenario because we are not doing what we need to if we want to spur entrepreneurial growth -- cut taxes and preserve property rights.
The other scenarios I see cause me even greater concern.
One is that we will experience another steep drop in jobs and highly negative growth. This will most likely be the case if we have some unforeseen economic or political shock.
The other worst case is that we will begin to rebound, which given how we have stacked the deck with deficits, will lead to very high inflation -- potentially hyper-inflation. The long term outlook if this happens would be quite bleak.
Interesting analysis. More Small Business owners are beginning to realize the full potential of technology today by employing automated systems that generates cash flow for them 24/7 with the most minimal effort.