TRUMP Effect: Pro-Business POLICIES Expected!

Small business optimism in America has surged to a record high, eclipsing a six-year benchmark and offering a beacon of economic promise.

At a Glance

• The NFIB Small Business Optimism Index has surged to 105.1, the highest level since October 2018.
• The surge in confidence is being directly attributed to the election of President Donald Trump and the anticipation of pro-business policies.
• The NFIB’s Uncertainty Index also saw its largest drop in six years, falling 12 points.
• For the second consecutive month, the optimism index has surpassed its 51-year average.

A Surge in Main Street Optimism

Confidence among America’s small business owners has skyrocketed to a six-year high, a clear sign that “Main Street” anticipates a new era of economic prosperity. The National Federation of Independent Business (NFIB) announced that its Small Business Optimism Index jumped to an impressive 105.1, a level not seen since the economic boom of October 2018.

This renewed confidence is being directly linked to the election of President Donald Trump. “Optimism on Main Street continues to grow with the improved economic outlook following the election,” NFIB Chief Economist Bill Dunkelberg said in a statement reported by Fox Business. The report also found that the NFIB’s Uncertainty Index plunged by 12 points, its largest drop in six years, as business owners feel they have a clearer view of the path ahead.

The Trump Effect: Pro-Business Policies Expected

The driving force behind the surge in optimism is the widespread expectation of a more favorable business environment under the new administration. Small business owners are anticipating the return of pro-growth policies, including significant deregulation and the permanence of the 2017 Tax Cuts and Jobs Act.

“Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year,” Dunkelberg explained. This pro-business agenda is seen as a critical component for unleashing the full potential of the American economy.

Economic Implications

The renewed confidence on Main Street has enormous positive implications for the entire U.S. economy. As small businesses—the nation’s primary job creators—feel more secure and optimistic about the future, they are more likely to invest, expand, and hire new employees.

This creates a virtuous cycle of job creation and increased consumer spending, which in turn fuels further economic growth. As detailed by the Daily Caller, the high level of optimism is a strong leading indicator of a robust economy in the months and years to come, signaling a decisive break from the economic uncertainty of the recent past.