Is the lack of a deal on the various “Fiscal Cliff” issues already negatively impacting your small business in 2012?
How about the prospects of a failed deal for 2013? Do you know what that will mean for your Small Business?
We’re down to 2 weeks left and still no deal from our esteemed politicians in washington. They are too focused on which special interest group they either need to pay back for campaign contributions or else the ones that they are going to piss off and prevent a future re-election bid, rather than implementing a real fix for the country. Something that we desperately need.
The news media talks about the “Fiscal Cliff” as if it were a single issue, but in reality it is many that all happen to be either starting or expiring all on the same day, New Years 2013. They are all going to have some kind of impact on the economy and especially Small Business Owners and a vast majority of that impact will be negative.
Even if some pieces of the “Fiscal Cliff” are fixed by the end of the year, the parts of it that aren’t resolved will likely cause a huge negative impact to small businesses nationally, and many businesses are already starting to feel that gloomy impact as reported online by the San Jose Mercury News at their website mercurynews.com.
This “fiscal cliff,” as it is commonly being called, is already hurting DeNicola’s company Mainstream Boutique, a Minneapolis-based chain of 23 franchise stores that sell women’s clothes.
“It’s a little scary — because of the unknown, small businesses aren’t waiting until January or February to see what happens. People are reacting now.”
As far as the future prospects are concerned, that is a serious issue as well. If the politicians in their ivory tower in washington can’t stop bickering and get their act together, the falling off the “Fiscal Cliff” is going to have far more serious negative consequences going forward for Small Businesses and the entire national economy.
Going over the cliff could have a range of negative ramifications. If people have to pay higher taxes, they will likely spend less. Businesses will hold off on hiring or making investments that could help them expand. Federal budget cuts will put billions in government contracts in jeopardy. Economists and lawmakers warn that without an agreement, the U.S. could slip back into a recession. And they say that small businesses have the most to lose.
And many small business owners are facing the consequences of consumers spending less already, and the prospects of them cutting back even further are quite scary. The ramifications will be felt for years and decades to come from this “Fiscal Cliff” debacle.
The consequences that Jones faces are a big part of why Georgia Institute of Technology professor Thomas Boston says he thinks the fiscal cliff could do enough damage to small businesses to halt the economic recovery.
If that happens, then we very likely would fall back into the 2nd half of a double dip recession, which would be disastrous and likely wipe out many many small businesses and hundreds of thousands of jobs or more.
One business owner thinks that it is an embarrassment to the country and I’d have to agree. The squabbling in washington is ridiculous and there is no end in sight, even if they do compromise on a portion of the issues before the end of the year.
“It’s an embarrassment to the country. It’s an insult to my intelligence,”
And another small business owner is afraid, rather than excited about the prospects for the new year like she normally is.
She’s looking toward 2013 with some trepidation, because she says many of her clients, which include companies in the Fortune 500, have been cutting back. “It’s disheartening. Normally we look at the new year with a lot of enthusiasm,”
Read the full article published online by the San Jose Mercury News here http://www.mercurynews.com/jobs/ci_22180155/small-businesses-already-slipping-off-cliff
Have A Prosperous Day!