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Economics 101: Small Business Cuts Back on Spending After Obama Election Victory
Rush Limbaugh.com ^ | December 13, 2012 | Rush Limbaugh

Posted on 12/13/2012 11:44:10 AM PST by Kaslin

BEGIN TRANSCRIPT

RUSH: We have some news here. It's not surprising to me. "US small business owners' net capital spending intentions for the next 12 months plunged to -14 in November, the lowest level in more than two years, according to the Wells Fargo/Gallup Small Business Index. This is down from net capital spending intentions of -1 in July and suggests the nation's small business owners are likely to pull back on their business investments even more, given their negative expectations for the next 12 months."

Now, I give you an illustration. In 2004, 2005, 2006, 2007, this index -- the Wells Fargo/Gallup Small Business Index on Capital Spending Intentions -- was at anywhere from plus 28 to plus 16. Its low was minus 23 in 2009. Now it is minus 14. We've had, therefore, a net drop-off of 30 points. When you see it on the graph, it makes a little bit more sense. But as recently as 2008, small business net capital expenditure expansion spending was big, it was huge, and now it's at minus 14 for the next 12 months.

So it means no economic growth.

It means small business, which does most of the hiring, isn't gonna be doing any.

BREAK TRANSCRIPT

RUSH: It is Rush "Stonewall" Limbaugh here on the Excellence in Broadcasting Network. Great to have you here.

So the small business guys are not going to expand in their businesses this year, according to the latest survey that we just had. By the way, the survey came out in November. What happened in November to dampen the spirits of small business people, I wonder? But their projections on net capital investment in the next 12 months, negative 14. This dovetails with a story from the Federal Reserve, ladies and gentlemen. The Fed is projecting the unemployment rate will stay elevated until late 2015, suggesting that it's going to keep short-term interest rates low for the next three years.

The latest economic forecast released yesterday after the Fed's final meeting of the year, little changed from September, but they coincided with a new communication strategery announced by the Fed that links future interest rate increases with unemployment below 6.5%. The unemployment rate's now 7.7%, and the Fed says that's not changing. For three years. I want to take the occasion of this report to go back and revisit something that the Washington Inside the Beltway intelligentsia uses in their analysis of the fiscal cliff and what Obama wants.

If you've heard it once, I'm sure you've heard it a gazillion times that Obama doesn't want to start the second term with a recession. He doesn't want employment going back up. He wants a great legacy. Blow that out of the water. No way. Obama doesn't care about economic growth. That's not what he's into. He's into government growth. It isn't going to get any better. There are no expectations, even, that it's going to get any better, folks. The sad fact is that among people who vote, we appear to be outnumbered. We appear to be outnumbered by people who don't care whether the economy's going to grow or not. And the sad reason for that is that they simply don't understand economics. They don't understand the relationship of price to supply, for example. Something as simple as that. They just don't understand the economics 101 characteristics.

It's really an amazing thing to see how successfully the left has blown up education in this country. Before the election we're all speculating have we reached the tipping point or not. I don't know how you can say we haven't, among people who vote. Now, maybe nationwide we haven't, but what difference does it make. We are governed by the people who vote. And the people who voted, it was pretty clear the takers dominate. And that's exactly what this was. A lot of people want to try to sugarcoat this, "No, these are people that were morons, Rush. They didn't really know what they were doing." I have decided to formally reject that, just like I reject the notion that people voting to raise taxes on themselves in California was the result of them being fooled. I don't believe that. I think they knew exactly what they were doing.

I think of the people who vote in this country, the low-information voter is dominating, and the low-information voter is not aware of how low-information he or she is. And they are voting for the status quo. They're voting for more of what life was like the past four years. They clearly didn't vote for any change in it. And don't tell me that Obama convinced them he wanted the economy to grow. That's not what he convinced them of. He convinced them that the problem is that the rich aren't paying their fair share. That was his theme. His theme was the successful and the achieved are not paying their fair share and that he was gonna get it from 'em. The inference is that once he gets it from them, they're gonna end up with more than what they've got now.

END TRANSCRIPT


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: 2012; economics; elections; limbaugh; obama; obamavoters; rush

1 posted on 12/13/2012 11:44:19 AM PST by Kaslin
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To: Kaslin

This is turning out to be very true. I have many friends that own small businesses and they are operating very conservatively right now in fear of higher taxes and Obamacare. They seem to be intentionally trying to earn less to stay within certain tax brackets. Meanwhile the illegal immigrants are working tax free and receiving free healthcare, food stamps, and housing through their spouses who do not list them on the applications as a source of income so they get maximum benefits (as told to me by a disgruntled Dept of Social Servises employee; they have people call in on them but can’t prove it)


2 posted on 12/13/2012 11:56:39 AM PST by jsanders2001
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To: Kaslin

This is turning out to be very true. I have many friends that own small businesses and they are operating very conservatively right now in fear of higher taxes and Obamacare. They seem to be intentionally trying to earn less to stay within certain tax brackets. Meanwhile the illegal immigrants are working tax free and receiving free healthcare, food stamps, and housing through their spouses who do not list them on the applications as a source of income so they get maximum benefits (as told to me by a disgruntled Dept of Social Servises employee; they have people call in on them but can’t prove it)


3 posted on 12/13/2012 11:57:00 AM PST by jsanders2001
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To: Kaslin

This is turning out to be very true. I have many friends that own small businesses and they are operating very conservatively right now in fear of higher taxes and Obamacare. They seem to be intentionally trying to earn less to stay within certain tax brackets. Meanwhile the illegal immigrants are working tax free and receiving free healthcare, food stamps, and housing through their spouses who do not list them on the applications as a source of income so they get maximum benefits (as told to me by a disgruntled Dept of Social Servises employee; they have people call in on them but can’t prove it)


4 posted on 12/13/2012 11:57:03 AM PST by jsanders2001
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To: Kaslin
The big-government/big-corporate criminal complex has no use for small business. They are merely competitors, and the power of government can be used to extinguish them to make the world a better place for the big-government/big-corporate criminal complex.

If you have a small business, get out while you can still salvage some of your capital.

You are targeted for annihilation.

5 posted on 12/13/2012 12:25:28 PM PST by E. Pluribus Unum ("The more numerous the laws, the more corrupt the state." - Cornelius Tacitus, Roman Senator)
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