The Wealth-Generation Gap - 03/09/10

The NFIB's small business survey paints a clearer picture of the heightened populism directed at the 'haves.'

The National Federation of Independent Business's (NFIB) Small Business Optimism index was just released. Below is a summary:

"The National Federation of Independent Business Index of Small Business Optimism lost 1.3 points in February, falling back to the December reading of 88.0, only 7 points higher than the survey's second-lowest reading reached in March 2009 (the lowest reading was 80.1 in 1980:2). The persistence of Index readings below 90 is unprecedented in survey history. News about the economy is for the most part improving, and therefore is an unlikely source of small business uncertainty and declining optimism. The Washington, D.C. agenda, on the other hand, remains a nightmare for small business owners and continues to be a real factor in small business owners not expecting business conditions to improve," said Bill Dunkelberg, NFIB's chief economist."

The weak NFIB survey of small businesses underscores the schism and lack of balance between the health of the large corporations compared to the uncertainty/loss of confidence in small business and also consumers.

While there probably is something of a lag and even though the employment component was better, the NFIB survey underscores the risks of a hesitant and non-self-sustaining recovery as well as giving a clearer understanding of the heightened populism directed at the "haves."