Republicans celebrated small business optimism reaching an all-time high Tuesday as another clear sign President Donald Trump’s economic agenda of deregulation, tax cuts and renegotiating trade deals is working.
The National Federation of Independent Business (NFIB) has tracked small business optimism on a monthly basis for the last 45 years. The index took a massive hit during the economic downturn a decade ago but has been slowly climbing back since. But the last year has seen the rate skyrocket to its new record high at 108.8 points for August.
“With small business optimism at the highest its been in 45 years, it’s clear that Americans are prospering, and small businesses are thriving,” House Small Business Committee Chairman Steve Chabot (R-OH) said in a statement.
“These historic gains are proof that the new tax law and a reduction in regulations are significantly driving our economic gains. I look forward to seeing continued growth in our economy.”
President Donald Trump entered office shortly before the index started to turnaround with the promise to help domestic workers and businesses. He has worked to fulfill that plan by cutting taxes, deregulating and renegotiating trade deals. Republicans and the president are now pointing to small business optimism as a sign the plan is working.
Former President Ronald Reagan was in office the last time small businesses hit a record high. Small business optimism was scored at 108 points in July 1983. Trump just barely missed the record a couple times prior as the economy was starting to show more sustainable signs of improvements.
“Congress & the Administration have worked hand-in-hand to reform the tax code & undo the regulatory burden that has been hampering small business growth for years,” Sen. James Risch (R-Idaho) said in a tweet. “This is a result.”
The NFIB Small Business Optimism Index looks at several factors when surveying small business owners including plans to increase employment, plans to make capital outlays, plans to increase inventories, current job openings and whether it’s a good time to expand. The responses to each are then scored using a points system.
“Boosting business confidence was a goal of Republicans’ work to transform our tax code last year,” House Ways and Means Chairman Kevin Brady (R-TX) said in a statement. “The Tax Cuts and Jobs Act took bold steps to create an environment where our Main Street businesses could …