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Hi everybody thanks for joining us signed David has been kicking off tonight the economy's -- growing.
Jobs are being created the academy just feels really rotten out -- but -- those perceptions accurate.
Are we all missing a trend that may be isn't showing up yet in the stats.
-- search team for sage works which provides data for private companies found some very surprising information.
About what's going on in the economy about 172.
Industries examined by -- works.
Over the past twelve months only seventeen.
Saw there for sales figures decline.
In general's sage works found a strong rebound in manufacturing even though it has been slowing down recently so.
What's right what's most accurate your gut feeling -- the -- works data.
Get a present his side as the co-founder sage works Brian Hamilton Brian good to see you thanks for -- I was surprised by these figures are.
You guys take accurate readings of what's every the academy but.
Why do things feel so bad if if they don't appear to be from your data.
Jobs definitely jobs knowing how to have perspective to -- I mean there's seventeen.
Million businesses in the country only 5000 of which are publicly trade.
The vast majority are small privately held companies their revenues going up their net margins are going up in their net profits are going up.
What's lagging is obvious -- jobs.
Well -- you know it is -- small and medium sized businesses that get as going yes after a recession absolutely it's always the case that you know you have the downsizing going on.
And then you have the little Green sprouts coming up from a from a a damaged economy we haven't been saying that why is -- an 80% of new jobs are created by smaller currencies 70%.
Of GDP is comprised of the privately held company sectors so.
Anything we do it a public policy level has to cater to that.
Group of people so -- is keeping that group of people from hiring new -- -- there's a lot of variables and -- not agree with everything obviously but there's let me now after Katrina -- -- is waiting in the wings -- LC -- But argues that there's a lot of variables you've got.
I think one of the big ones -- national debt no question about look we're sitting in the economy when you're running a business and we -- fourteen trillion dollars in debt.
No what does that mean if our lenders all the sudden start increasing our interest rates.
Then everybody's interest -- that is that much closer to home what's what's keeping these small guys from from hiring more people as they're worried about the immediate future.
Date they're worried about their taxes go up they're worried about their health care costs which have been going a tremendously worried about regulations.
Which cost some money I mean yes we're we're considering -- something.
That's its ephemeral or.
Or doesn't mean anything to the Reuters national debt -- and there's no real understanding here's the thing these guys are struggling for every dollar they sell.
They're making about three cents in profit just think about that.
A lot of them have sales less than ten million you can do the math.
So here's the thing.
Let me just on his -- that for every dollar they are the only three -- our recent surprise and that must be one of the smallest profit margins ever -- well actually it's very historically accurate -- time.
So here's the point.
There valiantly trying.
If anything we do at a public policy level to throw grenade in their tank or make things on certain.
We gotta realize just like you would -- all of -- sudden -- incomes compromise you're not gonna be out spending more money I hope right so it's the same thing.
Anything we do at a policy level let's forget -- Democrats let's forget about the Republicans let's make sure.
They -- taking care in that they feel safe.
By the way it's not like the risk -- -- they're starting businesses there's so many risks running the business but when we introduced things.
That's when the real problem mention a word uncertainty and I hear that all the time for small businesses -- don't know what these guys are gonna come out what.
A lot of them didn't know exactly what to expect from President Obama most of them that I've talked -- bit disappointed.
By what he he has done so it's just that uncertainty about not not knowing what shoe is gonna drop next -- whether it's.
Something on health care summit -- regulation summing up taxes and there's so much divisive as between the parties you know they're not getting together Democrats and will you know will cause social spending a little bit.
If you cut military spending.
You know those are being pulled apart those groups are being pulled apart so what's happening is these small business is these privately held companies don't know what is coming down the road.
And they are not gonna hire people -- that's going so not enough so let's say it's it seems every come full circle because now we're talking pessimistic way but your overall report is -- yes one other thing too by the way.
When GDP goes up.
When revenue goes up when profits go up over time over the last 5060 years.
You know at some point people star hiring people.
They need people -- -- at some point can't all of the pessimism and all of the uncertainty actually affect the economy means -- it's it's like the economy.
Despite what they're doing in Washington yet eventually the pessimism of what's happening in DC might affect plans for -- on a positive outlook.
For 200 years we are good business people in America it's a -- that we have done very very -- compares.
Across the whole world over -- long period of time so when GDP is going on when revenues are going -- net margin to go to net profits are going.
But eventually people hire people.
The thing that worries me is -- is that gonna happen.
If we keep extending the political debate.
What are these guys gonna feel good about --
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