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William Dunkelberg, NFIB chief economist, with the results of the first optimism index after the election.
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I -- the National Federation of Independent Business released its latest small business survey and the results are troubling.
With smiled -- as optimism at its lowest level since march of 2010.
Here to discuss the NFE's chief economist build uncle -- -- -- -- here November 13.
And that results last time were really good but they did not include -- presidential election you think that's the big reason.
I think that's basically had.
In of this survey through October didn't include the election or the hurricane either one.
And about about we have the election and then of course people who hoped.
For the ability to see some different kind of change some different -- a management we're disappointed we woke up after spending billions on the election and everything was the same.
And since they were unable to really kind of come up with a scheme forest before I guess Lou owners are -- pretty pessimistic that they'll be able to do it now -- the same bunch.
Yeah because -- business conditions in the next six months they say will be worse so that basically means the election was confirmation -- that.
Yeah that's that that's the deal for them.
Would they didn't see any good policy change is coming and so.
We had a 37 point deterioration in the net percent of voters who think business conditions we better.
And six months though would that have an outlook on the economy -- not -- -- -- not gonna make capital spending and -- gonna do any of these things that.
Would help -- GDP and reduce the unemployment rate.
They're still saying credit markets are tight they're still saying right that the red tape is there.
So going forward and what can turn this for them.
Well actually not really complaining about credit week.
But we have is two thirds of the owners say they have no interest -- alone right because they have no place to put the money -- papers to be able to pay back the -- no good investments to make.
-- -- well obviously would help things out would be something good happening in Washington Ed makes us more confident there were on a path.
There won't lead to a kind of Grecian destruction of the economy that's the concern consumer settlement.
Also plunged in November and that means you know they're gonna be reluctant spenders and if could if customers are showing up were not hiring -- -- -- new inventory -- I do and any of those things would help the economy grow.
An amazing that it's really not comes back to the government and yet the market is so directly affected by this.
We have this great chart that we're gonna put up that shows the correlation between small business optimism and the S&P 500.
And -- Indy 500 has just started to tick up interestingly enough so did optimism in October.
Now that optimism has fallen in November for our small businesses should we anticipate a similar drop in the S&P 500.
Well I think I think ultimately you will because small businesses -- the economy and they certainly are making a lot of profits.
There's been some good news in Europe event for the bigger firms that are and the S&P 500.
Things looked a little bit better so we see the market doing better today but.
I wouldn't count on those profits holding up and and domestically we don't get some growth certainly the investing side of proper growth is not going to be there are so not good news.
It odd and I know you asked the question is this the new norm I guess we'll find out next month when you come back -- uncle -- with the NF ID things -- thank you.
All right well protest -- ugly in Michigan now the state votes to limit the power of labor unions would judge Andrew Napolitano will tell us why he says.
It's a victory for americans' personal freedoms that's next.
