The NFIB Small Business Optimism Index hit 108.8 last month, sparking record-breaking optimism among small-business owners, according to a survey by the National Federation of Independent Business. The National Review reports that the index is at the highest it has ever been in its 45-year history, the previous record being 108 under Republican president Ronald Reagan.
The high index is a result of Republican-passed tax cuts and deregulation and reflects a steady trend of hiring and capital investment among small businesses flush with cash, according to NFIB analysts.
“Today’s groundbreaking numbers are demonstrative of what I’m hearing every day from small business owners – that business is booming,” said NFIB President and CEO Juanita D. Duggan, in a press release Tuesday. “As the tax and regulatory landscape changed, so did small business expectations and plans.”
The index high follows GDP growth, which reached 4.2 percent in the second quarter. The National Review reports that this is fastest ever GDP growth rate seen in four years.
On Friday during a speech at the University of Illinois, President Barack Obama claimed credit for the strong economic indicators saying, “When you hear how great the economy is doing right now, let’s just remember when this recovery started.” Among applause and laughter, he continued, “When the monthly job numbers come out suddenly Republicans are saying it’s a miracle.”
In recent days the Trump administration has taken steps to illustrate that the economic growth is the result of the President Trump’s policies. Chair of the Council of Economic Advisers, Kevin Hassett, reproached the former president’s claim of responsibility during a White House press briefing Monday. Hassett came prepared with several charts showing the nation’s economic trends, which took a positive turn around 2016 when President Trump took office.
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