Small Business Optimism Falls To 103.6, But Remains Above 100 (Obamasnare?)

The NFIB Small Business Optimism Index for June fell slightly to 103.6, but remains above 100.

The NFIB Small Business Optimism Index remained below 100, indicating pessismism about small business growth, for most of Obama’s two terms as President, primarily because of the (Un)Affordable Care Act that placed staggering burdens on small businesses. There was hope that Trump and a Republican-held Congress could repeal the horrid Obamacare legislation, but that is looking less and less likely.

Obamacare was so poorly designed (it was really just a wealth transfer scheme from the beginning) that you see insurers pulling out of markets, leaving some counties with zero or 1 insurer.

Obamacare premiums have been soaring, depending on the state. Some states like California have seen increases of less than 10%, but some states like Arizona have seen increases in excess of 50%, not to mention massive increases in the deductible amount.

Since much of the burden of Obamacare falls on small companies (who rarely get representation or protection in Congress), I expect the optimism index to sink if Congress fails to repeal Obamacare (or at least returns Obamacare to a more free market approach).

For small businesses, Obamacare should be renamed “Obamasnare” since small businesses are snared in the healthcare trap.

But improving economic conditions and deregulation should improve small business model.

 

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