The U.S. Economy Expanded: Horizon Explains What This May Mean Small Business Own
The growth rate is still lower than the U.S. economic growth rate from past decade; however, economist attribute some of the negative pull on the economy to decreased national defense spending. Other government agencies have cut spending during the economic downturn of reason years and those cuts still impact the growth statistics. Federal, state and local governments may have decreased spending by as much as 12.5 percent over a period of years and further cuts may go into effect in 2012. Contributing to the growth in the economy is orders of durable goods and manufacturing business. Many U.S. companies are reporting strong profits and new orders. General Electric and Lockheed Martin are reporting record order backlogs. This upturn in manufacturing orders and business, according to some economists, may allow the U.S. economy to weather the European debt crisis well. Still, what does both the good and bad news mean for individuals and small businesses? While the economy seems to be growing a modest rate companies still seem reluctant to use their burgeoning profits to invest in new workers. According to Conrad DeQuadros, senior economist at RDQ Economics, "Businesses have been holding much higher levels of cash than they have in the past." Small business owners are encouraged to invest in workers. Today's economy produces more than it did when the recession began in 2007, yet it does so with 6 million fewer workers. The growth in the economy needs to translate into jobs, homes and security for American workers and families. Failure to invest in workers broadens income disparity and ultimately leaves the U.S. open for economic insecurity. But managing income and reinvesting so that the dollars are available to grow staff can be complex and temporarily make funds unavailable for business expenses. If you need help navigating through the complex economic picture faced by most Americans and American businesses today, Horizon Business Solutions can help. Call 614-577-1700 or check out our website at www.horizonbiz.com today to find out what you can do to make your business profitable and cost effective. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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