One of the more enduring memories from election night was the meltdown from the MSNBC crew, which kept going on and on about market reactions and all of the uncertainty that the world would be facing under a Trump presidency. Of course they were worried about uncertainty. They had just spent a year planning for life under Hillary.
As we all know, the market reacted quite well. Now that the Trump administration is closer to becoming a reality, there are many who aren’t worried about uncertainty at all:
While many business owners are more confident because their revenue looks to increase in 2017 due to the overall improving economy, they’re also optimistic because they expect Trump to deliver on promises to lower taxes and roll back regulations including parts of the health care law. But owners may not be expecting overnight relief — many recognize it will take time to see what the administration’s plans are, and what it will accomplish.
Business owners were considerably more optimistic about 2017 in a survey taken shortly after the election. Forty-six percent of the 600 questioned in the Wells Fargo survey said the operating environment for their companies would improve next year; that compares to 30 percent two years ago, after the last congressional elections. Just over half the owners said actions that Trump and Congress will take next year will make their companies better off. Twenty-six percent said the government’s actions would have no effect, and 17 percent said their businesses would be worse off.
Nick Braun expects his pet insurance business to benefit because he thinks consumers will feel more comfortable about buying nonessentials like health coverage for their pets.
“I truly believe that 2017 will not only be a great year for our business, but the U.S. economy in general,” says Braun, whose company, PetInsuranceQuotes.com, is based in Columbus, Ohio.
Braun thinks promised changes to the health care law will be one factor encouraging consumers to spend on things that aren’t their top priorities. He’s also hoping that changes to the law will make it easier for him to buy insurance for his six staffers, which he provides even though the law doesn’t require him to. He says he’s had to change carriers several times because many insurance companies haven’t wanted to write policies for small businesses.
The Obama fans out there truly believe that the economy has gotten a lot better, even though it’s been nothing more than the little engine that mostly couldn’t. There is a lot of room for improvement, and it was never going to happen in the midst of the regulatory stranglehold that was sure to remain the status quo, had Mrs. Clinton won.
If Trump can get Congress working on letting businesses breathe again, it will be a step in a direction that this country has needed to take for a long time. Republicans were once the champions of small business, but that has somewhat gone by the wayside in recent years, largely because leadership has been weak. It will be necessary for Trump to nudge a lot, but with Pence and Priebus working at his side, he might be able to get even Mitch McConnell interested in conservative ideas again.
Business owners’ optimism has also just been buoyed by the fact that consumer confidence is at a fifteen year high.
With a pro-business President replacing one who seemed to have nothing but disdain for business people (especially successful ones), the stage is set for the clouds that have been hanging over the American business climate to move away. It could end up being so good that even the MSNBC crew might find a future to be more certain about.