Small business owners are rallying behind Trump’s economic agenda, bolstered by the Freedom Economy Index amidst surging inflation, but what does this mean in the long run?
At a Glance
- Consumers and markets remain anxious despite Trump’s assurances.
- Small business owners rate Trump’s performance between B+ and A.
- Inflation concerns persist among small business owners, with 60% still worried.
- The Freedom Economy Index captures optimism for future growth.
Small Business Optimism Amid Challenges
Small business owners are showing confidence in Trump’s economic policies, with their optimism evident in the Freedom Economy Index. Yet, they face challenges including persistent inflation and regulatory pressures. Business leaders praise Trump’s efforts to cut regulatory burdens, which they believe foster a healthier economic environment. The ratings he received, ranging from B+ to A, reflect this business-friendly sentiment.
Despite persistent inflation, many small businesses express hope for future growth. Nearly one-third of these business owners plan to expand hiring, indicating a resilient outlook. There’s a belief that the administration’s predictable and steady approach has given them a refreshing change from past practices. Yet, while hopes are high, the anxiety over inflation is palpable, affecting their strategic planning.
Strains from Tariffs and Regulation
Trump’s tariffs on steel and aluminum have sparked fears of raising inflation and reducing consumer purchasing power. The S&P 500’s dip into correction territory underscores the market’s unease. Although Trump and his advisors predict short-term economic pain, the resulting uncertainty has reportedly made U.S. consumers more cautious. Federal cuts and potential tariff threats compound these worries, contributing to a jittery job market and fluctuating inflation rates.
“Uncertainty is high and rising on Main Street, and for many reasons” – Bill Dunkelberg
Additionally, top economic figures such as Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent have voiced the need for the economy to shift from public spending dependence. Meanwhile, nearly 50% express confidence in advisors like Elon Musk to mitigate spending waste, showcasing deep approval for Trump’s advisory team’s efforts.
Long-term Economic Perspectives
Despite the short-term economic fluctuations, there is a glimmer of optimism among small businesses, with the Freedom Economy Index indicating a positive outlook for future growth. Remarkably, 68% of respondents foresee either slow or robust growth by 2025. The emphasis on free-market principles and deregulation is seen as pivotal for this anticipated success.
“What we’re seeing right now is we have a very sick economy, and it needs some very strong medicine. And if it gets that medicine, we all feel like we have a very strong economy that will win and will actually be a huge blessing to the entire world” – Andrew Crapuchettes
This optimism echoes through the voices of business leaders like PublicSquare CEO Michael Seifert, who highlights the administrative efforts to cut bureaucracy and overregulation. The key challenge now lies in battling inflation, balancing reform with unpredictable external factors, and integrating American ingenuity to strengthen economic resilience.
