Wednesday, January 30, 2013

Defense Spending Cuts Impacting Business!

I read an interesting article this morning by Shobhana Chandra & Michelle Jamrisko. The article suggests that "The economy in the U.S. unexpectedly came to a standstill in the fourth quarter as the biggest plunge in defense spending in 40 years swamped gains for consumers and businesses." As a small business owner, who works in the homeland security industry, the opinions of Chandra and Jamrisko were really interesting.

I'm note sure if, like the article and research suggests, one item directly impacts the other. The average business owner normally doesn't start or stop spending money because of defense spending. My personal business could be harmed- but not the average business owner. I'm surprised to read that businesses are starting to move slightly. With the 'Obamacare' insurance costs adding stress to business owners, a sign (even if a little one) in the positive direction - is a great sign!

Look, the truth be told is that you and I can go over the chicken and the egg of what budget cuts and budget spending led to what business cuts and business spending. There is no real proof! Each business owner has his or her own set of concerns and limits. There is no black and white reasoning that stretches across the board! I want to open this up to a discussion so I can better form an opinion as to if you, the reader, cares how the government spends money and if it directly impacts you as a business owner.

Send me a DM on Twitter or write a note here!

Twyla http://www.bloomberg.com/news/2013-01-30/economy-in-u-s-unexpectedly-shrinks-as-defense-spending-plunges.html

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