Kevin Hassett of the American Enterprise Institute explains for National Review readers a disturbing trend in the monthly poll from the National Federation for Independent Business.
Those familiar with these polls can tell you that, for the most part, businesses tend to downplay the importance of Washington in their decision-making, and this is visible at the beginning of the chart. As the Great Recession kicked into high gear, poor sales were the biggest concern of about 33 percent of firms. But as the economy has slowly recovered, concerns about government have skyrocketed.
Most notably, the percentage of small businesses citing government regulation and red tape as their biggest concern has risen over the course of the Obama presidency from about 11 percent to 24 percent, the highest level this measure has reached since the period between 1994 and 1995, when it peaked at 27 percent. For almost a decade between 2000 and 2008, the level remained steady around 10 percent.
Taxes, the green line, have not skyrocketed as a major concern for firms, perhaps in part because small-business owners were in the crosshairs of this president even at the beginning. Their tax hikes were delayed until this year, but they surely were inevitable.
Perhaps the easiest way to put this extraordinary chart in perspective is to note that the percentage of firms that list either taxes or regulation as their No. 1 concern has risen to 42 percent. That Washington could be a bigger concern than this weak economy for so many businesses is quite an accomplishment. Congratulations, Mr. President.
