With a Republican gain of some 65 seats in the House, you may be wondering how this ‘sweeping’ change in the political landscape will affect you in the coming days. You may have seen rumors that the stock market will jump up in response. It may, but as we all know the NYSE is about as finicky as the weather forecast. However, the GOP sweep will create generally positive change for the small business community. Here’s why:
- Healthcare Reform reform – HCR, the boondoggle of the first half of Obama’s administration, will most likely be the first thing to be picked apart, re-worked and hopefully repealed. This giant piece of legislation – most of which has nothing to do with actual healthcare – has caused the cost of hiring new employees to sky-rocket. The cost of employment is so high, it’s forcing small businesses right out of business. And entrepreneurs that want to create a start up? Don’t even think about it. Luckily, we can count on the newly elected Republicans to reverse the craziness and end the national hiring freeze.
- Taxes – Republicans are traditionally tax-cutters and particularly small-business-friendly, and this new breed of Tea Party Republican promises to be downright zealous about relieving small businesses of much of their tax burden in order to stimulate job creation.
- Gridlock – The GOP has swept the House of Representatives – that’s 1/2 of 1/3 of the branches of the United States government. So we know we can count on one thing to happen – nothing. In a way that’s not too pleasing to hear. But how does this affect small business? Many small businesses are business-to-business, meaning they serve other businesses rather than directly serving the consumer. For two years big business has done NOTHING, for fear of the unknown. Now that the GOP is in the perfect place to halt any more sweeping changes from the Democrats, businesses can now relax, and move forward in one direction or another in this new economic climate. They will be building, expanding, hiring, marketing, etc., which will mean they’ll be hiring smaller businesses to get the jobs done. The domino effect will result in lower unemployment and a stronger economy for the country.