Why Small Businesses Are So Important To The Economy

Kent Forsey, CFP® American Workers, Consumer Spending, COVID-19, Economy

The country is composed of millions of small businesses from home-based one person consultants to hair salons and manufacturing companies.  As defined by the SBA’s Office of Advocacy, a small business has less than 500 employees and operates independently, not under the control of another entity. As of 2018, the SBA acknowledges that there were 30.2 million small businesses in …

Consumer Spending Growing Faster Than GDP – Consumer Economics

Kent Forsey, CFP® Consumer Spending, Economy

The past four years have seen consumer spending exceeding GDP. Various factors drive consumer spending, including sentiment, optimism, wages, and demographics. GDP grew at a 2.6% annual rate in the fourth quarter, while consumer spending grew at a 3.8% annual rate. Historically, periods where consumer spending has grown faster than economic growth, as measured by GDP, inflation has evolved. Consumer …