07/07/2008
Gloom and doom
Is business really that bad?
"Hello this is Barbara Quandt" was my cheery greeting as I picked up my phone.
"Will you please quit all the gloom and doom?" was the terse reply on the other end of the line. "I'm sick of hearing that the economy is bad." The caller taking me to task was long-time NFIB member, accountant Gail Piltz. Piltz operates The Accounting Services Group located on Indy's north side. Piltz was taking issue with my Capitol Capers column from last week.
I was shocked. I thought I had written this nice little piece about the challenges we face as a nation and a state and about how important the election will be for small business owners. Instead of receiving bouquets of praise for my efforts, I was getting brickbats. Here was this NFIB member scolding me for my "gloom and doom" attitude.
I told Gail that I was surprised and that I really didn't think I had been all that negative. I said that I was writing about potential troubles ahead and that I didn't think I had indicated the economy is in the dumpers. Piltz responded that I did use the R-word and that he thinks the media is much to blame for all the talk of recession. He pointed out that a recession is confirmed when there are two consecutive quarters of negative growth and there has not been a single consecutive quarter of negative growth to date. Gail was concerned that I was buying into it and becoming one of the "great American reactionary public."
Well, this conversation caused me to stop and think. And yes, I pulled my column right away. I was sure I hadn't been Miss Gloom and Doom. However, when I took a fresh look at the piece, I had to admit I'd been rather dramatic and I did use the "R" word in describing troubles ahead.
No sooner had I hung up the phone, than this news article dated July 3 came across my desk.
Okay, Gail, I have to admit you have a valid point... or two… or three. You were right. Small business owners are influenced by media reports of impending recession (doom and gloom, if you will) and this was clearly reflected in the data compiled by the NFIB Research Foundation. Additionally, Indiana's economy is cited by many national publications as being the strongest in the Midwest. We are most definitely not in the dumpers.
Do we have reason for concern? Absolutely.
Do we have reason to watch our bottom line? Absolutely. But what else is new?
Do we have reason to panic? Absolutely not.
Thank you, Gail Piltz, for taking the time to call me on the carpet.
Thanks. I needed that.
The rumor mill
This one's not really a rumor. It's a reminder of impending joy. (See Gail, I can be upbeat!)
From the NFIB Web site main issues page:
Federal Minimum Wage to Increase July 24
Per the provisions mandated in the Fair Standards Labor Act, effective Thursday, July 24, 2008, the federal minimum wage will be increasing from its current rate of $5.85 per hour to $6.55 per hour. One year later on July 24, 2009, this rate will again increase to $7.25 per hour.
It is important to note that many states have their own minimum-wage laws that require employers to pay a wage rate that is higher than that established by the FLSA. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher state wage. The good news for Hoosier small business owners is that the state minimum wage mirrors the federal minimum wage.
For additional information, please visit the U.S. Department of Labor's Wage and Hour Division Web site or NFIB's federal minimum wage Web page.
Dates to remember
July 25, 2008: Special Leadership Trust Event at the Indianapolis Motor Speedway. 12-5 p.m.
Location: Suite In legends Row during practice for the Brickyard 400.
Limited space available. Calling all NASCAR fans!
Oct. 7, 2008: NFIB/Indiana Leadership Council meeting.
And furthermore
Please give me your feedback. I enjoy hearing from you and I appreciate your comments. Thank you for being an NFIB member and for reading "Capitol Capers."
Barbara Quandt
NFIB Indiana State Director
317-638-4447
Barbara.Quandt@nfib.org
