AZGOP: Obama Recovery Kills Job Creation…Again

FOR IMMEDIATE RELEASE: July 12, 2011
CONTACT: Garrett Hawkins

Phoenix, AZ – If May’s job numbers weren’t bad enough, according to the monthly jobs report, the U.S. economy created a measly 18,000 new jobs in June raising the unemployment rate from 9.1 to 9.2 percent. The unemployment rate is now two full points higher than it was in the Department of Labor’s report in January 2009—the first month of the Obama Presidency.

“This is not simply a ‘bump’ on the road to recovery. President Obama’s economic policies have totally failed,” said Arizona Republican Party Chairman Tom Morrissey. “Continuing the President’s policies will only drive up the unemployment rate further. We cannot afford these disastrous policies any longer.”

In spite of the horrible price the American public is paying for their failed policies, the Democrat entitlement crowd continues to pressure the Obama Administration for more government intervention, increased government spending and higher taxes. Additional interference into private enterprise from the government will only increase the downward economic spiral resulting in higher unemployment, more debt and fewer jobs. In a speech on the floor of the Senate on March 6, 2006, then-Senator Barack Obama said, “You don’t raise taxes in a recession.” Obviously, the left-wing extremists of his party have convinced the President to change course—yet again.

“It’s time to limit government’s involvement in the economy. This means lowering taxes, reducing regulations and creating jobs,” said Arizona Republican Party Chairman Tom Morrissey. “It doesn’t get any clearer: Obama’s failed economic policies punish small business and kill job creation. I strongly support our Republican Congressional position that calls for spending cuts with no new taxes.”

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BREAKING NEWS: Ninth Circuit Rules in Favor of Church in Yuma!

The U.S. Court of Appeals for the Ninth Circuit ruled in favor of religious liberty for an Arizona church today. In 2007, the city of Yuma had unlawfully denied the church a permit to use its building for worship. Attorneys for Center for Arizona Policy and the Alliance Defense Fund worked together to defend the church’s rights in court.

“Churches should not be treated unfavorably just because they are religious, and that is what the city of Yuma had done here,” said CAP Legal Counsel Deborah Sheasby. “Because of this ruling, government officials will not be able to discriminate against churches and single them out for negative treatment in how they use their property. We are excited about this victory for churches and religious freedom.”

In this case, the church purchased a building in downtown Yuma in 2007, but the city denied its permit saying that a church did not “fit in” with the city’s plans for the area. The church filed a lawsuit based on the Constitution and the federal Religious Land Use and Institutionalized Persons Act (“RLUIPA”), both of which prohibit the government from discriminating against religious organizations. A lower court ruled against the church, but today the Ninth Circuit reversed that decision.

The Ninth Circuit’s ruling explains that cities may not treat churches less favorably than non-religious groups. The city’s zoning ordinance “expressly treats religious organizations on a less than equal basis,” the court wrote. “The Yuma City Code’s exclusion of religious organizations is not reasonably well adapted to the zoning criteria it is purported to serve. And it therefore violates the equal terms provision of RLUIPA.”

In 2010, Center for Arizona Policy worked to pass a bill that clarifies Arizona law to better protect churches from the type of discrimination faced by the church in Yuma. That bill was signed and went into effect in July 2010.

Sheasby commended today’s court ruling, saying, “Today’s legal victory reinforces that Arizona churches have a fundamental right guaranteed by the First Amendment to use their property to gather for worship. This is great news for Arizona churches!”

For more information, visit www.azpolicy.org.

NFIB: Small Business Optimism Stagnates, Main Street Desperately in Search of Reasons to be Positive

WASHINGTON, July 12, 2011 – NFIB’s monthly Small-Business Optimism Index dropped one tenth of a point (0.1) in June, settling at 90.8, an unsurprising reading, basically unchanged from the previous month and solidly in recession territory. While some indicators rose slightly – including expected capital outlays – pessimism about future business conditions and expected real sales gains tugged the Index down, causing a small but disappointing drop in the Index for the fourth consecutive month. Although June marked the second year anniversary of the recovery, it appeared there was little happening to make small business owners optimistic.

“Small-business owners are registering a vote of ‘no confidence’ in the federal government,” said NFIB Chief Economist Bill Dunkelberg. “Between the deluge of new regulations and a Washington policy agenda that is largely ignorant of Main Street needs, stubbornly low consumer spending, and grave concern among small firms about the federal budget, there is not much to be optimistic about as a small-business owner. Who can blame the prevalence of pessimism when administration officials are telling Congress that small businesses need to pay more in taxes to support government spending programs?”

Earnings trends for small businesses remained distressingly negative in June, particularly given that the recovery is now beginning its third year. According to today’s report, 69 percent of the owners view the current period as a poor time to expand and 75 percent of those blame the weak economy for their outlook, while 10  percent cite political uncertainty.

Some other highlights of June’s Optimism Index include:

  • Although June’s employment growth was weak, 15 percent (seasonally adjusted) of small firms reported unfilled job openings, a 3 point increase from May and an indication that the unemployment rate will ease back below 9 percent in the late summer or early fall. Over the next three months, 11 percent plan to increase employment (down 2 points), and 7 percent plan to reduce their workforce (down 1 point), yielding a seasonally adjusted 3 percent of owners planning to create new jobs, and a 4 point improvement. However, these statistics are still at recession levels and any real employment gains are still to be realized.
  • Inflation has slowed slightly, due in part to a leveling of gas prices. However, the fact that small firms are raising prices at all provides a glimmer of hope in an otherwise lackluster economic report. Twenty-five percent of the NFIB owners reported raising their average selling prices in the past three months, compared to 16 percent who reported price reductions. Seasonally adjusted, the net percent raising selling prices was 10 percent, down 5 points from May, but this registered as the third consecutive double-digit month and is 23 points higher than a year ago.
  • The sales outlook for small firms continues to look grim as expectations have declined for 4 months in a row and “poor sales” continues to be the #1 problem for owners in operating their business.    The net percent of owners expecting higher real sales fell 3 points to a net 0 percent of all owners (seasonally adjusted), 13 points below January’s reading. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past 3 months improved 2 percentage points, rising to a net negative 7 percent, more firms with sales trending down than up.
  • Over the past six months, 50 percent of all firms reported making capital expenditures, an historically low average. Of those making expenditures in June, 32 percent reported spending on new equipment (down 4 points), 19 percent acquired vehicles (up 3 points), and 11 percent improved or expanded facilities (up 2 points). Five percent acquired new buildings or land for expansion (up 1 point) and 10 percent spent money for new fixtures and furniture (down 2 points).  There was a slight increase in firms planning capital outlays in the next 3 to 6 months; this indicator rose 1 point to 21 percent, although still a recession level reading. Money is available, but most owners are not interested in a loan to finance the purchase of equipment they don’t need.
  • Access to credit remains a limited problem as it continues to affect a small percentage of owners.  Three percent of owners reported financing as their #1 business problem and 91 percent reported that all their credit needs were met or that they were not interested in borrowing.  Nine percent reported that not all of their credit needs were satisfied, 53 percent said they did not want a loan and 13 percent did not answer the question and might be presumed to be uninterested in borrowing as well.  So, for the overwhelming majority of owners, “credit supply” is not a problem. Twenty-nine percent of all owners reported borrowing on a regular basis, unchanged from May and only 1 point above the record low.

Today’s report is based on the responses of 766 randomly sampled small businesses in NFIB’s membership, surveyed throughout the month of June. Download the complete study at http://www.nfib.com/sbetindex.

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NFIB’s Small Business Economic Trends is a monthly survey of small-business owners’ plans and opinions. Decision makers at the federal, state and local levels actively monitor these reports, ensuring that the voice of small business is heard. The NFIB Research Foundation conducts some of the most comprehensive research of small-business issues in the nation. The National Federation of Independent Business is the nation’s leading small-business association. A nonprofit, nonpartisan organization founded in 1943, NFIB represents the consensus views of its members in Washington, D.C., and all 50 state capitals.