Small Business Economy: A Report to the President, 2001 (for Data Year 2000)

摘要

The contributions of Americas small businesses to the American economy cannot be overemphasized. More than 25 million business tax returns were fi led in 2000; nearly all of these represent small businesses with fewer than 500 employees. More than half of the gross domestic product and 75 percent of Americas net new jobs come from small businesses. Entrepreneurial small fi rms play an integral role in our economy by experimenting and innovating in ways that lead to new technologies and increased productivity. As part of its mandate, the Offi ce of Advocacy works to ease the regulatory burdens on small businesses so that more of their efforts and resources can be dedicated to productive outcomes. The Regulatory Flexibility Act, as strengthened by the Small Business Regulatory Enforcement Fairness Act and your Executive Order 13272, represents an added safeguard for small businesses, ensuring that their voices are heard during the often arduous Federal rulemaking process. Our nation is blessed with great ingenuity and pride, and that spirit runs especially deep in the hearts of small business owners. We encourage all efforts to create new opportunities and a healthy working environment for these entrepreneurial champions who fuel our economy and live by example the true meaning of the American Dream. The year 2000 witnessed strong growth in infl ation-adjusted aggregate output, corporate profi ts, and employment. Between 1999 and 2000, real gross domestic product rose by 5 percent, corporate profi ts rose by 10.5 percent, and the U.S. economy added some 2.4 million new jobs as the unemployment rate fell to just 4.0 percent. The federal budget posted its third consecutive annual surplus in 2000, rising by nearly 90 percent between 1999 and 2000 alone. The year also showed some signs of increases in the average price level, as indicated by a 3.4 percent increase in the consumer price index (CPI). This, among other signs of upward pressure on input and output prices, prompted measures by the Federal Reserve Bank to try to slow the economy to a sustainable growth rate. Indeed, the prime rate rose by more than 1 percentage point to approximately 9.23 percent in 2000. Reacting in part to this Fed tightening, the stock market posted net losses for the year. Losses in the tech-laden NASDAQ were exacerbated by disappointing earnings results. Of special relevance to generally labor-intensive small businesses, the total compensation cost index rose by 4.4 percent between 1999 and 2000, exceeding the inflation rate.