More entrepreneurs are needed to bolster the U.S. economy. The just released U.S. Bureau of Labor Statistics Producer Price Index (PPI) for January reflected the third consecutive monthly decline in U.S. output. Consequently, there has been virtually no change in the PPI for the 12 months ended in January. This means that the economy is still, largely, stuck in neutral despite some modest improvement and coincides with rather unimpressive employment figures related to high-paying full time job growth. Arizona, particularly, has yet to rebound from the recent recession. Business results and employment trends are largely unchanged and remain at recent year lows.
The PPI decline is reflective of plunging energy costs, softer global demand, and a strong U.S. dollar. Too, it indicates U.S. company reliance on overseas manufacturing and our net importer status as a nation. As we’ve noted here before, the ability to manufacture more domestically and not rely solely on service sector and technology leadership is a better strategy for restoring our worldwide economic dominance.
More entrepreneurs mean more small business start-ups (which also have been in decline). Without small biz leadership, the U.S. cannot realistically regain manufacturing capacity or create higher paying jobs. Big business has too many entrenched interests to be expected to make a radical directional change. Our small business centers of influence and support resources must re-double their efforts to bolster both new entrepreneurs and existing owner-operated company initiatives.