Stimulus not too Titillating for many Business Owners

3 days before the Stimulation Legislation gets stroked by Obama’s pen is word that CEOs and Business Owners on the Frozen Tundra are, well, cold to it.

Conducted two weeks ago, the Nicolet Bank Business Pulse found that 57% of Business Leaders are flat out, stone-cold Opposed to the Stimulation; 23% are Hot for it; 20% are Not Sure if they’re coming or going!

18% said they were Very Familiar with the plan; 35% said Moderately Familiar; 42% said Somewhat Familiar. Opposition was highest (83%) among those who are Very Familiar with the plan. Support for the plan is highest (34% Favor) among those who are only Somewhat Familiar: I don’t know anything about it but, I hope it works…HELLO!

A majority (57%) want More Tax Cuts/Less Spending; 20% want Equal Tax Cuts/Equal Spending; 6% want More Spending/Less Cuts; 17% say It’s just about Right the Way it is.

The 83% of the CEOs who are Very Familiar with the plan say it should have included more tax cuts, and less spending.

SELECTIVE STIMULATION HIGHLIGHTS: 16% thought the $19 Billion earmarked for “science and technology, university research facilities, biomedical research and wireless/broadband expansion” was Very Important; 24% thought, Not Important;

The $68 Billion for “education, classroom modernization, increased Pell Grants and early childhood education” was Very Important to 13% / Not Important to 30%;

The $80 Billion to “help state governments facing budget shortfalls” was Very Important to 5% / Not Important to 33%;

“Create new jobs with infrastructure spending was Very Important to 29% / Not Important to 14%;

“Speed up the depreciation of capital investments made by businesses, allowing 50% of these investments to be written off immediately was Very Important to 56% / Not Important to 4%;

“Allowing businesses to claim tax credits or past profits dating back 5 years instead of 2 years” was Very Important to 37% / Not Important to 12%;

“A $500 tax cut for individuals; $1,000 for couples earning less than $200K was Very Important to 24% / Not Important to 22%.

17% of the CEOs surveyed have absolutely NO Confidence in Obama or his economic team; 9% have a Great Deal of Confidence; 45% have Only a Little; the rest are at a Moderate Level.

The data on the Tundra shows little excitement, but hope, I guess, springs eternal as always.

The Nicolet Bank Business Pulse© is a Quarterly Study of CEOs and business leaders in the NewNorth (Brown, Calumet, Door, Kewaunee, Manitowoc, Marinette, Oconto, Outagamie, Shawano, Winnebago Counties in Wisconsin and Menominee, Michigan). This study was conducted between January 27 and February 3, 2009. Participants include: 27% in manufacturing; 24% in services; 18% retail trade; 4% wholesale trade; 6% finance, real estate, insurance; 5% in transportation, communications, utilities; 6% in construction; 10% in other industries. 20% have fewer than 6 employees; 27% have 6-25; 21% have 26-50; 9% 51-100; 12% 101-250; 5% 251-500; 4% 501-1,000; 3% have 1,001 or more.

Questions: Dr. David G. Wegge (920) 217-7738; [email protected]