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After the Election, Local Businesses Take a Wait-And-See Attitude

Local business owners hope the re-election of the president has at least provided consumers with the certainty they need to start spending again, while the "fiscal cliff" leaves the future economy in doubt.

The election is now decided but the “fiscal cliff” is looming.  And, that has some local business owners taking a wait-and-see attitude toward the future of the economy. 

The cliff could mean impending tax increases and government spending cuts, if the President and Congress don’t come to a resolution once the Bush-era tax cuts expire at the end of the year. As a result, some local business owners remain cautious about what the next few months might mean for business. 

Local entrepreneur Shaun Emerson, founder of Project Boost, said he thinks it is still too early to know what the election results will mean for business, but he believes that politics will come into play.

“I think there are some things definitely clearer, the repeal of the health care law won’t go through and as it is it will definitely have an impact for businesses and will increase costs. Will it be offset with growth opportunities? We will have to see.”

The election made some things clearer, and Emerson said hopefully that would relieve some uncertainty among consumers who may have been waiting for the election results to spend money.

He is also hopeful that the President is more focused on helping small business, he said.

“I would be saying the same thing if Romney won,” Emerson said. “It’s one thing to run for office, another to lead.”

For Jill Foucré, owner of Marcel’s Culinary Experience, this was her first election as a business owner, so she wasn’t sure what to expect.

Business was a little slower during the month of October leading up to the election, she said, adding that talk in the trades was that uncertainty leading up to an election sometimes makes people more cautious with spending.

“Once the election is over there is some certainty,” she said. Hopefully, now that the election is over, she said, people are feeling good that they know that the choice was made and they can move on.

Expectations on holiday spending are strong, Foucré said and all the industry experts say things are looking positive.

Rich Ducar said he hopes the parties can find a way to compromise, particularly with the “fiscal cliff” looming.

Ducar, the owner of The Bike Shop in downtown Glen Ellyn, is in a slower sales period. But, he said until things play out in Washington he will probably be a little more conservative when placing orders.

His sales typically are a little slower until December when it beings to pick up again. He said he will just have to wait and see what customers call him about and what they ask for.

While he has already placed future orders, what items get delivered will depend on what producers make. If the bike and parts companies are feeling concerned about the economy they may not make produce as many products or fill as many orders, which could leave business owners with a smaller inventory.

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Patrick Henry November 12, 2012 at 01:21 PM
Please explain to me why the re-election of at the very least a quasi-socialist would provide any degree of certainty to consumers. Furthermore, and more importantly, the lack of confidence small business owners have going forward should be an even bigger concern as for the overall state of this stagnant economy. But that's not what's important to seemingly the majority of Americans these days. Hey, as long as the guy's cool, hits all the relevant late night shows and is a prolific tweeter, and of course promises you the world...that's all the matters to most Americans!
Brad Rosley, CFP® November 12, 2012 at 04:22 PM
The only "certainty" provided by the election is business owners getting squeezed. Some financial certainties: 1. National Debt will keep going up 2. Taxes will go much higher across the board 3. Minority, African American and youth employment numbers will be lousy and probably get worse (they would vote for the president again and again despite this) 4. Many full-time workers will be moved to under 30 hours/week so employer won't have to pay health insurance premiums.
sid November 12, 2012 at 05:16 PM
Please educate me. If we are commenting on the article about local businesses ( Glen Ellyn) , how many are affected by the Affordable Heal;th Care Law ? I thought it only pertained to businesses with 50 or more employees. Also, isn't the requirement for larger employers ( 50 or more ) not going to begin until 2014 ?
Christina November 12, 2012 at 06:58 PM
Hey, Sid, I am right there with you. One observation (not mine, but in News Magazines this week) is that Romney supporters created their own very unique reality (like a bubble or a time warp) with their own poll numbers and truths about President Obama. This is a hard week for them, because they have to question if their party intentionally misled them. Many of them may still believe there is a death panel in the Health Care Plan, and that global warming is an myth. Perhaps a re-read of the Affordable Health Care Plan (or at least the main points) would give our cynics a new perspective. I am not sure what the Minority, African-American and youth comment is all about. Actually, I probably do know what it's about, but I don't want to engage on that level. I do believe that it is in the best interest of all of us to encourage our legislators to work together to avoid another recession, which is on BOTH PARTIES. Rather than lean back and complain, write to Roskam and Durbin and ask them to work together. Seems like a better use of time. Christina
JanC November 12, 2012 at 10:26 PM
Amen Christina! Note to business owners...educate yourselves on the law and run your business accordingly. Regurtitating FOX news rhetoric and making economic predictions based on emotions will not make your business successful.

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