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The Economy & Small Business

The Economy & Small Business. AICD, May 17, 2010, Ponte Vedra Beach, Florida. Today’s Topics. 1. Economic Ideas & the Current Economy 2. The Compressed Air Industry in Today’s Economy 3. Question & Answer Time. Economic Measures. Real GDP & Economic Growth Jobs Jobs Jobs Inflation.

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The Economy & Small Business

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  1. The Economy & Small Business AICD, May 17, 2010, Ponte Vedra Beach, Florida

  2. Today’s Topics • 1. Economic Ideas & the Current Economy • 2. The Compressed Air Industry in Today’s Economy • 3. Question & Answer Time

  3. Economic Measures • Real GDP & Economic Growth • Jobs Jobs Jobs • Inflation

  4. Real GDP • We’re concerned with 4 components in Real Gross Domestic Product: • Consumption • Investment • Government Purchases • Net Exports (Exports – Imports)

  5. Consumption • Typically, consumption’s about 70% of real GDP. • What’s it been doing lately?

  6. Consumption

  7. Consumption • Expectations for rest of 2010…

  8. Investment • Investment drives the economy • Components include purchases of new plant & equipment by firms, changes in inventories and new homes. • Institute for Supply Management • Behavior during the recession

  9. Investment

  10. Equipment Spending

  11. Investment • Expectations for the rest of 2010

  12. Government Purchases • Typically, Government spending is about 12% of real GDP. • Fiscal Policy • What’s it been in the last several years?

  13. Government Purchases

  14. Government Purchases • Expectations for 2010

  15. Net Exports • Trade Deficits • Borrowing to make it possible • Expectations

  16. The Impact of the Budget Deficit & Debt • Budget Behavior

  17. What Do We Owe?

  18. The Impact of the Budget Deficit & Debt • Debt vs. Deficit

  19. Hard and Fast numbers • Implications – Higher Taxes & Slower Growth

  20. Jobs JobsJobs

  21. Jobs JobsJobs • We can see the change in the job situation this map. Job Loss • Over 8 million jobs have been lost. • Last month, the economy created 160,000 jobs.

  22. Jobs – Jan 2006

  23. Jobs – October 2009

  24. Inflation or Deflation? • There have been concerns about the chances for overall prices to increase and decrease.

  25. The Fed & Monetary Policy • Typical monetary policy actions Discount rate Federal Funds rate • Fed interventions in this recession “Quantitative Easing”

  26. Future Fed Actions • Expectations about the Fed for the rest of 2010 • Concerns about jobs • Concerns about inflation

  27. The Compressed Air Market in a Recovering Economy • Concerns - Continued uncertainty with housing, Europe, fiscal policy - Financing opportunities

  28. The Compressed Air Market in a Recovering Economy • Optimistic Signals - Investment increasing - Positive Profits

  29. Conclusion • Questions?

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