The economy shrank because the current administration is doing everything wrong.  You do not create good jobs by increasing the government jobs payroll. Small business owners are afraid to create new jobs because the government is increasing regulations and putting pressure on the very people who can help to create jobs. You also don't raise taxes in a slow economy, and  you don't create more government entitlement programs when you need jobs. The deficit keeps going up which is not a good sign to small business  owners who might like to increase their manufacturing. They are worried about the future  and they see no signs that the current administration will do anything to seriously help improve the economy and work to create real jobs!