“The Collapse of Startups in Job Creation”


Tim Kane for the Hudson Institute. Discouraging. Three samples:

“Since 1977, newly born companies usually create a net 3 million jobs per year,
but the most recently released data report as falling to 2.34 million in the year 2010. The
Commerce Department will not release annual 2011 or 2012 data until after the election,
but we can see that quarterly figures for startup job creation have continued to weaken.”

“The average rate for entrepreneurial job creation under the previous three presidents was 11.3, 11.2, and 10.8 [in new U.S. companies per capita] respectively, but under President Obama it has been cut by one-third to 7.8.”

“While this report documents a disturbing weakness in startup job creation, it does not
explain the cause of decline. There is anecdotal evidence that the U.S. policy environment has become inadvertently hostile to entrepreneurial employment. At the federal level, high taxes and higher uncertainty about taxes are undoubtedly inhibiting entrepreneurship, but to what degree is unknown. The dominant factor may be new regulations on labor.”

Trending Today
Craig Newmark

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

20

Obama Now Trying to Intimidate Consultants and PR Firms of Businesses

True to form, even as he says he wants to cut regulations, Obama’s regulatory army is marching hard against business

0

Stimulus Stimulated Much of Nothing in Illinois

The Chicago Tribune has an interesting story that shows that Obama’s $787 billion stimulus really didn’t do much by way

Just How Big Is The Federal Government? Over 100 Million Checks Sent Out Each Month

Consider: the population of the United States is a bit over 311 million, yet, we start off with Obama unintentionally