“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.”

Craig Newmark

Craig Newmark

Associate Professor of Economics, North Carolina State Univ.

Related Articles

83

First Lady to Waste Millions ‘Visiting’ The Gulf Oil Spill

When times were flush, I guess it didn’t seem so outrageous for the First Lady of the White House to

2

More Consequences of Health Care Bill Revealed: No More Employer Provided Health Care?

Henry Waxman’s unintended consequences reveal intended consequences of the health care bill. Shortly after the boondoggle known as the health

4

China may step up push for alternative currency…

By: Terresa Monroe-Hamilton NoisyRoom.net Photo By: Petar Kujundzic/Reuters The fall of the US dollar as the world’s reserve currency is