“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.”
Associate Professor of Economics, North Carolina State Univ.
FacebookTwitterEmail We were told that the more money our rulers frivolously wasted on pork projects, the lower unemployment would be.
FacebookTwitterEmail In but a few hours I’ll be headed to Chicago’s O’Hare airport to wing my way to sunny Cancun
FacebookTwitterEmail This article was written by Michael Tanner and posted with his permission. If the economy is getting better, then