“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

12

Obama’s Senate Dems Prove They are NOT Interested in Working With Republicans

Senate Majority Leader Harry Reid, a Democrat from Nevada, has just proven that while Obama runs around the country on

43

Obama To Send Jobs Bill Over To Congress Monday Night (Updated with some plan links)

Remember, he wanted this thing passed “right away,” as he said multiple times during his joint address. Four days later,

198

429 Pages of New Regulations Wrought from 6 Pages of Obamacare

Obamacare will destroy our healthcare system and our economy both while giving unprecedented and unconstitutional powers to unelected, unaccountable federal