“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

3

How To Become a Millionaire Easy: Become a Gov’t Worker

Having trouble making ends meet? Eating your meals from a dog food can? Lost your job, seen your retirement accounts

26

Virginia Challenge of Obamacare Wins One in Court

U.S. District Judge Henry Hudson refused to dismiss Virginia’s lawsuit against Obamacare, today, allowing the suit against the federal government

2

Store Owner Installs $350K of Surveillance to Stop Frivolous Lawsuits

Supermarket owner Rafael Cuellar from Passaic, NJ, reports that he had to spend $350,000 to install 69 surveillance cameras, recording