“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

2

Obama To Whine About GOP Blocking New Jobs Bill Today, Activists Smack Him In Buffalo

This is not a repeat from early 2009 President Barack Obama on Thursday will urge Congress to move forward on

17

John Hawkins Vs. Robert Reich On The Stimulus. I Was Right And He Was Wrong Then — And Now.

When Barack Obama was originally pushing his ginormous stimulus bill, like many conservatives, I pointed out that it wasn’t going

0

It’s Still Government Spending, Stupid

Barack Obama, who has stayed in continuous campaign mode since birth, persists in insisting House Republicans submit to his demands