“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

68

Wisc. and Ind. Democrats: Union Cash Driving Democrats to Run and Hide

With Democrat state legislators in Wisconsin and now Indiana fleeing their states so that they don’t have to do their

37

Obama Pulls Campaign Stunt At Bridge That Doesn’t Qualify

See, if a Republican had been involved in this gaffe, the MSM would be tearing them apart. Since it’s Obama?

10

For Every Awful Gov’t Action There is An Equally Awful Reaction, Horses Worst Hit!

There is a jester of a Chicago Alderman named Ed Burke who back in the early 1990s made local radio