Brookings: More businesses dying than being created — for first time ever

posted at 10:41 am on May 6, 2014 by Ed Morrissey

Behold, the power of Obamanomics. More businesses are failing now than are being created, a first for the American economy since the Carter era, according to a new study by the Brookings Institution. That has become even more true during the Obama “recovery” than during the Great Recession:

brookings-dynamism

 

Business dynamism is the process by which firms continually are born, fail, expand, and contract, as some jobs are created, others are destroyed, and others still are turned over. Research has firmly established that this dynamic process is vital to productivity and sustained economic growth. Entrepreneurs play a critical role in this process, and in net job creation.

But recent research shows that dynamism is slowing down. Business churning and new firm formations have been on a persistent decline during the last few decades, and the pace of net job creation has been subdued. This decline has been documented across a broad range of sectors in the U.S. economy, even in high-tech. …

While the reasons explaining this decline are still unknown, if it persists, it implies a continuation of slow growth for the indefinite future, unless for equally unknown reasons or by virtue of entrepreneurship enhancing policies (such as liberalized entry of high-skilled immigrants), these trends are reversed.

The reasons can’t be that unknown. Since the 1970s, the federal regulatory environment has grown exponentially, with its power amplified by the federal courts. Even short eras of regulatory reduction resulted in only moderate reversals of that decline, which quickly disappeared. Look, for instance, at the period between 1983-88 during the heyday of Reaganomics and deregulation, and the shallower gains during the George W. Bush administration.

Note too that this isn’t so much of a sharp increase in business failures but a lack of business creation. The steep drop came during the Great Recession, but that continued well into the supposed recovery, too. What happened during that period? Massive top-down regulation via ObamaCare and Dodd-Frank, and massive amounts of gimmicky Keynesian economics with short-term incentives and crowd-out “investments” in areas like solar energy. Instead of freeing capital for entrepreneurial purposes, the regulatory and tax policies of the Obama administration have choked off entrepreneurship.

In order to reverse this trend, we do indeed need the “virtue of entrepreneurship enhancing policies,” which begin with valuing job creation over regulation and the use of capital over the punishing of it. Instead of celebrating job-killing policies as an end to “wage slavery,” we need to rid ourselves of job-killing policies and command-economy regimes. Mostly, though, we need a change in leadership from the current economy-killing administration and some semblance of sanity in the reach of the federal government.

Update: A good catch from Scott Lincicome:

Well, an investment in crony capitalism pays off better these days than in entrepreneurship, obviously, and for the same reasons I stated above.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Since the Carter era.

Funny how these two regimes are so connected.

Bishop on May 6, 2014 at 10:44 AM

Stocks will rise on this news since the market is existing companies and nothing on the horizon to compete with them is the best news they can get.

Buddahpundit on May 6, 2014 at 10:49 AM

Apparently investors and entrepreneurs listened to the Unicorn Prince and decided not to “build it.”

WordsMatter on May 6, 2014 at 10:49 AM

Predictably, deliberately setting up the media-left-Dem-administration ultimate play:
“This is a failure of the capitalistic system requiring replacement with a socialist-statist economic and social system”.

Dr. Carlo Lombardi on May 6, 2014 at 10:51 AM

“I think at some point, you’ve created enough businesses.” – Barack Obama

Doughboy on May 6, 2014 at 10:52 AM

Apparently investors and entrepreneurs listened to the Unicorn Prince and decided not to “build it.”

WordsMatter on May 6, 2014 at 10:49 AM

Or to stop it altogether.

Would you want to open a business at the moment?

upinak on May 6, 2014 at 10:52 AM

Since the Carter era.

Funny how these two regimes are so connected.

Bishop on May 6, 2014 at 10:44 AM

Obama is Carter’s 2nd and 3rd terms. We must be prepared to do our duty and march on DC with arms if he attempts to make it 4 terms.

989 days left in this Regime. If we are so fortunate that he obeys the law and leaves on his own.

ConstantineXI on May 6, 2014 at 10:52 AM

This is what happens with a march toward socialism away from capitalism.

Creative destruction removes outdated firms and business models due to competition.

Overbearing governments remove firms due to political expediency and by picking winners and losers.

This is an artifact of big government choosing which businesses get to exist.

When the government makes it impossible for lead smelters to operate in the US there is no business to replace them.

airupthere on May 6, 2014 at 10:52 AM

Barack says, “Whatever….”

Michelle O says, “Hodor”.

Oil Can on May 6, 2014 at 10:52 AM

WINNING!!!!!

ladyingray on May 6, 2014 at 10:54 AM

Thanks stupid, lazy, socialist. Obama voters. I wonder who is going to supply you with your government bennies when the producers no longer have jobs.

neyney on May 6, 2014 at 10:54 AM

When the government makes it impossible for lead smelters to operate in the US there is no business to replace them.

airupthere on May 6, 2014 at 10:52 AM

One wonders how much underground industry there is in this country because of Obama?

Stories do pop up from time to time about the black market growing rapidly…

ConstantineXI on May 6, 2014 at 10:54 AM

In 2011, two friends and I planned to start a tech writing business. We were going to use money from a generous termination package following the end of the Shuttle Program, so we had funds for the first year.

We worked out a business plan. We were going to employ five others. But the more we dug into things, the more we realized we would also need several more employees to deal with regulatory issues and paperwork. Plus, with rumors of higher taxes, more regulation, and Obamacare we finally decided there was too much risk for too little return. Instead the three of us got jobs as employees in other companies (energy instead of aerospace) at salaries and compensation packages equal to or exceeding our pay as rocket scientists (well. . . rocket engineers) at Johnson Space Center. We found work within a month of leaving aerospace.

The five we planned to hire? Took them a year or more to find work. Don’t know what happened to the three that would have been hired for our positions, as we don’t know who that might have been.

It boiled down to this: why work 12 a day 7 days a week as small business owners when we could take home as much money working 40 hours a week as employees? And do that without risking our savings. Mind, if we could have expected the chance of a better rate of return on our time and investment by starting our own business, we would have — and created 8 new jobs in the process.

No Truce With Kings on May 6, 2014 at 10:56 AM

Stories do pop up from time to time about the black market growing rapidly…

ConstantineXI on May 6, 2014 at 10:54 AM

I have no clue about what you are talking about. /

upinak on May 6, 2014 at 10:56 AM

When we get piled upon one another in large cities, as in Europe, we shall become as corrupt as Europe.

Thomas Jefferson

Rix on May 6, 2014 at 10:58 AM

Ed, maybe we should have a pool where everyone puts in a hundred bucks to pick the date when the economy collapses.At least someone( the winner) might survive for a few additional months.

celtic warrior on May 6, 2014 at 10:59 AM

You didn’t build that. And I’m going to kill it.

/Obama

gwelf on May 6, 2014 at 11:01 AM

Don’t worry, our unemployment rate is only 6.9%.

Fenris on May 6, 2014 at 11:03 AM

And most of you think Obama is incompetent.

faraway on May 6, 2014 at 11:05 AM

One wonders how much underground industry there is in this country because of Obama?

Stories do pop up from time to time about the black market growing rapidly…

ConstantineXI on May 6, 2014 at 10:54 AM

It is what naturally happens when the government over regulates businesses.

Products become cheaper to obtain from businesses who have not been blessed by the regulators. When consumers choose to obtain unregulated products, one would assume that the government is over regulating since the consumer does not see the benefit of paying more for a regulated product.

Some Administrations look at what the market is telling them and react accordingly by cutting unnecessary regulation. Some Administrations look at what the market is telling them and double-down, assuming that individuals do not act in their own best interest.

I trust the Administrations that understand that people, more often than not, act in their own self-interest.

I do not trust the Administrations that think I am an idiot, incapable of making my own economic choices.

airupthere on May 6, 2014 at 11:05 AM

Pfft, Republican skewing. I’ll wait for our resident progressive-Marxist to do some skooling on yous and explain to you how the socialist dream of our founding peoples was ruined by evil, white, Christians.

NotCoach on May 6, 2014 at 11:05 AM

You didn’t build that. And I’m going to kill it.

/Obama

gwelf on May 6, 2014 at 11:01 AM

Imbeciles like Obama can kill the creations of genius.

ConstantineXI on May 6, 2014 at 11:06 AM

What is not counted is some licences are difficult to obtain and so are are kept active with licencing authorities. They are still counted as active businesses while mothballed. That is my case. Had Obama lost last time as a contractor I would be up and running. I won’t even consider putting out the operating capital until Obama is gone.

CW20 on May 6, 2014 at 11:07 AM

Perfect example:
1. Government mandates higher fuel efficiency and safety standards on automobiles.
2. Automakers raise prices to provide cars that meet the new standards.
3. Consumers shy away from newer vehicles because they can’t afford them.
4. Consumers make a choice and demand used vehicles that do not meet the new government standards, but are cheaper.

One would think that when we reach number 4 that we have over regulated. People aren’t willing to pay the additional cost for the supposed benefits of the regulation. At this point we have saturated how much regulation the market will accommodate.

The biggest threat to our economic prosperity is when the piled up regulations continue impacting electricity generators. Consumers are limited in their choices and will be forced to pay the increased electrical rates. They will cut their consumption, but at the cost of personal comfort and productivity.

This is just the beginning.

airupthere on May 6, 2014 at 11:12 AM

I suspect one other factor is that in the old days once your 26 weeks of unemployment ran out people would do something to make money and earn a living. But now with 99 weeks of unemployment, food stamps, free phones, SSI benefits and every other freebie people are not motivated to ‘earn’ their own living.

justplainrick on May 6, 2014 at 11:12 AM

Black market, barter market, they will never work. What, I’m going to trade welding services for a half-cow, whole pig, or bushels of fresh produce from farmers in the area? No way, that would be unethical of me, I would never do such a thing and deprive the gubment of their tax money.

Bishop on May 6, 2014 at 11:12 AM

Instead of freeing capital for entrepreneurial purposes, the regulatory and tax policies of the Obama administration have choked off entrepreneurship.

Dear Liar is a symptom. The Regulatory State is the disease — Lois Lehrner predated him. And the cause is people’s belief in the power of the state, people who are lazy and want the state to take care of them. Mittens was ridiculed for being a businessman while The Whine lauds those who go to work for government.

rbj on May 6, 2014 at 11:14 AM

The decline looks even worse when you look at the Brookings’ paper’s chart of the actual numbers of businesses created. Ideally, you would expect a steady increase in businesses as population grows. You’d expect some setbacks when recessions hit, then a steady climb back up. (This is, in fact, what the business closing line shows.)

What happened to business creation, however, starting in 2006 is much deeper and scarier than previous recessions. The numbers of business created each year went from a 2006 high of 550,000 to a 2010 low of 390,000. It was a fairly steady drop over that period, with no improvement until a slight uptick in 2011. It is the deepest drop on the chart.

It is interesting that the numbers started to drop way back in 2006, showing that the slowdown was well underway by then. It also shows little improvement through Obama’s first three years. This is where the delay on the collection of data is painful: I’d love to see the data through the present day.

These missing businesses should have been the seed-corn for future economic growth.

HakerA on May 6, 2014 at 11:14 AM

The fundamental changing of America seems to be working as planned.

Don L on May 6, 2014 at 11:14 AM

Bishop on May 6, 2014 at 11:12 AM

You know you want too… come on weld this up for me. *Flashes thick sliced Apple Smoked Bacon*

upinak on May 6, 2014 at 11:15 AM

It’s much easier for politicians to control a few big businesses than thousands of smaller ones and of course the big businesses can make more money if they don’t have to worry about lots of smaller competitors.

Wigglesworth on May 6, 2014 at 11:16 AM

It’s obvious that those evil, racist tea party business owners are deliberately shuttering their businesses just to make Obama look bad…

Wyznowski on May 6, 2014 at 11:16 AM

Black market, barter market, they will never work. What, I’m going to trade welding services for a half-cow, whole pig, or bushels of fresh produce from farmers in the area? No way, that would be unethical of me, I would never do such a thing and deprive the gubment of their tax money.

Bishop on May 6, 2014 at 11:12 AM

My backup plan if I lose my job will be to start doing private IT work on a cash or even barter basis. You can bet that not one cent will go to Barry and Mooch.

ConstantineXI on May 6, 2014 at 11:23 AM

It’s much easier for politicians to control a few big businesses than thousands of smaller ones and of course the big businesses can make more money if they don’t have to worry about lots of smaller competitors.

Wigglesworth on May 6, 2014 at 11:16 AM

That is also why shrinking the middle class is always TOP priority for socialists like Obama. It’s easier to control a few rich people (who will have to grovel before Pharaoh Obama) and a LOT of poor people on the dole (who will grovel at the Spite House gates for some scraps) than it is a LOT of self sufficient people in the middle class.

ConstantineXI on May 6, 2014 at 11:25 AM

How is this a bad thing?

Shouldn’t we be more concerned with the standard of living for people? Many businesses are driven by a desire for profit, rather than any genuine interest in the well being of humanity.

It is implausible that a fundamentally selfish entity could play anything other than a parasitic role in the economy – acting as an unwanted middleman between the workers who produce goods and those who consume them.

To the extent that economic activity is important to people, it can be planned in a rational, objective, and democratic process.

Trotsky on May 6, 2014 at 11:26 AM

I said in 2008 he’d be like Carter.

Boy, I hate it when I’m right.

Socratease on May 6, 2014 at 11:27 AM

Well, I guess when businessmen are told that they did not build that, the corrolary is that noone else did either.

KW64 on May 6, 2014 at 11:28 AM

“More Businesses dying than being created for first time ever”

Wait – this started in 2008/2007 – but you are blaming Obamanomics?? WHAT? Ummm – some critical thinking here guys.

Gebeaux on May 6, 2014 at 11:28 AM

At least a liberal think tank is presenting facts. No denying that businesses are worse off under this regime.

rightside on May 6, 2014 at 11:33 AM

They didn’t just die. They were tortured first.

faraway on May 6, 2014 at 11:34 AM

It is interesting that the numbers started to drop way back in 2006, showing that the slowdown was well underway by then.
HakerA on May 6, 2014 at 11:14 AM

Geez, that’s weird.

It’s almost like something changed in 2006 that proved disastrous for American businesses.

Racking my brain to think of what it might have been…

VelvetElvis on May 6, 2014 at 11:34 AM

How is this a bad thing?

Shouldn’t we be more concerned with the standard of living for people? Many businesses are driven by a desire for profit, rather than any genuine interest in the well being of humanity.

It is implausible that a fundamentally selfish entity could play anything other than a parasitic role in the economy – acting as an unwanted middleman between the workers who produce goods and those who consume them.

To the extent that economic activity is important to people, it can be planned in a rational, objective, and democratic process.

Trotsky on May 6, 2014 at 11:26 AM

I am pretty sure you are a parody, but I will address the point above nonetheless.

Businesses are projected to provide $528 Billion in revenue to the government from their half of the payroll tax in 2015.
Businesses are projected to provide $429 Billion in revenue to the government from corporate income taxes.

That is nearly a trillion in government revenue that is gone in your perfect world.

The government, which I assume you would say is not a selfish entity, will be left with a difficult choice. Increasingly tax the consumers and workers, or slash services and benefits.

Amazing that nearly 30% of the government’s revenue comes from businesses who only operate to benefit themselves.

airupthere on May 6, 2014 at 11:38 AM

It is interesting that the numbers started to drop way back in 2006, showing that the slowdown was well underway by then.
HakerA on May 6, 2014 at 11:14 AM

Geez, that’s weird.

It’s almost like something changed in 2006 that proved disastrous for American businesses.

Racking my brain to think of what it might have been…

VelvetElvis on May 6, 2014 at 11:34 AM

Do you think it was Obamanomics back in 2006?

Gebeaux on May 6, 2014 at 11:39 AM

Welcome to the United States of Zimbabwe.

GarandFan on May 6, 2014 at 11:43 AM

Obamanomics is designed to kill the spirit of this country…

It will Fail.

workingclass artist on May 6, 2014 at 11:44 AM

And this report comes from the liberal Brookings Institution, amazing.

savage24 on May 6, 2014 at 11:50 AM

As a 501(c)(3) non-profit organization, Brookings describes itself as independent and non-partisan. A 2011 study examining think tank employee donations from 2003 to 2010 showed that 97.6% of Brookings’s employees’ political donations went to Democrats and described the think tank as “liberal.”

blammm on May 6, 2014 at 11:50 AM

Do you think it was Obamanomics back in 2006?

Gebeaux on May 6, 2014 at 11:39 AM

Try again.

Fallon on May 6, 2014 at 11:51 AM

In order to reverse this trend, we do indeed need the “virtue of entrepreneurship enhancing policies,” which begin with valuing job creation over regulation and the use of capital over the punishing of it. Instead of celebrating job-killing policies as an end to “wage slavery,” we need to rid ourselves of job-killing policies and command-economy regimes. Mostly, though, we need a change in leadership from the current economy-killing administration and some semblance of sanity in the reach of the federal government.

See Texas….and any number of Red States who enacted conservative policies to buck the moon bat loser trend.

California has a bill in the legislature to tax drivers by the mile…even tourists will stay away and enviro-purist moon bats probably like that…

I hope Gov. Perry runs again.

workingclass artist on May 6, 2014 at 11:53 AM

Instead of freeing capital for entrepreneurial purposes, the regulatory and tax policies of the Obama administration have choked off entrepreneurship.

Dear Liar is a symptom. The Regulatory State is the disease — Lois Lehrner predated him. And the cause is people’s belief in the power of the state, people who are lazy and want the state to take care of them. Mittens was ridiculed for being a businessman while The Whine lauds those who go to work for government.

rbj on May 6, 2014 at 11:14 AM

Most Americans under the age of 30 don’t understand basic economics.

That’s why these younger people are so gullible to the marxist big gubmint nanny state agit-prop.

workingclass artist on May 6, 2014 at 11:56 AM

KEEP VOTING DEMOCRAT!

STRAIGHT TICKET REPROBATES!

Murphy9 on May 6, 2014 at 11:58 AM

I said in 2008 he’d be like Carter.

Boy, I hate it when I’m right.

Socratease on May 6, 2014 at 11:27 AM

If only that were true. Even looking back at how bad things really were in the late 70′s, I would take Carter in a heartbeat.

HiJack on May 6, 2014 at 12:00 PM

Here’s hoping Egg doesn’t comment on this. The only thing that can make this worse would be Egg clarifying how bad it is.

Axe on May 6, 2014 at 12:02 PM

…planned to start a … business.

No Truce With Kings on May 6, 2014 at 10:56 AM

Same here. Two businesses. Aborted planning once I decided both were vulnerable to some random knee-jerk legislator whipping up a new regulation.

The problem is that there are so many regulations popping up, you can rule-out almost any small business startup as too risky.

Tsar of Earth on May 6, 2014 at 12:04 PM

This information has left me feeling disappointed with the world.

trigon on May 6, 2014 at 12:10 PM

I guess the BLS Birth/Death Model needs some, er, adjusting.

Steve Eggleston on May 6, 2014 at 12:11 PM

Do you think it was Obamanomics back in 2006?

Gebeaux on May 6, 2014 at 11:39 AM

Try again.

Fallon on May 6, 2014 at 11:51 AM

Wasn’t a beautiful woman given the speaker position in 2006?

Note the word beautiful above is spoken with the deepest sarcastic voice you can imagine!

libbyscooter on May 6, 2014 at 12:13 PM

Here’s hoping Egg doesn’t comment on this. The only thing that can make this worse would be Egg clarifying how bad it is.

Axe on May 6, 2014 at 12:02 PM

Too late.

The bad news is on the firm-entry side.

Steve Eggleston on May 6, 2014 at 12:13 PM

Wasn’t a beautiful woman given the speaker position in 2006?

Note the word beautiful above is spoken with the deepest sarcastic voice you can imagine!

libbyscooter on May 6, 2014 at 12:13 PM

And a Dingy Nevadan seized the Senate at the same time. GWB then folded like a cheap tent.

Steve Eggleston on May 6, 2014 at 12:14 PM

I know what will fix this – More Regulations!

D-fusit on May 6, 2014 at 12:16 PM

That is also why shrinking the middle class is always TOP priority for socialists like Obama…

ConstantineXI on May 6, 2014 at 11:25 AM

Because that’s where the money is – for the time being.

And the owners are too busy working to catch the Looters.

Tsar of Earth on May 6, 2014 at 12:17 PM

I know what will fix this – More Regulations!

D-fusit on May 6, 2014 at 12:16 PM

Coupled with punitive taxation at all levels of course.

Murphy9 on May 6, 2014 at 12:18 PM

Obama is Carter’s 2nd and 3rd terms.
ConstantineXI on May 6, 2014 at 10:52 AM
And as is typical – the sequels are never as good as the original….

dentarthurdent on May 6, 2014 at 12:25 PM

Coupled with punitive taxation at all levels of course.

Murphy9 on May 6, 2014 at 12:18 PM

Of course!

D-fusit on May 6, 2014 at 12:26 PM

…p i v o t !

KOOLAID2 on May 6, 2014 at 12:46 PM

America’s fundamental problem in a nutshell. You can’t start a business these days.

K. Hobbit on May 6, 2014 at 12:56 PM

Do you think it was Obamanomics back in 2006?

Gebeaux on May 6, 2014 at 11:39 AM

Some critical thinking skills may be in order.

2006 elections gave Democrats both halves of Congress. At that point, the writing was on the wall. Presidential election of 2008 sealed it.

dominigan on May 6, 2014 at 1:06 PM

Gee, I thought he was just going to stop the rise of the oceans.

formwiz on May 6, 2014 at 1:11 PM

Destroying the private sector: one thing Obama doesn’t dither at.

ConstantineXI on May 6, 2014 at 1:12 PM

A six year-old can’t put up a lemonade stand these days without the government coming in and shutting them down for failing to get a business permit or for not having a Health Department approved commercial kitchen.

All these regulations help to ensure existing businesses do not have to deal with new competitors, or innovators. Democrats are as guilty (if not more so) than Republicans of helping the big established businesses eliminate competition (from which come the same business executives and owners who end up being their big political contributors and fundraisers).

I am not anti-business or anti-big-business, and not anti-government when government is properly restrained by law and is behaving as an institution that is of, by, and and for the people. However, I despise crony-capitalism and those who perpetrate it.

s1im on May 6, 2014 at 1:20 PM

…p i v o t !

KOOLAID2 on May 6, 2014 at 12:46 PM

. . . beginning to look like a bloody pirouette.

Axe on May 6, 2014 at 1:52 PM

Comrades is feature not bug of grand socialist/fascist Utopia under progressive party policy. It will be grand and glorious future comrades, GLORIOUS!!

jukin3 on May 6, 2014 at 1:54 PM

Thanks liberals!

Whitey Ford on May 6, 2014 at 2:03 PM

Now wait. I’m confused. During the wreckovery the Obama regime told us that the UE was going down not because of traditional hiring but because so many people were starting their own businesses.

Could that have possibly been a lie?

jukin3 on May 6, 2014 at 2:06 PM

airupthere on May 6, 2014 at 11:12 AM

You forgot #5 – Cash for Clunkers takes all the decent used cars out of the market.

ctmom on May 6, 2014 at 2:15 PM

The reasons can’t be that unknown. Since the 1970s, the federal regulatory environment has grown exponentially, with its power amplified by the federal courts. Even short eras of regulatory reduction resulted in only moderate reversals of that decline, which quickly disappeared.

If they tell the complete truth they’ll probably be targeted for audits by our criminal federal government.

It would be interesting to see a graph of government regulation overlaid on that business graph.

earlgrey on May 6, 2014 at 2:25 PM

You forgot #5 – Cash for Clunkers takes all the decent used cars out of the market.

ctmom on May 6, 2014 at 2:15 PM

Good point. Then it is followed by #7 – People can’t afford new cars so the either quit their job and stay home or choose to walk.

airupthere on May 6, 2014 at 2:43 PM

airupthere on May 6, 2014 at 2:43 PM

#6. I count like Obama

airupthere on May 6, 2014 at 2:44 PM

Overregulation is part of it, but I wonder if there are fundamental issues with the globalization of the market. It’s hard for a new entry in the marketplace to compete against places like Walmart or Best Buy or LegalZoom. Medical clinics are popping up in drugstores.

Consumers go for low price-profit margins are low, established businesses with relatively lower overhead are at an advantage.

I think globalization also contributes to the income equality gap.

Before there were 100 businesses with the boss making 100K. Now there is one, with the boss making 10,000,000. The staff slaries remain the same. There is overall a smaller number of managers/executives, who make proportionately more.

I think reducing unnecessary regulation would help, but I think the globalization is here to stay.

talkingpoints on May 6, 2014 at 3:43 PM

More businesses dying than being created — for first time ever

More businesses are failing now than are being created, a first for the American economy since the Carter era

These two sentences appear to be contradictory, Ed.

Better:
For the first time since researchers began tracking this in the Carter era, more businesses are failing now than are being created.

itsnotaboutme on May 6, 2014 at 4:18 PM

More businesses dying than being created — for first time ever

So any growth in the economy is due to mega-corporations expanding.

Liberalism is always bad for small businesses, but it’s often good for the largest corporations.

The latter appreciate things like:

–Burdensome regs, because they can afford lawyers to ensure compliance, while their smaller competitors can’t.
–Complexities in the tax code, because they can afford accountants to ensure compliance, while their smaller competitors can’t.
–Sweetheart contracts from Washington, DC that small businesses never get.

itsnotaboutme on May 6, 2014 at 4:24 PM

As our Founders understood, sanity in the federal government has always been an iffy proposition, but in our godless age it’s certain to be oxymoronic, for as they understood, without the God on Whom we’ve suicidally turned our backs, we’re fatally lost.

russedav on May 6, 2014 at 4:35 PM

The Total Transformation of Hope&Change!

or, as Winston Churchill remarked:

Socialism is a system of shared misery.

Another Drew on May 6, 2014 at 7:21 PM

…planned to start a … business.

No Truce With Kings on May 6, 2014 at 10:56 AM

Same here. Two businesses…

Tsar of Earth on May 6, 2014 at 12:04 PM

Here too. When I needed to hire additional staff and couldn’t go with freelancers anymore, my ROI projections dropped, largely due to regulatory framework, fees, taxes, etc. In the end I decided to scale back output.

Wilmsch on May 6, 2014 at 9:07 PM

The biggest villain here is Sarbanes-Oxley. Note the huge plunge after 2005. That bill basically destroyed American entrepreneurship.

Hal_10000 on May 6, 2014 at 9:48 PM