Posted on 07/08/2009 7:32:38 PM PDT by SeekAndFind
Edited on 07/08/2009 8:24:05 PM PDT by Admin Moderator. [history]
One of the most enduring lies in American politics is the myth of small-business job creation.
You probably know it by heart: Small businesses create 60, 70, even 80 % of all the new jobs in the USA.
Back in the 1980s, I was a senior editor at Inc. magazine, where I worked on some of the articles in which some of the seeds of this myth were planted. Up to that point, there was a widespread tendency to conflate the success of the economy with the fortunes of big business, so it was rather useful to have some data highlighting the importance of small firms.
(Excerpt) Read more at washingtonpost.com ...
So let’s tax them out of existence and use the money to bail out businesses “too big” to fail.
Washington Post utterly deceitful Obama Administration propaganda.
Obama preparing the sheeple for a massive tax and hyper-regulation assault small business.
Another Marxist thug assaulting the kulaks.
Interesting, but a planted idea-directing article, imo. Meant to support the federalization of big and middle business and to excuse the oncoming tax and regulations which will destroy many small businesses.
>> This is not the time or place for long statistical explanation.
TRANSLATION: My argument is flimsy, my logic is flawed, and I really couldn’t back up my outlandish BS if I wanted to. So I’m not going to try.
I’m quite wary when reading anything out of the compost or cnn these days. I read things from these sources with an eye to trying to peer under the cover, searching for the underlying rationale for their placement of these stories, and what agenda it is intended to resolve, or be a harbinger for.
Small Business = mostly non-union = not fully Dem = enemy of WP
Pearlstein sounds like he just another one of Obama’s eunuchs. He needs to try to get out of the office more and regain touch with reality.
Absolutely.
The issue is not this propaganda disguised as news, which is 1000% dishonest and untrue.
The issue is: What is Obama trying to set us up for?
Exactly.
It would cause the total amount business they do in aggregate to decline (basic supply and demand), which in turn will cause some of them to fail. Do you really believe you can raise prices with no adverse affect as long as you do it uniformly? Or is this still the author's reasoning?
Business owners are always quick to claim that they can’t raise prices because of competitive pressures, but if that were true, prices would never rise.
Fundamental socialist fallacy. Costs only determine which businesses survive and fail. Costs do not determine prices. Prices are determined by supply and demand.
(I don't want to give the Post a hit)--
OK, let us summarily grant the author's premise that small businesses do NOT account for 60%+ of jobs, and that such numbers are exaggerated.
How does this premise justify his bombastic assertion?
Where is this author's more correct estimate of the number of jobs within small businesses?
If it were 1% or less, maybe that would justify his conclusion. But there is a heck of a lot of room for significance under the 60% line.
On top of this, his argument that many small business jobs are just displaced big business jobs due to health care costs seems down right counter to his own conclusion because it demonstrates health care costs are indeed significant to business, and thus to the economy.
Requiring all of them to offer health insurance wouldn’t put any firm at a competitive disadvantage — it would simply raise costs for all of them, forcing them to pass those costs on to someone else....
Apparently this guy has never heard of China or India. This ‘it hits them all so what’s the problem?’ argument was the UAW line for 30 years. How’s that working out Steve?
Hmmm, I guess that makes it OK for Obama and the lib-nazis to put them all out of business so that everyone has to be a slave to Obama.
Great translation... Why a crock.
The German Nazi Party sought to ban small businesses , but I’m not sure if they ever got around to implementing it, having to deal with the Russians and all.
Makes sense. National socialism was a variety of corporatism, which integrates he interests of large businesses with the state. From his actions since becoming president, Obama is a new breed of corporatist.
Seems the hardest hit businesses would be new businesses, particularly ones that are still just a day dream. The capital to get up and running long enough to get a return would be higher.
Yup..another obammi supporter. Democrats loath small business but they will keep pandering to them. No wonder Obammi barely won to McCain. http://www.iamend.com
Apparently this guy has never heard of China or India. This ‘it hits them all so what’s the problem?’ argument was the UAW line for 30 years. How’s that working out Steve?
You hit the nail on the head -- for nearly all US based manufacturers today the competition is anyone, anywhere in the world - but mostly in India and China. Already the cost differential between the USA and China or India makes it nearly impossible for US companies to do anything but sell products made in China, or India. Increasing costs here will just sink our economy faster.
Yeah....and there are NOT 47 million without Health Insurance in this country, also....RIGHT....Pearlstein????
Did y’all hear Mark Steyn talkiing about Tim Horton’s relocating its headquarters from Delaware to Canada? Why? Because corporate taxes in Canada are about 21% (and scheduled to go down to 15% next year)....while here in the good ole USA they are about 35%.....and probably rising!!! What the He** do they think businesses are supposed to do?
“All of which brings us to the issue du jour: health-care reform.”
What the Idiot failed to mention is 79% of all business is
small business.
So why would they not employ 79% of all the workforce.
And if the workforce had growth and it was in the large corporate
sector would that not reduce small business below 79%?
Does this guy suck at math or what?
No wonder he does not use any credible statistics to back up
his claims.
So according to his logic the other 21% can hire the
the 79% after his masters are done screwing them to death.
Of course they wont, they will send the the jobs to some other
country, preferably a communist country.
Health-care reform and the taxes it will require along
with exploding energy prices from cap and trade will
kill jobs in the U.S.
That puts a major stumbling block in the great government
takeover.
Fact is they have painted themselves into a corner.
Hard to get reelected when darn near put everyone out of a job.
The sheeple may not be to bright but put them out of work
and the folks in Washington will soon be unemployed as well.
All material from Washington Post must be excerpted. Please do not post more text from an excerpted article. Thanks.
If there's an average 1,500 employees at the 44K larger companies and just 5 at the 24.5 million small businesses, small businesses employ more than 2X then the large companies.
Actually it is higher.
Small Business Impact on the Economy
The estimated 27.2 million small businesses in the United States:
Employ about half of the country’s private sector workforce
Hire 40 percent of high tech workers, such as scientists, engineers and computer workers
Include 52 percent home-based businesses and two percent franchises
Represent 97.3 percent of all the exporters of goods
Represent 99.7 percent of all employer firms
Generate a majority of the innovations that come from United States companies
Source: U.S. Small Business Administration Office of Advocacy, September 2008
They are beyond stupid.
$1,000 a month? Do you have a house like john edwards?
Dear Mr. Pearlstein,
WTF kind of business of ANY size have you ever run?
Regards,
Small Business Owner
This man is a communist.
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