Skip to comments.Brookings: More businesses dying than being created — for first time ever
Posted on 05/06/2014 8:15:24 AM PDT by Hojczyk
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:
The reasons cant 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 isnt 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.
(Excerpt) Read more at hotair.com ...
China now produces more than America, and China imports a huge amount of THEIR products to America.
China sells America 440 billion. (last year).
China buys from America 122 billion. (again last year).
America we need jobs. Both the Dems and the GOP are selling out our country.
Bring back American jobs.
Gosh, so many more people around the world love us. So many new jobs created. The budget, so much more under control. Islam is now recognized for the first time as contributing heavily to the founding of our nation. Sharia law is now being considered in some areas of our nation. Children role play jihad in our schools. The Koran is read there now.
Is it any wonder why our nation is better off today under this national Imam.
could be the problem are too many “conservative” (cough cough) Americans who are economic illiterates.
Wow it’s a Welcome Back Carter rerun courtesy of Zero.
The little p.head Perot had one thing right. That sucking sound was/is deafening...
Anyone that can’t grasp that, fell off the turnip truck on their head.
Our pigeon is back crapping on the thread ..
Again, Liberals continue to tell everyone how smart they are. They're a bunch of dolts who only lust for power and control over the lives of other Americans.
Over half of the small to medium sized companies that did subcontract work for military programs that cut during the sequester have went out of business and were liquidated
Mindless bitching and moaning without understanding the real causes does nothing but propogate economic mythology.
It’s the consolidation of pretty much everything. Mom & Pop stores are just about dead. Real competition in the market place is a myth. They will continue to do things like approve the Comcast/Time Warner merger. These people (yeah I mean Koch Brothers, etc) are NOT Patriots and are NOT our friends. They use us for votes. That’s it. Both Parties are two sides of the same coin and have sold us out. The Capitalists are killing Capitalism and we do nothing.
Would we expect any different? Ill gander for a giggle, thank you!
One only needs to drive by a business park or strip mall and see all the “space available” signs in the empty windows to realize this is true.
LOL. Well when you get to the point you can observe some non mythology, get back to me.
There’s no myth 25% of our workforce is out of work.
There’s no myth another 25% are working for far less than they were six years ago.
There’s no myth that jobs have almost been flat for the last six years, no or very little growth.
There’s no myth that there isn’t a level playing field as it relates to trade with China.
There’s no myth that our workforce will never be able to compete with third world labor, until our economy has dropped to third world status. And that’s just what it’s doing.
Half our workers have been severely impacted by what has taken place due in no small measure by our trade with China, and other outsourcing.
Who couldn’t have seen this coming? Wake ye sheep.
Cringing, you are delusional if you think these jobs are coming back, stories of businesses being put out of business guarantee that it won’t happen. Not to mention a work ethic on life support still held on to by older Americans, but unknown to the generations with cell phones who have texting ability.
We are in a trap that some of us helped build, very few of us I think. We have a government run by crooks so why should stolen elections surprise us?
If you have noticed lately that my posts are more pointed and blunt, there is a reason, I refuse to give any of these people the benefit of the doubt and am calling a spade a spade. Let the chips fall where they may. I don’t give a damn anymore.
It’s not too late to change, but we aren’t going to have any change in DC if we keep reelecting the same people. Most of the incumbents will not change and have no desire to change. Doubt me? We all know how bad Democrats are, but many Republican incumbents had their chance and failed during the W era. Think we’re going to turn this thing around with the likes of Senator Graham? Not bloody likely!
Vote ‘em out! That’s not going to be easy, because the political class (both parties) is like a plague. Every time someone like Graham gets reelected after sticking it to his constituents, he’s only further emboldened to do what he pleases. It’s almost sickening how he’s completely transformed himself now that it’s an election year, but we all know he’s simply McCain’s co-conspirator against all things conservative—and they are far from alone!
The problem isn’t simply Democrats, climate change, and the resulting regulatory environment. The problem is too many Republicans buy into the same thing! Where is the will to change DC? It’s certainly not in DC!
“The Capitalists are killing Capitalism and we do nothing.”
The CRONY capitalists are killing capitalism.
They’re a bunch of dolts who only lust for power and control over the lives of other Americans.
Liberals want control; conservatives want freedom. This fundamental difference cannot be reconciled. They are mutually exclusive goals. I wish that liberals were just dolts, but the reality is they are wicked and visicous infighters who will do or say anything to grab power and destroy individual freedom.
We don’t argue there’s a problem numbskull ..so just STFU on the problem yes, there is one. No dissgreement there. The fact that you have to always revert to what we agree on as if thats a point for you speaks to the total intellectual bankruptcy of your cause.
BTW We can not level the playing field with China. That’s not to say we can’t do some different things on trade deals, but if you think we can change the realtity of a population that is three times our own, you are smoking crack. We just cannot. This obsession with China is just screwing up your brain. And you said yourself, we can’t level the playing field. So why waste your time mental mast-rb-ting pretending our gov should do something.
The good news is, if we simply rolled back liberalism in this country, it woudn’t make a damned difference what China did or did not do. Why you can’t see that is beyond me ..
you should change your name to leftward ho, in light of what you said about the Koch Brothers.
They are not crony capitalists, which are part of the problem, a big part. But consolidation by itself is not a bad thing, unless you aren’t a believer in the free market (and a lot of Freepers really aren’t ..)
There is the ruling class, composed of both parties, that wants to retain their power.
There is the rest of us, in two groups, those who live off the fed gov, and those who must produce to stay alive.
This will not change by voting, it is way beyond that, because the takers and ruling class have the producer outnumbered, out voted, out regulated, and out judged.
Private sector employees create tax money. Government employees spend tax money. Can’t balance the Federal budget? Have more private sector employees or fewer government employees.
Obama has replaced the invisible hand of capitalism with the iron fist of socialism.
The Brookings Institution
Part of the Vast Right-Wing Conspiracy. /sarc
ObamaCare forced the mass conversion of low-skilled full time jobs to part time status. Not only did that mean a loss of benefits, but it also increased the work week, fragmented working hours in many cases, and increased costs of commuting to the job.
Given how tight family finances are for people in this demographic, it makes life so much more difficult. It certainly has diminished their standard of living as well as their spare time.
Thanks libs! You wanted ObamaCare so bad you were willing to tell any lie and employ any legislative trick to get your Precious. If you like your lies, you can keep your lies.
Capitalism is not a form of governing. Capitalism exists in all forms of government. The difference between Socialism, Communism, and Americanism is in who controls the capital.
In Socialism and Communism, the state controls the capital.
In Americanism the people own and control the capital.
The Progressive movement attempts to redefine the tenets of Socialism and Communism to a more politically correct position like Social Justice or other such liberal nonsense.
I recall posting on Free Republic ... Define Socialism
I only support governments whose main function is to protect private ownership of capital and property rights. All definitions used to describe other governments are of no interest to me. I will not support government that does not protect property rights regardless of all manner of noble accomplishments cited.
That is a myth.
So what’s your plan to “bring back American manufacturing jobs” since a growing proportion of US manufacturing is done via robotics? Smash the robots? Implement tariffs? How much do you think it will pay to be cheaper than a robot?
Should we also go back to scythes and hand carts for agriculture?
Obama is focused like a laser on economy equity right now, and that means more job destruction. Throw in a little global warming, illegal immigration, and environmental protectionism, and jobs must go.
I appreciate the attempt to correct me, but in real terms our work force has been hit very hard.
If you look at the number of people who are of working age today, we have 25% of our workforce out of work.
I’m not referencing people on welfare, and a case could be made they add to this, on top of this.
I am only addressing traditional growth of our workforce that remained steadily growing from the 60s up though around 2004. Subsequent to that, almost no new jobs have been created. And 25% of the people who should be in the work force are not.
25% of the other workers are receiving much less pay than they did six to eight years ago.
This means that 50% of our workforce has been hit very hard. 50% of this segment has no job. The other 50% make anywhere from 1/3rd to two thirds of what they used to.
How is this not evidence of us slipping toward third world status?
The standards of living for these people is coasting on what they accumulated prior to the onset of the 2008 meltdown.
New entries into the work force, if they can find work are not going to find the traditional pay scales. Some of them won’t find work at all.
No matter how you slice this, our standard of living is tanking seriously.
Your analysis is correct. It is a sad fact which we must come to fully understand.
You know, I don’t see robots as the be all end all for every bit of manufacturing, but even robots need to be fed materials to process. Not all the jobs would not be in the traditional manufacturing work room. Suppliers, transportation, energy needs, local economy spin-offs, traditional multiplier effects..., there would be a lot of impact on communities that weren’t even directly related to the manufacturing plant.
Local merchants would have a broader base. City, State, and Federal tax bases would be supplemented. Schools, libraries, and other things that have been languishing, could be funded better. Local city road repairs would be more fully funded.
That’s how I see it.
My point is that our standard of living, employment level, or economic security has almost nothing to do with the economies of other countries - whether rich or poor.
Our problems are internal. Taxes too high, regulations too stupid, government too bloated etc.
The fault, dear Brutus, is not in our stars,
But in ourselves
I’m not immune to the impact of the things you mention. I agree with it. That is not the whole problem though.
We talk of free trade and deal with a major trade partner that does not play on a level playing field with us.
It really is insanity, what we’ve allowed to take place.