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Declining Business Dynamism in the United States: A Look at States and Metros
Brookings ^ | May 5, 2014 | Ian Hathaway and Robert E. Litan

Posted on 05/28/2014 10:00:03 PM PDT by george76

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.

(Excerpt) Read more at brookings.edu ...


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: business

1 posted on 05/28/2014 10:00:03 PM PDT by george76
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To: george76

Gee,maybe the geniuses at the left wing Brookings Institute will come to realize that endless borrowing, printing of currency, high taxes, endless complicated and restrictive rules regulations and a growing government bureaucracy, endless promises to people of more than the country can afford, and an ongoing anti carbon energy campaign that raises the cost of everything really does inhibit wealth producing capitalist activity.


2 posted on 05/28/2014 10:12:06 PM PDT by allendale
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To: george76

Very important subject and insufficiently examined. This is THE outstanding phenomenon of the process of decadence of this civilization. I suspect that it will ultimately be explained by Schumpeters theories, I.e., that rent seeking, cronyism, regulation, and paralysis through bureaucracy will cripple economic growth. More at some periods than others, but the general path is the same.


3 posted on 05/28/2014 10:12:25 PM PDT by buwaya
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To: george76

That feeds off of manufacturing processes. When you don’t have manufacturing processes to experiment with, innovation dries up.

We are in an economy where more and more people are unemployed. Those that are employed are increasingly in the healthcare sector. And our remaining wealth is being squandered on cheap imports that put Americans out of work and increase government debt.


4 posted on 05/28/2014 10:21:31 PM PDT by DannyTN
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To: george76

this is the left’s long-term goal. killing middle class, socialism is just elites and the proles. also ties into destroying the last superpower as if we can manufacture what we need we’re holding up the nwo/globalism plans.

more poor folks as no middle class, more govt ddependency == more govt control.


5 posted on 05/28/2014 10:47:11 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: george76

There are only 4 wealth creators. Everything else feeds off them. No stores necessary if wealth is not being created. Can’t afford doctors, lawyers, accountants, police, firefighters, military without wealth creation.
Manufacturing, mining, agriculture and applied research are the basic wealth creators. Put burdensome restrictions on these activities and you will witness slow death of a nation. That is what is going on in America.


6 posted on 05/28/2014 11:02:43 PM PDT by entropy12 (Harry Reid will not allow debate on any good bills passed by House. GOP needs 51 senators in 2014!)
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To: entropy12

Here is a good example of how the wealth creators are being squeezed to death:

http://hotair.com/archives/2014/05/28/chamber-epas-new-power-plant-regs-could-cost-us-50-billion-by-2030-white-house-nuh-uh/


7 posted on 05/28/2014 11:16:03 PM PDT by entropy12 (Harry Reid will not allow debate on any good bills passed by House. GOP needs 51 senators in 2014!)
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To: buwaya; All

Some years ago (the 1990s) I was studying the impact of government regulation on street vending. There were considerable efforts by govt. and big business in places like New York, Philadelphia and Washington, DC to make it much harder for small independent steet vendors to operate. In DC in years prior to that there had been something like 7,000 independent vendors. People also drove trucks with fruit and vegetables around the poorer neighborhoods where supermarkets were not available. Now about 85% of that business has been destroyed, and black unemployment is extremely high.


8 posted on 05/28/2014 11:17:07 PM PDT by gleeaikin
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To: gleeaikin

Número UNO impediment to business growth at the monent - BHO.


9 posted on 05/28/2014 11:29:27 PM PDT by jsanders2001
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To: gleeaikin

“There were considerable efforts by govt. and big business in places like New York, Philadelphia and Washington, DC to make it much harder for small independent steet vendors to operate.”

In NYC a restaurant with its overhead can’t compete with some Third Worlder on the sidewalk outside selling cheap hot dogs; I’ve seen the same with sidewalk book vendors. I’m all for capitalism, but many of the food vendors don’t appear to be all that sanitary.


10 posted on 05/29/2014 4:09:53 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: kearnyirish2

Its not always obvious, but every regulation has a set of counterbalancing costs, direct or indirect, sometimes very indirect. Even what seem like clearly justified public health measures. In some cases these regulations arguably are justified taking everything into account. But such a thing as an onerous set of health measures that drives poor would be entrepreneurs out of business can be extremely costly. One would prevent a few cases of illness, but also help keep thousands of people in a culture of dependency that is likely to cause much more death and illness.


11 posted on 05/29/2014 5:55:15 AM PDT by buwaya
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To: gleeaikin

A perfect example, thank you. We have a similar case in San Francisco when jitney buses (semi licensed private buses run by individual operators) were banned.


12 posted on 05/29/2014 5:59:57 AM PDT by buwaya
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To: george76

The causes are regulations against tiny manufacturing and building efforts by individuals, and generally, approved, influential looking corruption on both sides at every level. Ingenuity will wait, until the way is clear. Until then, enjoy.


13 posted on 05/29/2014 9:56:58 AM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: entropy12
"Manufacturing, mining, agriculture and applied research are the basic wealth creators. Put burdensome restrictions on these activities and you will witness slow death of a nation."

Invention comes from small efforts of individuals, too, and we need to see new blood in production. As it is, energy and agriculture investors have smashed individual building, manufacturing and agriculture prospects, mostly with state and local regulations. They're spoiled rotten and currupt.

And the economic decline will continue, until those local anti-competition regulations are gone. Advocating only against federal corruption and one political party is not enough. We know already know about Democrat commies well enough, but I've seen Republican commies rampage and law waste to local, small economic prospects--needed voters.

Corruption of all kinds will need to be ended. Otherwise, continued no vote, no matter how noisy and vulgar political speech gets.


14 posted on 05/29/2014 10:06:52 AM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: familyop

Money/CNN Annalynn Kurtz says economic decline is no big deal

http://www.freerepublic.com/focus/f-news/3161396/posts


15 posted on 05/29/2014 10:08:25 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: familyop

The only thing which can reduce corruption is more competition. Government is a giant monopoly, with zero competition...a breeding ground for corruption.


16 posted on 05/29/2014 3:38:10 PM PDT by entropy12 (Harry Reid will not allow debate on any good bills passed by House. GOP needs 51 senators in 2014!)
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To: george76

Wait. I thought Barack Obama, and our incumbent governor, Terry Branstad, said that everything is awesome, business-wise...


17 posted on 05/29/2014 4:29:23 PM PDT by EternalVigilance
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To: buwaya

“One would prevent a few cases of illness, but also help keep thousands of people in a culture of dependency that is likely to cause much more death and illness.”

I’m not talking about regulations being the biggest problem for the regular brick-and-mortar businesses in their competition with street vendors; the problem can be simply the rent.


18 posted on 05/30/2014 3:18:26 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: kearnyirish2; All

In DC Food Vendors are required to take food handling training before licensure. That was never an argument. There were also rules not allowing people to set up within a certain distance of competing stores. There was not much disagreement with that either. The big argument was requiring the poorest vendors to pay the same Fee in Lieu of Taxes as the most profitable vendors. The vendor position was to require all vendors to take a half day course on record keeping and paying of their business taxes and the IRS Schedule C that formed part of tax calculations. Another argument was requiring vendors to pick un location for vending. Some had established clientele that were paid on the same day in large buildings and another day in other large buildings. Freedom to move was important. A third disincentive was requiring All businesses to get a Basic Business License. Even small ones like Avon distributors. One recommendation was to excuse businesses grossing under $100,000, and only require the tax paying course.


19 posted on 05/30/2014 1:35:29 PM PDT by gleeaikin
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To: buwaya; All

In DC all taxis are now required to have metering rather than zones, credit card machines rather than cash, and paint their taxis all the same color. There used to be many DC resident part time cab drivers. Now most are from out of town.


20 posted on 05/30/2014 1:37:52 PM PDT by gleeaikin
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To: gleeaikin

Those regulations strangle small businesses, but I’m sure the government doesn’t want them around anymore anyway. Many private individuals built their wealth with them, handed them down through generations, and government is bristling that they can’t push the same social engineering/hiring nonsense on them that they’ve managed to with huge corporations (which basically function as government agencies at this point in terms of keeping tokens and diversity directors on the payroll.


21 posted on 05/30/2014 5:04:44 PM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: george76

http://www.census.gov/foreign-trade/balance/c5700.html#2013

Just saying. Last year:

Imported from China, to America (made by Chinese workers): 440 billion dollars.

Exported from America, to China (made by American workers): 122 billion dollars.

America is starving right now. Shrinking.

America needs to get back to making things. Right here in America.

Just saying.


22 posted on 05/30/2014 5:08:16 PM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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