Skip to comments.Declining Business Dynamism in the United States: A Look at States and Metros
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 ...
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.
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.
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.
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.
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.
Here is a good example of how the wealth creators are being squeezed to death:
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.
Número UNO impediment to business growth at the monent - BHO.
“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.
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.
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.
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.
Money/CNN Annalynn Kurtz says economic decline is no big deal
The only thing which can reduce corruption is more competition. Government is a giant monopoly, with zero competition...a breeding ground for corruption.
Wait. I thought Barack Obama, and our incumbent governor, Terry Branstad, said that everything is awesome, business-wise...
“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.
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.
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.
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