Small businesses, crucial to growth, face challenges - USATODAY.comThrough the 12 months ended in March of last year, 505,473 new businesses started up in the U.S., according to the latest data available from the Bureau of Labor Statistics. That's the weakest growth since the bureau started tracking the data in the early 1990s. It's down sharply from the record 667,341 new businesses added in the 12 months that ended in March 2006.
Weak start-up growth has dire implications for jobs because small and midsize businesses have driven employment gains in the U.S. for years. Between the recession that ended in late 2001 and the start of the most recent recession in late 2007, businesses that employed fewer than 500 workers added nearly 7 million employees, according to data collected by payroll provider ADP, which tracks employment trends.
[In contrast], businesses that employed 500 or more cut nearly a million positions over the same period, often because they sent jobs overseas. Smaller companies — think local restaurants, gas stations and mom-and-pop grocery stores — are far less likely to send jobs abroad. That's why they are crucial to the recovery, economists say.
Small-business employment growth has been waning in recent months. In May, businesses with less than 50 employees added 27,000 jobs, according to ADP. While that's an improvement over a gain of 14,000 a year ago, it's down sharply from the 84,000 jobs added in April and advances of more than 100,000 in December and January.
A huge concern for small businesses, says the NFIB's Dunkelberg, is lack of clarity about what will happen in the next year in Washington. With another round of elections coming up and rancorous debate on Capitol Hill, businesses are unsure about what policies will be enacted by the government.
"There's just a huge amount of uncertainty. And when you're uncertain, you don't make bets," he says.
Right...I am thinking back to the CRA....Now who was it that pushed that? Hmmmmm.....Or it could be when unions like the SEIU together with their criminal offshoot ACORN started picketing, and strong arming banks to lend to those that couldn't afford it....Or even better yet let's go back to the New Deal and FDR for setting in motion the entitlement class, and mentality in the first place telling generations of Americans that the American dream meant redistribution of wealth.
Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom.
Alexis de Tocqueville
last week wapo's factchecker vigorously waved a caution flag, putting a drag on obama's victory lap celebrating his "rescue" of the auto industry
President Obama's phony accounting on the auto industry bailout - The Fact Checker - The Washington Post
Green jobs success eludes President Obama - Darren Samuelsohn - POLITICO.comPresident Barack Obama heads to an energy plant in North Carolina on Monday to talk once again about the job-creating power of a green economy.
The catch? Nearly three years into Obama's presidency, the White House can't point to much solid evidence that significant numbers of Americans are scoring the green jobs the president has been touting.
Obama's Council of Economic Advisers suggests 225,000 clean energy jobs were either created or preserved through the third quarter of 2010 thanks to more than $80 billion in the economic stimulus package. But those are estimates at best.
The White House figures 825,000 Americans should be building electric car batteries, retrofitting homes or doing other green collar work by the end of 2012. But that too is an extrapolation.
meanwhile, how many jobs are epa regulations costing us?
Utility giant AEP says it will close five coal plants to comply with EPA regs - The Hill's E2-Wire
Last edited by The Prof; 06-13-11 at 10:44 AM.
1.9 Million Fewer Americans Have Jobs Today Than When Obama Signed Stimulus | CNSnews.comTwenty-eight months after Congress passed President Obama’s signature economic stimulus law, and nearly one year after he declared the summer of 2010 to be “Recovery Summer,” 1.9 million fewer people are employed.
In February 2009, the Bureau of Labor Statistics (BLS) reported that 141.7 million people were employed. By the end of May 2011 – the last month for which data are available – that number had fallen to 139.8 million, a difference of 1.9 million.
While the number of people with jobs has increased slightly from its low point during the recession – 137.9 million in December 2009 – those 1.9 million jobs have been lost despite $800 billion in stimulus spending.
This does not mean that the economy is not creating jobs, but rather that it is not creating jobs fast enough to keep up with a combination of layoffs and people entering the job market for the first time.
In a Washington Post op-ed, former White House chief economist Larry Summers noted that the percentage of the population that has a job has not improved, even though the economy is technically in recovery.
“From the first quarter of 2006 to the first quarter of 2011, the U.S. economy’s growth rate averaged less than 1 percent a year,” Summers wrote. “The fraction of the population working remains almost exactly at its recession trough, and recent reports suggest that growth is slowing.”
The fraction of the population with a job has in fact fallen in the 28 months since Congress passed the stimulus – down from 60.3 percent in February 2009 to 58.4 percent in May 2011.
party on, progressives
It's Official: US Housing Worse Than Great Depression/CNBCIt's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.
Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.
According to Case-Shiller, which provides the most closely followed housing industry data, prices dropped 1.9 percent in the first quarter, a move that the firm interpreted as a clear double dip in prices.
Prices continue to tumble despite affordability, which by most conventional metrics is near historic highs.
The rate for a 30-year conventional mortgage is around 4.5 percent, just above the historic low of 4.2 percent in October 2010.
More than four in every five mortgages now require a down payment of 20 percent, and credit history standards have tightened. At the same time, foreclosures continue at a brisk pace, pushing more supply onto the market and pressuring prices downward.
one of america-under-obama's problems is so many folks can't relocate, because they're too far underwater in their homes, to wherever the few jobs being created are
ie, too many nevadans and floridans simply CAN'T move to texas
The Prof, et al,
There is an unspoke truth.
We speak of the importance of "small business" because all the "big business" is gone."
No reinvestment in the US means no industrial advancement to keep US commerce and industry cost competative. US Steel is a classic example, but there are many others as well.
No one in Washington is interested in "Nation Building" America. We spend Billions on countries like Iraq, Pakistan, Afghanistan ... etc ... yet, not a dime on America.
New Jobless Claims 414,000 - Yahoo! Finance
this week's claims top 400K for 10th straight
life under obama, continued:
CNBC: Misery Index Worst in 28 YearsWhen it comes to measuring the combination of unemployment and inflation, it doesn’t get much more miserable than this.
In fact, misery, as measured in the unofficial Misery Index that simply totals the unemployment and inflation rates, is at a 28-year high, reflective of how weak the economic recovery has been and how far there is to go.
The index, first compiled during the soaring inflation days of the 1970s by economist Arthur Okun, is registering a nausea-inducing 12.7—9.1 percent for unemployment and 3.6 percent for annualized inflation—a number not seen since 1983. The index has been above 10 since November 2009 and had been under double-digits from June 1993 through May 2008.
The good news, of course, is that the Fed-led Paul Volcker embarked on a highly successful inflation-slaying campaign that brought the level of misery down sharply through the rest of the ’80s recovery decade.
The bad news, of course, is all the bad news.
cnbc has just been beating the crap outta this president the last several weeks
Last edited by The Prof; 06-17-11 at 04:44 PM.