More Businesses Shutting Down than Starting Up

[sawyerloggingon]

There is no way to give this a positive spin, obama's socialist policies are killing our economy.

"The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011."
Just going out on a limb here, but perhaps an additional $73 billion in government regulations each year have something to do with it? Not to mention the 400-plus employers that have cut hours or positions because of Obamacare—or the overall hostile business climate in which businesses are reminded they didn’t achieve anything on their own.

So much for jobs being “saved or created.”


More Businesses Shutting Down than Starting Up | The Weekly Standard

​

 

[tres borrachos]

Well.....they didn't build those businesses anyway, remember?

I guess none of them were those shovel ready jobs we heard so much about.

 

[apdst]

The Liberal Agenda is working as planned.

 

[sangha]

There is no way to give this a positive spin, obama's socialist policies are killing our economy.

I did not know that Obama has been president for the last thirty years

From the article

In fact, we show that dynamism has declined in all fifty states and in all but a handful of the more than three hundred and sixty U.S. metropolitan areas during the last three decades.

 

[sawyerloggingon]

I did not know that Obama has been president for the last thirty years

From the article

Keep reading.

"Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first".

 

[sangha]

Keep reading.

"Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first".

2009, 2010, and 2011? Hmm, I wonder if anything happened in 2008 that would explain this :shrug:

And what year is it now?

 

[Risky Thicket]

A more favorable business climate for large corporations is a major factor. Financing to investment to supply to distribution to government support and assistance more often favor large corporations.

 

[sawyerloggingon]

2009, 2010, and 2011? Hmm, I wonder if anything happened in 2008 that would explain this :shrug:

And what year is it now?

Those were the most recent three years of the study but it seems things are getting even worse to me since then. Even at that though things got worse in obama's first term not better and that is documented.

 

[DA60]

The Obama administration's policies are clearly worse then useless (IMO).

But I highly doubt things would be much better under the Reps.

Remember, it was Bush that ramped up the insane 'low income housing policy' into high gear (apparently it was a huge priority for him) which led to the Great Recession. Sure, everyone went along with it...but ramping it up was his baby.
Plus, under his administration, a bunch of ridiculous policies were enacted...like TARP, bailing out GM and Chrysler, approving Bernanke as Fed Chair (and supporting his idiotic policies), agreeing to the Fed to essentially buy AIG, 'too big to fail' and he ran one huge deficit after another which culminated in the massive one he posted in his last FY in office.
And most/all of these policies he received support from the Reps on.

Face it, both parties at the top are utterly clueless as to how to properly run an economy...even today.

IMO, the Reps and the Dems are just two faces of the same political beast.

 

[tres borrachos]

The Obama administration's policies are clearly worse then useless (IMO).

But I highly doubt things would be much better under the Reps.

Remember, it was Bush that ramped up the insane 'low income housing policy' into high gear (apparently it was a huge priority for him) which led to the Great Recession. Sure, everyone went along with it...but ramping it up was his baby.
Plus, under his administration, a bunch of ridiculous policies were enacted...like TARP, bailing out GM and Chrysler, approving Bernanke as Fed Chair (and supporting his idiotic policies), agreeing to the Fed to essentially buy AIG, 'too big to fail' and he ran one huge deficit after another which culminated in the massive one he posted in his last FY in office.
And most/all of these policies he received support from the Reps on.

Face it, both parties at the top are utterly clueless as to how to properly run an economy...even today.

IMO, the Reps and the Dems are just two faces of the same political beast.

Bernanke....now there is a footnote in history I would prefer to forget.

 

[sawyerloggingon]

The Obama administration's policies are clearly worse then useless (IMO).

But I highly doubt things would be much better under the Reps.

Remember, it was Bush that ramped up the insane 'low income housing policy' into high gear (apparently it was a huge priority for him) which led to the Great Recession. Sure, everyone went along with it...but ramping it up was his baby.
Plus, under his administration, a bunch of ridiculous policies were enacted...like TARP, bailing out GM and Chrysler, approving Bernanke as Fed Chair (and supporting his idiotic policies), agreeing to the Fed to essentially buy AIG, 'too big to fail' and he ran one huge deficit after another which culminated in the massive one he posted in his last FY in office.
And most/all of these policies he received support from the Reps on.

Face it, both parties at the top are utterly clueless as to how to properly run an economy...even today.

IMO, the Reps and the Dems are just two faces of the same political beast.

Yeah Bush sucked too but obama is even worse.

 

[beerftw]

2009, 2010, and 2011? Hmm, I wonder if anything happened in 2008 that would explain this :shrug:

And what year is it now?

your way off,it might be something in 2007,2008 would be a year late and a dollar short.

 

[beerftw]

There is no way to give this a positive spin, obama's socialist policies are killing our economy.

"The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011."
Just going out on a limb here, but perhaps an additional $73 billion in government regulations each year have something to do with it? Not to mention the 400-plus employers that have cut hours or positions because of Obamacare—or the overall hostile business climate in which businesses are reminded they didn’t achieve anything on their own.

So much for jobs being “saved or created.”


More Businesses Shutting Down than Starting Up | The Weekly Standard

​

i doubt obama has any socialist policies in practice.for one his policies have almost mirrored bush,but to a higher extreme,and bush practiced keynesian economics.


but to a point numerous fctors exist,such as the fact since the 80's federal regulatory agencies have been pushing restrictions designed to eliminate competition,and favor select donors.we also have numerous state county and local sets of taxes and regs overlapped over federal regs,mostly as local govts means to collect taxes and permit fees in a bad economy,while ignoring how bad they are hurting themselves,

 

[Aunt Spiker]

There is no way to give this a positive spin, obama's socialist policies are killing our economy.

"The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011."
Just going out on a limb here, but perhaps an additional $73 billion in government regulations each year have something to do with it? Not to mention the 400-plus employers that have cut hours or positions because of Obamacare—or the overall hostile business climate in which businesses are reminded they didn’t achieve anything on their own.

So much for jobs being “saved or created.”


More Businesses Shutting Down than Starting Up | The Weekly Standard

​

Well: there are some reasonable explanations.

#1: How many old businesses are still in business? Are they expanding, growing, hiring more employees? Or are they stagnant and even hiring less employees? Established businesses advancing and developing further is a huge pool for creating new jobs. But many people don't think about this.

#2: Look around your area: do you see any gaps that need to be filled with a new business?

I see none where I live. Small town: we have a library, schools, a bank, hardware store, a few factories, farms and distribution centers, two restaurants, a gas station, post office, a uhaul place, and a small convenient store that sells food and even clothing.

Those are all the businesses in my town that I can think of though I'm sure there are a few more - there - we have all the basics in life covered. I see no need for anything else.

#3: Beyond need: there's want. Niche interests. This might include book stores and hobby shops.

#4: Existing businesses and new businesses: are they replacing people with technology, reducing hours, demanding people take on more responibilities that were once deligated to two or more people? Are they restructuring their business to be reliant on less people. Are they outsourcing?

#5: The time and effort it takes to start a new business is considerably more strict than in years past. In regulations alone the bureau 'branch' of government has made it significantly more complicated to start a business and advance a business.

It's a complicated topic.

 

[MMC]

Well: there are some reasonable explanations.

#1: How many old businesses are still in business? Are they expanding, growing, hiring more employees? Or are they stagnant and even hiring less employees? Established businesses advancing and developing further is a huge pool for creating new jobs. But many people don't think about this.

#2: Look around your area: do you see any gaps that need to be filled with a new business?

I see none where I live. Small town: we have a library, schools, a bank, hardware store, a few factories, farms and distribution centers, two restaurants, a gas station, post office, a uhaul place, and a small convenient store that sells food and even clothing.

Those are all the businesses in my town that I can think of though I'm sure there are a few more - there - we have all the basics in life covered. I see no need for anything else.

#3: Beyond need: there's want. Niche interests. This might include book stores and hobby shops.

#4: Existing businesses and new businesses: are they replacing people with technology, reducing hours, demanding people take on more responibilities that were once deligated to two or more people? Are they restructuring their business to be reliant on less people. Are they outsourcing?

#5: The time and effort it takes to start a new business is considerably more strict than in years past. In regulations alone the bureau 'branch' of government has made it significantly more complicated to start a business and advance a business.

It's a complicated topic.

Heya Auntie Mmmmm.

That's where that job issue also comes into Play and where BO says he has made gains. Despite Bowles Simpson saying we needed 239k jobs a month to get back to where we were.

You are Right about Regulations.....even BO's Special package. He has 20k in regulations. Which all will be discovering some of that this coming year.

But even Barring that.....its the Jobs.




Why 100,000 jobs a month won't lower unemployment rate.....

How's that? Well, if the whole economy, including government, ticked along at a pace of 100,000 job gains per month, it wouldn't be fast enough to account for natural demographic growth in the labor force. A rising population means about that many new people should be entering the workforce each month.

So a modest pace of 100,000 jobs a month is certainly better than declines, but it doesn't begin to fill America's jobs hole. .....snip~

Why 100,000 jobs a month won't lower unemployment rate - CSMonitor.com

http://www.debatepolitics.com/us-pa...a-and-democrats-believe-8.html#post1063237175

 

[Renae]

There is no way to give this a positive spin, obama's socialist policies are killing our economy.

"The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011."
Just going out on a limb here, but perhaps an additional $73 billion in government regulations each year have something to do with it? Not to mention the 400-plus employers that have cut hours or positions because of Obamacare—or the overall hostile business climate in which businesses are reminded they didn’t achieve anything on their own.

So much for jobs being “saved or created.”


More Businesses Shutting Down than Starting Up | The Weekly Standard

​

Good thing we have a huge safety net, endless jobless benefits... /smh

 

[Ikari]

There is no way to give this a positive spin, obama's socialist policies are killing our economy.

"The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011."
Just going out on a limb here, but perhaps an additional $73 billion in government regulations each year have something to do with it? Not to mention the 400-plus employers that have cut hours or positions because of Obamacare—or the overall hostile business climate in which businesses are reminded they didn’t achieve anything on their own.

So much for jobs being “saved or created.”


More Businesses Shutting Down than Starting Up | The Weekly Standard

​

Corporate Capitalism isn't a mechanism to advance competition and free market participation. It's meant to kill competition, to kill new business before it can start, and to freeze out they system so that the elite may never be challenged or displaced.

Not just Obama, this is the Republocrat machine.

 

[Ikari]

Yeah Bush sucked too but obama is even worse.

To first order they are the same. Big government, big war, big brother, big corporation fascists.

 

[PirateMk1]

Well: there are some reasonable explanations.

#1: How many old businesses are still in business? Are they expanding, growing, hiring more employees? Or are they stagnant and even hiring less employees? Established businesses advancing and developing further is a huge pool for creating new jobs. But many people don't think about this.

#2: Look around your area: do you see any gaps that need to be filled with a new business?

I see none where I live. Small town: we have a library, schools, a bank, hardware store, a few factories, farms and distribution centers, two restaurants, a gas station, post office, a uhaul place, and a small convenient store that sells food and even clothing.

Those are all the businesses in my town that I can think of though I'm sure there are a few more - there - we have all the basics in life covered. I see no need for anything else.

#3: Beyond need: there's want. Niche interests. This might include book stores and hobby shops.

#4: Existing businesses and new businesses: are they replacing people with technology, reducing hours, demanding people take on more responibilities that were once deligated to two or more people? Are they restructuring their business to be reliant on less people. Are they outsourcing?

#5: The time and effort it takes to start a new business is considerably more strict than in years past. In regulations alone the bureau 'branch' of government has made it significantly more complicated to start a business and advance a business.

It's a complicated topic.

#5: The time and effort it takes to start a new business is considerably more strict than in years past. In regulations alone the bureau 'branch' of government has made it significantly more complicated to start a business and advance a business.

That one right there by far. All the rest have always been factors against new business, along with even more. Its the regulations and taxes that are making it more difficult to enter the market, especially the regulations now they are becoming onerous. I will give a personal example. I own a small specialized logistic company out here in Bakersfield. I specialize in providing trucks to move oil field drilling mud supplies from the mud supply warehouse to the drilling rigs and moving the supplies jobsite to jobsite. I have one unit with a piggyback forklift, and I contract others. We also do interstate and long distance hotshot runs for the oilfield companies as well.

California has a Air Resources Board which regulates industry out here for the purposes of reducing pollution, so they say. They have been implementing regulations that have been making my equipment and my contractors equipment obsolete. The regulations are such that we have to invest significant sums of money into new equipment and or retrofits of existing equipment. Now for a large company this is generally easier to do as almost all rotate their equipment on a 3-5 year basis so most of their equipment except for very specialized units will be rotated out over a relatively short period of time. They make their money on volume of business and economy of scale. Small companies don't do that in fact they do the opposite most times. They buy and run their equipment for long terms on the order of a 8 to 11 year or longer basis. They make their money based primarily on efficiency by extending equipment life though better care of it and keeping costs to a minimum and amortizing the cost of the equipment over extended periods of time. The rates of an small company and a large company will generally be similar as rates and service are generally considered a standardized commodity for most situations. Now California in order to get people to comply more readily, has some grant programs for helping to alleviate the pain. However as with all government programs there are strings attached. The strings for large operations and small operations are different. Large companies generally don't have to keep their vehicles as long or have as onerous of operating restrictions. On the strings attached that has prevented me from utilizing the programs was I had to keep the unit in California for 7 years, and operate 90% of miles within the central valley. The 7 years thing I am willing to take a chance on. The 90% of my miles in the central valley is a deal breaker. My operations take me out of state let alone the valley. Because of the strings and lack of flexibility with the grant programs companies like UPS and JB Hunt et al get the lions share of the funding which was ironically supposed to go to small operations which is a majority of the trucking business in the state and nationwide. Now you wanna know the rub of the whole deal? This round of regulations is just the first in a series. This is to get the trucks to EPA 2010 standards by 2023. They have already announced plans to further regulate the trucks to tighter standards. So after everyone is done going though one hoop they get to do it again. I haven't even gotten started on the ex post facto part of the deal for me and my contractors. That's what I am dealing with as a small business owner for ONE agency. I will spare you some the joys of the other agencies as I wanted to give you a small glimpse into how regulations these days dramatically effect small business.

 

[Lord of Planar]

Corporate Capitalism isn't a mechanism to advance competition and free market participation. It's meant to kill competition, to kill new business before it can start, and to freeze out they system so that the elite may never be challenged or displaced.

Not just Obama, this is the Republocrat machine.

Really?

Are you sure it isn't a combination of global free trade signed into law by president Clinton, and Obamacare?

 

[imagep]

...

#5: The time and effort it takes to start a new business is considerably more strict than in years past. In regulations alone the bureau 'branch' of government has made it significantly more complicated to start a business and advance a business.....

Other than Obamacare (which does not apply to businesses with less than 50 full time employees), can you tell me specifically which regulations make it significantly more complicated to start a business these days?

I've been asking that question for years, no one has ever responded with any answer other than Obamacare.

 

[imagep]

Really?

Are you sure it isn't a combination of global free trade signed into law by president Clinton, and Obamacare?

Competition from countries that don't have worker and environmental protections that are equal to ours is certainly part of it.

So is this irrational fear of Obamacare promoted by many conservative talking heads. A few months ago, our economy was supposed to crash and burn due to Obamacare. The expectation of that undoubtably contributed towards last Decembers horrible job creation number of just 88,000 jobs. As employers realize that they were bamboozled by those conservative talking heads, they started to hire more workers, satisfying pent up demand for workers, leading to last months great job creation figure of close to 300,000 jobs.

At this point, I expect that job creation numbers will exceed last years up until december, at which time fear of an economic crash due to the employer mandate finally kicking in will subdue Decembers numbers. then sometime in the first half of 2015, we should see job creations ratcheting up significantly again.

Dire economic predictions by those on the far right have done our economy much more harm that Obamacare actually has. Thank God that conservative predictions are rarely correct.

 

[Lord of Planar]

Competition from countries that don't have worker and environmental protections that are equal to ours is certainly part of it.

Cool.

We agree on that.

So is this irrational fear of Obamacare promoted by many conservative talking heads. A few months ago, our economy was supposed to crash and burn due to Obamacare. The expectation of that undoubtably contributed towards last Decembers horrible job creation number of just 88,000 jobs.

Well, I don't know who you are listening too, but my take on what is said is that we would enter a point that becomes irreversible, and it is the starting point of dooming our nation as we know it. Not the end result yet.

As employers realize that they were bamboozled by those conservative talking heads, they started to hire more workers, satisfying pent up demand for workers, leading to last months great job creation figure of close to 300,000 jobs.

Yet all these reports have averaging job growth not keeping up with population growth. Raw numbers are meaningless until put into perspective.

At this point, I expect that job creation numbers will exceed last years up until december, at which time fear of an economic crash due to the employer mandate finally kicking in will subdue Decembers numbers. then sometime in the first half of 2015, we should see job creations ratcheting up significantly again.

Are you saying they may shift to where the percentage of jobs available grow by more than the population growth? Isn't it still too little too late? We need more than double the current job growth to get back to reasonable unemployment numbers again.

Dire economic predictions by those on the far right have done our economy much more harm that Obamacare actually has. Thank God that conservative predictions are rarely correct.

OK, you agree that what talking heads say influence the actions of employers. As such, I will remind you that starting in 2006, when democrats took over congress, they promised to punish the evil rich and corporations. What effect does that have?

 

[Aunt Spiker]

Other than Obamacare (which does not apply to businesses with less than 50 full time employees), can you tell me specifically which regulations make it significantly more complicated to start a business these days?

I've been asking that question for years, no one has ever responded with any answer other than Obamacare.

When I was researching for a now-nixed business concept the main issues were costs for bringing buildings up to code: Pay for inspection, hiring a crew, purchasing the materials needed (etc). All this is cost related - and my store concept was retail, so things like air filtration systems and other high cost elements were at a minimum.

But imagine being a restaurant: higher restrictions in regard to materials used - things like 'the distance between the nearest food-prep area and dinning area' are regulated, too - as are the filtration standards for equipment.

In some ways some regulation changes are for customers safety and they really do make sense.

However, that doesn't mean they aren't costly - and business concepts rely on a balance of cost and revenue.

One small change here, one new addition to the registry there, one advancement in filtration here . . . and those costs add up.

 

[imagep]

Cool.

We agree on that.


Well, I don't know who you are listening too, but my take on what is said is that we would enter a point that becomes irreversible, and it is the starting point of dooming our nation as we know it. Not the end result yet.


Yet all these reports have averaging job growth not keeping up with population growth. Raw numbers are meaningless until put into perspective.


Are you saying they may shift to where the percentage of jobs available grow by more than the population growth? Isn't it still too little too late? We need more than double the current job growth to get back to reasonable unemployment numbers again.


OK, you agree that what talking heads say influence the actions of employers. As such, I will remind you that starting in 2006, when democrats took over congress, they promised to punish the evil rich and corporations. What effect does that have?

As long as our per work hour productivity rate keeps increasing, we can produce more and more with fewer workers. That's a good thing. As long as our babyboom generation keeps retiring, the number of people needing to work will keep falling. So we don't necessarily need jobs to keep up with population. All we need is for there to be enough jobs for everyone who wants to work to be able to work, and for those jobs to pay a decent wage.

There was nothing really special about 2006, some nutjobs have always promoted punishing the evil rich. Others just want a more progressive income tax system as a tool to reduce income disparity. This discussion has been going on for almost a hundred years (income tax started around 1917?), and I imagine it's going to continue for another hundred years. Human nature never really changes, we are what we are.