Economic Death Spiral: More American Businesses Dying Than Starting

[mystery-ak]

http://www.breitbart.com/big-government/2015/01/14/economic-death-spiral-more-american-businesses-dying-than-starting/

by Wynton Hall14 Jan 2015

In a stunning Tuesday report, Gallup CEO and Chairman Jim Clifton revealed that “for the first time in 35 years, American business deaths now outnumber business births.”

Clifton says for the past six years since 2008, employer business startups have fallen below the business failure rate, spurring what he calls “an underground earthquake” that only stands to worsen as lagging U.S. Census data becomes available.

“Let’s get one thing clear: This economy is never truly coming back unless we reverse the birth and death trends of American businesses,” writes Clifton.



Indeed, the numbers are striking. Contrary to the oft-cited 26 million businesses in America figure, Clifton says 20 million of these so-called “businesses” are merely companies on paper with zero workers, profits, customers, or sales. In reality, America has just 6 million businesses with one or more employers–3.8 million of which have four or fewer employees. In total, these 6 million U.S. companies provide jobs for more than 100 million people in America.

Of the 2.2 million job-creating companies with five or more workers, the numbers break down accordingly:

There are about a million companies with five to nine employees, 600,000 businesses with 10 to 19 employees, and 500,000 companies with 20 to 99 employees. There are 90,000 businesses with 100 to 499 employees. And there are just 18,000 with 500 employees or more, and that figure includes about a thousand companies with 10,000 employees or more. Altogether, that is America, Inc.

The Gallup CEO says the numbers paint an ominous portrait of America in a dire state of decline.

“I don’t want to sound like a doomsayer, but when small and medium-sized businesses are dying faster than they’re being born, so is free enterprise,” says Clifton. “And when free enterprise dies, America dies with it.”

[massadvj]

The game is rigged in favor of big business.  Because of onerous taxation and regulation, the American market is no longer attractive to small entrepreneurs with vision.  This was not just foisted upon us by liberals.  It was also the work of Wall-Street establishment Republicans and their K Street connections.

It is a real shame what has been lost.

[jmyrlefuller]

Not only that, there are many fewer small entrepreneurs out there, because most of them are compelled to go to college and take on ever-increasing amounts of student loan debt.

[EdinVA]

The game is rigged in favor of big business.  Because of onerous taxation and regulation, the American market is no longer attractive to small entrepreneurs with vision.  This was not just foisted upon us by liberals.  It was also the work of Wall-Street establishment Republicans and their K Street connections.

It is a real shame what has been lost.

Your are correct but I would add that businesses brought a lot of this on themselves.  Even today, companies are still dumping toxins in the water when they think they can get away with it.  Banks were forced to do truth in lending because they were destroying peoples lives with abusive interest rates and prepayment penalties.  The oil companies, who have spent a hundred years drilling wells, still have no remediation plan or responsibility for the damage they bring upon the areas they work in.  Toy manufacturers are still importing toys with lead based paint on them despite knowing for decades the damage they cause.

I am 100% a pro-business guy but business has to stop shooting those of us defending them in the back and belly up to the bar and take responsibility.

[massadvj]

Your are correct but I would add that businesses brought a lot of this on themselves.  Even today, companies are still dumping toxins in the water when they think they can get away with it.  Banks were forced to do truth in lending because they were destroying peoples lives with abusive interest rates and prepayment penalties.  The oil companies, who have spent a hundred years drilling wells, still have no remediation plan or responsibility for the damage they bring upon the areas they work in.  Toy manufacturers are still importing toys with lead based paint on them despite knowing for decades the damage they cause.

I am 100% a pro-business guy but business has to stop shooting those of us defending them in the back and belly up to the bar and take responsibility.

You will notice that big government has not solved any of these problems.  Big government just creates a barrier to entry so that small corruption turns to big corruption as capital rises to whatever level is necessary to get what it seeks.

Capitalism is imperfect.  It is a system created by men, and therefore subject to man's foibles and limitations.  But it has a magical capability to cleanse itself over time if left alone, and becomes dirtier and dirtier as politicians attempt to make it "perfect."

[EdinVA]

You will notice that big government has not solved any of these problems.  Big government just creates a barrier to entry so that small corruption turns to big corruption as capital rises to whatever level is necessary to get what it seeks.

Capitalism is imperfect.  It is a system created by men, and therefore subject to man's foibles and limitations.  But it has a magical capability to cleanse itself over time if left alone, and becomes dirtier and dirtier as politicians attempt to make it "perfect."

Agree, but the argument with the Pro-EPA folks, for example, is very difficult to win when there are so many companies NOT fulfilling their responsibilities.  Free-enterprise REQUIRES responsible participation, not just milking the cash cow till it kicks you in the head, then wanting to cut off the leg.

Those complaining the most about government regulation are the the worst offenders.  The EPA does not exist because I spill a little oil, it is there because BP dump hundreds of millions of barrels of oil at at time and then dumps the responsibility for clean up on the American taxpayer.

[massadvj]

Agree, but the argument with the Pro-EPA folks, for example, is very difficult to win when there are so many companies NOT fulfilling their responsibilities.  Free-enterprise REQUIRES responsible participation, not just milking the cash cow till it kicks you in the head, then wanting to cut off the leg.

Those complaining the most about government regulation are the the worst offenders.  The EPA does not exist because I spill a little oil, it is there because BP dump hundreds of millions of barrels of oil at at time and then dumps the responsibility for clean up on the American taxpayer.

I agree that free enterprise requires responsible participation, but if enterprise is free, then responsibility is encouraged and rewarded because all consumers must be more vigilant.  Once regulation sets in, then consumers get a false sense of security that things are safer than they actually are.

[EdinVA]

I agree that free enterprise requires responsible participation, but if enterprise is free, then responsibility is encouraged and rewarded because all consumers must be more vigilant.  Once regulation sets in, then consumers get a false sense of security that things are safer than they actually are.

How would you, as a consumer, detect lead based paint on your kids/grandkids toy?  When brain damage shows up?
How, as a consumer, are you going to know what is being dumped into your water system?  When you, or one of your family comes down with a disease?
How would you know if a medicine is going to hurt you?  after the fact?

The things that are going on are very hard to detect, and the manufacturers are getting very adept at camouflaging their activities to save a few dollars.
Again, I am with you but as long as the money is the answer to all questions, then how do you SAFELY fix the problem other than getting the big dog into the fight?

[massadvj]

How would you, as a consumer, detect lead based paint on your kids/grandkids toy?  When brain damage shows up?
How, as a consumer, are you going to know what is being dumped into your water system?  When you, or one of your family comes down with a disease?
How would you know if a medicine is going to hurt you?  after the fact?

The things that are going on are very hard to detect, and the manufacturers are getting very adept at camouflaging their activities to save a few dollars.
Again, I am with you but as long as the money is the answer to all questions, then how do you SAFELY fix the problem other than getting the big dog into the fight?

We would rely on private consumer organizations such as Consumer Reports or Underwriters Laboratories.  If there was no FDA, then some private organization would spring up and consumers would pay them to investigate food and drug providers, and report the information to consumers before they purchase.

If I buy a toy with lead-based paint, and a well-established, reputable laboratory has made that information public, then it is my fault.  No one else is to blame.

I buy and sell coins all the time.  How do I know the coins I am buying aren't counterfeit?  They are graded by known, professional grading services.  Private ones.  No government.  Now, how is it possible that coins can be graded and evaluated by private organizations, without government involvement?  Are there corrupt, bad grading services?  Yes.  But I must learn which ones they are.  The point is, capitalism is better off as "buyer beware" because if it isn't then the buyer WON'T beware and we all end up worse off.

As for water quality, local government and state government are perfectly capable of monitoring it, and in the absence of government, private Homeowners Associations will do it.  I own two vacation homes, and in both cases the water is tested regularly by the Homeowners Associations, and I have yet to die of water poisoning in spite of the fact that my water wasn't monitored by the federal government.

Government convinces us it is indispensable, when in fact it is not.  It is only corruptible; more corruptible than private enterprise which must subject itself to the forces of competition.

 

[EdinVA]

HOA = Government in my view.  I don't have one and never will.
Lotsa people have wells.  I guess they will have to have water quality tests done weekly and what will they do if they find contaminants?

Consumer reports, and the like, are so controlled by the left, they are not worth the paper they are printed on, IMHO.

Every year we have reports of Customs finding a boat load of toys imported into the US by big companies and the toys are tainted with something or other.
Given businesses money first attitude, the imports would hit store shelves with out being tested as they have a lot of money invested and what the inventory turned around.
You wont know what you are buying.....

Again, I am on your side, we just need to push more responsibility and then our arguments will hold water.

[massadvj]

HOA = Government in my view.  I don't have one and never will.
Lotsa people have wells.  I guess they will have to have water quality tests done weekly and what will they do if they find contaminants?

Consumer reports, and the like, are so controlled by the left, they are not worth the paper they are printed on, IMHO.

Every year we have reports of Customs finding a boat load of toys imported into the US by big companies and the toys are tainted with something or other.
Given businesses money first attitude, the imports would hit store shelves with out being tested as they have a lot of money invested and what the inventory turned around.
You wont know what you are buying.....

Again, I am on your side, we just need to push more responsibility and then our arguments will hold water.

I am not anti-government, per se.  I am anti-FEDERAL government, especially as it concerns regulation of commerce, which should be none of its business.  If a state or municipality wants to test water, or whatever, I have no objections so long as the law is followed in doing so.  I might resist MY state or municipality, depending on the situation.

My main objection to federal business regulation is that most of it is unconstitutional based on any sensible interpretation of that hallowed document.

[olde north church]

I agree that free enterprise requires responsible participation, but if enterprise is free, then responsibility is encouraged and rewarded because all consumers must be more vigilant.  Once regulation sets in, then consumers get a false sense of security that things are safer than they actually are.

Come on now, man!  That's such a crock of tripe.  Big Business does nothing unless it absolutely is compelled to and then passes the cost onto the tax payer.  There are 5+ "Superfund" sites in 3 miles of my house.  The businesses uses whatever resource it can like a 2 dollar whore and then moves on, wiping excretia on the proverbial thigh.

[EdinVA]

Thanks for the exchange massadvj... I am surrounded by liberals in northern virginia and have gotten beaten about the head and shoulders with the very same arguments I threw around.  Gave me a chance to think this stuff thru.

[aligncare]

Big business. Bogeyman word.

All of us love big business. We buy some of our most favored stuff from big business. We shop around for the lowest prices. And, voilà! Here come the companies to rush in and give us those lower prices. We want more and cooler features. And, voilà! Here come companies rushing in to give use more and better features – at a lower price!

Competition is probably one of the best regulators in the market place.

Most companies, big and small, try to do the right thing by their customers. Because, just one mistake could put them out of business – especially in the Internet age.

[massadvj]

Come on now, man!  That's such a crock of tripe.  Big Business does nothing unless it absolutely is compelled to and then passes the cost onto the tax payer.  There are 5+ "Superfund" sites in 3 miles of my house.  The businesses uses whatever resource it can like a 2 dollar whore and then moves on, wiping excretia on the proverbial thigh.

I think you misunderstood my point.  Big business depends on big government.  If we did not have so much federal regulation, businesses would be much smaller and responsive to customers.  Right now, we do not have anything resembling a free market, and haven't in the USA since maybe Calvin Coolidge.

[Bigun]

I think you misunderstood my point.  Big business depends on big government.  If we did not have so much federal regulation, businesses would be much smaller and responsive to customers.  Right now, we do not have anything resembling a free market, and haven't in the USA since maybe Calvin Coolidge.

AMEN! AMEN! And AMEN!!!

Well said! And ABSOLUTELY true!  If we had truly free markets they would themselves work to limit the size to which businesses could grow!

[Bigun]

Government regulation of business is, in very large measure, nothing more than a protection racket with the big boys paying off government wonks in order to to protect themselves from the competition which would otherwise ensue!

[olde north church]

I think you misunderstood my point.  Big business depends on big government.  If we did not have so much federal regulation, businesses would be much smaller and responsive to customers.  Right now, we do not have anything resembling a free market, and haven't in the USA since maybe Calvin Coolidge.

Thanks for the heads up on that.  I agree with that assessment wholeheartedly.