Churn means we have to keep starting new companies every year. Any public policy decisions that suppress the rate of new company formation inevitably reduce potential for new job growth.
Some study questions for the reader - what public policy decisions would result in higher rates of company formation and job growth? Higher taxes in the new new government takeover of the healthcare industry or from carbon taxes in the climate bill or cuts in capital gains rates, marginal income tax rates, and corporate tax rates? Economic policies favoring or protecting large incumbent firms (say, for example, General Motors, Chrysler, big banks, and other firms that the government now owns a piece of) vs. economic policies favoring entrepreneurs and young companies?
Well said! Read John's post for further discussion and a link to the Kauffman study.
Thank you for posting this article on job creation in America, it really helped me !!
Thanks for sharing the study.
The American economy is built on the backs of entrepreneurs, thus have indeed created the majority of jobs, Entrepreneurs are the moving pulse of the Economy.