“Don’t let anybody tell you it’s corporations and businesses that create jobs,” – October 24th, 2014 – Hillary Clinton: leading contender for President of the United States.
When I watched this speech, I almost had to laugh. With respect to job creation data, one of the clearest facts is that small and new businesses create most of the new jobs in the Unites States. To say otherwise is either foolish or dishonest. And since no one wants to call a presidential contender a liar, I guess that leaves only one option.
According to research done by The House Committee on Small Business and the Bureau of Labor Statistics:
America’s small businesses are the engines of job creation. Small businesses create seven of every ten new jobs.
Small businesses create more than half of the non-farm private gross domestic products (GDP).
So why has employment opportunities in the U.S. been so anemic and job growth so weak? New businesses are at their lowest levels in over 30 years!
What is causing this?
1. Increased Regulation: Small firms bear a larger cost of regulatory compliance (36% higher). When regulations increase, it affects the job creators (small business) much more than larger firms.
2. Increased Tax Complexity: According the NFIB research, four of the top-ten small-business problems were tax related. It cost smaller firms 67% more to comply with the tax code.
If you want to get America back to work, get politicians and bureaucrats off the backs of small business. If they don’t create jobs, then who will?