Two-tiered economy update:
Fewer new businesses are getting off the ground in the U.S., available data suggest, a development that could cloud the prospects for job growth and innovation.
In the early months of the economic recovery, start-ups of job-creating companies have failed to keep pace with closings, and even those concerns that do get launched are hiring less than in the past. The number of companies with at least one employee fell by 100,000, or 2%, in the year that ended March 31, the Labor Department reported Thursday.
That was the second worst performance in 18 years, the worst being the 3.4% drop in the previous year.
The POR (Pelosi-Obama-Reid) Economy continues to break all kinds of records, doesn’t it?
Of course, big existing businesses don’t mind the lack of new competition too much. And they’ve got the accountants, lawyers, and political influence to navigate at least some of the problems posed by this “It’s the Uncertainty, Stupid” economy. Start-ups and little guys? Not so much. That’s why fewer are trying.
There’s more; those who are trying aren’t hiring:
Research shows that new businesses are the most important source of jobs and a key driver of the innovation and productivity gains that raise long-term living standards. Without them there would be no net job growth at all, say economists John Haltiwanger of the University of Maryland and Ron Jarmin and Javier Miranda of the Census Bureau.
“Historically, it’s the young, small businesses that take off that add lots of jobs,” says Mr. Haltiwanger. “That process isn’t working very well now.”
… Some entrepreneurs say it’s not all about financing, though. They express concern about taxes, health-care costs and the impact that wrangling in Washington over the federal budget deficit will have on them. “I can’t determine what the cost of providing health care for employees would be,” says Kevin Berman, 47, who is starting a local-produce company in Orion Township, Mich., called Harvest Michigan. Starting a company “is harder than it was at any time I can remember.”
Unless and until ObamaCare goes away, it’s hard to imagine this changing. Making the tax system we’ve had for the past eight years (2003-2010) permanent and preventing President Obama’s passively induced tax increases scheduled for January 1, 2011 from taking effect would also be immensely helpful.
The people at the Bureau of Labor Statistics who run the Birth/Death Model, which claims that 921,000 net jobs have been created by start-up and tiny businesses flying under the radar since February, need to start incorporating, so to speak, what’s really going on into account. If you go to the link, you’ll note that BLS shows more Birth/Death jobs created in every month from April through October of this year compared to the same months in 2009. Given what’s really going on, I think the correct response would be: “You cannot be serious.”
Rahm Emanuel does not meet the legal residency requirements to run for Mayor of Chicago.*
That is not arguable, because “a candidate must live in the city for one year before election.” Emanuel hasn’t done so.
Chicago Trib columnist John Kass reported earlier this week that Emanuel has been purged from the voter rolls using ordinary administrative procedures twice in the past 13 months, only to be stealthily reinstated each time.
If Emanuel is allowed to run, it will be because he has been anointed as a person who is above the law. He’ll be the figurative Leona Helmsley of Windy City politics. Helmsley allegedly (emphasis “allegedly”) said that “taxes are for the little people.” Rahmbo and his apparatchiks believe that the law only applies to the little people — and that statement doesn’t required an “allegedly” qualification.
* – Also known known as “Democratic Dictator for Life or Until I Get Tired of the Job”
Washington Examiner: “After (Ahmed Ghailani) terror trial fiasco, Holder should go”
Captain Ed Morrissey at Hot Air: “Time for Holder to Go”
Holder, one of the chief enablers of Elian Gonzalez’s Cuban kidnapping (that was the term Andrew Napalitano used in 2000), is the linchpin of the Department of (Democratic Party) Justice. Under Holder, it has become a rogue agency. Sadly, he’s not going anywhere.
Captain Ed elaborates:
The administration is left with three choices in regards to Ghailani: announce that they will release him at the appointed date whenever his sentence ends, announce that they will hold him indefinitely without regard to the court’s ruling on the matter while referring the case back to a military commission despite his acquittals, or refuse to state which they will do and hope the issue falls to the next administration. The first will mean that the US will knowingly release a master al-Qaeda terrorist with more than two hundred murders under his belt; the second will mean that the trial they staged was nothing but a sham. And the third will be a cowardly dodge.
This administration’s track record tends to lead you to Door Number 3.
Regarding Iran, as the Green Revolution was germinating in June 2009, Victor Davis Hanson wrote:
Does not Obama see that the world has been given a rare chance, thanks to brave Iranians—as if the German people had risen up in 1938 in fear of what was on the horizon?
Also in June, former Spanish Prime Minister Jose Aznar pleaded with the world, particularly the U.S.:
It would be a shame …. if our passivity gave carte blanche to a tyrannical regime to finish off the dissidents and persist with its revolutionary plans.
A year ago in October, the U.S. State Department pulled funding from the Iran Human Rights Documentation Center.
In May of this year, Charles Krauthammer ripped the Obama administration for its passivity:
American acquiescence reached such a point that the president was late, hesitant and flaccid in expressing even rhetorical support for democracy demonstrators who were being brutally suppressed and whose call for regime change offered the potential for the most significant U.S. strategic advance in the region in 30 years.
This week, Michael Ledeen gave an update at Pajamas Media. His home page subheadline: “We still don’t hear any vigorous support for the democratic opposition from this administration.” In his post, Ledeen writes:
The regime knows it has failed to win the support of most Iranians, and like good totalitarians they are trying to recapture the culture and force it into a Shi’ite strait jacket before the people bring them to justice for their many crimes.
… We could have been the catalyst for revolution many times in the past years, especially the years after 9/11. But we chose to blind ourselves to the reality of an Islamic Republic that kills Americans with the same zeal it directs against its own people. The sanctions are at least a positive move, because they show the Iranian people that we are not totally supine. But the sanctions are not enough. We need to support the forces of revolution in Iran.
Someone should tell Bob Gates. And his colleague at State, Mrs. Clinton. And their president, who is totally absent from this gripping drama.
Better late than never, guys. Where are you? And where have you been?