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So much for Obama's government run economy.

Discussion in 'Economics, Business, and Taxes' started by Sgt Staples, Jan 14, 2015.

  1. Sgt Staples

    Sgt Staples Mayor

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    Economic Death Spiral: More American Businesses Dying Than Starting

    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.[​IMG] http://media.breitbart.com/media/2015/01/gallup-business-deaths-graph.jpg
     
  2. EatTheRich

    EatTheRich President

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    So you'll notice that the dark green line representing "% closed firms" is more or less horizontal, with troughs during the telecom and dot-com bubbles, and slightly lower than where it was in 1977. On the other hand, the yellow-green line representing (% new firms) shows a long-term downward trend, with precipitous downward slopes corresponding to the 1973 crash (most likely; you can't see because the left end of the graph is cut off), the 1987 crash, and the 2007 crash. Where the graph is cut off on the right, it begins an upward slope in 2010 (one year after Obama took office), but is still about half of what it was in 1977 before it belong its long decline.

    In other words, it appears to be not an effect of Obama's policies (or his non-existent "government-run economy"), but rather a long-term crisis of capitalism wherein more and more competition from big cartels forces businesses with less money out of the market.
     
  3. Sgt Staples

    Sgt Staples Mayor

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    The first time business startups have gone negative, and it started under Obama. So much for pay your fair share and raising the minimum wage. That will make matters much worse. Capitalism is just fine if the government wouldn't try to regulate it out of business.

    By the time you comply with OSHA regulations, with the ADA regulations, the Health department, fire department, sales and income tax filing regulations, it doesn't give one much incentive to start a business.
    Today, with tens of thousands of new regs coming out every year, nobody can compete against less-regulated competitors. US regulations change so fast many people have given up trying to understand them.

    Then if you do and after working 60 hours a week for a few years, you happen to be successful, Obama and his minions like you accuse you of not paying your fair share and want to raise your labor costs.


    Liberalism and the Democrat Party really suck and are bad for business. Right now he's putting a bunch of restrictions on methane and going after oil and natural gas. Hussein Obama is not an isolated monster. He is just a Democrat. Put another Democrat in his place and you'll get the same policies.
     
    Last edited: Jan 15, 2015
  4. EatTheRich

    EatTheRich President

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    I assume by "negative" you mean that closures outnumber startups. Actually, according to your link, it started in 2008. Bush was president.

    Hmm, seems the trend toward decreasing startups reversed in 2010, the first fiscal year after the minimum wage increase.

    In other words, capitalism is fine for the capitalists if they can disregard workers' safety and the public safety and enjoy public subsidies without paying for them. You might think that, but the big capitalists tend to disagree with you ... they're worried your sort of capitalism could lead to revolution.

    And why the bloated bureaucracy? Capitalism promotes it, to hide the lack of private employment with government jobs, to coordinate efforts on behalf of the trusts produced regularly by capitalist competition, and as a means of harassing the impecunious.

    Economic growth is consistently higher under Democrats than under Republicans. Democrats might be particularly bad for small business, but they are good for the big businesses that the capitalist system serves.

    At any rate, there are more workers than small business owners, and their interests do not always coincide. For the majority, including the many small business owners who are squeezed out by capitalist competition and become workers themselves, a minimum wage increase (which is always also a general wage increase) comes as relief.
     
  5. Caroljo

    Caroljo Senator

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    Looks to me like New firms dropped (considerably) and Closed firms rose in 2007, just about when the new Democrat congress took over. The graph doesn't really show what happened after 2010 when the new Republican Congress took over, but it looks like new firm startups started to go up again.
     
  6. fairsheet

    fairsheet Senator

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    Note that since 2010, the lines are parallel. That makes positive sense. As old less efficient bidnesses close, new ones open to take their place.
     
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