Henry Nothhaft has called out not only the Obama Administration but Congress and local governments everywhere in his Labor Day manifesto on job creation. The assertion that start-up businesses create all (as on 100%) of new jobs is not new and has been well documented by the Kauffman Foundation for many years. Government however continues to punish entrepreneurs with regulations that are aimed directly at the business practices of the big and powerful companies that make the headlines. There should certainly be some local lessons to be learned from this article.
Excerpts:
” I urge you (President Obama) to avoid ideologically loaded programs like a new stimulus that probably won’t get through Congress, and instead focus on a few practical, low-cost measures that we know will create lots of jobs quickly.”
“We know, for starters, that 100% of net job growth in the U.S. comes from entrepreneurial start-ups, as a Kauffman Foundation report documented in 2010. If you took start-ups out of the picture and looked only at large or incumbent businesses, job growth over the last 35 years would actually be negative. In the words of Kauffman’s Tim Kane, “When it comes to U.S. job growth, start-up companies aren’t everything. They’re the only thing.”
“Mr. President, why aren’t you doing everything you can to nurture start-ups and make it easier for them to access capital, grow and hire people so they can develop the breakthrough products, services and medical advances that drive our national prosperity?”
“I’m sure that Jeff Immelt is an excellent CEO. It took more than a little skill, after all, for GE to avoid paying even a penny of tax on $150 billion in revenues. But he and his fellow Fortune 100 CEOs don’t know much about job creation. In fact, they’re a “who’s who” of outsourcers of American jobs. Over the last 10 years, U.S. multinational firms cut their domestic work forces by 2.9 million while boosting hiring abroad by 2.4 million.”
“Unfortunately, Mr. President, the only thing that Sarbanes-Oxley stopped was the ability of start-ups to pay the vastly increased costs of going public, thus crippling the IPO market and job creation (92% of which occurs after an IPO, according to the National Venture Capital Association). It certainly didn’t stop Wall Street banks—all of whom were compliant with Sarbanes-Oxley—from recklessly sinking the economy in 2008.”
“None of these measures requires bleeding the treasury. None is political. And all of them will work—quickly—to create literally millions of new jobs. Mr. President, there’s still time for you to kick-start the engine of job growth. All you need to do is listen to the voices of entrepreneurs who create those jobs.”
The two jobs these guys are most worried about are their own:
http://a57.foxnews.com/static/managed/img/Politics/396/223/obama_trumka.jpg
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