What/Who Is Holding Back Small Business? Washington DC, That’s Who
Posted by Larry Doyle on August 9, 2013 8:17 AM |
Put aside everything else that streams across the daily news wire, there is no doubt that the prevailing issue that causes the most concern for people in our nation is how they are putting bread on the table.
Yes, we can dispense with all the noise that spews forth from far too many sources, the issue that is most prominent to our economic well being remains JOBS, JOBS, JOBS. So where are the jobs and why aren’t they being created to any meaningfully degree a full five years after the outset of our economic crisis?
Regrettably any meaningfully robust review of our overall employment situation shows that we we are largely running in place when it comes to improvement on the jobs front. Certainly more and more people are working part time or are trying to make ends meet while self-employed but would prefer a stable job with a steady paycheck. So the question begs why aren’t businesses — and especially small businesses — hiring? Let’s navigate.
Bluntly, the jobs picture is not improving, despite what you hear in the news, and it will get worse. Yes, businesses are sitting on billions of dollars in cash and productivity gains and the stock market has been rallying. But those businesses are hoarding that cash because they still lack that all-important state of mind and spirit: confidence.
Here, Gallup’s findings aren’t much more promising.
America’s 6 million small businesses are, by far, the biggest drivers of new job creation. Yet earlier this year, the Wells Fargo/Gallup Small Business Index found 30% of small-business owners say they’re not hiring because they’re worried they may no longer be in business in 12 months.
Moreover, new business startups — driven by entrepreneurs’ confidence — have fallen below 400,000 per year, in my estimate, and the country needs a bare minimum of 1 million new startups annually to fix the employment problem. No confidence, no startups, no growth, no jobs.
Talk about insecurity. Ouch . . . but oh so real when businesses know that they are not only battling the competition but Washington as well. How so?
What’s damaging business confidence?
Perhaps readers may care to share this data with your elected representatives as they come home for a 5-week vacation having recently made sure that their staff members receive a nice little gift to meet their own expected increase in healthcare premiums under Obamacare.
Isn’t self-dealing and sticking the taxpayer with the bill great? Think your staff might like a similar sort of gift to pay for their healthcare premiums?
What a joke. But, let’s be real, the joke is being played on American taxpayers.
Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.
For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit my blog and comment on this piece of ‘sense on cents’.
I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.