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Business
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Title: ECONOMIC DEATH SPIRAL: MORE AMERICAN BUSINESSES DYING THAN STARTING
Source: [None]
URL Source: http://www.breitbart.com/big-govern ... usinesses-dying-than-starting/
Published: Jan 16, 2015
Author: WYNTON HALL
Post Date: 2015-01-16 04:38:14 by out damned spot
Keywords: Economy, business
Views: 2679
Comments: 8

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.

Indeed, the numbers are striking. Contrary to the oft-cited 26 million businesses in America figure, Clifton says 20 million of these so-called “businesses” are merely companies on paper with zero workers, profits, customers, or sales. In reality, America has just 6 million businesses with one or more employers–3.8 million of which have four or fewer employees. In total, these 6 million U.S. companies provide jobs for more than 100 million people in America.

Of the 2.2 million job-creating companies with five or more workers, the numbers break down accordingly:

There are about a million companies with five to nine employees, 600,000 businesses with 10 to 19 employees, and 500,000 companies with 20 to 99 employees. There are 90,000 businesses with 100 to 499 employees. And there are just 18,000 with 500 employees or more, and that figure includes about a thousand companies with 10,000 employees or more. Altogether, that is America, Inc.

The Gallup CEO says the numbers paint an ominous portrait of America in a dire state of decline.

“I don’t want to sound like a doomsayer, but when small and medium-sized businesses are dying faster than they’re being born, so is free enterprise,” says Clifton. “And when free enterprise dies, America dies with it.” (1 image)

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Begin Trace Mode for Comment # 2.

#1. To: out damned spot (#0)

" the numbers paint an ominous portrait of America in a dire state of decline. "

Well, after numerous one sided trade deals where the US gets screwed; the export of our industries / jobs / technology; massive growth in Government; massive increases in taxes, laws, rules, and regulations which stifles business / industry, and anyone wonders why?

Stoner  posted on  2015-01-16   10:18:14 ET  Reply   Untrace   Trace   Private Reply  


#2. To: Stoner, out damned spot (#1)

" the numbers paint an ominous portrait of America in a dire state of decline. "

Well, after numerous one sided trade deals where the US gets screwed; the export of our industries / jobs / technology; massive growth in Government; massive increases in taxes, laws, rules, and regulations which stifles business / industry, and anyone wonders why?

I may add it is also the fact that the USA has become a country geared to support corporations over small private business holders.

So called conservatives (and they can be R or D) are in part responsbile for this - how many businesses has Walmart killed off? If a box store like Home Depot moves into a region you can see private owned small business lumber yards and hardware stores close up in batches.

Pericles  posted on  2015-01-16   10:23:15 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 2.

#3. To: Pericles (#2)

" I may add it is also the fact that the USA has become a country geared to support corporations over small private business holders. "

Very true. Those large corporations can contribute big dollars into campaign coffers, where as small business cannot. Pretty simple as to who will be able to exert influence on legislation.

Stoner  posted on  2015-01-16 10:33:00 ET  Reply   Untrace   Trace   Private Reply  


#7. To: Pericles (#2)

I may add it is also the fact that the USA has become a country geared to support corporations over small private business holders.

Merger/Acquisition, Consolidation, Downsizing and Outsourcing is the mantra

Nobody wants to talk about how busting up AT&T and creating the Baby Bells actually stimulated the economy and created more jobs.

Willie Green  posted on  2015-01-16 10:52:19 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 2.

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