Where are the entrepreneurs? More evidence the very heart of the US economy is failing
James Pethokoukis | June 3, 2013
In my opinion the culprits are easy to discern…..
- intellectual property law breakdown ( too much, too long, too easy)
- Risk aversion by banks
I am also thinking that:
- the informal economy is more active than is accounted for
- people who are paid can in fact support more hangers on than one might expect
- especially away from the ‘urbs’
- significant numbers are hidden on disability of one sort or another
Which may be hiding lots of small scale entrepreneurial efforts.
But in the main what we are seeing is the aggregate effect of the first list which significantly suppresses the urge to grow. Many commentators miss that the way so much regulation is structured once you reach a certain size it suddenly becomes asymptotically more difficult / expensive / stressful to operate. This makes even starting much less attractive. It also means that we are suppressing companies just as they start to kick up into a realm where they could potentially quickly accelerate out of small business land into middle sized and become more consequential.
This is a socio-economic problem that has to be solved on a broad scale:
- Lower but still progressive taxes
- Brute simple tax code
- Individual focused health care
- Individual focused retirement
- Small business non interference focus in government rules setting
- Standards setting and supporting organizations for: health, safety, financial stability, etc, instead of regulatory administrations
- Return IP law to its small creator anti monopoly roots
- Support a couple of ‘international’ banks but return banking to moderate scale focus
- Eliminate subsidies
- Continue deep and wide science support with focus on stimulating commercial support like NASA’s ISS assured access program.
Both main parties need to develop their versions of this list, the massive scale, top down, big corporation supporting model both have devolved into has come to the end of its efficacy and we need to go back to our roots. Those roots are individuals acting on, in and through the small scale collective, which both Dem and Rep should be able to support. Of course the downside is that large scale pandering and petty corruption are less hide-able in such a polity.