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DATE 2014-05-01

HANGOUT

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Key: Value:

Key: Value:

MESSAGE
DATE 2014-05-06
FROM Ruben Safir
SUBJECT Subject: [NYLXS - HANGOUT] making a buck
Anyone see this. They stiffled inovation to no end and now wonder where
the innovative businesses are ...



http://www.washingtonpost.com/blogs/wonkblog/wp/2014/05/05/u-s-businesses-are-being-destroyed-faster-than-theyre-being-created/


U.S. businesses are being destroyed faster than they’re being
created

By Christopher Ingraham
May 5 at 2:51 pm

Photo via Flickr user Boegh, used under a Creative Commons license.

(Photo via Flickr user Boegh, used under a Creative Commons license)

The American economy is less entrepreneurial now than at any point in
the last three decades. That's the conclusion of a new study out from
the Brookings Institution, which looks at the rates of new business
creation and destruction since 1978.

Not only that, but during the most recent three years of the study --
2009, 2010 and 2011 -- businesses were collapsing faster than they were
being formed, a first. Overall, new businesses creation (measured as the
share of all businesses less than one year old) declined by about half
from 1978 to 2011.

firm entry and exit rates

The authors don't mince words about the stakes here: If the decline
persists, "it implies a continuation of slow growth for the indefinite
future." This lack of economic dynamism, particularly the steep drop
since 2006, may be one reason why our current recovery has felt like
much less than a recovery. As Matt O'Brien noted on Wonkblog last week,
annual job growth rates have stubbornly refused to budge above 2 percent
for the duration of the recovery.

The authors of the Brookings study dug beyond the national numbers to
look at the change in new firms at the state and metro levels and found
that they generally mirrored the national trends.

I mapped the state data below. While all states showed steep drops in
new firms, New York stands out for its much smaller decline in the share
of new companies than other states -- only 18 percent, compared with the
50-state average of 47.2 percent. Illinois, Texas, New Jersey and
Missouri round out the top five.


At the other end, Alaska had the largest drop in new business, at 61
percent. Hawaii, Vermont, New Mexico and Wyoming rounded out the bottom
five. Teasing out the causes of the overall decline or the variation
between states is difficult; the authors stressed to me that their data
don't answer the questions of why or how just yet. But they will be
looking into that in the months ahead.

No immediate pattern emerges from the state-level geography, but one
thing is worth nothing. For kicks I tried to correlate the drops in new
businesses in each state with the states' scores on the Tax Foundation's
2014 State Business Tax Climate Index. There was no significant
relationship one way or the other. For example, New York, which showed
the lowest decrease in new businesses, actually scored dead last in the
Tax Foundation's ranking. Wyoming had one of the largest declines, even
though it ranked first in the Tax Foundation's report.

At the very least, the Brookings findings strongly suggest that when it
comes to luring new businesses to a given state, there are a lot more
factors at play than straightforward calculations of corporate tax
rates.

More business news and analysis:
Immigration helps American workers: The definitive argument
What to do when your private HR matter goes public
Why you should listen to your creative federal employees
Facebook plans campaign to 'friend' small business
Christopher Ingraham
Christopher Ingraham is a data journalist focusing primarily on issues
of politics, policy and economics. He previously worked at the Brookings
Institution and the Pew Research Center. He's on Twitter.

  1. 2014-05-01 From: "Paul Robert Marino" <prmarino1-at-gmail.com> Subject: [NYLXS - HANGOUT] Nostalgia in the office
  2. 2014-05-01 Ron Guerin <ron-at-vnetworx.net> Re: [NYLXS - HANGOUT] Nostalgia in the office
  3. 2014-05-05 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] not covered
  4. 2014-05-05 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Shani's engaged
  5. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] making a buck
  6. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Linux jobs
  7. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] weos lives
  8. 2014-05-06 Ron Guerin <ron-at-vnetworx.net> Re: [NYLXS - HANGOUT] making a buck
  9. 2014-05-06 einker <eminker-at-gmail.com> Re: [NYLXS - HANGOUT] not covered
  10. 2014-05-06 einker <eminker-at-gmail.com> Re: [NYLXS - HANGOUT] not covered
  11. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] making a buck
  12. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] =?UTF-8?B?RndkOiBbaXNvYy1ueV0gVklERU86IElmIEkgUmFuIFRoZSBab286IFA=?=
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  14. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] Fwd: Net neutrality emergency
  15. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] Fwd: Net neutrality emergency
  16. 2014-05-06 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] Fwd: Net neutrality emergency
  17. 2014-05-07 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] [groups-noreply-at-linkedin.com: Free Android developer enterprise
  18. 2014-05-07 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] DRM books
  19. 2014-05-07 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Do it for Denmark
  20. 2014-05-09 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] wget
  21. 2014-05-09 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] [carolinedliny-at-aol.com: Re: on other news]
  22. 2014-05-16 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Pharmacy
  23. 2014-05-16 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] Pharmacy
  24. 2014-05-16 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Opensuse 13.1 + 52 Books on Linux
  25. 2014-05-19 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Summer Activities
  26. 2014-05-19 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Summer Activitie
  27. 2014-05-19 Elfen Magix <elfen_magix-at-yahoo.com> Re: [NYLXS - HANGOUT] Summer Activitie
  28. 2014-05-19 einker <eminker-at-gmail.com> Re: [NYLXS - HANGOUT] Summer Activitie
  29. 2014-05-19 einker <eminker-at-gmail.com> Re: [NYLXS - HANGOUT] Summer Activitie
  30. 2014-05-19 From: "Paul Robert Marino" <prmarino1-at-gmail.com> Re: [NYLXS - HANGOUT] Summer Activitie
  31. 2014-05-19 From: "Paul Robert Marino" <prmarino1-at-gmail.com> Re: [NYLXS - HANGOUT] Summer Activitie
  32. 2014-05-20 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] Perhaps the most important tv journalism of our lifetime
  33. 2014-05-25 adrba-at-nyct.net Subject: [NYLXS - HANGOUT] no gcc in this (my) SUSE install --- HUH?
  34. 2014-05-25 adrba-at-nyct.net Subject: [NYLXS - HANGOUT] no gcc in this (my) SUSE install --- HUH?
  35. 2014-05-25 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] no gcc in this (my) SUSE install --- HUH?
  36. 2014-05-27 Contrarian <adrba-at-nyct.net> Subject: [NYLXS - HANGOUT] no gcc on this SUSE install
  37. 2014-05-27 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] no gcc on this SUSE install
  38. 2014-05-27 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] no gcc on this SUSE install
  39. 2014-05-28 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] interesting read
  40. 2014-05-28 Contrarian <adrba-at-nyct.net> Re: [NYLXS - HANGOUT] ironman linux
  41. 2014-05-28 Contrarian <adrba-at-nyct.net> Re: [NYLXS - HANGOUT] ironman linux
  42. 2014-05-28 Ruben Safir <mrbrklyn-at-panix.com> Subject: [NYLXS - HANGOUT] where to put this.
  43. 2014-05-28 Robert Menes <viewtiful.icchan-at-gmail.com> Re: [NYLXS - HANGOUT] where to put this.
  44. 2014-05-29 From: "Redpill" <red.pill-at-verizon.net> RE: [NYLXS - HANGOUT] where to put this.
  45. 2014-05-29 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] where to put this.
  46. 2014-05-29 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] where to put this.
  47. 2014-05-29 Ruben Safir <mrbrklyn-at-panix.com> Re: [NYLXS - HANGOUT] where to put this.

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