Wednesday, July 29, 2009

Job Creation

Pandering to small business (along with every other interest group) seems the politicos present modus operandi. They promote small business as a massive engine of job creation.

But, as Dean Baker notes, "There had been some debate in the 90s about whether small businesses were responsible for a disproportionate share of job creation. While this is true, small businesses are also responsible for a disproportionate share of job loss. Most small businesses only survive a few years. As a result, small businesses on net, create new jobs at roughly the same rate as larger businesses."

For Further Reading:
Corporate Tax Dodging and the Myth of Job Creation
Small Biz No Job Machine
Small Business Are Big Job Losers

No comments: