link here to article
This study by the Cleveland Fed (Via Manan Shukla) shows that the number of firms as a percent of the population has dropped considerably. There was an increase in business failures but the real story was a decline in new firm formation. Young firms, not small business as our politicians keep telling us, are the engine of job growth. We no longer face layoffs but we wont get growth in employment without new business formation. In fact, a study by the Atlanta Fed showed that new firm formation is a problem in Europe as well.
No comments:
Post a Comment