Government Did Not Build Your Business

Discussion in 'Politics' started by Listening, Jul 27, 2012.

  1. Listening
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    Listening Gold Member

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    Government Did Not Build Your Business - Reason.com

    The 2012 study found that while new business startups created 2.3 million jobs between March 2009 and March 2010, the net job creation from all U.S. private sector firms was minus 1.8 million jobs. The U.S. unemployment rate was then 9.7 percent. The number of business startups has dropped from 554,109 in 1987 to 394,632 in 2010. The 2012 Kaufmann report notes that the share of job creation from young firms has fallen from more than 40 percent in the 1980s to 30 percent now. While acknowledging that the severity of the Great Recession no doubt contributes to this decline in entrepreneurial activity, it is important to note that startups were a major factor in lifting the U.S. economy out of previous economic downturns. Why is new firm creation lagging now? Perhaps it has something to do with the Obama administration’s idea of governance.

    First, numerous studies find that higher tax and regulatory burdens impede entrepreneurial activity which in turn slow economic growth and job creation.
    For example, a 2010 study, "The Economic Effects of the Regulatory Burden," done for the Swedish Agency for Growth Policy Analysis (of all places), found that while some rules are necessary for entrepreneurs and markets to function “that countries with a light regulatory burden show more rapid economic growth in GDP per capita.” A 2008 study, "Government Size, Composition, Volatility, and Economic Growth," done for the European Central Bank examined the effect of government size and fiscal volatility on economic growth for developed countries between 1970 and 2004. The study finds that the bigger government and the slower the growth rate. Every percentage point increase in the share of total revenue going to government decreases overall economic output by more than a tenth of a percent. The report further noted, “Public capital formation may indeed turn out to be less productive if devoted to inefficient projects, or if it crowds out private investment.” Other words, despite the impression that Obama gives, not every government expenditure on infrastructure or a business subsidy is an “investment.”

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    Just fitting the narrative that our beloved Bozo-In-Chief really should be retired in Jan 2013 and someone brought in who would be less of a Bozo.

    Bozo vs. Less Bozo. :dunno::dunno::dunno:
     
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  2. Grampa Murked U
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    Grampa Murked U Diamond Member

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    I approve of this thread but I did not create my thought to do so.
     
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  3. Listening
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    Listening Gold Member

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    From the Article:

    In the Virginia speech, the president also observed, “Somebody helped to create this unbelievable American system that we have that allowed you to thrive.” As parts of “this unbelievable American system” that “allowed” businesses to “thrive,” the president cited “a great teacher” and that “somebody invested in roads and bridges.” With regard to building a business, the nebulous “somebody” who “made that happen” is, of course, government.

    So what are the real background conditions for enabling economic growth and the production of increasing wealth? Intuitively most people think of wealth as chiefly consisting of material items, e.g., factories, farms, forests, mines, houses, ports, telecommunications networks, and yes, roads and bridges. However, research at the World Bank has found that once all of a country’s natural and produced capital is added up, they together generally constitute less than 20 percent of its actual wealth; the remaining 80 percent is intangible. What is intangible wealth? The World Bank study, The Changing Wealth of Nations [PDF], defines it as “human capital, social, and institutional capital, which includes factors such as the rule of law and governance that contribute to an efficient economy.”

    Human capital is the set of skills and knowledge people living in a country have acquired. This is roughly measured by the average years of schooling per capita and a country’s average healthy life expectancy. So yes, great teachers certainly do contribute to the development of human capital. But it’s worth noting that the U.S. spends the most per pupil in the world, rising in constant dollars from $4,500 per student in 1970 to $10,500 in 2008. In the meantime that 17-year-old students in 1973 scored 285 points on the National Assessment of Educational Progress tests. In 2008, they scored one point higher—286 points. The math scores were 304 and 306 respectively. Our public school teachers may be great and better paid, but the data don’t show they’ve gotten better results.
     
  4. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Who ever said Government built your business?

    That is stupid?
     
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  5. Listening
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    Listening Gold Member

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    “If you’ve got a business—you didn’t build that. Somebody else made that happen,” declared President Barack Obama at a campaign stop last week in Virginia. Evidently, the president believes that economic growth and job creation are largely the result of actions taken by benevolent government agencies. But while it is certainly the case that good governance is essential, entrepreneurs engaging in voluntary cooperation coordinated through competition in free markets is what actually creates wealth and jobs.

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    I could not agree 100% more (with RightWinger).
     
    Last edited: Jul 28, 2012
  6. Rozman
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    Rozman Gold Member Supporting Member

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    “If you've got a business, you didn't build that. Somebody else made that happen”

    Barack Hussein Obama

    According to our leader it wasn't the business owner.
    I'm thinking Obama was stating that government is responsible.
     
  7. Listening
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    Listening Gold Member

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    To be clear I was referencing the quote from RightRingWorm. What Obama said was stupid. And I am thanking him every day for saying it......!
     
  8. bobcollum
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    bobcollum BANNED

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    Stop riding the partisan train Grampa, you admitted the other day it was taken out of context. :thup:
     
  9. Rozman
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    Rozman Gold Member Supporting Member

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    How was it taken out of context?:confused:
    I just love when politicians get called out for
    saying what they really meant...
    Then it's I was taken out of context time....:eusa_boohoo:
     
    Last edited: Jul 28, 2012
  10. francoHFW
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    francoHFW Platinum Member

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    "But while it is certainly the case that good governance is essential..."

    One thing we haven't been getting under voodoo, and especially under Boooosh and now McConnell and Boner.

    "No compromise, un-American GOP" (TIME)...
     

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