Tuesday, August 21, 2012
Ryan Streeter: The real job growth problem
I didn't until now. Isn't it a bit disconcerting that with all the media and political attention to job creation, it's possible that either no knows this, or it's just not reported...
Ryan Streeter enlightens us at IndyStar.com:
"The first fact concerns the nature of job creation, which politicians love to talk about even when they don't understand it. They typically believe that job creation happens when existing businesses, big and small, hire more people. That seems reasonable, but it's not quite right. The reality is that almost all new jobs five years from now will be created by companies that don't exist today. Job growth in America is driven almost entirely by new companies, or what we typically call "startups." According to Hudson Institute economist Tim Kane, new companies created 3.5 million jobs in 2005, while 10-year-old companies the same year created 355,000 jobs but lost 422,000."
