The engine of world economic growth is sputtering. The most clearevidence of this is the lack of new business formation in developed
nations across the globe. Over the last
year, the number of entrepreneurs starting new businesses in the wealthiest of
nations dropped 10% from the 2006-07 level; in the U.S., that number fell by
24%. http://www3.babson.edu/Newsroom/Releases/globalgem2009.cfm
The contaminants in the fuel line are oppressive government
policies that increase the cost of doing business, increase unemployment, and
raise the risks to the current labor force of quitting their jobs to try to
start new businesses.
At a time when government should be encouraging venture capitalists and the formation of new business, it is instead putting on the brakes to this source of economic growth in the form of cap and trade, compensation regulations, fees on banks, and myriad other explicit and implicit new taxes. In 2009, nearly half of U.S. employment was generated by small businesses; U.S. companies started through venture capital employed more than 12 million people, or 11 percent of private sector employment, and generated $2.9 trillion in revenues, or 21 percent of U.S. GDP.
Fully 100% of economic growth is created in private industry. Government simply redistributes that wealth, destroying some portion of it in the process. Never have we needed non-interventionist government policies more.
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