NO ENTREPRENEURS, NO RECOVERY FOR THE ECONOMY

It is a fact that almost all new jobs are created from NEW firms and those that are less than 5 years old.

So, how is that formation of new firms going this year...as a means of calculating how many new jobs may be created?

So far this year, new incorporations are OFF BY 50% from the prior year. That is so far, at least .

Let's evaluate all the compelling reasons why an entrepreneur would form a business this year.

Ummm, I think....yea, maybe due to...., ????

It seems that I can not find an inducement to do so that is right at the tip of my tongue.

All I can think of is that taxes for entrepreneurs are going to be increased to pay for all the other people who are not working, or can not pay the mortgages for their houses, or their credit cards, or are illegally here and need free health care.

So as an entrepreneur, heaven forbid that he makes a profit as a reward for all the hard work, then he needs to pay, and pay and pay for everyone else's failures.

Just to add more crazy ideas from our government, our President's home state of Illinois, is proposing, in the middle of a recession a 50% increase in the State income tax. And these guys get paid for what?

This is NOT a way to jump-start the economy, DUH!

If these new businesses are not formed, and if their formation runs at this rate, there can not be a recovery, since there will be no new places to get work.

Old line, old established firms are firing, not hiring.

Even the firms that are being bailed out, are being forced to fire people, not pay them bonuses, and otherwise are becoming less attractive places to work.

Furthermore, entrepreneurs are people who have typically tapped into their savings or their investments to get the initial capital to start a business. So with the market decimating about half of everyone's investments, the urge to start a new business has been thwarted by the very fact of having less available capital to do so.

There are less businesses being formed, because there is less money to do so.

There is also a lot less credit to do so due to the diminished FICO scores or potential borrowers.

So between the lack of investment capital, and the lending restrictions by banks and other lenders, there will be less business formation and expansion, thus less of a chance for that instant recovery predicted by Ben Bernanke, and other future crystal ball readers.

What we are seeing, for the first time in my life at least is a Washington, D.C., full of business advisors, advising businesses how to operate, what products to make (car industry forced mandates for instance), how much CO2 to throw off, or how many times a cow can belch.

It seems that people who for the most part have never owned a business, never risked money to start one, never employed anyone on their own, exempted themselves from all rules and regulations applicable to all businesses, are now in charge of everyone else's business.

Now that is certainly a way toward financial disaster, and NOT a recovery.

No entrepreneurs, no recovery....write that down, pass it on to your favorite Senator and Congressman.