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Entrepreneurship/Regulations

 
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PostPosted: Fri Jan 02, 2015 5:42 am    Post subject: Entrepreneurship/Regulations Reply with quote

PeakTrader:

We need to move towards a 1995-00 economy rather than a 1940-45 economy.

There’s abundant labor and capital to expand the economy.

We need to promote entrepreneurship and work, to employ massive idle resources.

Here are some excerpts from 2014 articles:

“Information technology and personal computing have upended the technology market in recent decades…longtime market leaders have found themselves facing stiff competition from innovative upstarts. That led to the development of new technologies, greater productivity and job creation… the “creative destruction” process (is) needed to develop new innovations, force productivity gains, disrupt markets and match workers with firms more effectively.

What happened to all the entrepreneurs?

“We do not have an explanation,” write the University of Maryland and the Census Bureau economists. Neither does Litan. “One theory is that the cumulative effect of regulations,” he says, discriminates against new businesses and favors “established firms that have the experience and resources to deal with it.” What allegedly deters and hampers startups is not any one regulation but the cost and time of complying with a blizzard of them.

Brookings researcher Robert Litan and economist Ian Hathaway… found that “business deaths now exceed business births for the first time in the thirty-plus-year history of our data."

Competition among firms, write the economists, raises productivity. More efficient firms drive out the less efficient. One study attributes 35 percent of productivity gains to this “churning” of firms; the fall in startups dampens these improvements.

What’s happening now is that the economy is increasingly dominated by older firms tied to proven products and familiar business methods. In a new study, he and Ian Hathaway measured the age of U.S. businesses. They were astonished by what they found: From 1992 to 2011, the share of U.S. firms that were 16 and older jumped from 23 percent to 34 percent.

From 1978 to 2011, startups fell from about 15 percent of all firms to 8 percent; the slide was gradual until the 2008-09 financial crisis, when it accelerated…The economy needs the employment boosts of startups.”

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CoRev:

Peak Trader, is there start up money? Has the recession and the ensuing regulations accomplished a go slow/low risk funding environment?

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PeakTrader:

CoRev, I think, it has become harder to grow a new business.

It may not be worth the risk, and aggravation, to more people, even with the low cost of capital.

More customers and less crony-capitalism would help.

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W.C. Varones:

In other words, welcome to France!

Who was it that promised to “transform America?” Mission accomplished!

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PeakTrader:

The SBA study from 2008 estimated federal regulations (not including state regulations) cost $1.7 trillion a year.

A new regulation that began in California yesterday is expected to raise gasoline prices another $0.10 a gallon (the low estimate).

Regulations raise costs and prices.

Of course, we need some regulation. However, the economy cannot absorb or afford too much regulation.

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We added more regulations over the past six years, e.g. in Obamacare, Dodd-Frank, the EPA, etc..

Additional costs affect small businesses directly or indirectly.

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California regulations:

http://www.ocregister.com/articles/prices-646717-percent-state.html

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