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Beyond Silicon Valley, Declining Entrepreneurship

TV’s celebrating Silicon Valley startups, but across the country entrepreneurs are now struggling behind bigger, older businesses. We’ll ask why.

In this Thursday, May 1, 2014 photo, Lou Tashash, owner and president of R-D Manufacturing Inc., left, watches break operator Scott Finlayson work at his precision sheet manufacturing business in East Lyme, Conn. (AP)

In this Thursday, May 1, 2014 photo, Lou Tashash, owner and president of R-D Manufacturing Inc., left, watches break operator Scott Finlayson work at his precision sheet manufacturing business in East Lyme, Conn. (AP)

The pride of the American economy from early days was the idea that anyone could jump in, start their own business and make things happen.  And for a long time, American entrepreneurship drove the US economy and American dreams.  It still does in Silicon Valley and other hot spots.  But nationally, the numbers are down.  American entrepreneurship is sagging.  That’s bad for innovation, for jobs, for dreams.  Is it red tape gumming up the works?  Is it giant companies – Wal-Mart etc. – blocking the way? This hour On Point:  American entrepreneurship in decline.  We’ll ask why.

– Tom Ashbrook

Guests

Danielle Kurtzleben, economics and business corespondent for Vox. (@titonka)

Ray Hennessey, editorial director of Entrepreneur.com. (@Hennesseyedit)

Nancy Koehn, historian and professor business administration at the Harvard Business School. (@nancykoehn)

Lina Khan, policy analyst in the Markets, Enterprise and Resiliency Initiative at the New America Foundation. (@linamkhan)

From Tom’s Reading List

Brookings: Declining Business Dynamism in the United States: A Look at States and Metros — “We show that dynamism has declined in all fifty states and in all but a handful of the more than three hundred and sixty U.S. metropolitan areas during the last three decades. Moreover, the performance of business dynamism across the states and metros has become increasingly similar over time. In other words, the national decline in business dynamism has been a widely shared experience.”

The Atlantic: The Mysterious Death of Entrepreneurship in America – “The story of American entrepreneurship begins with a tale of two definitions ofentrepreneur. When the press imagines the modern entrepreneur, our minds turn to tech—coders, hackers, hoodies, apps, Silicon Valley (the show), Silicon Valley (the valley). And it’s true: This sliver of entrepreneurship has grown, by all sorts of measures, for example by venture-capital funding:”

Entrepreneur: Why Americans Don’t Want to Start New Businesses — “If you truly believe in more jobs, in better wages and broader prosperity, you need Americans to innovate, to take risks, and put their capital at work to create new businesses. You should be rooting for their success, since the more money they make, the more profits they have to reinvest in their businesses. That reinvestment invariably creates jobs, which creates wealth for others.”

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  • X Y & Z

    Obamacare, high taxes, and layers of government bureaucracy have made it too expensive to manufacture goods, or start a new business in the US. That is evident by the dreadful economic growth in Q1 of 0.1%.

    Repeal Obamacare (which is a jobs killer), eliminate the capital gains tax, cut the bureaucracy associated with starting a small business and America will once again become the economic envy of the world.

    • Human2013

      This is hilarious…not one business owner will cite taxes as the reason for not starting a business. There are exemptions in Obamacare for small businesses.

      The biggest threat to entrepreneurs and small business IS BIG BUSINESS

      • X Y & Z

        Is that why Obama filled his cabinet with individuals who came from big business, such as GE and Monsanto?

        • Fred

          Mostly tax “breaks” as I recall – effectively rebates on r.e. tax or existing business taxes (which in the long run have a sorry record for keeping business long-term). Actual reasons are lower property costs, lower wages (the American third-world).
          But higher-cost, higher-tax states like California and Massachusetts (home of Romney-care, thank you very much) still have the HIGHEST rates of new business starts, VC funding, etc. The cries of “Obamacare” and “over taxation” are red herrings, and pretty smelly ones at this point.

          • X Y & Z

            California still has the highest rate of new business starts?

            From all that I’ve seen and read, businesses are fleeing from California’s high taxes and burdensome business regulations, such as Toyota, which had a
            truck manufacturing plant in Fremont, Ca, and which has since moved to business friendly Texas.

          • TFRX

            “Bidness friendly” means “give a shatload of tax money to corporations”.

            And Texas isn’t the Texas you’re dreaming of.

            But don’t hold your breath waiting for our inbred press corps to realize it.

          • Jill122

            To X Y & Z: (sorry to TFRX)

            Every state in the south pays bucket loads of cash for every job they are able to snag. The booty list includes low or no property tax, state pays to get the site ready, state gives tax credits for every job promised, little or no safety regs that are actually enforced, no problems with State EPA. They love pollution in Texas. State will kick in or pay for anyone who needs training.

            I’d be shocked if Toyota is paying a dime in state taxes for at least the first 5 years they are in Texas. As for the employees: Lower wages, no job security, doctors who will find what the employer needs to be found when there’s an accident.

            No state regulators — as an employer you may love it. If you work for one of these plantations, you may wish to think twice. But if you’re desperate, there’s no thinking involved.

            Workers follow the jobs, and that doesn’t mean they go to the places where they can hope for a fair deal. Americans want to work regardless. No one wants to be poor, despite what Ryan says.

          • TFRX

            Whaddya mean “sorry”? No apologies needed.

            Now I’m off to enroll my kid in a jimcracker Texas school next to the ashes of an underregulated Freedom Plant chemical facility. Don’t worry, that cough of his, which never goes away, is just part of the Texas Miracle.

            Texas, goes the lore, is “great for men and dogs, and hell on women and horses”. That needs to be updated.

          • X Y & Z

            I agree with the thesis of your blog, Texas is far from perfect, but Texas is growing and providing a lot of good jobs for its citizens. Where would you rather live, in bankrupt Detroit or booming Dallas?
            There’s always a trade-off.

        • The_Truth_Seeker

          Because all the states are in a race to the bottom. where are all the smartest people educated?? Not the Southern states, that’s for sure.

      • twenty_niner

        In our business, revenues are being pumped back into the company and usually go into new equipment. The 179 tax deduction, which allowed capital equipment to be 100% depreciated (up to $500K) in one tax year (but is now gone), has been a huge incentive for buying new equipment in past years.

      • The_Truth_Seeker

        Absolutely!!

      • The Truth Knower

        It’s not the biggest threat. It’s when big business uses the force of the government to gain a larger monopoly.

        But at the same time, they didn’t get to be a big business that way in the beginning, they had to start out small like everyone else. So somewhere in it’s history was a savvy entrepreneur.

    • http://www.godandneighbor.org/ Vicki A

      Obamacare is not the problem. The lack of affordable health insurance has kept potential entrepreneurs in dead-end jobs that provided minimal health insurance. Now that we finally have Obamacare, I’m hoping that people can start the businesses they dreamed of.

      • Secret Person

        You’re a liberal idiot. Obozocare is freeing people to do landscape painting, pottery, or yoga not anything that going to create jobs.

        • The_Truth_Seeker

          Oh, yeah, you can live really well doing that!! Have you ever been poor? Was it fun? Was it the “good life”?

          • The Truth Knower

            That’s a bit harsh.

      • The Truth Knower

        It’s not going to happen Vicki, Obamacare has to be paid for by tax payers, including entrepreneurs.

    • TFRX

      Obamacare lets people leave their office cubicle and take a chance without having to buy healthcare as a “market of one”.

      The rest of your claims are worse.

      You really studied for this hour, dintcha?

      • X Y & Z

        Is that why health care premiums are going through the roof and companies are either having to layoff employees or cut their hours to part-time as a result?

        Try again Sherlock.

        • TFRX

          You really need to go to remedials on this stuff.

          • X Y & Z

            Buying into all the bogus Obama propaganda clearly saves you from having to think on your own.

    • hennorama

      X Y & Z — you are mis-/uninformed.

      U.S. factory payrolls have grown for four straight years, with gains totaling about 650,000 jobs. That’s a small fraction of the 6 million lost in the previous decade, but it still marks the biggest and longest stretch of manufacturing increases in a quarter century.

      Harry Moser, an MIT-trained engineer who tracks the inflow of jobs, estimates that last year marked the first time since the offshoring trend began that factory jobs returning to the U.S. matched the number lost, at about 40,000 each.

      “Offshoring and ‘re-shoring’ were roughly in balance — I call that victory,” said Moser, who traces his interest in manufacturing to his parents’ work at the long-closed Singer Sewing Machine plant in New Jersey. (He once worked there too.)

      Sorry to burst your echo chamber bubble.

      See:
      http://www.latimes.com/business/la-fi-returning-jobs-20140513-story.html#page=1

      • Jeff

        From the peak of number of jobs in 2008 we have yet to recover…even taking the average number of employed people from 2008 up to the last job report we have only created 0.3 million jobs (that’s only ~300,000 jobs) in about 6 years. Meanwhile during that same period the number of people not in the labor force has increased by 12.5 million. Facts are fun aren’t they?

        • hennorama

          Jeff — thank you for your response.

          And your point is?

          • Jeff

            My point is that the administration is responsible for not even bringing the economy back to the peak employment during 2008. When you reward something (not working) you get more of it. We have fewer jobs than we did in 2008 and 12.5 million more people not in the labor force than we did in 2008. You can see where this administration’s priority is at, buying votes and rewarding those who don’t work.

          • hennorama

            Jeff — thank you for your response.

            Riiiight. Sure thing.

          • Jill122

            Senate turned down 200,000 jobs just yesterday. Good high paying energy sector jobs thrown out the window for ideology. The very least you could do is keep your enemies straight.

          • Jeff

            Yep, Harry Reid did shutdown the normal process for voting on amendments to that bill because he and many other Democrats were afraid to vote directly on Keystone XL amendments…get your facts strait.

          • The_Truth_Seeker

            Keystone is a joke! Almost all the money is going to the usual suspects (not workers).

          • TFRX

            Two hundred thousand jobs?

            Keystone?

            Not in the same universe.

          • Government_Banking_Serf

            Wow, we can vote for jobs now? Its that easy? Who needs all these Silicon Valley whizzes!?

          • The_Truth_Seeker

            What 200,000 jobs? Sure you aren’t multiplying by 10-100, as usual? Might want to take a math class.

          • The_Truth_Seeker

            So, off-shoring, Repubs could??!!! repubs who like to put their money in overseas banks, could create more jobs in the U.S.? for who, rich boot lickers????

            LMFHO!!!

          • The Truth Knower

            I agree with Ron Swanson.

        • Secret Person

          Add in the fact that Obozo has been allowing in 1.7 million legal foreign workers a year and you can see why Americans and recent grads are having a very hard time finding jobs.

          • Jeff

            There’s no need for name calling, I feel that we should legalize and force a fine on those illegal immigrants who are already here…but make sure they pay all taxes (current and previous) and don’t commit felonies for a decade before being allowed citizenship.

          • The_Truth_Seeker

            Repubs want LOTS more foreign workers … you dunce!

        • The_Truth_Seeker

          Who caused us to lose all those jobs??!! You seem to have amnesia.

  • Coastghost

    If awaiting the FCC’s guidance on “net neutrality” makes this a pivotal moment, and if “entrepreneurship” now consists or ever consisted of “thinking outside of the box”: could getting offline altogether and shedding all (or most, or much) in terms of commercial ties and traffic on or with the internet (via all the usual suspects) be a way to develop local business and help patrons at the same time shed the illusion of ubiquity that the internet fosters?
    The anti-somatic and anti-social aspects of internet connectivity and “internet culture” were well illustrated for us in Wim Wenders’ 1991 film Until the End of the World, with an addictive and demanding device that reproduced the imagery of dreams and visual/auditory perception for continual recording and conscious review and exploration.

  • OrangeGina

    Where is the science revolution that should be going on RIGHT NOW to fix problems? What is the impact of the lasting effects of the tech bust, outsourcing, legions of unemployed engineers and globalization? Where do new entrepreneurs go now for funding, if the friendly neighborhood bank is now a BoA? Not everyone can be on that silly Shark Tank show.

    • The_Truth_Seeker

      Well first you need scientists! Most people don’t even understand the first thing about science and technology.

  • Shag_Wevera

    The idea of being an entrepreneur makes me want to vomit. We have to remember that not everyone is cut out for entrepreneurship.

    • Government_Banking_Serf

      Thats fine, but don’t demonize them or make it difficult for them with red tape, and if we aren’t inventors/owners we shouldn’t complain about being workers. (“We” not you specifically)

      If someones going to say… “You didn’t build that”, and then make your hair gray by age 32 trying to figure out how to pay for your employees health care, and confiscate your wealth if you succeed……. goes to follow, would make a lot of people want to vomit….. hence trend.

      • TFRX

        Demonize?

        Give it up.

        • Government_Banking_Serf

          Now you love entrepreneurs and business people?

          Don’t know what you’ve got til its gone….

      • The_Truth_Seeker

        If you have less than 50 employees, you don’t have to pay for healthcare at all!!! Quit lying!!! How can paying 20% capital gains be a confiscation of “your” wealth? It’s partly the wealth you might generate with great HELP from the country and its people! You can’t run a for-profit company by yourself, especially since it’s obvious you aren’t smart enough to do it! You have to hire people who are a lot smarter than you to help you get to where you want to go.

        You are just as expendable as anyone else in this world! If you weren’t around, someone else would be doing what you are doing. Unless you come up with a cure for cancer – you didn’t make anything valuable by yourself.

    • adks12020

      Yeah, I’ve often thought that I’d like to have my own business. Then I remember that self employed people rarely get days off, rarely take vacation, and have to be excellent sales people (selling would not be a strong suit for my personality). Far more people go bust trying to be entrepreneurs than succeed.

      • The_Truth_Seeker

        True, but what will happen if there is another recession, or you get to be over 50?

    • twenty_niner

      Makes a lot entrepreneurs vomit as well, especially when they have to make rent and payroll after a tight month.

      • hennorama

        twenty-niner — anyone who’s never had to sweat under the pressure of making a payroll doesn’t know anything about stress.

      • Secret Person

        Yes, and why it’s a travesty when leftists, particularly, Obozo, claims “you didn’t build that”. Sure, it would be wonderful if everyone got paid what they felt they deserved. But it’s the founders and the heads of the companies that are putting in the huge sweat equity to make it a success. And the left wants to eliminate the success part. So why try to begin with? Communist USSR and China produced no technological breakthrough that came to the US but that’s what the left want to lower the US to. Pathetic.

        • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

          You are confusing two issues.

          All wealthy people and successful business had help getting there.
          They used government infrastructure, employee intellectual capital, labor, other businesses, etc. etc.

          Corporate collusion to the point of manipulating regulation and lobbying to keep the little guy from competing is not fair.

          THAT is what is causing people to go “socialist”.

          If the system isn’t fair and the poor have no socioeconomic ladder, can’t get business loans, have no collateral, etc. etc. etc. What do you expect them to do?

          You even need a slick looking pitch (requires capital) to be successful EVEN on kickstarter.

          I have a ton of intellectual capital, more than everyone on this forum combined, but NO collateral, no credit and no start-up cash. What is a guy to do?

    • The_Truth_Seeker

      Why is that? You like being dependent on a company that has little or no concern for you and won’t give you job security, or retirement benefits?

  • http://neilblanchard.blogspot.com/ Neil Blanchard

    There are a lot of things going on here. I have designed and am now building a 5 seat electric car – that hopefully has 300-400 miles range – from scratch. I am doing it as an open source design, to try and avoid bottling up the important design elements.

    Patenting is a non-starter, as it takes many years and lots of money. Patents get stolen and side-stepped, anyway. This is why Tesla has no patents.

    It’s a chicken and egg thing. Seeking venture capital is similar to patenting – one signs over the intellectual property, and if any snags happen – then the project is killed before it goes anywhere. By making it open source, I hope that it gives it a much better chance to succeed.

    • twenty_niner

      Tesla, the car company, has a ton of patents:

      http://www.faqs.org/patents/assignee/tesla-motors-inc/

      • http://neilblanchard.blogspot.com/ Neil Blanchard

        Okay, I stand corrected, but I do think that the “big” items Tesla uses are just kept secret.

        • twenty_niner

          Trade secrets, if you can keep them secret, and they are not easily replicated, will trump patents every trip of the train; the formula for Coke being a salient example.

      • The_Truth_Seeker

        Not for Space-X

    • twenty_niner

      “Patenting is a non-starter, as it takes many years and lots of money.”

      A relatively straight-forward utility patent takes about four years and $6K-$10K to prosecute. Being first to market and owning the business is a lot more valuable in my view. However, patents, and patent clearances (a lot more expensive) are good insurance and are crucial to raising capital down the road. Also, if you can’t come up with $10K for a patent, you are probably too starved for capital in general to get much done.

      • http://neilblanchard.blogspot.com/ Neil Blanchard

        I know someone who has gone through the process and it took 6 years or so, and cost about $100K.

        • twenty_niner

          The last patent I did, which was fairly complicated, cost $10K for a US filing, and a PCT filing. Shop around, there are a lot of 1, 2-man patent firms that are hungry and damn good. Plus, they’ll show you a lot more attention, being a small entity, than a larger firm.

          • http://neilblanchard.blogspot.com/ Neil Blanchard

            For me, that is still way too much money and too long a time. And a patent is much more likely to be used against you.

            I don’t want to protect the IP, but rather I want to build it. Once it is open source, anybody can make money by building something, and it lowers the cost of doing business.

          • twenty_niner

            “I don’t want to protect the IP, but rather I want to build it.”

            Best of luck. We definitely need more Americans in their garages building real stuff, versus different ways to send text messages.

          • The_Truth_Seeker

            You have to understand how the system works, or change it. Just building things in your garage won’t get you anywhere. Might be a nice “hobby” though.

          • The_Truth_Seeker

            You can’t survive like that unless someone wants to hire you as a result.

          • The_Truth_Seeker

            Did that result in a patent being issued in each case?

          • twenty_niner

            The US patent issued. I abandoned the PCT, or at least declined foreign filings.

    • Mark Giese

      The patent office has been bought and paid for by large businesses. The original purpose of allowing smaller players to protect their innovations has been completely destroyed by massive “lawyering” of the process by corporations.

      • The_Truth_Seeker

        See my related comments above!

    • The_Truth_Seeker

      II probably can’t succeed, because there are just too many ways to fail (not your fault – it’s the system). Open source will almost never make you any money. Almost everything is open source now, but no one is getting paid. Just look at 3D printers and Apps. Most apps are free. Very few make any money at all. Without money to re-invest, your ideas can’t go anywhere, beyond proof-of-concept.

      Also, no one will give you much money without strong IP (too easy for others to rip you off). Just look what happened to Tucker. On the other hand, Elon Musk doesn’t worry about patents, but he has 100s of millions of dollars to throw at things and get them up and running in months – not years. It’s almost always the early bird that gets the worm (unless you have a guzllion dollars to crush your competition with). Good luck, though.

  • twenty_niner
    • The_Truth_Seeker

      The AIA will make this LOTS worse!

  • Government_Banking_Serf

    Invent stuff? Naw, gimme stuff. Or at least a cheap loan.

    • Secret Person

      It’s not a coincident that,as the welfare state mentality grows, that entrepreneurship is declining. Why work when you can extort or embezzle it from the govt or business?

  • http://hlb-engineering.us/ HLB

    Maybe we need to give more tax breaks to corporations and rich folks.
    –The John Roberts Court

    • Government_Banking_Serf

      Just keep the Fed flood gates open and be sure those guys are at the front of the line.

  • Government_Banking_Serf

    OT, although I guess relevant to an untrustworthy, anti-free market, pro crony capitalism administration which hurts business formation, but have you guys discussed Geithner being asked to lie about Soc Security impact to maintain the “dog whistle to the left”?

    http://reason.com/archives/2014/05/15/a-dog-whistle-to-the-left

  • AliceOtter33

    Amazon was recently awarded with a patent for the innovative process of photographing objects in front of a white background. I’m not kidding.

    (patented http://www.digitaltrends.com/photography/amazon-awarded-questionable-studio-lighting-patent/#!NITF2)

    Greed is too simple to explain these absurdities perpetrated by big business. It’s more like preventive war. They are the world’s true superpowers. Life is “good” if you join them and God help you if you even think of competing with them.

  • http://hlb-engineering.us/ HLB

    Come to New York State and get 10 years of free bennies including NO TAXES! We cheat our citizens and pass the savings on to you outsiders.
    –State of New York Office of Business Development
    : Andrew Mark Cuomo, Governor {Democrat party big wig}

    Feel free to kick the homeless.

  • Coastghost

    Would taxation on internet commerce at rates comparable to what any local business is responsible for collecting do anything to encourage entrepreneurship?

  • adks12020

    Well, most millennials also have a ton of student debt and very little credit.

    • Secret Person

      Instead of supporting the stupid OWS, they should have been protesting their very own campuses where the administrators are pulling down huge monies. It’s a fact that highly paid administrators have increased exponentially since the 1970s.

      • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

        It’s hard to take someone seriously when they use the plural of money, “monies.”

        • LinRP

          We’ll be at the ready the next time you make a mistake. What a putz.

          • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

            I don’t make mistakes. Ever.

            Also, I never said Secret Person made a mistake. I said it’s hard to take someone seriously when they use the plural of money.

            You are WAY out of your league. Go away.

      • The_Truth_Seeker

        Gee… I guess you forgot about the 100,000s of company executives and all the Wall Street fat cats, huh? Administrators get a small fraction of that money and besides, that’s not the problem. The problem is that everyone wants money and bricks and mortar schools are very expensive and take lots of land and expensive resources (and expensive equipment).

      • The_Truth_Seeker

        Actually, you’re not “secret”. Ever hear of the right-wing NSA? They know all about you!

  • Jeff

    Maybe individuals don’t want to take the risk of starting a business when the president suggests that “you didn’t build that” when attacking private businesses.

    • TFRX

      Hahaha.

      What is it with Libertarians’ fascinating need to repuke failed, faked Republican talking points?

      • Jeff

        Huh? That’s a true statement, did you forget the president said that?

        • JS

          Have you read the full quote?

          • hennorama

            JS — that’s not important. The important thing is truncating the quote into a fun soundbite that is completely out of context.

          • Jill122

            They live, eat and sleep soundbites.

          • hennorama

            Jill122 — well, attention spans are getting shor … squirrel!

          • Jeff

            Here’s the full quote (WARNING DIRECT QUOTE WORD-FOR-WORD):

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

          • hennorama

            Jeff — thank you for your response.

            Here is the relevant part of the remarks, in full and complete context (emphasis added). The remarks were made in Roanoke, VA, at Fire Station #1, with firefighters present.:

            “There are a lot of wealthy, successful Americans who agree with me — because they want to give something back. They know they didn’t — look, if you’ve been successful, you didn’t get there on your own. You didn’t get there on your own. I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something — there are a whole bunch of hardworking people out there.

            If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.

            “The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together. There are some things, just like fighting fires, we don’t do on our own. I mean, imagine if everybody had their own fire service. That would be a hard way to organize fighting fires.

            “So we say to ourselves, ever since the founding of this country, you know what, there are some things we do better together. That’s how we funded the G.I. Bill. That’s how we created the middle class. That’s how we built the Golden Gate Bridge or the Hoover Dam. That’s how we invented the Internet. That’s how we sent a man to the moon. We rise or fall together as one nation and as one people, and that’s the reason I’m running for President — because I still believe in that idea. You’re not on your own, we’re in this together.”

            Source:
            http://www.whitehouse.gov/the-press-office/2012/07/13/remarks-president-campaign-event-roanoke-virginia

          • Secret Person

            His whole speech was solely to justify redistribution of wealth. It’s totally appropriate to condense that one soundbite – “You didn’t build that”, because it does encapsulate the total premise of what he said. But our POTUS, of course, doesn’t deign to redistribute his wealth. In fact, he insists we spend ours on himself and his family on his extravagant trips golfing, etc….

          • hennorama

            Secret Person — thank you for your response.

            What nonsense.

            Please point to the portion of the President’s remarks that were “solely to justify redistribution of wealth,” as you claim.

          • The_Truth_Seeker

            Maybe we should start doing that! Clearly, the current system isn’t working for more than 99% of the people who work hard every day (sometimes with two jobs).

          • The_Truth_Seeker

            What an ass!

          • The_Truth_Seeker

            Correct! Take away ALL the people and resources and infrastructure and utilities and experts and (jobs that other people have) you would have NOTHING! Don’t pay people a fair wage and you WILL have nothing (because there won’t be anyone left to buy your “stuff”). Rich people only buy so much. They don’t eat more than poor people. They can’t drive 10 cars at the same time.

    • Jill122

      Right — feelings hurt, therefore give up. Gee! Where’s all that sermonizing about Personal Responsibility you guys are so famous for offering up to the poor?

      “You didn’t build that” happens to be true (even though we are leaving out what he said before and after to contextualize those words). There is no island in this here U Nited States and anyone silly enough to believe they are can wind up just like Donald Sterling. And I sure hope they do. There’s no better example of Ayn Rand’s man than he.

    • The_Truth_Seeker

      Businesses benefit from 100′s of taxpayer funded resources, infrastructure and tax credits!! Are you going to make the burgers and clean the toilets? Go get a clue, buddy! The oil companies still get billion from taxpayers, even when they are making billions. The rich get all kinds of “goodies” from taxpayers, then send most of their money overseas (but maybe you are not big enough yet – jealous?). The rich get more “corporate welfare”, directed at making them even more money, than the poor do. The poor only get enough to keep from starving – not for starting new businesses.

  • Government_Banking_Serf

    Has free market capitalism and entrepreneurship been drowned in the bathtub yet? Mission Accomplished?

    Is the global economy being smothered by crony capitalism and debt from steroidal Keynesism? Will there soon be another financial crisis when pretending the numbers add up is no longer tenable?

    What are we to do?

    Turn it over to the State of course. The good, wise, compassionate State.

    While the whole global system crumbles, might as well go for a Global State, to make sure this can’t happen again……

    Self Government? Power to the People? Entrepreneurship? Personal Responsibility? Competitive Free Markets bounded by Rule of Law instead of corrupt Crony Captialism?

    No…. thats all too…………… 1700′s!

  • Government_Banking_Serf

    Zombies going to college because “thats what you do” and expecting an automatic 80K salary on the other side, like its some kind of contract.

    Education is meant to be a means to an end, not an end that pays you.

    You learn stuff so you can do stuff.

    First you have to have a motivation to do stuff.

    Then again, the Student Loan Bubble like the housing bubble….. Fed throws free money, people tend to stop thinking……. no need to, its free!

  • PaulCJr

    How about student loan debt? I personally would like to start my own company, but student loan debt hinders me because I feel I need to keep a steady safe job in order not to default on my student loan debt. There needs to be some kind of deferment for people starting business.

    • Secret Person

      No, you were an idiot to take so much on. Why weren’t you protesting the lavish salaries paid to administrators and faculty? There is NO reason why private colleges and universities should cost so much. Why didn’t you and your fellow students demand answers? I hope you weren’t an Occutard.

      • The_Truth_Seeker

        So that goes for medical students too?? Always has costed a lot to become a doctor.

      • PaulCJr

        Actually I didn’t take on a lot of debt to pay for my civil and then traffic engineering education. I had scholarships for a good chunk of the schooling. But now that I have a good engineering job, the loan payments come every month, which demands that I keep a steady flow of income rather than take a risk and start my own engineering firm. Also it sounds like you might have been an Occupy person considering your statements on private school tuition and professor pay at these institutions. Sounds like to me you were one of the kids that went to a private university/college to get a degree that makes no money. You should have went to a public university.

  • AliceOtter33

    Risk aversion to entrepreneurship is not just about the market – it’s about the egregiously wonky angle of the current playing field.

    The big players have the resources to throw at anything and everything that threatens their dominance – net neutrality, patents, etc.

    • Government_Banking_Serf

      Fight for Rule of Law, Transparency, and no more Too Big too Fail. Make the “big guys” smaller and have to compete by fighting crony capitalism.

      Blaming competitive, free markets and Rule of Law, which do not exist today is counterproductive. (not saying You doing that, but that is the trend)

      • AliceOtter33

        Yes to all that!

  • http://hlb-engineering.us/ HLB

    Immigrants from everywhere! Come to America. And live high on the hog on public programs paid for by our citizens with no contributions of your own. We cheat our military veterans and pass the savings on to you outsiders.
    –Barack H. Obama, President {Democrat party big wig}

    Feel free to kick the jobless.

    • Jill122

      This is so sad there is hardly any place to begin. I suggest you read a History of the Veterans Heath Administration (wiki) before you start flinging c**p on the walls.

      You might also want to check Politifact to compare what the president promised and what he was able to do. Blaming Obama for the Congress’ inaction or outright denial of his budget requests is exactly the strategy the republicans used to cause their faithful to believe it’s all his fault.

      They know people like you aren’t paying attention so it doesn’t hurt them politically to deny Obama anything he wants. And it’s a long list including the VA.

      Rail against ideology if in fact you actually do care about the veterans and aren’t just flag waving like others in your party are wont to do.

      • hennorama

        Jill122 — it’s OK to write “crap,” and even “bullshit,” if you want to.

        • Jill122

          Thanks. I didn’t read the rules and I like the place too much to get kicked out on a technicality.

          • hennorama

            Jill122 — you caution and consideration are appreciated. Here’s how it works:

            1. You write a post containing a word or phrase that is contained in On Point’s “List Of Stuff You Can’t Type In Here.”

            2. You click [Post as Jill122]

            3. You post goes into “purgatory” AKA “awaiting moderation,” and it is hidden from view. You get notified that it is [Pending].

            4. At some future time, the moderator reviews it, and either releases it back into the wild, or deletes it.

            Getting “kicked out” takes MUCH more than the above.

            It can be a somewhat amusing game. For example, this looks bad, but it passes the algorithm:

            SHlT (the thrid letter is a lowercase L)

            BTW, it only takes a minute to read “the rules.” There’s a link to them above, just below Tom’s Reading List, and just above the Comments.

            Best wishes.

          • Jill122

            One of my first posts went into purgatory. I waited and waited, believing that they would let it go. They didn’t so I removed the offending phrases that dealt with two brothers who I believe are responsible for a certain amount of the problems we face as a democracy.

            My post said that the number of votes they are able to purchase under Citizens and McCutcheon changes the character of American democracy (but not democracy as practiced in say, Somalia). Once I removed the names, and rearranged a few things, voila! I mean it was magic — like Penn & Teller Magic.

      • Secret Person

        Your post does nothing to address the fact that Obozo is not enforcing any immigration laws and the fact that immigrants, legal and illegal,are a huge burden on taxpayers. And Politifact is hardly a non-partisan site to refer to. It’s very left leaning which proves that anything you espouse about is NONSENSE.

  • James

    Am I hearing things, did someone on on point run through list of right wing talking points and Mr. Ashbrook DIDN’T interrupt him. I was worried he might be hurt or something.

    • http://hlb-engineering.us/ HLB

      Tom is polite to his guests. You’ve confused him with Chris Mathews. Hoober Doober

    • Secret Person

      Responsible journalism means that you do present all viewpoints not biased ones like the ones you hold. Most of the other NPR hosts do not have the same integrity.

  • Dan

    I always think I need a new idea. Do I? Is there room to open a new business with its own version of old ideas?

    Dan from underhill, vt

  • X Y & Z

    “If you’ve got a business, you didn’t build that, somebody else made that happen”.
    (President Obama)
    It’s hard to foster investor confidence in the economy with rhetoric like that coming out of the White House.

    • http://neilblanchard.blogspot.com/ Neil Blanchard

      That is a misquote, and it distorts what was said.

      • Jeff

        It’s a direct quote, just because you don’t want to believe it doesn’t make your belief override facts.

        • JS

          Reading the full quote above, wouldn’t you agree that it’s taken out of context?

          • X Y & Z

            Now you sound desperate.

          • JS

            No, just smart enough to read an entire quote to see what “that” was referring to.

          • Jeff

            Immediately preceding the phrase “you didn’t build that” was the phrase “If you’ve got a business” and then followed up by “Somebody else made that happen.” Putting it all together it looks like this (warning, direct word-for-word quote):

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

            The meaning of that phrase in English is that you didn’t build your business and someone else made that happen.

            Even if he is referencing infrastructure (which based on that sentence he is clearly talking about the business); it’s STILL insulting because businesses and business owners DO pay taxes and DO help pay for infrastructure! Suggesting that business owners don’t pay for infrastructure and/or their own business is incredibly demeaning, no matter how you attempt to spin it!

          • JS

            Make up your mind:
            “Just because he was talking about infrastructure doesn’t nullify the point he was making”
            or
            “Even if he is referencing infrastructure (which based on that sentence he is clearly talking about the business)..”

            So you maintain that the word “that” in the quote refers to “business”? Despite the full quote which says,”Somebody invested in roads and bridges. If
            you’ve got a business — you didn’t build that. Somebody else made that happen.” And you admit he was talking about infrastructure when making this quotes.

            The quote doesn’t suggest that business owners don’t pay for infrastructure, but that they benefit from public investment.

          • Jeff

            Typical liberal deflection, are you going to ask what the meaning of the word “is” is next? Basic understanding of English states that when using the word “that” it is referencing the noun that was immediately preceding the word “that” is used…not some other noun in a different sentence.

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

            Pretty clear to anyone who has basic knowledge of English.

          • JS

            How is it a deflection if I am discussing the same topic as you?
            Yes, that sentence is pretty clear, if that was all that was said.

            And since the whole quote is talking about infrastructure, as you youeself admitted, then anyone who has a basic understanding of English who reads the whole quote knows the word “that” was referring to infrastructure.

          • jefe68

            It’s amazing how some of the right wingers posting here love to play semantic games. Sometimes it like chasing windmills.

          • JS

            Some on the left do it also.

          • jefe68

            Typical right wing misinformation and lies.

          • Jeff

            A 100% direct quote is what we call the truth. I didn’t realize English grammar was “typical right wing misinformation and lies”. I’m glad that you followed up your claim with all sorts of facts and sources…oh wait nevermind, it was a baseless statement…continue on, that must work really well among the liberals, point a finger and never follow up anything with actual facts.

        • http://neilblanchard.blogspot.com/ Neil Blanchard

          It takes it out of context – the infrastructure was built by others. All businesses depend on the infrastructure. Please refer to Elizabeth Warren for the original quote.

          • Jeff

            Just because he was talking about infrastructure doesn’t nullify the point he was making…he was suggesting that business owners don’t build something themselves and that infrastructure does most of the work for them. That’s still denigrating for the hard working business owner. He was attacking businesses and using infrastructure to do it.

          • JS

            NO, he was suggesting that a business needs infrastructure to succeed, not that it is the cause of success

          • http://neilblanchard.blogspot.com/ Neil Blanchard

            You are inverting what was said. The President’s phrasing was awkward, so that is why I referred to Elizabeth Warren’s original point.

            Businesses need to acknowledge that they depend on the infrastructure and the education system, and they cannot take it for granted. The government provides many things that we tend to take for granted.

          • OnPointComments

            President Obama’s quote is foolish whether it’s in or out of context. Elizabeth Warren’s quote is even more foolish than President Obama’s quote.

            Infrastructure is available to everyone. The educated workers are available to be hired by anyone. The police and fire departments protect everyone. The idiotic quote from Elizabeth Warren erroneously assumes that the person who built a business had an advantage that was unavailable to others. Warren’s assertion that “the rest of us” paid for the roads, schools, and other services ignores that the business paid those taxes too.

        • JS

          Yes, it’s a direct quote, but tell me what “that” is referring to when Obama said, “you didn’t build that”?

        • Government_Banking_Serf

          Its a dog whistle, par for the course….

          http://reason.com/archives/2014/05/15/a-dog-whistle-to-the-left

    • JS

      It’s hard to take you seriously when you purposefully only
      include half a quote:

      “If you were successful, somebody along the line gave you
      some help. There was a great teacher somewhere in your life. Somebody helped to
      create this unbelievable American system that we have that allowed you to
      thrive. Somebody invested in roads and bridges. If you’ve got a business — you
      didn’t build that. Somebody else made that happen. The Internet didn’t get
      invented on its own. Government research created the Internet so that all the
      companies could make money off the Internet.” – Obama

      • Jeff

        Here’s the line people remember…”If you’ve got a business — you didn’t build that. Somebody else made that happen.” That’s a direct quote and sure his overall point is about infrastructure but it’s still insulting to suggest that a small business owner isn’t 100% essential in starting that business…it doesn’t just happen on its own.

        • JS

          A direct quote taken out of context. “That” refers to infrastructure, and you know it.

          It was never suggested that a small business owner isn’t 100% essential, just that there are other things, like infrastructure, that are essential also.

          So, you know what “That” was referring to, yet you keep repeating the quote that takes the meaning out of context, why be dishonest like that?

        • TFRX

          “The line the people remember”?

          Wow, what a sucker.

          • Government_Banking_Serf

            That’s the beauty of dog-whistles, nobody has to own up, but the message gets out.

        • jimino

          Yes, people depend on agenda-driven propaganda rather than facts. Are you celebrating that?

    • The_Truth_Seeker

      Unless you run it all by yourself – you NEED all the other people that help you keep it going. So, you CAN’T Start, or keep building it yourself!! Pretty obvious, isn’t it? And who built the roads and bridges and telephone lines and electricity lines and who provides the police and fire protection. Do you contract and pay for all of this yourself? Are you going to pay for a new highway to go by “your” business??!! Selfish jerk!!!

      • X Y & Z

        This is a forum for civilized adults, since are incapable of acting like one or thinking like one, go back to playing in your sand-box Junior.

        • jefe68

          You might want to heed your own advice.
          Given that you seem to show little if any of the “civilized adult” qualities you are so quick to point out others are lacking.

          • X Y & Z

            That’s pretty rich coming from you. How many times have you called someone a ‘troll’ on this website? Do you think frequently calling others a ‘troll’ on this website as you have, qualifies you to lecture anyone else about being a civilized adult?

        • The_Truth_Seeker

          THAT’S not an (adult) response!! That’s the standard right-wing dodge (when you’ve been beaten by the facts)! That’s how an infant responds. Go find your pacifier, OK. You lost (again!).

  • http://pointknown.com Jim F

    I am entrepreneur and currently running 2 businesses. 2008+ was crushing. And now very gun shy to increase head count, doing more with less, and I think this hesitancy is reflected through all owners/entrepreneurs and most likely is now reflected with the population as a whole. generally being hesitant to move forward with bold plans.

    • The_Truth_Seeker

      Very tough to compete these days because of the worldwide (unfair) market and no respect for intellectual property anywhere.

  • Alex Brooks

    Mr Hennessey could no be more OFF POINT. I am a small business owner and started my second business a year ago. The single biggest impediment to starting a new business was lack of credit availability. If I had a regular paycheck – even a small one – I could have gotten a loan. But as an entrepreneur no one would lend to me – even with a successful track record. It’s easy to borrow money if you already have money, otherwise it’s a tough time right now. My entrepreneur friends and I have literally zero

    problems from ‘regulations’ – whatever he means by that euphemism
    .

  • twenty_niner

    Taxes are a red herring. The biggest problem I see is the cost for commercial/industrial space, which barely took a break during the depression. I see a lot crap industrial space going for $15.00-$20.00/sq. ft. / year with prices accelerating. We need to get commercial/industrial space down to $8.00-$10.00/sq. ft. Usually recessions allow ridiculous prices to reset, but the Fed did not allow this to happen this time.

    • Government_Banking_Serf

      “Usually recessions allow ridiculous prices to reset, but the Fed did not allow this to happen this time.”

      Of course, the market is the enemy. It must be “run” by good, wise people.

      • Jill122

        The market IS already being run — that’s the entire point of the post to which you are responding. Conditions that favor those in place don’t necessarily correspond to “free markets.” I daresay you’ve never met a “free market” in your life unless you do a lot of bartering.

        • Government_Banking_Serf

          Yes my sarcasm was ineffective… agree wholeheartedly. A real market would let those prices settle out. But as XY Z said, we are now in the era of Enlightened Dictatorship.

    • The_Truth_Seeker

      With the internet, you don’t need as much commercial space.

  • http://hlb-engineering.us/ HLB

    Rich Chinese everywhere! Come to New York City. And buy up all of our affordable living space. Drive those house and apartment prices sky high! Live high on the hog on public programs – streets, roads, sewage removal, water supply, electric power sources, education services – paid for by our citizens with no contributions of your own. We cheat our police, fire, social services employees, and the down-and-outters we try to take care of: and pass the savings on to you billionaire outsiders. Everybody wins!
    –Bill de Blasio, Mayor {Democrat party big wig}

    Feel free to kick an American.

    • Secret Person

      Not just rich Chinese. He meant low skilled, illiterate illegal immigrants. So as to overload the welfare system and jails. Welcome the “diversity”.

  • shoirca

    The idea that small businesses drive employment is a myth. Look it up!
    http://www.washingtonpost.com/wp-dyn/content/article/2010/09/14/AR2010091405459.html

  • J P Fitzsimmons

    If the goal is efficiency, and increased productivity shouldn’t we be celebrating the Amazons and Wal-marts?

    • Government_Banking_Serf

      Yes, as long as they aren’t benefitting from crony favors, but doing so interferes with the knee-jerk.

    • http://neilblanchard.blogspot.com/ Neil Blanchard

      They are shifting lots of their costs to society. About 80% of all Walmart employees get food support from the government, and they force people to work off the clock. They cut hours so they don’t have to provide healthcare.

      Walmart and Amazon are a race to the bottom, and they subjugate those who are working for them.

      • Government_Banking_Serf

        “About 80% of all Walmart employees get food support from the government”

        Highly unlikely, 80%, but if true not surprising when WalMart and society know they don’t need to pay employees because the government will.

        If there was less gov support, the employees would get real ornery, and I suspect, employers would pay, and/or honest unions (oxy?) might even get another look- the threat would help to raise pay)

        • Jill122

          Really?? In today’s labor market you think people would walk off the job even a slave wages just so they could starve faster?

          Where do you guys get these ideas? There can’t be any books, clearly you have no experience. Where! That’s what I want to know.

          You listen to millionaires who are looking to cut everything related to the government even as fellow americans are starving or going to bed hungry, working 40 hours a week, and surviving on food stamps if they can get them and food banks, and what? that’s good for them in your world?

          • Government_Banking_Serf

            People are not going to starve, laying down. Wal Mart will pay what they can get away with paying in the labor market.

            What is your point? Ban Walmart? Guarantee $40,000 salaries for mindless labor and have Walmart fail, which many would rejoice in, and then have less jobs?

            Yes, changing labor markets are tough.

            Trying to manage them top down, and the consequences are even tougher.

            Those who don’t like todays economy should still be demanding accountability from Clinton/Greenspan/Rubin/Grahm/Summers/ Paulson/Bush/Geithner/ and all their Rat string pullers on Wall St.

            Blow big bubbles so you and your cronies can get rich off them on the way up, and then stick the rest of us with the destroyed labor market, debt and inflation while you walk away scratch free.

            Crony Capitalism and corrupt/fallible Central Planners are the enemy, not an organic, free marketplace bounded by a transparent, stable, evenly applied Rule of Law.

          • Jill122

            And with so many people looking for jobs that’s exactly what Walmart is doing — paying what they can get by with and pawning those poor people off on the government to pick up the pieces.

            Surely you must know that food stamps were cut considerably in the last 45 days. People are losing their food money and still working for $7.25 a hour. No one has left their job, Walmart hasn’t stepped up.

            Answer: raise the minimum wage. In 1968 dollars it should be around $12.00 right now. Raise the wage so people can EAT, pay rent, pay utilities, get on the internet (YES, stay informed), buy insurance, take care of the car, gas, etc.

            You’re forgetting that ALL markets are regulated and the ones you want to skip are for the middle class and poor.

            When you draw your line in the sand to determine where you will begin your so-called “free market” experiment (cause we don’t have that now) it would be just plain nice (if not American) if that line would start at the top and not at the bottom. We’ve already socialized losses at the top. Profits of course are not.

            Let’s do a little more socializing at the bottom just to make sure that we TRY to even the playing field.

            Crony capitalism is happening, no denying it, but the egregious cases are Halliburton and Gilead and NCLB. Those people made gobs of money on blood and guts, oh, and school books and texts.

            What you’re pointing to are laws with, in most cases, unintended consequences. I’ll give you Gramm — sure. It’s almost too easy. But Clinton dropped Glass Steagall for crony capitalism? ummm, that’s a stretch for me.

            Is it possible that Greenspan is more mystic and less actual economist? Didn’t your opinion of him change when you found out he had a hopeless boy-nerd crush on the intriguing Ayn? I don’t know what he didn’t know. And he’s too inarticulate to tell us. End of list. Summers is below bottom.

          • Secret Person

            Again, nonsense from you. Minimum wage workers are 4.7% of hourly workers. It’s a job designed as entry level, as a stepping stone to a better job. If there is a disconnect between the min job and a better job then activists should be concentrating on that instead of insisting on upping the minimum wage. Idiots who are trying to raise a family on a minimum wage job have NO sympathy from me. If you can’t afford the kids then don’t have them.

          • jefe68

            Funny, Costco pays it employees a decent wage and has decent benefits and Walmart does not. And yet Costco’ workers are more productive and the turnover is less. Not to mention, they are healthier do to good health care benefits and very decent wages after 4 or 5 years.

          • Secret Person

            @Jill – you are clearly a useful idiot. There is no one starving in America – plain and simple. Obozo has expanded food stamps so much that even millionaires are qualifying. Perhaps there are too that are even more stupid than yourself that don’t even know about food stamps but that’s a very small minority. The real problem is the huge amount of fraud being conducted by immigrants involving food stamps, Medicare and Medicaid.

          • jefe68

            I guess that the one in five children going hungry today don’t count in your inane world.
            Some facts for dummies who post misinformation:
            The food insecurity rate for children nationwide is 21.6 percent. That number rises to almost three in ten kids for a long list of states including New Mexico (29.2 percent), Mississippi (28.7 percent), Arizona (28.2 percent), Nevada (28.1 percent), Georgia (28.1 percent), Arkansas (27.7 percent), Florida (27.6 percent), and Texas (27.4 percent).

          • hennorama

            Secret Person — no.

            The real problem is your attitude and insulting remarks, and ignorance of factual reality.

      • J P Fitzsimmons

        Some new firms make their mark through increased efficiency, e.g Amazon and Wal-mart. These firms reduce the number of jobs and make the labor market more competitive. Other businesses pick up the excess labor by identifying and serving new market needs. So we actually need both types. The Amazons increase the standard of living through increased productivity which we do want but you need other types of new firms to provide opportunities for the excess labor. The problem is the latter is not keeping up with the former, hence, government has had to step up with benefits to help both the unemployed and the Wal-mart workers who can’t survive on the low pay.

        • http://neilblanchard.blogspot.com/ Neil Blanchard

          Efficiency is one thing. Beating down your suppliers and employees is another thing.

          • TFRX

            Yep. At one time weren’t four of WalMart’s top ten suppliers in bankruptcy?

            Creative destruction, indeed. I have no problem with it in the abstract, but it’s totally at odds with their giant PR push and all of their advertising.

  • Government_Banking_Serf

    Can we just nationalize the economy, put Summers, Paulson, Rubin, Geithner, Bernanke, Greenspan on the Committee and enjoy easy street already?

    • http://hlb-engineering.us/ HLB

      How about a party for these guys on Gibbet Street? Hoober Doober

  • Jeff

    Reasons for lack of entrepreneurship: Highest corporate tax rate in the world, New regulations (i.e. Obamacare), Threats about tax increases (which did happen), Crony capitalism (tax credits for special interests…like GE paying no taxes) and special interests using government to prevent innovation (hotels, taxi companies, Comcast, etc.).

    • JS

      Highest corporate tax rate in the world on the books, but the amount of Corporate taxes PAID is a lot lower than the actual rate.

      • Jeff

        Sure, that helps established businesses that lobby to keep their tax rates down…the small business owner gets screwed, which discourages someone from starting up a business.

        • Government_Banking_Serf

          JS, this is where you say “fair point Jeff” and admit that fighting against crony capitalism as carried out by Ds and Rs in DC forever is probably more important than broad calls for more taxes to feed the D machine.

          • JS

            Sure. It’s also more important than broad calls for tax cuts too.

          • Jeff

            I don’t know of anyone asking for broad “tax cuts”; almost everyone suggests that we need tax reform with lower rates and fewer deductions/credits…which would result in higher tax revenue. It just creates a more efficient tax code with fewer loop holes.

          • JS

            I know of many people asking for broad tax cuts. Other than that, I agree, and as soon as it is implemented, the people who can lobby will do so, and get their tax breaks back anyway.

      • hennorama

        JS — not to mention that relatively few entrepreneurs start off using a corporate structure.

  • Mark in Ohio

    I think that the answer to your question depends on the type of entrepreneurship you are looking at. A chef may be hampered by the local and state health regulations driving a huge up-front cost for a kitchen. An engineering firm may be stopped from forming by the huge costs for software and commercial standards documents needed to do the job. The availability of money is a big factor for many.

    Also, in my experience our society does not give you much chance or credit for trying something and failing. If you try to fly on your own and fail, you are probably going to have a LOT of trouble getting back into the regular job screen. “If he was a manager, he won’t be happy working for me.” is just one of the comments you’ll get.

  • http://neilblanchard.blogspot.com/ Neil Blanchard

    Healthcare is another major force that limits new businesses. We’ll see if the ACA improves this enough to help, but if you have to work for someone else to get health coverage, then you won’t start a business.

    • Reuben

      This was the exact point I was going to make!

  • adks12020

    Personally, I don’t want ANYONE driving a car while using Google Glass.

    • StilllHere

      When else am I going to catch up on my soaps?

    • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

      You won’t have to worry about it because soon you will be able to watch tv and surf the internet in a contact lens.
      There is no way to regulate personal freedom when technology is indistinguishable from magic.

  • X Y & Z

    “If you like your health care plan, you can keep it”.
    (President Obama)

    Why would any investor want to invest their money in this economy when the one who is leading it, is telling bold-faced lies like this?

    • Government_Banking_Serf

      Trust as a prerequisite for representative self-government, equally applied Rule of Law and a stable and predictable playing field?

      Thats so………….1700′s!

      • X Y & Z

        We’ve progressed in 2014 to ‘enlightened dictatorship’.

  • KimBailey

    I wonder that the ‘decline’ of entrepreneurship is most related to the decline of the middle class. There is not disposable income to support high school and college age folk inventing in their parents’ garage, ie Bill Gates, amongst many others.

  • John_Hamilton

    I went through a program in Web design in the late 90s. One teacher (who ended up getting fired for corruption – another story) kept saying in class that “Moore’s law” stated that all knowledge in the computer industry doubles every four years.

    After hearing this the umpteenth time I asked him one day what twice the knowledge meant. He couldn’t answer, and got angry, just repeated that it was Moore’s law, and law is irrefutable and to be obeyed.

    Yuk. Now we are at the point where the absurdity of the “law” should be obvious. If knowledge doubles every four years, then what results from the knowledge should also double. We should have 2(Facebook) every four years, 2(Twitter), 2(Apple), 2(Google), 2(Microsoft) and 2(Samsung). Ad infinitum.

    We actually DO have a multiple of “knowledge” over time, and faster than double every four years. The NSA has ever-more capacity to spy on us, zealously delving into every aspect of our beings. They could eventually know EVERYTHING possible about EVERYONE who has ever existed, and ever will. Even people who never existed and never will. Animals too. Plants. Rocks, dust, figments of our imagination. Maybe it should be called Clapper’s law.

    • OrangeGina

      Moore’s Law is a real thing. The instructor was just applying it to the wrong thing.

    • twenty_niner

      “Moore’s law” is actually much simpler – the number of transistors in an IC doubles every two years.

      • John_Hamilton

        That’s funny. I’ve heard the same thing on Charlie Rose as the teacher said. They talk all this lofty stuff without knowing what they are talking about. The Web Design teacher got mad because he didn’t really know what the “law” was, just “knowledge” doubled every four years. I knew he was full of cr@p.

        • twenty_niner

          I always thought Keynes was full of sh%^t. In my view, similar to the Austrian School, you increase aggregate demand by inventing new stuff that people want to buy, not flooding the system with cash.

          There are pictures of people waiting around the block to buy iPhones at the peak of the recession when supposedly no one wanted to buy anything. The fact is, no one needed another big-screen TV and SUV.

          And that’s the problem bubbles. People stop innovating and they start flipping houses or day-trading stocks or inventing ridiculously useless web sites, whatever the bubble de jour demands. In the end, you have a lot of time and money spent on things no one really needs or wants.

          “it is presumed that the system can grow forever”

          I think this will be true over the long term. Humans will eventually get off the planet and build strip malls in other parts of the galaxy.

          • John_Hamilton

            And toads can fly.

  • creaker

    The major thrust of entrepreneurship has shifted over the past generation. People aren’t out to create businesses that will expand and grow and compete against other businesses. They are out to create “the big idea” that will be scooped up and bought out by the big players. And the big players are using regulation to make it impossible for small scale businesses to gain a foothold where they could compete with them.

  • creaker

    One issue is there isn’t much money left on main street – local businesses are not going to succeed selling each other cheeseburgers.

    • Government_Banking_Serf

      We need food, clothing, shelter. The rest is icing. We can do a lot of that in local markets if people are willing to work. The icing is fine, but you can’t live on icing. We are finding that out.

      • creaker

        So capitalism at a local level ends with poorly paid people shopping for the minimum at poorly stocked dying businesses. Sounds more like the Soviet Union.

        • Government_Banking_Serf

          I’m all for further organic growth of the economy when real value is produced. The Fed flooding the market with cheap money fueling all sorts of bubbles and malinvestment schemes that lull us into false senses of prosperity and false expectations doesn’t count.

  • Government_Banking_Serf

    We should nationalize Wal-Mart, Home Depot, Exxon and Burger King.

    • StilllHere

      It would be great for their competitors.

    • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

      No. Just the oil companies.

  • Government_Banking_Serf

    Creative Destruction.

    Apoptosis.

    Autophagy.

    Composting.

  • ABDaigle

    I just wrote a paper on local small business for The Lean Urbanism Project ( http://leanurbanism.org ) and researched the small business landscape extensively. The number one issue for retail is the online seller that pays no taxes; Unfair tax code / public state and local policy/incentives that favor the big guys is in general the #1 small business issue. Consolidation engenders political and regulatory preference for “big” at all levels, including lobbying for regulations that stack the deck and give preference to corporates and access to small capital. Under $250K loans have disappeared and big banks only provide 16% of small loans while they simultaneously gobble up regional & local banks, our primary small business lenders. Even the SBA has “enlarged” their definition of small business. Minorities and women are disproportionately and negatively impacted, of course.

  • Government_Banking_Serf

    Really, I think we are just still shell shocked and afraid, in the wake of the Wall St./Washington Financial Bubble Crisis in which 0 elites have been held accountable.

    Their is 0 trust and faith in the system.

  • Human2013

    Walmart will start selling auto insurance….where does it end. Any decent tech start up has been bought by big business…of course it’s big business.

    • X Y & Z

      Why don’t you try asking Hillary (don’t ask me about Benghazi) Clinton and Michelle Obama?
      They used to be on the board of directors for Walmart.

      • John_Hamilton

        Maybe, but it was just for window-dressing. Walmart will do what it does regardless of what any facade board member says or doesn’t say. O.J. Simpson was on several boards of directors. I doubt that he had a thing to say about how those companies operated – just gave them a celebrity face.

        • StilllHere

          Maybe, but it was just for window-dressing for Hillary (don’t ask me about Benghazi) Clinton and Michelle Obama. It gave them credibility they still lack.

  • Scott Shultz

    This is my idea of what’s happening: Health Insurance costs have sky rocketed, therefore hindering would-be entrepreneurs from taking a risk. I think it’s safer and less expensive for people to remain with companies than striking out on one’s own. If there was an affordable way to mitigate the risk and overwhelming costs, then we’d see a re-institution of the entrepreneurial spirit.

  • http://hlb-engineering.us/ HLB

    Poker works because players have to ante. Sometimes they have to ante blind* {see the rules for Hold ‘Em}. All societies face uncertainty: buy-in shares that disadvantage among all of us.

    When citizens pay taxes and freeloaders don’t, that “system” is broken. Is it a surprise a broken engine doesn’t propel the vehicle down the road?

    * Without knowing what you’ve got going in.

    • Government_Banking_Serf

      How dare you! Thats racist.

      • http://hlb-engineering.us/ HLB

        Realism is not a crime. Not yet, anyway. Hoober Doober

        • Government_Banking_Serf

          Speaking Realism will soon get you ousted from your job. You will be hash tagged out. Harshing the narrative cannot be tolerated, and the progressive twitter troops, while perhaps useful idiots, are willing to serve.

    • jimino

      I agree.

      We need to deport the corporate persons who make their money by operating in foreign countries and let them live in those locales rather than enjoy the fruits of US citizenship. They show no allegiance to our country anyway.

  • Blue_To_Shoe

    I know exactly why: as stated on today’s show – stifling of competition through abuse of regulation by establishment businesses!!!!!!!!!!!
    The problem with declining Entrepreneurship – like many of the problems facing our Nation over the last generation – is due to the same thing: the nationalizing and spreading of Southern class (Oligarchy) values through pop culture ‘Conservatism’!
    Conservatism, here in deep south, and adopted by this Nations ruling economic elite classes through media such as FoxNews (not News), is about maintaining that class dominance over all else!

    A prime example:
    Here, where I live, in the deep south, in the 90s, there was this HUGE influx of NEW, young, 20-something entrepreneurs, in wake of the new entrepreneurship culture of the ‘Star Bucks’ coffee generation.
    We’re talking restaurants, coffee shops, book shops, art shops, etc. – just an amazing array of new cultural experiences.

    Unfortunately, rich Republicans, whom own almost everything and have near-absolute power in the south, feared the competition of this new economic class – because money is power!
    So…rich Republicans down here, used REGULATION and OVER-PRICING of resources needed by these new entrepreneurs to operate, to basically “run them out of town”!!!

    • harverdphd

      Nonsense…

      • The_Truth_Seeker

        Not totally. That’s how the cable companies operate. If a new start-up tries to move in on their business, they take them to court and keep them there – forever!

    • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

      If that is true, I would be very surprised, since the rest of the country is overrun with progressive values.

  • http://hlb-engineering.us/ HLB

    If you continue to vote for fools, who’s the real chump at the party?

    • http://neilblanchard.blogspot.com/ Neil Blanchard

      This is the issue with the GOP at the moment. The race to the right has short circuited the ‘real’ political process.

      But we digress …

  • Government_Banking_Serf
  • Government_Banking_Serf

    What is the mother of all Invention?

    • StilllHere

      The government?

    • jimino

      Let’s see . . . Is it:

      Demand for the product and widespread ability to buy it ?
      or
      Low marginal tax rates on the highest incomes?

      • Government_Banking_Serf

        I think you’re on to something! Lets have the Fed continuously print money, give it to all of us so we have the “ability” to fulfill our demands. Think of all the jobs that would be produced for those making the products we demand!

        This also helps us with “job liberation”! Since the Fed directly gives us money, we can work less. The connection between wanting things and having to work for them can finally be broken!

        Why hasn’t anyone thought of this before?

        I fear there is some “magic”in this plan… but…. I think I’m being paranoid or just stingy……it should all work great!

        • jimino

          No, you are being purposely (I hope) stupid and misstating what I said to try to make some sort of point. What does the fed have to do with what I said?

          Does demand for a need to be filled or low marginal taxation of high incomes have more to do with fostering invention? It’s not a hard question to those who have basic comprehension skills.

    • jefe68

      Frank Zappa.

      • Government_Banking_Serf

        Frank Zappa on Crossfire

        http://www.youtube.com/watch?v=uKLxCiIb-uU

        Frank Zappa Libertarian?

        http://the-libertarian.co.uk/frank-zappa-10-great-quotes/

        “Asides from his music, Zappa was known for his outspoken unconventional and iconoclastic views. He was strongly critical of establishment culture and society in the mid twentieth century. This manifested as criticism of mainstream education, values and politics, as well as organised religion. In addition, however, he was also critical of the 1960s counter culture and left-wing thought, which he viewed as naive and “silly”. He opposed communism, and described himself as a “practical conservative”.”

  • anne sweeney

    Ever since companies did away with Franchise Agreements and Dealer Agreements. Manufacturers have called all the shots, they have established complete monopolies, which is why Elizabeth Warren was elected. Let’s see what she can do, to bring back regulations in retail, fair trade and opportunities for small businesses to re-emerge again.

    • StilllHere

      With the internet, manufacturers can go directly to the customer, no need for inefficient middle men like franchisees and dealers.

    • Secret Person

      Lying Lizzie Warren is a limosine liberal.

  • jimino

    There is no dearth of “entrepreneurship”, but much of it, eg in the tech sector, has little need for labor and creates almost no jobs.

    Coupled with the fact that the main innovation in modern business practice is “increasing efficiency” in labor costs (translated: destroying good-paying US jobs), which has become the primary driver of increasing business profits, who the hell cares?

  • Sy2502

    Starting a business requires taking large risks. Our society is becoming risk averse in many aspects. I wonder if that has anything to do with the problem.

    • hennorama

      Sy2502 — perhaps.

      Of course, keep in mind that many were burned in the Great Reccession, after taking relatively small risks, such as buying a home, and investing in stocks, which were considerd to be paths to future security, and highly recommended.

      OTOH, we see a significant rise is risky behavior such as extreme sports, which are also widely popularized.

      • Sy2502

        I am not sure I agree with you on the rise of risky behaviors. If anything the only thing we haven’t done to our kids is cover them in bubble wrap, that’s how overprotective parents have become. Those a few years older know what I am talking about.

        • hennorama

          Sy2502 — thank you for your response.

          Indeed, overly protective “helicopter” parents are an issue.

          Adding to my point above, not only were those who chose to take the relatively small risks of homeownership and stock market investment impacted by the losses they experienced, so were all of those close to them (children and other family members, friends, coworkers, etc.), as well as society at large.

          Thanks again for your response.

          • Sy2502

            Well, certainly if growing up you witnessed the crash of your parents’ finances, that will probably not encourage you to take the same path in life and risk the same crash. You do have a point there.

          • hennorama

            Sy2502 — Hey! We both made and acknowledged good points!

            Is this a Sign Of The Apocalypse?

          • Sy2502

            Could be… :)

          • The_Truth_Seeker

            Those aren’t small risks! They are medium to large risks, depending on the parameters involved.

      • The_Truth_Seeker

        They weren’t taking “small risks” – they were “gambling”, pure and simple. Everyone was gambling their house values would double within 5-10 years. It was stupid, but everyone bought it. It’s also called “greed” not reasonable risk taking. It was also called lying about your income and fooling oneself about ones worth.

        Stupidity and greed have nothing to do with informed and educated risk taking. If you don’t know about how real estate investment works, you shouldn’t get into it. If you don’t know your market, you shouldn’t start a business in that market. People need to get the education and background they need to succeed – it’s not just a matter of motivation. You have to pay your dues, but then get rewarded for doing so (i.e. get a decent wage at least).

        • TELew

          Actually, I think a lot of the people who invested in the housing market were buying houses to live in which they could not otherwise afford. Government loans financed the venture, and those who were making money on the loans provided the propaganda–a new house was a “secure” way to invest your money, and you would make a hefty profit from its sale when it came time to retire. And of course people jacked up prices during the frenzy of the “housing bubble,” and the realtors made a hefty profit.

          I feel very fortunate to have dodged that bullet. As someone who has rented an apartment for the past 27 years (not because of choice but rather economic situation–student loans and a job that pays well below my educational level), when I looked for a house all I found for less than $100,000 were prefabricated homes (glorified mobile homes) and run down old houses. And I live in Arkansas!

          • The_Truth_Seeker

            Well, that might be your first mistake – living in Arkansas! Have you ever considered moving to another state (or country)?

          • TELew

            Not really.

            Arkansas has lots of things to recommend it. Not particularly harsh winters, little urban sprawl, beautiful parks, and generally decent people.

            People who hold such opinions generally have not been to Arkansas. Yes, the people are too conservative as a rule, but it’s not that different from most of the Midwest. And even “liberal” states in the northeast and west have their share of diehard religious conservatives, whether they be Protestant fundamentalists, conservative Catholics, or Mormons.

          • The_Truth_Seeker

            I’m a scientist – they’d probably KILL me!
            Don’t think I’ll risk it :-)

            When they finally join the 21st century, I might change my mind.

          • TELew

            Well it’s your loss, not ours.

          • The_Truth_Seeker

            I was mostly joking! Might visit some time. Arkansas has made some great progress and I’ve heard it has lots of tourism, so good for you.

    • The_Truth_Seeker

      The rich have ALWAYS been risk averse. The popular notion that venture capitalists are willing to take large risks on start-ups, is just a myth. They are unwilling to risk much of anything on start-ups (and they have some pretty good reasons not to). The easiest way to make $10M starting with just $1M, is to be frugal and take very few risks with your money, just have some patience. That’s how Warren Buffet did it (he still lives in the same modest house he always has).

      • TELew

        Actually, the easiest way to make $10M with just $1M is to donate to political campaigns and then ask for favors.

        Look at how George W. Bush did in the deal to build a new stadium for the Texas Rangers. Get the city to vote to finance the building of a new stadium then receive all the profits from the stadium.

        That is one of the few ventures of GWB that did not go south!

        • The_Truth_Seeker

          That’s true too!

      • Sy2502

        Silicon Valley is the proof you are wrong.

        • The_Truth_Seeker

          Nope!!! Even there, venture capitalists probably invest less than 2% of their money on start-ups that only have a proof of concept and no revenues (or patents) yet. Real start-ups usually have none of the above. There are literally 1000′s of people in Silicon Valley that may have good ideas, but they won’t get any money from the “sharks” (and ALL VC’s are sharks!).

          Research what VC’s themselves say what they are willing to invest in and what kind of people they invest in (it’s not inventors). Another rule of VC is that they bet on the “jockey” not the “horse”, meaning that they want a good management team in place and don’t really care much about the guy/gal with the ideas. That means most inventors will NEVER get a cent from a VC (without having a good team behind them).

          • Sy2502

            VC are not charity organizations. Would you give large amounts of YOUR money to every nobody that comes knocking at your door? I think not. It seems obvious.

          • The_Truth_Seeker

            You said I was wrong, that Silicon Valley DOES fund lots of “start-ups”!! By definition start-ups are not much more than proofs of concepts – ideas. They usually start in a garage (like Apple and HP). VC’s don’t invest in most of those kinds of start-ups. They prefer university projects that have already gotten millions in funding from the government and elsewhere. Google started at a university. Talk to the thousands of people that haven’t gotten a dime from Silicon Valley (don’t just look at a few dozen who did).

          • Sy2502

            I don’t understand what you are disagreeing with. There are 2 extremes:
            - VC funding nobody who asks
            - VC funding everybody who asks
            Somewhere in between these lies reality. A VC will fund businesses that seem to have a future. Again, would you sink large amounts of money in something you pretty much know will tank? It would be silly. Nevertheless since there are plenty of good ideas that get funded, the assertion that VC don’t give fund to anyone is incorrect. And yes it does take much work on the part of the business starters to market their ideas and make them attractive.

          • The_Truth_Seeker

            “VC will fund businesses that seem to have a future”

            Yes, if proven by revenues, or by having a “killer” management team, lead by professionals, or at least competent people! They DON’T give money to inventors who don’t have business experience. They will never do that! Besides, VC’s are terrible people to deal with and will rip off anyone they can. They prey on the desperate!

            I prefer to let investors come to me, it’s a whole lot easier that way and I actually have some leverage then :-)

          • Sy2502

            Not true, I personally know several people who got VC funding without business experience. I don’t know if you have had a negative experience and now are hastily generalizing, but that’s what it sounds like. While I am sorry about your negative experience, being disgruntled tends to invalidate your opinion on the subject. I am glad your business worked out anyway.

          • The_Truth_Seeker

            What kind of “deal” did they get? Who got rich and who did most of the work? Were they fired from their own company? Did they keep a controlling interest?

            If they made out well, then good for them. Most VC funded ventures fail, and when they do, you don’t get to get the company (or its IP) back – it’s gone for good. Also the “definition of failure” is “when the VC’s SAY you have failed”, not when you agree you have failed. This is usually decided within 1-3 years. You don’t get 4 years!

            The only way I will even talk to a VC is if they come to me. It’s never going to be the other way around.

        • The_Truth_Seeker

          Silicon Valley almost exclusively invests in a narrow range of fields (primarily computers, phones, software and maybe some alternative energy). They are not big on new manufacturing technologies, or factories, or ANY technology which might take more than 3 years to perfect, or commercialize. They want to get their money back within 3-5 years – at most. They are not in anything for the long haul – they don’t get emotionally attached to anything they get involved with – it’s all about the money. They don’t want to help find a cure for cancer, for instance.

          • Sy2502

            Yes and plenty of people, including very young people, have had interesting ideas and have made business (and money) out of them. If nobody wanted to invest in anything, these people wouldn’t have gone anywhere.

          • The_Truth_Seeker

            No lots of start-ups have never taken a dime from VC’s (i.e. sharks). I have been successful for over 30 years and never asked anyone for a penny. I own 100% of my business (and its in technology too). Sometimes if you accept money too soon, you will lose most of what wanted to achieve. Lots of innovators “bootstrap” their business, with very little money (sure you need to have some, but not necessarily $1M).

          • Sy2502

            Also true, especially in the high tech age you don’t need a huge upfront investment for a startup, as long as you have enough money for living expenses for a while. It depends on the business of course.

  • tbphkm33

    Its sad, US small- and medium-sized manufacturers are recognized to make quality products second only to Germany. “Made in USA” actually does have an edge around the world. Unfortunately, government at the state and federal level’s fail these companies in providing effective export assistance. Trade officials tout a lot of made up statistics and try to hitch their wagon to anything that looks like its moving in the right direction. Reality is that politics and personal ambition of bureaucrats focuses US international business development toward large corporations. The SME’s are left with scraps and idiotic feel good programs. On the west coast they focus on Asia, east coast its Europe, the south its Latin America. All without regard to where the actual best markets for any one manufacturer might actually be.

    With a larger market to sell into, entrepreneurs might well be doing better.

    • The_Truth_Seeker

      Americans have little to offer, unless it’s new and/or better. American labor will be in even greater trouble within a decade (when the robots come).

  • Secret Person

    You know, this isn’t difficult. We’re getting to the same problem that Europe has. When the welfare state gets too comfortable then people decide to be less productive. It’s really sad, when in France, the young decide that they they want a job in the public sector because of the pay, benefits, and the fact that they can’t be fired is the reason why they want that particular job. The French demonize businesses and making money and makes it almost impossible to fire an employee and what happens is that businesses are loathe to hire and the citizens are loathe to start businesses. When we make lower skilled jobs too comfortable and regulation too strict then people will stop wanting to improve themselves for higher wage jobs.

    The left wants to redistribute wealth. There will be those who are so ambitious and smart that they will ignore the attraction of the welfare state but those are the very few. The many, who would previously have made the effort to get higher education or more training and would have ended up in the middle class will very well say to the wealthier due to leftist influences, “You’re ripping me off, you OWE me because of and demand more money to support them. It’s very prevalent among the underachieving hispanic and black minorities who seem to feel that getting a high school diploma is too high a goal.

    I’m not totally unsymapathic to the move to redistribute wealth, the idiotic Kardashian clan comes to mind as a group that provides absolutely no value to society and should be shorn of its wealth but to strip wealth from engineers, physicists, and scientists is wrong. Those who teach ethnic/gender studies YESSSSSS.

    • tbphkm33

      Another rambling by a Nopublican – “the communists are coming” and “death to socialism.” Was not true from the 1950′s through the 1980′s, and is not true today.

      Society has a responsibility to individuals – and individuals have a responsibility to society. Nopublican’s chose to live in a fantasy reality where they only have responsibility for themselves… well, until its their disaster relief or social security that is on the chopping block, then they are more than eager to join in with society.

      Conservatives, stop being psychopaths and sociopaths – your head in the sand routine is helping no one.

      • The_Truth_Seeker

        Maybe they could create factories to make even more guns! Seems to be the main thing they care about.

    • TELew

      There is also the fact that small startup businesses cannot compete with large corporations such as Wal Mart etc. that import goods made with very cheap labor and sell at very low prices.

      I think that may even be a little–or maybe a lot–more important than some mythical “welfare state” ethic.

      • The_Truth_Seeker

        Welfare state is the usual code for “Black”.

    • hennorama

      Secret Person — what nonsense.

      One suspects your true colors are showing through in the following words that you wrote:

      “It’s very prevalent among the underachieving hispanic and black minorities who seem to feel that getting a high school diploma is too high a goal.”

      If you hear something calling, it’s the rock you crawled out from under.

    • jefe68

      Nonsense. Nothing else to say really as comments of this nature are nothing short of bottom feeding diatribes.

      • The_Truth_Seeker

        Yup, your right! Most of the ignorant people of the world grew up in the Southern (Red) states!!! The smartest people actually live in Europe.

    • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

      YOU ARE WRONG.

      The problem is the poor have no socioeconomic ladder!
      If the poor had a chance to get rich, had a chance to get a business loan, they wouldn’t have to settle for those cushy public jobs you speak of.

      Being poor causes people to be less able to make good decisions, creating a vicious cycle. This has been proven scientifically.

      Those with some capital to launch a start-up are doing fine!!!

      Add to that what jimino said below about how start-ups are super-efficient and don’t create jobs.

      • The_Truth_Seeker

        I didn’t know working at McDonalds was a “public job”! Didn’t know that 50M people working for less than $10/hr are doing “cushy public jobs”!

        You don’t know anything about creating new jobs in America – it requires capital and innovation. We have enough hamburger jobs. You can’t go from the bottom to the top without luck anymore. There is no way to do it. If your car breaks down, you might be out of job. If you miss 3-4 payments on your house, you might lose it and be on the street. People born affluent don’t have any of these problems. They can be on drugs and still get great jobs, because their mommies and daddies make sure they get them. Poor people don’t get breaks like that – they get sent to jail for a long time.

        Your are TOTALLY delusional about how people get from the bottom to the top. Very little has to do with working hard – and you know it! work. Lots of people work more than 60 hours/week and can barely pay their bills. There is no level playing field in America, if there ever was one.

        • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

          “Secret Person” mentioned “public jobs” SHlTHEAD…

          Not sure what you are disagreeing with, since I DO share most of your views!

          • The_Truth_Seeker

            Put in wrong place!

          • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

            Yes, you did put your comment in the wrong place!

          • The_Truth_Seeker

            I did apologize, right?

          • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

            To whom, for what purpose, when???

            What, exactly are we talking about?

            You’ve lost me.

    • The_Truth_Seeker

      Exact opposite of what is true!!! Only the rich have an incentive to make even more money. How can a student that owes $100K do anything in America, anymore??!!! Sure, maybe 1/1000 will get lucky, but that’s about it.

    • The_Truth_Seeker

      The rungs of the ladder have now been almost all removed. You try to start from were we are now and see how far you get. One illness can still completely wipe out 10 years worth of effort. If we had a more socialist system, no matter how much you’re illness might cost, your health wouldn’t hold you back. Same goes for free education and a grant system that was based on a lottery, rather than “connections” and cronyism (the way it always has been).

    • The_Truth_Seeker

      I didn’t know working at McDonalds was a “comfortable job”! Didn’t know that 50M people working for less than $12/hr are doing cushy “public sector” jobs!

      You don’t know anything about creating new jobs in America – it requires capital and innovation. We have enough hamburger jobs. You can’t go from the bottom to the top without luck anymore. There is no way to do it. If your car breaks down, you might be out of job. If you miss 3-4 payments on your house, you might lose it and be on the street. People born affluent don’t have any of these problems. They can be on drugs and still get great jobs, because their mommies and daddies make sure they get them. Poor people don’t get breaks like that – they get sent to jail for a long time.

      Your are TOTALLY delusional about how people get from the bottom to the top. Very little has to do with working hard – and you know it! work. Lots of people work more than 60 hours/week and can barely pay their bills. There is no level playing field in America, if there ever was one.

  • Julia

    Sure, put the blame on millennial’s laziness /disinterest, ha! As one, I can say I am hard working, and am in the process of trying to start my own business. Many of my friends are also hard working, and some have already attempted to start their own businesses. We use the internet to our advantage via Etsy, and other social networks so that is not our issue.

    However, we all realize how much money, time and energy is needed to start a successful company, and realize that rushing into a small business without proper capital could spell failure. Instead, we have prioritized where our money goes to take care of the debt we currently have (i.e. STUDENT LOANS). Don’t forget we are burdened with debt beyond what any previous generation has faced.

    So when people ask why we aren’t as willing to move, purchase homes, start businesses, etc., instead of blaming us for being lazy, think “do those things take capital?” If so, its probably due to our lack of any!

    • tbphkm33

      You nailed it – lack of capital is a major obstacle. I would add a lack of knowledge of how to go to market – or at times, an over confidence in one marketing approach.

    • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

      YES!!! I am also a millennial and second that.

      I am hard working, I have documents and documents, so many business plans, so many hundred million dollar ideas, unlimited intellectual capital.

      Even to put a project on Kickstarter requires CAPITAL to create a professional-looking pitch!

      I also have absolutely ZERO hard capital.

      Society Needs Binary Economics. Cooperative Corporations, Employee-Owned Firms, Left-Libertarianism.

      • hennorama

        Alchemical Reaction — do what virtually all people in your situation have done through history:

        Beg, borrow, and steal.

        Just try to keep the last one to a bare minimum, OK?

        • The_Truth_Seeker

          You never want to beg rich people – they will make sure it’s demeaning!

      • The_Truth_Seeker

        We need a new way for people to be able to cheaply get good protection on their ideas – then they can raise capital based on the knowledge that others can’t just rip them off.

    • The_Truth_Seeker

      Only option is figuring out how to do EVERYTHING on a shoestring budget. It’s possible more than you might think at first, but it certainly isn’t easy to do, or always successful. At least if you fail, you won’t be in even more debt and you’ll get to keep a LOT more of your “sweat equity”. Oculus Rift proves you don’t have to make a dime of profit to be very richly rewarded (if you’re lucky that is)!!!

      • TFRX

        Everything on a shoestring budget?

        That’s totally at odds with the numbers which reveal how many small businesses run out of capital before becoming moneymaking. When “not enough capital” is about the biggest mistake someone makes, your advice is off kilter.

        • The_Truth_Seeker

          I have done it many times!! I file my own patents, including all the drawings, for instance (saves me at least $12K/patent). I write my own software and build my own machines. If I have to, I invent temporary tools to help me do what might cost 1000′s to contract out to shops.

          Sure, it’s hard, sure it’s not really fair, sure some people get lucky and have things a lot easier, but what are you going to do if you’re not one of the lucky ones? – give up? Everyone knows that having money allows doing things faster and easier, but if you are going to let the money problem stop you, then you have already accepted failure, because you are unlikely to get the amount of money you think you need, or deserve.

          Investors aren’t going to throw money at an “idea”, no matter how good it might look. They will only invest “real money” when the idea starts making money that they can count on. Investors don’t care about making things easy for you, or even paying you a salary – they want to see you “willing to sweat blood” and go without food and water and sleep. If you’re not, then they can find others that are. If you are waiting around for money to hire lots of people to help you – you might as well quit right now!

          Yeah, it’s true, there isn’t enough money from the economy being put into start-ups, but that’s not really new and we know that’s a big problem. But how are you going to force people to give you money? It’s always been tough to get money but now it’s just even harder.

          If you are really determined, you can do some amazing things with $1000 (now that we have the internet). I have build things with $1000 in used parts, that would have cost me $50K to buy new. I worked for companies that spent $1M (including buying new equipment), when they could have gotten the same results contracting it out for $100K.

          Problem solving INCLUDES solving the problem of not having enough money to do what you want to do. If you don’t have enough money, you have to substitute more sweat.

          If you don’t have money, but still want to be an entrepreneur, then you have to develop the mental fortitude and stamina of a Navy Seal. You also have to be able to handle some of the “psychological torture” and stress that comes from initial failures.

          Here’s how I approach financial problems that get in my way and threaten to sink me – I DON’T QUIT, I DON’T ACCEPT FAILURE, I FIND A WAY (and I eat lots of pasta).

          • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

            Finally, someone who speaks English.

          • TFRX

            Please continue extrapolating your precise luck and experience to everyone.

            Really, just get someone to read my post to you.

          • The_Truth_Seeker

            Those are the “failures”! I am talking about what it takes to be “successful”, even where money may be lacking! If you want explanations for failure, then there a lots of them (including lack of government support – like in China).

          • The poster formerly known as t

            Being able to work for yourself is a privilege. When it comes to entrepreneurialiship, someone is paying you money while you’re not earning a profit. That is a privilege. Tell, me who are your investors? Who keeps throwing money at you for you to lose?

          • The_Truth_Seeker

            That is a VERY STUPID question!!! Obviously if I am still in business, I have made a profit and continue to make a profit and to start with I used my own money that I saved over 15 years of hard work for others. Entrepreneurship is NOT a “privilege” any more than anything else in life is a privilege. Is doing art a privilege if that’s what you chose to do? How about music? How about farming (just to support yourself – not to get rich)? Are you talking about how entrepreneurship might be looked at in a communist country (i.e. a privilege and luxury that most people can’t pursue)?? Are you saying that unless you get lots of money from some “fairy god investors”, you can’t start a business, or you can’t do much of anything? Have you heard of Kickstarter? That’s a new alternative source of start-up money (if you didn’t save your own money) that wasn’t even around when I started. I didn’t ask anyone for money to start with (and did all the work myself).

            The system is what it is for now, so you have to work with what you have (and try to change the system so that it is more fair for everyone, and everyone has a chance to succeed in the future). Our current system is clearly tilted in favor of the rich, so if you’re not, you have to fight a lot harder, to get a place at the table.

  • tbphkm33

    I work with a lot of SME’s on international business development – a critical element I have seen is for the inventor or founder(s) to step back and hire business people to run the company. Without that step, most companies hit a wall where they do not seem to grow any longer. Often it is simply that the individuals who started the company are too vested in the company to make clear business decisions. Especially when changing market conditions finds them incapable of refocusing.

  • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

    I WANT to take the risk but I have no HARD capital, only intellectual capital.

    • The_Truth_Seeker

      You probably don’t even have that, without at least 2-3 issued patents and the resources necessary to defend them (like $1M+)

  • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

    We need Binary Economics!

  • Guest

    SHlT

    • hennorama

      Guest — please don’t make me feel bad about revealing a way around the censorship algorithm.

      • The_Truth_Seeker

        What’s wrong if it’s appropriate?

        • hennorama

          The_Truth_Seeker — thank you for your response.

          Nothing is wrong. It’s more of a concern about over- and mis- usage.

  • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

    Climate change being unpredictable, how does one plan for it economically?

    What good is a million more entrepreneurs if they are contributing to the problem?

    • The_Truth_Seeker

      Where do you think new green energy sources will come from? The coal companies? The electric utilities? GE? Rich people invested in oil companies?

    • ExcellentNews

      Yes it can. But we do not have a free market. We have a rigged system by the global oligarchy for the global oligarchy. Few little guys can make it big thanks to oddball innovation (e.g. Facebook), but in general, the playing field is obscenely tilted in favor of the oligarchy.

      And this is not a problem limited by America’s borders. King Abdullah has a lot more influence on the lives of you and your children than yourself.

      • The_Truth_Seeker

        Exactly!!!

  • The_Truth_Seeker

    Changes to America’s patent laws are bound to make things MUCH WORSE, since they have been modified in ways that only big companies like (and paid for) and ways that make it virtually impossible for small entities to get patents that are worth anything at all and impossible for such patents to be defended and enforced. And now, no matter how much an inventor or entrepreneur pays in order to get a patent, the courts later find over 30% to be invalid (and you won’t get a refund from the government OR your attorneys, even if the patent is no good).

    The Congress sold out the American entrepreneur with its enactment of the AIA (the, so called, “America Invents Act”). When Canada enacted European style “First To File” patent rules (replacing America’s 200 year old “First To Invent” rules), venture capital funding dropped almost immediately by more than 30%. That should have told our corrupt American lawmakers something, but NoooOOOO, they kept listening to the lobbyists of the rich multinationals!

    Unless the AIA is found to be unconstitutional, or in violation of the equal protection clauses, or a violation of the right to due process, then American inventors and entrepreneurs will be left up a creek without a paddle – they will be sent down the river of extinction.

    It can now take 3-7 years to get a patent (after multiple tries) at a cost of more than $20K-$30K/patent (and that’s just in the U.S.). The cost to defend such a patent (which the PTO may have forced to be reduced to, basically, “garbage”) can easily exceed $1M / (per infringement). So, start-ups with less than $1M, might as well just forget about getting any “intellectual property”, since the lawyers, the PTO and the large corporations (who don’t want any new competition from “upstarts”), will make sure such start-ups end up with nothing (much less any profits).

    Our previously quite good intellectual property system was the envy of the world. The system that Congress put in place, in 2013, to replace this prior – tried and true – set of IP rules (that helped create the industrial revolution), is now completely corrupt and run by very incompetent and uncaring bureaucrats at the PTO. The PTO could care less if America has any independent inventors or entrepreneurs left. They cater to the rich and powerful, the same way Congress does.

    With regards to “our very stupid new patent laws”, known as the AIA, our only hope will be the Supreme Court taking a look at them and deciding that they are illegal and then forcing Congress to repeal them. In addition the courts should also force patent application fees to be based on American’s “ability to pay”, not “ability to pay millions of dollars”!

    What kind of “democracy” is it that we have now? Is this what the Founders had in mind when they wrote Article 1, Section 8 of the Constitution? That only the rich get a chance to succeed in America? That was the English way! I don’t think that’s why Nicola Tesla left his country of birth to come to America!!! If the AIA was in place at that time, he wouldn’t even have gotten a single patent on his inventions and would have been immediately ripped off by bigger businesses (actually Edison DID rip him off, in the beginning).

  • The_Truth_Seeker

    This guy made it in America (more than 20 years ago) – but look where “blind luck” came into the equation too!!

    http://finance.yahoo.com/news/guy-arrived-u-26-sold-155256816.html

    • The Truth Seeker 2.0

      You comment too much, why don’t you start your own website instead abusing other sites? Not original enough to do it?

      • The_Truth_Seeker

        You can’t even come up with your own name and avatar!!! How lazy and stupid is THAT!!?? What a PHONY!!! Hit the road!!!

      • The_Truth_Seeker

        You are a PROVEN stalker! You can’t change your history! Disqus has it!

        • The Truth Knower

          Once again… challenging your comments is not stalking. Following people on Disqus is not stalking.

    • The_Truth_Seeker

      Warning** There’s a guy now trying to fake being me. Do me a favor, if you ever see comments from this clown, please respond and flag him. Thanks.

  • The_Truth_Seeker

    If we want to know what really DOESN’T work to stimulate innovation and new business creation, just look at India, China, Russia, Japan, and all the other countries that don’t protect their inventors and entrepreneurs (but do help their oligarchs). We used to have the best patent system in the world, now it is no different than that of all the other countries. So, why come to America anymore? No one is going to help protect you from getting ripped off if you have a better idea to contribute (except, maybe, in Silicon Valley – for now). No one is going to give you a break, either. The people with money have all become sharks, out for the kill (and they probably always have been). At least in the past, we used to also have “benefactors” and “supporters of the arts”. Today, it’s mostly just money that generates more money – not new ideas. Rich people (without any ideas) just like to say that new ideas are “a dime a dozen” and that their money is the only thing of value. Since they are rich – they get to make the rules we all have to live by (or try to).

  • brettearle

    OK, you guys on the Right.

    Give it your best shot.

    Out of Dallas, via AP//Credible News Post…it seems to me

    http://www.dallasnews.com/news/local-news/20140515-u.s.-lets-insurers-cap-what-they-ll-pay-for-procedures-such-as-knee-replacements.ece

    –US allows caps on what will be covered, by Insurance Companies, for certain surgical procedures. Extra costs, in some cases, will need to be FULLY reimbursed, out of pocket–despite the stipulations and parameters that might go along, generally, with such medical expenses….such as annual limits on out-of-pocket expenses–

    I know this is off topic. But I couldn’t wait until tomorrow.

    We on the Left–and after this revelation, I just might be Disowned by the Left–don’t like to bring this stuff up.

    But I’m simply doing a preemptive. It would have come out, via Opposition Research by the Right, anyway–quite, quite soon.

    Go ahead. Have at it.

    Any debate to improve ACA, I am for. Our job is not to conceal the weaknesses.

    • The_Truth_Seeker

      Off topic!

      • brettearle

        So, sue me….

        • The_Truth_Seeker

          Jerk.

          • brettearle

            Thank you!

            We were desperate to have you monopolize the Thread anyway, as brazenly displayed, below.

            Rarely does someone prattle on with 3 in a row, as we can see below.

            Let the record show that the uncouth style
            of slurs began with `jerk’..

            Yes, ladies and gentlemen, if I’m not mistaken–and I don’t believe that I am–I think that `jerk’ was the opening salvo.

            Yes, indeed…

          • The_Truth_Seeker

            Write directly to the show then! What if everyone wanted to get their opinions in on other topics? No one is going to read your posts here anyway. You have plenty of time before the show tomorrow and besides, you should listen first, then comment (that’s what the smart people do, anyway). All my comments are original and discuss different things in different ways – they are not “canned propaganda” that you get from someone else (who does the thinking for you).

          • brettearle

            I feel blessed to be in the presence of an original thinker.

            Where can I purchase your autograph?

            Is it, perchance, on EBay?. Is there a provision for a, `Buy it Now’ on the seller’s page?

          • The_Truth_Seeker

            Proven Jerk!

          • brettearle

            No, wrong again….

            Instead, the sentiments, just above your defensive Epithet, are from someone who speaks the Raw Truth….

            …..while a Bruised Ego dangles in the background, unable to fend for itself.

          • http://alchemicalreaction.blogspot.com/ Alchemical Reaction

            For some reason the other thread won’t allow a response. So I shall post mine here.

            Your brilliant point was that most others on here view me in a particular light.

            You are assuming how the majority of people who read my efforts may feel.
            SO, that is an absurd statement. THAT is narcissism. An assumption based on YOUR feelings.

            The only point I have proven is MINE.
            You are desperate. And you are boring me.

            I strongly encourage you to engage in dangerous, high-risk activities without adequate training, preparation or equipment, and without telling anyone your plans…

          • The Truth Seeker 2.0

            All of your comments are original? You haven’t learned anything from other people? You came out of your mother’s womb fully educated?

          • The_Truth_Seeker

            You can’t even come up with your own name and avatar!!! How lazy and stupid is THAT!!?? What a PHONY!!! Hit the road!!!!

          • The Truth Knower

            You already said that. See this is what I mean, you are claiming to be original,but I don’t see it. You said all of your comments are original. Really? Can we have a real discussion about this instead of accusations and name calling?

          • The_Truth_Seeker

            You are a PROVEN stalker! You can’t change your history! Disqus knows this now!

          • The Truth Knower

            There’s nothing wrong with someone challenging your comments and your credibility. You’ve been talking a lot of smack on the internet, now you want to cry stalker when someone calls you out?

          • The_Truth_Seeker

            Still “stalking” me? Disqus, are you seeing this?

          • The Truth Seeker 2.0

            That was an intelligent reply. You must be some sort of secret genius.

          • The_Truth_Seeker

            You can’t even come up with your own name and avatar!!! How lazy and stupid is THAT!!?? What a PHONY!!! Hit the road!

          • The_Truth_Seeker

            You are a PROVEN stalker! You can’t change your history! Disqus now has it!

      • jefe68

        Actually healthcare is related as one does need to be healthy to run a business and the cost of it does impact how a company can grow, or not.
        U.S. health care costs now eat up 17.6 percent of GDP and it’s only going to rise. The ACA does little or nothing to contain this. While we do have some of the best research in the world for some diseases, cancer is a good example, we spend almost twice what other industrial nations do and cover less of the population.

        The US also has the highest infant mortality rate of any industrial nation. And women are dying at child birth at increasing rates. Which is the opposite of any other first world nation.

        • The_Truth_Seeker

          The ACA will actually HELP you to start a new business (especially if you have a prior medical condition!). Also, a start-up usually has no profits, sometimes for years, so then you get FREE Healthcare. So, healthcare – post ACA – is not going to hinder new business creation, or entrepreneurship. So that’s not a “problem” with respect to this issue.

      • The Truth Seeker 2.0

        You always are. You don’t get it.

        • The_Truth_Seeker

          You can’t even come up with your own name and avatar!!! How lazy and stupid is THAT!!?? What a PHONY!!! Hit the road!!

          • The Truth Knower

            How many times are you going to say that? Can’t we just have a discussion?

          • The_Truth_Seeker

            You are a PROVEN stalker! You can’t change your history! Disqus has it now!

  • gudmk

    As the guest said several times, the reason for this problem is something new. Not regulations, crowding out by big business etc. So what is new? The financial crisis was a crisis of credit, from Latin credere translation. “to believe”. Before the crisis banks lent to anyone with a pulse believing that everything was always going to work out for them. Then they found out that it didn’t and now they have no belief in anyone or anything. On paper there is plenty of credit available, the central bank funnels untold amounts of money to the banks and they are lending with historically low interest. But there is no credit in their minds. That’s why the fed action has very little effect, whereas a fiscal stimulus, directly hiring people to work on projects did, but it was too small.

    To start a business you not only have to have an idea you believe in, you also have to convince someone with money to believe in your idea. The supply of this belief is at a low right now. Rising, but still low.

  • Zack Smith

    It’s a shame that none of the guests advanced the theory that the decline in entrepreneurship and indeed our economy in general is correlated to growth in government spending. We spend trillions on overseas militarism and domestic boondoggles. This sucks capital out of the private sector which could otherwise be used for productive market-serving purposes.

    • The_Truth_Seeker

      It’s not just government priorities, it’s that corporations have shipped over $2 Trillion dollars overseas. Also corporations only want to allocate 3%-8% of their profits to R&D. This should be more like 15%-30%.

      • Zack Smith

        How does large corps keeping profits overseas affect entrepreneurship? How do you know 15-30% R&D spending is the right #? Corps must maximize profits; how do you know their business better than mgmt?

        • The_Truth_Seeker

          Because large corporations don’t actually innovate much. They wait for others to do it, then sometimes buy them out, or just go bankrupt. Kodak and Polaroid are just a few examples of very successful big companies that just went belly up, because they didn’t accept innovation fast enough (and didn’t devote enough money to R&D – or the right R&D). It’s obvious that start-ups devote 100% of their resources, while other companies may spend NOTHING on this. I don’t know what the right ratio is, but it’s somewhere between 10% and 100% of profits (if you are a private company). I have and R&D company and we spend over 50% of our profits on R&D – that’s how we stay ahead of others.

          • Zack Smith

            It’s far easier to Monday morning QB a company’s strategy than actually execute it. Large corps like Kodak have many priorities, and R&D must compete for resources along with the others. Maybe instead of R&D a big company can acquire small innovators. That’s what Phizer does. IBM does R&D AND a lot of acquisitions.

          • The poster formerly known as t

            Acquisitions end entrepreneurships.

  • Zack Smith

    Nancy Koehn proposes more govt spending on research, however she fails to account for the basic economic principle of “seen vs. unseen” – http://goo.gl/RRy8 . Govt. research has yielded some innovation, however had those resources ($, engineers, researchers) been left in the private sector we may have had even more beneficial results. The Internet is often cited, yet private companies developed precursors that might have flourished – http://en.wikipedia.org/wiki/Computer_network#History

  • The_Truth_Seeker

    How come no discussion on the importance of inventors and patents for the future of the American economy? More than half of all patents are now issued to foreign countries. Also, the vast majority of new patents are issued to existing companies and corporate inventors, who have no rights to the technologies they develop internally. Much of the work of corporate (and university) inventors never goes anywhere! Without inventors, and strong patents (that are worth something), the U.S. will be in lots of trouble! Originally, the U.S. was THE place to go if you wanted to be an inventor, because the government would help protect your ideas (at an affordable cost). Now it costs a fortune to get such protection and the government, on orders from Congress, is actually making things much harder for small inventors and start-ups. There is no longer any incentive to be an inventor in America. It just doesn’t make any economic sense, anymore.

    Let’s have a curve showing the dramatic drop in the number of independent American inventors (with more than one invention) over the last 50 years. Those are the people that at least would like to create new companies and create new jobs. Big companies don’t start new companies!

    • The poster formerly known as t

      A lot of inventions aren’t profitable if they aren’t used on a large basis…and that is where corporations have an advantage…because they have access to cheap credit required to expand business.

      • The_Truth_Seeker

        Yup! But they are also very slow to innovate and don’t want to invest in much R&D, or new hires. They constantly want to increase profits at all costs, so that makes them very risk averse (in most cases). You can’t be risk averse and invent great new products (maybe you can buy them, but you can’t invent them). Only a few companies (like IBM and Google and maybe Apple) still invest lots of money in R&D and are still able to come up with some big breakthroughs. When it comes to innovation, though, corporations have a disadvantage, because they usually have to spend a lot more money than a small start-up, in order to accomplish the same thing (I estimate it is a factor of at least 10 to 1).

        That’s why independent inventors are among the most courageous of all entrepreneurs, because they work on 100% contingency and most of them fail (and lose lots of money). They are the real risk takers, not VC’s, not corporations. And, that’s why they are becoming extinct in America, because they get no support from anyone; not the government, and not corporations. They’re are a dying breed of people and we will only notice their loss, when there are no more inventors left in America and everything we might want, will have to come from a limited number of very large corporations. There will be more and more monopolies in the future and less and less competition (that’s what corporate America wants).

    • The Truth Seeker 2.0

      Why do you keep talking about inventions? You haven’t invented anything. All you do is talk about it. Why should we listen to you?

      • The_Truth_Seeker

        You can’t even come up with your own name and avatar!!! How lazy and stupid is THAT!!?? What a PHONY!!! Hit the road!

        • The Truth Knower

          Stay on topic. You give a lot of answers to questions nobody asks you, but when someone does ask, you dodge the question. What about my name and avatar? Is that really your picture? Trying have a discussion.

          • The_Truth_Seeker

            You are a PROVEN stalker! You can’t change your history! Disqus has it!

    • The_Truth_Seeker

      Warning! There’s a guy now trying to fake being me. Do me a favor, if you ever see comments from this clown, please respond and flag him. Thanks.

  • The_Truth_Seeker

    Here’s part of the reason (though it’s not a new problem):

    http://money.cnn.com/2014/05/12/smallbusiness/admittedly-women-entrepreneurs/index.html?iid=HP_LN

    Rich investors only want to get richer, they don’t care about investing in the dreams of others, or helping to create new technologies that aren’t already perfected.

  • The_Truth_Seeker

    Our economy doesn’t really reward STEM experts. Many graduates with advanced degrees in STEM fields can’t get good jobs, so young people aren’t going to be particularly attracted to STEM subjects. If they keep seeing people in sports, entertainment, stocks, banking, finance, etc, doing a lot better than those who study hard, why would they want to go into a STEM field?

  • Robert J. Crawford

    I really thought you should have pressed Hennessey harder. His positiion – that regulation stifles entrepreneurs – reveals how little he knows about them. It is simplistic ideology. Indeed, his example of google glass was pathetically irrelevant, a cheap shot, because we do not yet know if they would be dangerous to use in a car (as you noted). The argument is specious.

    In my experience as a business reporter, a true entrepreneur would chew through concrete to make his business idea work, adapting and changing his/her plan as things come up. So a regulation is a really minor problem, to say the least: they will get around it if they can’t take advantage of it. Anyone deterred by such a thing should not be called entrepreneur, plain and simple.

    • The_Truth_Seeker

      Correct, regulations are not the real (or main) problem. The real problems are several things that I won’t get into here but I (and others) have mentioned below.

      • The Truth Seeker 2.0

        Oh please! What do you know about being an entrepreneur? What companies have you started?

        • The_Truth_Seeker

          You can’t even come up with your own name and avatar!!! How lazy and stupid is THAT!!?? What a PHONY!!! Hit the road!!

      • The_Truth_Seeker

        Warning* There’s a guy now trying to fake being me. Do me a favor, if you ever see comments from this clown, please respond and flag him. Thanks.

  • Brad

    I read the Brookings report and was concerned that the data did not reference demographics. If entrepreneurship is related to age (25-50 yr olds) then the aggregate decline of that age group in the population (the baby boom) would explain a significant part of the decline in new firm entries.

    Also, I disagree with Hennessey’s argument that regulation stifles firm entry. In general, there has be a decline in market regulation since the 1980′s. The ability to compete on a level playing field has materially changed since the 1980′s especially in regard anti-trust enforcement. And as we all know, the financial markets have operated without regulation. I wish Tom or the other guests would have directly challenged Hennessey on this point. Remember, America’s comparative advantage over other countries (especially China, CIS, etc) is that we provide a legal system that protects tenure and other property rights. Regulation does not stifle entrepreneurship – it supports it.

  • The_Truth_Seeker

    Warning! There’s a guy now trying to fake being me. Do me a favor, if you ever see comments from this FAKE, please respond and flag him. Thanks.

  • The Truth Knower

    Yeah, that doesn’t help does it? Debt is a major problem. Student debt, household debt and government are the main culprits.

  • The Truth Knower

    Your are absolutely right. It’s insane.

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