The “Economic Recovery” Continues: Businesses Are Being Destroyed Faster Than They Are Being Created

The Death Of Small Business - Photo by Tina McKimmie

by Michael Snyder

What would you say about an economy where businesses are shutting down faster than they are opening?  Well, a shocking new study released by the Brookings Institution indicates that this is exactly what is happening in the United States.  We are absolutely killing small businesses and the entrepreneurial spirit in this country, and as you will see below, the number of self-employed Americans has been on a downward trend for a decade even though our population has been steadily growing.  Traditionally, small businesses have been the primary engine of job growth in this nation, so the fact that study after study has found that small business creation is being crippled in the United States is a really bad sign for our economic future.

Personally, I write about our long-term economic decline nearly every day, but even I had no idea that businesses were being destroyed faster than they were being created.  According to the Brookings Institution, this first started happening in 2009

The American economy is less entrepreneurial now than at any point in the last three decades. That’s the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study — 2009, 2010 and 2011 — businesses were collapsing faster than they were being formed, a first.

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Dave
10 years ago

Chilling isn’t it ? Just a matter of time before the canoe goes over the waterfall. Simple math, more people drawing money than paying in, the prime fuel for the economy, small business, losing ground, the voting majority still grazing contentedly. The Left=3, Conservatives=0
Oh wait, they finally appointed a special counsel to look into Benghazi. I think I feel a thrill running down my leg like Chris Matthews. No, sorry, it was just somebody pissing on it and telling me its raining.