More business deaths in U.S. than births in 30 years

[sandorski]

I wonder how much the Monopolization of various sectors of the Market is responsible for this? Probably not all of it, but I suspect it has a large impact. Especially in the Retail sector.

 

[Attic]

I wonder how much the Monopolization of various sectors of the Market is responsible for this? Probably not all of it, but I suspect it has a large impact. Especially in the Retail sector.

I suspect the same which makes Obama's address today about minimum wage all the more puzzling given he's doing it at a WalMart. Regulate wages and herd the ignorant fools, but fail to see or address root causes of wage problems...

But what is allowing for the monopolies?, couldn't be the same government that rationalizes much of it's intrusive reach and policy measures through it's ruse of "protect the public" could it be? Given the pay to play system we have and the lobbyists scheme and scheming, I'd say yes.


Charles Hugh Smith Nails home some points here.
The Decline of Small Business and the Middle Class

It is not coincidental that the middle class and small business are both in decline.Entrepreneurial enterprise and small business have long been stepping stones to middle class incomes and generational wealth, i.e. wealth that is passed down to future generations rather than consumed. As the headwinds to entrepreneurial enterprise and small business rise, the pathway to middle class prosperity narrows.
...


What are the headwinds to entrepreneurial enterprise and small business? Here are a few key dynamics:

1. Barriers erected by cartels and the government. Cartels prosper by eliminating competition, and the easiest, cheapest way to restrict competition is to influence government to create regulatory barriers that raise the cost to levels no small business can afford. There are dozens of examples of regulations that do little to "protect the public" (the usual rationalization) whose primary intent and effect is to suppress competition.

Sickcare and higher education, to take two egregious examples, are protected from real competition: there is little real transparency in pricing and little accountability for the efficacy of the product (diplomas, wellness).

We can all wonder why the middle class is evaporating and being strangled, but bottom line is it's happening and continues to happen through both D and R policy.

 

[Zorba]

Here are just a few of the reasons, IMHO, and they should should seriously be looked at and fixed.

• Companies have been allowed to merge and cartel to the point where a huge number of major industries are Oligopolies. Not only does this make it very hard for a competitor to enter that industry, it drives up the cost of services in that industry, thus increasing barriers to entry even in other industries.
• Huge amounts of corporate welfare to major corporations. A good example is my cousin owned a sporting goods store for 20 years in a small city outside of Tulsa, then Tulsa gave Dick's huge sales tax and property tax refunds to get them to come in. Now not only does he have to compete against their larger buying power and larger selection, they get get 5% of their sales again in tax rebates. He decided to get out of the equipment business after this.
• Major companies have been allowed to lobby for laws that serve no purpose but to create a barrier to entry.
• You'd think the internet would make these better for small businesses, but it seems (not saying it is a fact, just how it appears to me) that the internet actually creates a small number of big companies, lake Amazon/Google/Newegg instead of a ton of small stores, like you used to have locally. This always surprises me due to the low barriers of entry for an online business, but I think people are naturally attracted to monopolies and distrust on the internet reinforces that natural attraction. Huge online companies have also really hurt small retailers, even things like small engine repair parts.
• I think the stock market being in love with internet companies has also tilted the game against small businesses. How can you compete against someone like Amazon that has pretty much made no profit in 20 years of business. If Amazon was an individuals company the IRS would call it a hobby, and no individual could keep up a company making no profits in 20 years. But the fact Amazon, et al never have to make profit because of their stock, allows them to undercut small businesses.

 

[sandorski]

I suspect the same which makes Obama's address today about minimum wage all the more puzzling given he's doing it at a WalMart. Regulate wages and herd the ignorant fools, but fail to see or address root causes of wage problems...

But what is allowing for the monopolies?, couldn't be the same government that rationalizes much of it's intrusive reach and policy measures through it's ruse of "protect the public" could it be? Given the pay to play system we have and the lobbyists scheme and scheming, I'd say yes.


Charles Hugh Smith Nails home some points here.
The Decline of Small Business and the Middle Class




We can all wonder why the middle class is evaporating and being strangled, but bottom line is it's happening and continues to happen through both D and R policy.

Minimum Wage increase would improve the Wage situation.

 

[Herr Kutz]

Been happening since at least the 70s. and most of the decline was way before he was president

And it looks like entry is slowly coming back up, Thanks, Obama! :|

.

Good news for Pfizer.