Why should we trust that small U.S. businesses can generate sufficient employment?
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Asked by Question Bot02/Feb/20131 answer
1 Answer
F
Faisal Khan
Answered 02/Feb/2013
I'll give you half-and-answer.
There are a lot of empirical models that suggest how Small Businesses in the US can be a much needed catalyst for job growth in the US. However, no one can seem to figure out how to do so effectively and one that is not short-term.
With payroll based small businesses in the US numbering 7.5+ Million, even if each and every business hired One permanent employee, you're looking at 7.5 Million people on the payroll out of the 12.3 Million people unemployed.
Granted you can never have a 0 number of people unemployed, to get 7.5 Million jobs to be created, there would have to be one heck of a plan. The right approach would of course be without using any government subsidies etc. but so far, that seems like a pipe dream. Even with government subsidies many pundits claim that the effect would be short-term and perhaps won't kick-start the economy as one might be expecting.
Small business (with payroll) are targeted because of their diversity and spread in almost every corner of America.
There is a lot of data and constructed models, but none have truly been deployed on a Federal level. I am sure some Economist here on Quora can explain it more in detail.
Source:
There are a lot of empirical models that suggest how Small Businesses in the US can be a much needed catalyst for job growth in the US. However, no one can seem to figure out how to do so effectively and one that is not short-term.
With payroll based small businesses in the US numbering 7.5+ Million, even if each and every business hired One permanent employee, you're looking at 7.5 Million people on the payroll out of the 12.3 Million people unemployed.
Granted you can never have a 0 number of people unemployed, to get 7.5 Million jobs to be created, there would have to be one heck of a plan. The right approach would of course be without using any government subsidies etc. but so far, that seems like a pipe dream. Even with government subsidies many pundits claim that the effect would be short-term and perhaps won't kick-start the economy as one might be expecting.
Small business (with payroll) are targeted because of their diversity and spread in almost every corner of America.
There is a lot of data and constructed models, but none have truly been deployed on a Federal level. I am sure some Economist here on Quora can explain it more in detail.
Source: