PeakTrader.com

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PeakTrader:

Even with higher oil prices (and lower natural gas prices), the U.S. economy has the capacity to produce about $1 trillion a year more output.

I stated before:

This deep depression is completely unnecessary. There are excessive federal, state, and local taxes, fees, fines, fares, tolls, etc., both progressive and regressive, particularly for high-income workers, who tend to start businesses.

There are more burdensome and expensive regulations on top of excessive regulations, which are generally regressive and the economy has been unable to absorb, slowing growth. Federal regulations alone cost $2 trillion a year, resulting in higher prices and lower real wages, along with more unemployment.

Moreover, Dodd-Frank, in response to the financial crisis, has caused banks to hoard cash and keep it out of circulation.

There are disincentives to work, including endless unemployment benefits, and disincentives to take risks, e.g. starting a business, to expand the economy.

“New business startups are at the lowest levels in 30 years.”
March 7th, 2012

Non-employer firms [i.e. self-employed] are 80 percent of U.S. businesses, but have much less economic impact, Shane said [Scott Shane, chairman of the economics department and professor of entrepreneurial studies at Case Western Reserve University] . Employer firms account for 97 percent of gross domestic product.

Using data from the Census Bureau and U.S. Small Business Administration, Shane found that the per capita rate of new employer business formation in 2009 (the most recent year available) was 1.32 per thousand people — “an astonishing 51.4 percent of the rate in 1977,” he said. “That is, Americans are starting new businesses with employees at half the rate they did 30 years ago.”

Not only the rate, but the raw numbers have declined, he said. In 1977, SBA figures show, Americans started 563,325 businesses with employees. In 2009, despite an increase in the population, they started 403,765.

http://www.politifact.com/ohio/statements/2012/mar/23/john-boehner/us-house-speaker-john-boehner-says-new-business-st/

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