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They Are Killing Small Business: The Number Of Self-Employed Americans Is Lower Than It Was In 1990

After eight long, bitter years under Obama, will things go better for entrepreneurs and small businesses now that Donald Trump is in the White House?  Once upon a time, America was the best place in the world for those that wanted to work for themselves.  Our free market capitalist system created an environment in which entrepreneurs and small businesses greatly thrived, but today they are being absolutely eviscerated by the control freak bureaucrats that dominate our political system.  Year after year, leftist politicians just keep piling on more rules, more regulations, more red tape and more taxes.  As a result, the number of self-employed Americans is now lower than it was in 1990

In April 1990, 8.7 million Americans were self-employed, but today only 8.4 million Americans are self-employed.

Of course our population has grown much, much larger since that time.  In 1990, there were 249 million people living in the United States, but today there are 321 million people living in this country.

What this means is that the percentage of the population that is self-employed is way down.

In fact, one study found that the percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.

And if you go back even farther, the numbers are even more depressing.  It may be hard to believe, but the percentage of “new entrepreneurs and business owners” declined by a staggering 53 percent between 1977 and 2010.

Sometimes I like to watch a television show called Shark Tank, and on that show they make it seem like entrepreneurship in America is thriving.

But the exact opposite is actually the case.  In a previous article, I discussed how the number of new businesses being created in the United States has been steadily falling over the years.  According to economist Tim Kane, the number of startup jobs per one thousand Americans has been declining for several consecutive presidential administrations

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

So why is this happening?

As I mentioned at the top of this article, self-employed Americans are being absolutely strangled by oppressive rules, regulations and taxes.

To illustrate this point, I would like to share with you some quotes from an open letter that was authored by a small business owner named Don Chernoff…

#1 I work for myself and have to pay my own medical expenses. Before the “affordable care act” I was paying about $200 per month for a high deductible policy. It was far from perfect but it got so much worse under the “Affordable” care act.

I now pay over $400 a month, my deductible went from $5,000 to over $6,000 and my out of pocket costs for care have skyrocketed.

#2 I have to spend dozens of hours and thousands of dollars for a tax accountant each spring to prepare my taxes because I cannot possibly understand how to do it myself, and I have a master’s degree in engineering.

#3 Many years ago when I quit a perfectly good job to start my own small business, I was shocked to learn that I had to pay both my share and what had been my employer’s share of Social Security.

#4 Between state, federal and local taxes you’ve probably paid 50% or more of your income in taxes, but that’s not enough for politicians.

If you’ve been lucky enough to have created a business you can sell, now you’ll get to enjoy paying another tax on the capital gain from the sale.

This is another reason why we need a conservative revolution in Washington.  We should demand that our members of Congress lower tax rates dramatically, completely eliminate the self-employment tax, greatly simplify the tax code and get rid of as many regulations on small business owners as possible.

In fact, if it was up to me I would abolish a number of federal agencies completely.

What we are doing right now is not working.  Small businesses have traditionally been one of the main engines of economic growth in this country, but thanks to the left they are unable to play that role at the moment.

It isn’t an accident that over the last ten years the U.S. economy has grown at exactly the same rate as it did during the 1930s.

If we want our economy to be great again, we need to go back and start doing the things that made it great in the first place.  If we continue to suffocate our economy, we will continue to get the same results.

And with each passing day, we get more signs that the economy is heading into another major downturn.  For instance, we just learned that Sears is closing 30 more stores on top of the 150 that had already been announced…

Sears Holdings, which wasn’t shy when it announced at the start of the year that it is closing 150 underperforming stores, has quietly added at least 30 more to the list.

Another 12 Sears stores and 18 Kmarts are among the locations that are closing, from Carson, Calif., to Hialeah, Fla., with most scheduled to shut their doors in July, based on calls to the stores, malls and confirmation in local media.

At the start of the year, the retailer pinpointed the 150 stores it said it would close. But it declined this week to provide a list of additional locations that are slated to shut since then, saying that it update store counts each quarter.

In addition, we just learned that new home sales in April were 11.4 percent lower than they were in March

If you’re surprised by the collapse in new home sales in April, then you’re not paying attention.

The 11.4% MoM plunge in new home sales in April was 5 standard deviations below expectations and the biggest since March 2015.

Yes, the stock market is holding up for the moment, but for most Americans the “real economy” just continues to deteriorate.  Just because we are at the end of a giant financial bubble does not mean that everything is going to be okay.

The numbers that I brought up in this article are just another example of our long-term economic decline.  In a healthy economy, entrepreneurs and small businesses would be thriving.  But instead, they are being systematically strangled out of existence by a political system that is wildly out of control.

Feds Hold Hearing On Whether They Should ‘Regulate’ Sites Like Drudge, Infowars And The Economic Collapse Blog

Big Brother Is Watching - Public DomainThe control freaks that run our government always seem to want to “regulate” things that they do not like.  And so it should be no surprise that there is a renewed push to regulate independent news websites.  Sites like the Drudge Report, Infowars.com and The Economic Collapse Blog have been a thorn in the side of the establishment for years.  You see, the truth is that approximately 90 percent of all news and entertainment in this country is controlled by just six giant media corporations.  That is why the news seems to be so similar no matter where you turn.  But in recent years the alternative media has exploded in popularity.  People are hungry for the truth, and an increasing number of Americans are waking up to the fact that they are not getting the truth from the corporate-controlled media.  But as the alternative media has grown, it was only going to be a matter of time before the establishment started cracking down on it.  At the moment it is just the FEC and the FCC, but surely this is just the beginning.  Our “Big Brother” government ultimately wants to control every area of our lives – and this especially applies to our ability to communicate freely with one another.

The Federal Election Commission is an example of a federal rule making body that has gotten wildly out of control.  Since just about anything that anyone says or does could potentially “influence an election”, it is not difficult for them to come up with excuses to regulate things that they do not like.

And on Wednesday, the FEC held a hearing on whether or not they should regulate political speech on blogs, websites and YouTube videos…

The Federal Election Commission (FEC) is holding a hearing today to receive public feedback on whether it should create new rules regulating political speech, including political speech on the Internet that one commissioner warned could affect blogs, YouTube videos and even websites like the Drudge Report.

If you do not think that this could ever happen, you should consider what almost happened at the FEC last October

In October, then FEC Vice Chairwoman Ann M. Ravel promised that she would renew a push to regulate online political speech following a deadlocked commission vote that would have subjected political videos and blog posts to the reporting and disclosure requirements placed on political advertisers who broadcast on television. On Wednesday, she will begin to make good on that promise.

“Some of my colleagues seem to believe that the same political message that would require disclosure if run on television should be categorically exempt from the same requirements when placed in the Internet alone,” Ravel said in an October statement. “As a matter of policy, this simply does not make sense.”

“In the past, the Commission has specifically exempted certain types of Internet communications from campaign finance regulations,” she lamented. “In doing so, the Commission turned a blind eye to the Internet’s growing force in the political arena.”

As our nation continues to drift toward totalitarianism, it is only a matter of time before political speech on the Internet is regulated.  It is already happening in other countries all around the globe, and control freak politicians such as Ravel will just keep pushing until they get what they want.

The way that they are spinning it this time around is that they desperately need to do something “about money in politics”

Noting the 32,000 public comments that came into the FEC in advance of the hearing, Democratic Commissioner Ellen L. Weintraub said, “75 percent thought that we need to do more about money in politics, particularly in the area of disclosure. And I think that’s something that we can’t ignore.”

And it isn’t just a few control freak Democrats that want these changes.

The Brennan Center for Justice, the Campaign Legal Center, the League of Women Voters and Public Citizen were all expected to testify in favor of more government regulation on the Internet at the hearing.

Fortunately, other organizations are doing what they can to warn the general population.  For example, the following comes from the Electronic Frontier Foundation

Increased regulation of online speech is not only likely to chill participation in the public debate, but it may also threaten individual speakers’ privacy and right to post anonymously.  In so doing, it may undermine two goals of campaign finance reform: protecting freedom of political speech and expanding political participation.

As we stated in our joint comments to the FEC back in 2005 [pdf], “the Internet provides a counter-balance to the undue dominance that ‘big money’ has increasingly wielded over the political process in the past half-century.” We believe that heightened regulation of online political speech will hamper the Internet’s ability to level the playing field.

Meanwhile, Barack Obama and the FCC are using net neutrality as an excuse to impose lots of new regulations on Internet activity.

Ajit Pai is an FCC commissioner who is opposed to this plan.  He recently sent out a tweet holding what he calls “President Obama’s 332-page plan to regulate the Internet“…

Ajit Pai’s description of “President Obama’s 332-page plan to regulate the Internet” sounds Orwellian. He tweeted a picture of himself holding the 332-page plan just below a picture of a smiling Barack Obama with a comment, “I wish the public could see what’s inside.” The implication depicted Obama as George Orwell’s “Big Brother.”

Pai also released a statement: “President Obama’s plan marks a monumental shift toward government control of the Internet. It gives the FCC the power to micromanage virtually every aspect of how the Internet works,” he said. “The plan explicitly opens the door to billions of dollars in new taxes on broadband… These new taxes will mean higher prices for consumers and more hidden fees that they have to pay.”

Here is the photo that he posted with his tweet…

President Obama's 332-page plan to regulate the Internet

After what we went through with Obamacare, one can only imagine what is inside that monstrosity of a document.

Regulation of the Internet is here, and it is only going to get worse.

But at least we are not like Saudi Arabia just yet.  Recently, a Saudi blogger was sentenced to 1,000 lashes for “insulting Islam“.

So we should be thankful for the freedoms that we still have.  But without a doubt, governments all over the world are slowly but surely cracking down on Internet freedom.

If we do not stand up for our rights now, one day we may wake up and find that our freedom to communicate with one another over the Internet is totally gone.

11-Year-Old Girl BANNED From Selling Cupcakes By Control Freak Government Bureaucrats

Marble Cupcakes - Photo by F_A from Ostwestfalen, GermanyAmerica is being suffocated to death by red tape.  You are about to read about an 11-year-old girl in Illinois that had her cupcake business brutally shut down by government bureaucrats.  Her name is Chloe Stirling and her crime was doing something that we used to applaud young people in America for doing.  Instead of sitting on her sofa and watching television all day, she actually started her own business.  And it turned out there her little business started thriving.  In fact, it started doing so well that a local newspaper took notice of it.  Well, that is when the control freaks swooped in and took her business away and banned her from selling any more cupcakes.  The really sad thing is that people are being paid to do this with our tax dollars.  All over America, little entrepreneurs are having their lemonade stands shut down and are being banned from selling Girl Scout cookies, and our tax dollars are paying the people that are doing it.  As I wrote about earlier this month, the level of economic freedom in the United States is at an all-time low, and it gets worse with each passing year.  The country that so many of us love is dying, and it is being replaced with something that I like to call “the USSA”.

In the Union of Soviet Socialist Americans, you have to have a government “license” or “permit” to do just about anything.  If the government does not give you permission, you can get into a whole lot of trouble.

Little 11-year-old Chloe Stirling must have thought that this was still the nation that George Washington and Thomas Jefferson once founded, because she dared to actually start a business and sell cupcakes to the public.  Little did she know that she would soon make national news

An 11-year-old girl from Illinois got a dose of regulation American-style this week when local government officials shut down her cupcake business.

Chloe Stirling, from Troy, got the front-page treatment from her local newspaper, which featured how well her business, Hey, Cupcake, was doing. By all accounts, it was a successful little enterprise. Chloe was getting $10 for a dozen cupcakes and $2 for each specialty cupcake. She even donated her cupcakes when a boy in her school fighting cancer held a fundraiser.

So why did they shut her down?

Well, it turns out that she didn’t have a “permit” to sell cupcakes and her kitchen was not “licensed”.

Like I said, you have to have permission from the government to do just about anything these days.

Another example of this phenomenon that is absolutely infuriating took place out in Fauquier County, Virginia.  When a mother held a birthday party for eight 10-year-old girls and posted the photos on Facebook, she never imagined that she would soon be hit with $15,000 in fines…

Martha Boneta owns a small farm in Fauquier County, Virginia, where she recently hosted a birthday party for eight 10-year-old girls. They wore hats, picked veggies, and made goat’s milk soap. The county says she should have obtain a license before hosting such an event and hit her with a $5,000 fine.

Boneta also got slammed with two more fines for $5,000 each, one for advertising a pumpkin carving and another for violations in the small shop on her property. Boneta sells produce from her farm, as well as eggs, yarn, birdhouses, and local crafts. She sought and received a license for the shop in 2011, but the county now says she can’t sell handiwork or produce from her neighbors under that license.

Stuff like this just makes me want to scream sometimes.

What is happening to this country?

A few years ago, my wife used to take old pieces of furniture, sand them down, repaint them and sell them to others.  It was something that she really enjoyed doing and she made some extra money along the way.

But if you try doing that in some areas of the country today, the EPA could potentially hit you with a fine of $30,000 for a single incident in which you do not follow the proper procedures.  The following is an excerpt from a discussion that some furniture painters were having on Facebook.  It is a little technical, but it is worth reading.  In this excerpt the identity of the business has been removed to protect the business from overzealous regulators…

As a painter in PA, I am required by law to test everything that I disturb and I must charge the customer $60 for every test I perform which adds up. What the law states in my area is that if I disturb more than 6 square inches on anything made prior to Jan 1 1979 I must test it. Disturbing means, sanding, scraping, or even using a sponge/scuff pad (like you use on your pots) if I disturb more than 6 inches, I must take photographs, document in 4 different logs, I have local, county, state, and federal log books. If I find lead then I must suit up. Originally, the law stated that if there were no children around then you didn’t have to do that however some lame brained legislator decided that if a child enters the premises for more than one hour a day, we must assume they will be in contact with the lead and therefore will contract lead poisoning. Then the legislators decided that if you were over the age of 60 then it didn’t matter, you didn’t have to test who cares if you get poisoned. Lo and behold OSHA stepped in and joined forces with the EPA, they decided that all were at risk including your pets and the leaves on your trees can hold the lead dust and …..well, that’s a whole other issue.

What is happening now is that so many painters decided they weren’t going to follow the lead law, that OSHA and EPA send out secret shoppers. A lot of us don’t even put our logo’s on our vehicles because that invites these shoppers to investigate. If you come to the **** ********, you won’t see signage on the building, you have to get to the actual door of the workroom to know we are there. We no longer have logo’s on our vehicles either as the fines are too stiff. There isn’t one of us that can afford a find of $30,000.00 A DAY, not a year, A DAY.

The government bureaucrats are running wild and the rest of us are just sitting back and letting it happen.

Things have gotten so bad in this country that the federal government even requires small-time magicians to submit “disaster plans” for the rabbits that they use in their acts.  The following is an excerpt from one of my previous articles

Central planning in this country is getting completely and totally out of control.  These days, you can hardly do anything without running into a suffocating web of red tape.  For example, a small-time magician from Missouri that does magic shows for kids was absolutely horrified when he learned that the Obama administration is requiring him to submit a 32 page “disaster plan” for the rabbit that he uses in his shows.  Yes, this is actually true.  His name is Marty Hahne, and he thought that it was bad enough when the U.S. Department of Agriculture busted him for not having a “license” for his rabbit.  He went out and acquired the proper “license” for his rabbit, but he never dreamed that eventually he would also have to submit a 32 page “disaster plan” for the same rabbit.

You can read the rest of that article right here.

Are you starting to get the picture?

These control freaks want to completely dominate every aspect of our lives.  The “nanny state” is entirely out of control and it is up to “we the people” to do something about it.

Barack Obama revealed the kind of mentality that is behind this “nanny state” when he recently made the following statement

“I would not let my son play pro football”

And without a doubt, the control freaks that run things will try to ban football (or at least “tone it down”) the moment that they think that they can get away with it.

America was supposed to be a place where liberty and freedom were maximized and the interference of the federal government in our lives was supposed to be minimized.

Instead, what we have now is just the opposite.

No wonder Americans consider the government to be their biggest problem.

Marble Cupcakes - Photo by F_A from Ostwestfalen, Germany

The Level Of Economic Freedom In The United States Is At An All-Time Low

Photo by U.S. Senator Mike LeeAmericans have never had less economic freedom than they do right now.  The 2014 Index of Economic Freedom has just been released, and it turns out that the level of economic freedom in the United States has now fallen for seven consecutive years.  But of course none of us need a report or a survey to tell us that.  All we have to do is open our eyes and look around.  At this point our entire society is completely dominated by control freaks and bureaucrats.  Our economy is literally being suffocated to death by millions of laws, rules and regulations and each year brings a fresh tsunami of red tape.  As you will see below, the U.S. government issued more than 80,000 pages of brand new rules and regulations last year on top of what we already had.  Even if we didn’t have all of the other monumental economic problems that we are currently facing, all of this bureaucracy alone would be enough to kill our economy.

Yes, every society needs a few basic rules.  We would have total chaos if we did not have any laws at all.  But in general, when there is more economic freedom there tends to be more economic prosperity.  In fact, the greatest period of economic growth in U.S. history was during a time when the federal government was much smaller, there was no Federal Reserve and there was no income tax.  Most Americans do not know this.

Those that founded this nation intended for it to be a place where freedom was maximized and government intrusion into our lives was minimized.

If they were still alive today, they would be absolutely horrified.  We are literally drowning in red tape.

The photo posted below was shared by U.S. Senator Mike Lee on his Facebook page.  Study it carefully…

Photo by U.S. Senator Mike Lee

The following is what he had to say about this photo

“Behold my display of the 2013 Federal Register. It contains over 80,000 pages of new rules, regulations, and notices all written and passed by unelected bureaucrats. The small stack of papers on top of the display are the laws passed by elected members of Congress and signed into law by the president.”

I didn’t even see the small stack of paper at the top of the cabinet until I read his explanation.  Most of the time everyone is so focused on what Congress is doing, but the truth is that the real oppression is happening behind the scenes as unelected federal bureaucrats pump out millions upon millions of useless regulations that are systematically killing our economic freedom.

On Tuesday, an article about the 2014 Index of Economic Freedom was published by the Wall Street Journal.  As I mentioned above, the United States has fallen for seven years in a row

World economic freedom has reached record levels, according to the 2014 Index of Economic Freedom, released Tuesday by the Heritage Foundation and The Wall Street Journal. But after seven straight years of decline, the U.S. has dropped out of the top 10 most economically free countries.

That same article mentioned some of the reasons why the United States is falling…

It’s not hard to see why the U.S. is losing ground. Even marginal tax rates exceeding 43% cannot finance runaway government spending, which has caused the national debt to skyrocket. The Obama administration continues to shackle entire sectors of the economy with regulation, including health care, finance and energy. The intervention impedes both personal freedom and national prosperity.

And of course the results are predictable.  Our economy has been steadily declining for many years, and that decline appears to be ready to start picking up speed once again.  The following is an excerpt from a recent article by Dave in Denver

In the latest retail sales report for December, auto sales were nailed – down 1.8%. The only reason overall retail sales from November to December showed a slight “gain” that November’s number was revised lower. Electronics fell off of a cliff. The housing market is about to get crushed. Feedback I’m getting from my Seeking Alpha articles and blog posts on housing from housing market professionals all around the country tells me that the housing market hit a wall at the end of 2013, as I have been forecasting.

What he said about the housing market is definitely true.  In recent months, mortgage originations have been falling like a rock.  Just check out this chart.

And as I wrote about the other day, there has been absolutely no employment recovery since the end of the last recession.  In fact, 1,687,000 fewer Americans have jobs today compared to exactly six years ago even though the population has grown significantly since then.

Unfortunately, these are not just “cyclical problems”.  Long ago we abandoned the fundamental principles that once made our economy great, and now we are paying a tremendous price for that.

Posted below is a story that has been circulating all over the Internet for quite some time.  It is a fake story.  Once again, let me repeat that.  This is a fake story.  But I think that it does a great job of illustrating what is happening to America as we march toward full-fledged socialism…

An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F. As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that.

But of course it would be disingenuous to pin all of the blame for this just on Obama.  The truth is that our nation has continued to march toward socialism no matter who has been in the White House and no matter who has been in control of Congress.  So if you want to place some of the blame on a “Bush” or a “Clinton” or a “Boehner” or a “Pelosi” please feel free.

And the American people are getting sick and tired of this one party system that has two heads.  According to a recent Gallup survey, only 29 percent of all Americans consider themselves to be Democrats right now.  And the news was even worse for Republicans.  According to that survey, only 24 percent of all Americans consider themselves to be Republicans at this point.

A staggering 45 percent of all Americans now consider themselves to be Independents.  Deep down, most Americans know that something is seriously wrong with our nation and that they are being lied to be our politicians and the mainstream media.

Unfortunately, there is very little agreement about how to fix things because Americans do not have a set of shared values that we all agree on anymore.

So what do you think?  Do you believe that you know how to fix things?  If so, please feel free to share your plan by posting a comment below…

They Are Murdering Small Business: The Percentage Of Self-Employed Americans Is At A Record Low

They Are Murdering Small Business - The Percentage Of Self-Employed Americans Is At A Record Low - Photo by Tina McKimmieThe percentage of Americans that are working for themselves has never been lower in the history of the United States.  Once upon a time, the United States was a paradise for entrepreneurs and small businesses, but now the control freak bureaucrats that dominate our society have created a system that absolutely eviscerates them.  This is very unfortunate, because by murdering small business, the bureaucrats are destroying the primary engine of job growth in this country.  One of the big reasons why there are not enough jobs in America today is because small business creation is way down.  As I mentioned yesterday, entrepreneurs and small businesses are being absolutely devastated by rules, regulations, red tape and by oppressive levels of taxation.  If anyone doubts that small business in the United States is dying, just look at the charts below.  Sadly, this is what the bureaucrats that run things want.  They don’t want us to be independent of the system.  Instead, they are much more comfortable when as many of us as possible are heavily dependent on the system in one way or another.  If all of us have to go running to the government or to one of the big corporations for a job, then we are much easier to control.  But as the control freaks continue to construct their bureaucratic utopia, they are also killing off what once made the U.S. economy so great.

The other day I came across the following two charts in an article by Charles Hugh Smith, and I was absolutely stunned by what I saw.  This first chart shows that the number of unincorporated self-employed Americans has dropped back to levels that we have not seen since the mid-1980s even though our population has increased by tens of millions of people since that time…

The Number Of Self-Employed Americans

As you can see, from 1970 to the mid-1990s the number of unincorporated self-employed Americans rose steadily.  But in the mid-1990s it began to level off and now it is falling rapidly.

This next chart shows the percentage of self-employed Americans as a share of non-farm employment.  In other words, those that work on farms are excluded from this chart.  The percentage of self-employed Americans was fairly stable between 1970 and 1990, but since 1990 it has been steadily eroding and it has now reached a level never seen before…

Self-Employed As A Share Of Non-Farm Employment

At this point, only about 7 percent of non-farm workers are self-employed.  That is depressingly low.  That means that an overwhelming majority of those that are employed in America are working for the system in one capacity or another.

But isn’t that what we pound into the heads of our children these days?  We teach them to work hard in school so that they can “get a good job” when they grow up.  From a very early age we train our children to plug themselves into the system.

Not that working for someone else is wrong.  Of course not.  It is just that we are not fostering a spirit of entrepreneurship in America today.  In fact, we seem to be doing everything that we can to kill it off.

In a previous article, I detailed how the number of new businesses (and the number of jobs those businesses create) has been steadily declining.  In particular, this decline has accelerated dramatically under the Obama administration.  According to an analysis of U.S. Department of Labor data performed by economist Tim Kane, the following is how the decline in the number of startup jobs per 1000 Americans breaks down by presidential administration

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

Is that a good trend or a bad trend?

It doesn’t take an advanced degree in economics to figure out where things are going.

Kane speculated about why we are witnessing such a decline in his paper

There is anecdotal evidence that the U.S. policy environment has become inadvertently hostile to entrepreneurial employment. At the federal level, high taxes and higher uncertainty about taxes are undoubtedly inhibiting entrepreneurship, but to what degree is unknown. The dominant factor may be new regulations on labor.  The passage of the Affordable Care Act is creating a sweeping alteration of the regulatory environment that directly changes how employers engage their workforces, and it will be some time until those changes are understood by employers or scholars. Separately, there has been a federal crackdown since 2009 by the Internal Revenue Service on U.S. employers that hire U.S. workers as independent contractors rather than employees, raising the question of mandatory benefits. New firms tend to use part-time and contract staffing rather than full-time employees during the startup stage. According to Labor Department data, the typical American today only takes home 70 percent of compensation as pay, while the rest is absorbed by the spiraling cost of benefits (e.g., health insurance). The dilemma for U.S. policy is that an American entrepreneur has zero tax or regulatory burden when hiring a consultant/contractor who resides abroad. But that same employer is subject to paperwork, taxation, and possible IRS harassment if employing U.S.-based contractors. Finally, there has been a steady barrier erected to entrepreneurs at the local policy level. Brink Lindsey points out in his book Human Capitalism that the rise of occupational licensing is destroying startup opportunities for poor and middle class Americans.

In my previous article, I also pointed out some of the other statistics that show that small business in America is dying…

-According to the U.S. Census Bureau, the U.S. economy lost more than 220,000 small businesses during the last recession.

-As a share of the population, the percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.

-As a share of the population, the percentage of “new entrepreneurs and business owners” dropped by a staggering 53 percent between 1977 and 2010.

Unfortunately, this is a crisis that has taken decades to develop and that there are not any easy solutions for.  But there are certain factors that should be addressed immediately.  The following are some of the things that are contributing to the murder of self-employment and small business in America…

#1 Taxes: The IRS seems to especially enjoy tormenting entrepreneurs and small businesses.  In fact, things have gotten so bad that even late night talk show hosts are joking about it.  Recently, NBC Tonight Show host Jay Leno joked that if Barack Obama really wanted to close down Guantanamo Bay, he should “do what he always does: declare it a small business and tax it out of existence”

#2 Ridiculous Regulations: If you have ever tried to start a small business, you probably know how frustrating it can be dealing with government red tape.  In particular, the federal government has burdened our small businesses with gigantic mountains of rules and regulations and it gets worse with each passing day.

#3 State Governments That Are Openly Hostile To Business: A perfect example of this is the state of California.  In 2011, the state of California ranked 50th out of all 50 states in new business creation, and yet they just continue to pass more legislation that hurts small businesses.

#4 Obamacare: Our broken healthcare system is a tremendous burden on small businesses, and Obamacare is going to make things much worse.

#5 The One World Trade Agenda: In many industries, U.S. small businesses simply cannot compete against products made by workers that are being paid slave labor wages on the other side of the globe.

#6 Predator Corporations: Time after time we have seen corporate giants extract huge tax breaks and other enormous concessions from local officials which give them an overwhelming advantage.  But once the corporate giant moves into town, many of the existing small businesses find that they cannot compete and are forced to shut down.

#7 Our Corrupt Political System: On the national level, elections are almost always won by the politician that raises the most money.  Our politicians know that their careers depend on raising money, so they tend to be very good to those that they get big money from.  There is a reason why big corporations spend billions of dollars on campaign contributions and lobbying.  They do it because it works.  Over the decades, the big corporations have been able to shift the rules of the game massively in their favor, and this has been to the detriment of entrepreneurs and small businesses.

Can you think of any other factors that you would add to this list?  Please feel free to share your opinion by leaving a comment below…

Michael T Snyder's New Book

 

18 Examples Of The Nanny State Gone Wild

America has been overrun by control freaks.  Once upon a time the United States was considered to be “the land of the free and the home of the brave”, but today there are millions of laws, rules and regulations that tightly regulate our daily lives.  Most of these laws, rules and regulations were established by people who believed that they had “good intentions”, but at this point the nanny state has become so oppressive that it is strangling the life out of us.  If you look back throughout history, the societies that have really thrived have had a very high degree of liberty and freedom.  When the bureaucrats get the upper hand, it can suck the life out of any economy.  Unfortunately, our political system seems to be a magnet for control freaks.  These control freaks truly believe that they know better than the rest of us and they are systematically moving toward taking total control of our lives.  Our rights are being stripped away a little bit more with each passing day, and we are being told that we need a “permit” or a “license” for almost everything.  Many younger Americans have been living this kind of “straight jacket existence” for so long that they don’t even remember what real liberty and freedom are.  We are steamrolling down the road toward totalitarianism, and most Americans don’t even realize what is happening.

Sadly, there are many Americans that actually agree that the state should regulate nearly every detail of our lives.  There are many Americans that actually believe that life is better when there are millions of rules that we all have to follow.  There are many Americans that actually believe that too much liberty and freedom is a bad thing.

If we are not careful the control freaks are going to destroy this nation.  They always tell us that the rules that they are imposing upon us are “for our own good”, but every time they lay another burden on our backs they just suck a little bit more life out of us all.

The following are 18 examples of the nanny state gone wild….

#1 New York City Mayor Michael Bloomberg has announced that he wants to ban the sale of all large sodas and sugary drinks in order to fight obesity.  Personally I don’t have any sodas in my refrigerator, but I certainly do not want the government telling me that I am banned from drinking large sodas.  Every American should have the freedom to decide if they want to drink soda or not.

#2 In North Carolina, authorities are threatening to send a blogger to prison for blogging about his battle against diabetes….

Steve Cooksey has learned that the definition, at least in the eyes of the state board, is expansive.

When he was hospitalized with diabetes in February 2009, he decided to avoid the fate of his grandmother, who eventually died of the disease. He embraced the low-carb, high-protein Paleo diet, also known as the “caveman” or “hunter-gatherer” diet. The diet, he said, made him drug- and insulin-free within 30 days. By May of that year, he had lost 45 pounds and decided to start a blog about his success.

But this past January the state diatetics and nutrition board decided Cooksey’s blog — Diabetes-Warrior.net — violated state law. The nutritional advice Cooksey provides on the site amounts to “practicing nutrition,” the board’s director says, and in North Carolina that’s something you need a license to do.

#3 In San Francisco, if you do not recycle your trash correctly you can be fined up to $500.

#4 The following are just some of the cities that have started using RFID tracking chips to monitor the recycling habits of their citizens….

*Cleveland, Ohio

*Charlotte, North Carolina

*Alexandria, Virginia

*Boise, Idaho

*Dayton, Ohio

*Flint, Michigan

#5 In Minnetonka, Minnesota you can be fined up to $2,000 for having a muddy vehicle.

#6 In Hazelwood, Missouri it is against the law for little girls to sell girl scout cookies in front of their own homes.

#7 San Francisco has implemented a ban on Happy Meal toys.

#8 Over the past couple of years there have been quite a few instances all over the country where lemonade stands run by children have been shut down by police because the children had not acquired the proper permits.

#9 State legislatures all over the country have been passing legislation making it more difficult for parents to opt out of having their children vaccinated.

#10 In many U.S. states is it now illegal to collect any rain that falls on to your own property.

#11 In San Juan Capistrano, California it is against the law to hold a home Bible study without a “conditional use permit“.

#12 In New York City, it is against the law to smoke at public parks and beaches.

#13 In California,”food confiscation teams” visit the homes of people that have been discovered to have purchased raw milk.  The following is from a recent Natural News article….

In a bombshell revelation of the depth of the food police state that now exists in LA County, California, NaturalNews has learned that the LA County health department has unleashed door-to-door raw milk confiscation teams to threaten and intimidate raw dairy customers into surrendering raw milk products they legally purchased and own.

According to Mark McAfee (see quotes below), both LA County and San Diego county have attempted to acquire customer names and addresses from Organic Pastures (www.OrganicPastures.com) for the sole purpose of sending “food confiscation teams” to customers’ homes to remove the raw milk from customers’ refrigerators. Using both phone calls and home visits, these teams intimidate customers and try to force them to give up their milk.

#14 In Hilton Head, South Carolina it is illegal to have trash in your car.

#15 In major cities all over the United States feeding the homeless has been banned due to “health reasons”.

#16 In Louisiana, one church was ordered to stop passing out water because it did not have the proper permit.

#17 At public schools all over the United States, the lunches that little children bring from home are now inspected to make sure that they meet USDA guidelines.  The following is one recent report of this phenomenon from North Carolina….

A preschooler at West Hoke Elementary School ate three chicken nuggets for lunch Jan. 30 because the school told her the lunch her mother packed was not nutritious.

The girl’s turkey and cheese sandwich, banana, potato chips, and apple juice did not meet U.S. Department of Agriculture guidelines, according to the interpretation of the person who was inspecting all lunch boxes in the More at Four classroom that day.

The Division of Child Development and Early Education at the Department of Health and Human Services requires all lunches served in pre-kindergarten programs — including in-home day care centers — to meet USDA guidelines. That means lunches must consist of one serving of meat, one serving of milk, one serving of grain, and two servings of fruit or vegetables, even if the lunches are brought from home.

#18 Today, a vast array of government agencies is constantly monitoring what all of us say and do on the Internet.  They claim that this helps makes us all more “safe” and “secure”.

In order to maintain proper “control” over our lives, the nanny state is obsessed with watching us and monitoring us.  This point was beautifully made in a recent article by Chuck Baldwin….

America is no longer “one nation under God.” Today, America is “one nation under surveillance.” Cameras monitoring our every movement, satellites taking pictures of our homes, listening devices being used to record our conversations, hi-tech computers capturing virtually every piece of correspondence, banking institutions forwarding our private financial records to Big Brother, and now armed drones flying over the neighborhoods of the American citizenry all reveal that America is anything but the “land of the free.”

Is this really how we want to live?

Do we want our children and our grandchildren to live their lives in a nation that is increasingly coming to resemble totalitarian regimes like North Korea?

Yes, every society needs laws.

But we don’t need millions of them.

Our founders intended to create a society where liberty and freedom would be maximized, and all of that liberty and freedom helped create an environment that gave birth to the greatest economic machine that the world has ever seen.

But now the control freaks are choking the life out of our society.  Please take a stand against them while you still can.

Finca Bayano

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