The belief that small businesses can create jobs is influencing government policy and the allocation of resources. So why are they not creating them — even with a trillion-dollar stimulus? Maybe the more relevant question is not who creates jobs, but why?
- Local consumers with increased purchasing ability. But the transfer of so many U.S. jobs to other countries has resulted in a reduction in the purchasing power of American consumers.
- Other local small businesses. A shrinking of local markets is likely to cause all to suffer.
- New companies in hot industries like the Internet added new ventures, and small businesses to serve them. However, there have not been any “hot” industries since. And even if there is one, will any imports of manufactured products cause a further deterioration of American wealth?
Note: Many are expecting “innovation” to rescue America. Apple is said to have 10 people producing products in China for each U.S. employee. This is helping China create more jobs than the U.S.
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Read: “How can Florida create jobs? Focus on catalysts,“ an article by Dileep Rao for the MiamiHerald.com.