By: Christy Paavola, CARLY for America Research Director
Today on This Week, Carly highlighted a serious problem facing our nation. While discussing our economy, Carly said:
“In fact, we’re destroying more businesses in the United States now than are being created for the first time in our history.”
You can watch the video here. Here is some background on Carly’s statement:
According To A Brookings Report, “During The Most Recent Three Years Of Study … Businesses Were Collapsing Faster Than They Were Being Formed, A First.” “The American economy is less entrepreneurial now than at any point in the last three decades. That’s the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978. Not only that, but during the most recent three years of the study — 2009, 2010 and 2011 — businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011.” (The Washington Post’s “Wonkblog,” “U.S. Businesses Are Being Destroyed Faster Than They’re Being Created,” Posted By Christopher Ingraham, 5/5/14)
Brookings: “New Firm Formations Have Been On A Persistent Decline During The Last Few Decades.” “But recent research shows that dynamism is slowing down. Business churning and new firm formations have been on a persistent decline during the last few decades, and the pace of net job creation has been subdued. This decline has been documented across a broad range of sectors in the U.S. economy, even in high-tech.” (Ian Hathaway and Robert E. Litan, “Declining Business Dynamism In The United States: A Look At States And Metros,” Brookings, 5/5/15)
(Ian Hathaway and Robert E. Litan, “Declining Business Dynamism In The United States: A Look At States And Metros,” Brookings, 5/5/15)
