Symptoms of the economic collapse: Small business and self-employment are in decline

Since the beginning of the economic collapse in 2007 there has been a significant decline in the number of people who are self-employed, and in particular, the number of self-employed people who establish their business as a corporation and have employees.

The recession has effected all forms of employment, as the division of labor will break down to varying degrees with any economic downturn, but small businesses seem to being taking a particularly big hit.  The trend has been for more people to be employed by large corporations or by government.  More people being employed in government jobs should be especially troubling as most of these jobs are non-productive and are a drag on the economy.  The taxation required to sustain government jobs is also part of the reason small business is on the decline.  Not to mention the endless regulations and red tape these government bureaucrats create as roadblocks for entrepreneurs.

As this post by Charles Hugh Smith says:

Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.

America is still a place of opportunity for entrepreneurs compared to the rest of the world, but it’s not like it once was.  The scourge of socialism has dampened the rugged individualism and capitalism that made the country so prosperous and wealthy.

Continue reading on charleshughsmith.blogspot.com.

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