David Goldman: We’re Getting Creative Destruction Without The Creation Part
Courtesy of Joe Weisenthal at Clusterstock/Business Insider
David Goldman, as usual, has some good insights about why the job creation picture is so ugly:
My disagreement with Deutsche Bank chief economist Joe Lavorgna over future job creation–which we debated last week on Larry Kudlow’s CNBC show–lies in the crucial role of small business in job creation. The process of job destruction (from big companies) and job creation (from small companies) are two sides of entrepreneurial “creative destruction.” The problem today is that we have the destruction without the creation.
Companies with less than 50 employees predominated in job creation during the great economic expansion that ended in 2007.
In the chart below drawn from a recent study by the Census Bureau and the University of Maryland, the really tall bars (reflecting net creation of new jobs) come from new and small companies.
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