Self-Employed Struggle as U.S. Recovery Offers Few Opportunities

[marmar]

(Bloomberg) More than 1 million self-employed Americans are no longer in business almost four years after the last recession began, as the economy constrains entrepreneurial activity and small-business job creation.

The 18-month contraction that started in December 2007 initially resulted in more would-be business owners, as the number of people who work for themselves grew to 16.3 million in July 2008 from 15.7 million at the end of 2007, according to data from the Bureau of Labor Statistics. Since then, the total has fallen about 10 percent to 14.7 million in July, the data show.

Employer businesses -- those that provide work for individuals including the founder -- “have been starting in fewer numbers, with fewer workers and growing at a slower pace than in the past,” according to Robert Litan, a vice president at the Kansas City, Missouri-based Kauffman Foundation, which supports research on start-ups. “Therefore, these entrepreneurs are generating increasingly fewer new jobs for the U.S. labor market.”

The number of new employer businesses dropped 24 percent to 505,473 on an annual basis in 2010 from 667,341 in 2006, according to Litan, who co-wrote a report published in July on small-business job creation. ..........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-01/self-employed-struggle-as-u-s-recovery-offers-few-opportunities.html

[Selatius]

1. Wealth isn't getting to where it needs to go. Wealth is being made, but it's going to the top 1%

When Warren Buffett pays a lower tax rate than a person who owns a dine-in restaurant, you've got the makings of a stagnant economy where the poor stay poor and the rich become filthy rich. People who advocate a progressive income tax and support social programs aimed at reducing hunger, homelessness, and disease get my vote.

[Fumesucker]

3. The top 1% is where wealth naturally goes..

It's not "trickle down" it's "bubble up", in the absence of other factors (read: government regulation) the market naturally drives wealth toward those who already have it.

[Fumesucker]

2. Not to worry...

Obama is supposedly rolling out a jobs package that doesn't require Congressional approval, apparently the White House just figured out how do do this last week or something.

[ixion]

6. yeah, but the 'plan' is largely toothless, and passes the buck downward...

he is going to request that Federal agencies "figure out" how they can create jobs. It's more smokescreen and empty rhetoric than an actual program.

[InvisibleTouch]

4. I can attest to that.

When nobody has money to spend, it hurts those of us who are self-employed sellers. So it always baffles me how the big manufacturers sent all their jobs overseas and laid off their workers here at home. Sure, they can pay their employees less now, but who's going to buy their products if no one can afford them?

[TomClash]

10. Spot on

And let's not even talk about services . . .

[Bonobo]

5. When you have to lay out $12,000 after taxes for crappy health insurance

and that doesn't even cover the ridiculous expense of dental care, it is small wonder.

Especially with the internet allowing people in China or Bangalore to take away what small chances you had by profiting from their radically unequally scaled economies.

[Uben]

8. Hey, I have to pay twice that for shitty insurance.....

The insurance industry is killing the self-employed. God forbid you have a major illness like cancer because your insurance premiums double, then triple. When the self employed have to pay $25K/yr for insurance premiums, it is a recipe for disaster. It's like "who can fuck the middle class worse" the insurance companies, the banks, or the oil companies. The greed whores are winning because they own congress. Our congress is as corrupt as it gets because they are not protecting the people, they are protecting big businesses. It's like they think we have to save capitalism and the people be damned.

[Bonobo]

9. You don't need a major illness. A minor, routine one is enough.

I had insurance. Then I had a hernia operation. $5,000 dollars. Bang.

That's enough of a hit to fuck you up pretty good and drive some people, maybe many people, to homelessness.

When will America realize its strength is in its people and if it keeps abusing them, it will HAVE no strength left?

[Uben]

11. I have a $5000 deductible for that $25K in premiums

..and I have to pay 50% of the next $10K! All that money is split between CEO salaries and congressional bribe money in the form of campaign donations. For congress, it's all about financing their careers first, the people be damned.

[w0nderer]

17. when the rich take the equivalent of a big beating

it's like being in a group fight
the guy in the back cheering everyone on doesn't care about the punishment the frontliners take
until they are all down and the opponents gang up on him

the problem is that a large amount of the American population have been taught/convinced/indoctrinated to believe that they
are in the back cheering people on and are really confused when the blows start raining on the frontliners and they start getting bruised

as to when?
when Americans as a people
realize that 'there is no I in T E A M' shouldn't need to be stated it should be as natural as breathing
realize that emergency prep means checking your neighbors too and offering shelter if need be
realize that they are a team, not black/white/hispanic/whitecollar/bluecollar/unionized/teacher/public worker/private worker
...they are workers!

and time is running out

[PA Democrat]

12. Bingo. And add that you pay 15% self-employment tax

instead of the 7.5% that an employee pays. And if you hope to retire, you'll need to fund that as well, or pray that the assholes if Washington don't succeed in gutting SS and Medicare.

[Bonobo]

13. AND unemployment insurance that you yourself are ineligible for!

Grrrrrrr....

[Liberal In Texas]

14. This I have never understood.

Why pay that if you can't ever collect benefits from it?

If repubs/libertarians really wanted to help the average joe they would support reform of this and the elimination of excise taxes (on things like tires). But of course, they don't. It's more about giving the wealthy a nearly free ride.

[geckosfeet]

7. This nails the hypocrisy on the head. All the "tax breaks for small business"

end up helping big business and killing the truly self employed small timer.

Just try to get a loan from a bank if you are self employed. When you tell them you are self employed they look at you like you just said you were from Mars. Then they demand 20 years of demonstrated income statements and tax returns.

The discriminatory practices against small timers is well engrained in our economic system.

[Harmony Blue]

15. Small business is not welcomed in the U.S.

Why the Democrats don't call out the Republicans on this lie I don't understand.

[Fumesucker]

16. For the same reason they don't call the Republicans out on so many lies..

They're all paid off by the same wealthy interests who utterly despise real small business.