The Decline of Self-Employment and Small Business
Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.
Historically, in order for incorporated self-employment to grow, it requires an increasing share of the population that is inclined to, or capable of, first becoming unincorporated self-employed. A growing share of the incorporated self-employed since the ’00s are one-person S corporations (to take advantage of favorable tax treatment) or limited partnerships (LPs) and limited liability corporations (LLCs) in real estate for pass-through purposes that hire few, if any, employees.Consider that the US employment base is disproportionately dependent upon the viability of as few as 4% of the labor force and fewer than 2% of the population as the primary “job creators”, i.e., incorporated self-employed.
Spend some time walking through Silicon Valley or New York City, and you’ll likely leave under the impression that entrepreneurship is alive and well in the United States. But spend some time wading through some of the latest census data, and you may come away with a very different impression.
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Things are falling apart–that is obvious. But why are they falling apart? The reasons are complex and global. Our economy and society have structural problems that cannot be solved by adding debt to debt. We are becoming poorer, not just from financial over-reach, but from fundamental forces that are not easy to identify or understand. We will cover the five core reasons why things are falling apart:
1. Debt and financialization
2. Crony capitalism and the elimination of accountability
3. Diminishing returns
4. Centralization
5. Technological, financial and demographic changes in our economy
Complex systems weakened by diminishing returns collapse under their own weight and are replaced by systems that are simpler, faster and affordable. If we cling to the old ways, our system will disintegrate. If we want sustainable prosperity rather than collapse, we must embrace a new model that is Decentralized, Adaptive, Transparent and Accountable (DATA).
We are not powerless. Not accepting responsibility and being powerless are two sides of the same coin: once we accept responsibility, we become powerful.
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To receive a 20% discount on the print edition: $19.20 (retail $24), follow the link, open a Createspace account and enter discount code SJRGPLAB. (This is the only way I can offer a discount.)
Thank you, William K. ($50), for yet another wondrously generous contribution to this site — I am greatly honored by your steadfast support and readership. | Thank you, Wayne H. ($50), for your splendidly generous contribution to this site — I am greatly honored by your support and readership (and I dig your guitar playing, too). |
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2013-04-21 22:45:12
Source: http://charleshughsmith.blogspot.com/2013/04/the-decline-of-self-employment-and.html
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