Filed under: Capitalism, Domestic Policy, Economy, Regulation, The United States | Tags: Obama Administration, Overregulation, Small Business
The health of small business may be the most important indicator of long term growth in our economy. But this spring has been a hard time for small business. Only 119,000 jobs were added in March, and although April and May saw the jobs market perform better, small businesses who make up the bulk of payroll services firm Paychex Inc.’s customers said the measure of small business hiring was off by half a percentage point by the end of May. Not a good sign.
In today’s world, when the shift from a manufacturing economy to the information economy is the major trend in American business, the health of small business may be the most important indicator of long term growth. We need hundreds of thousands of creative new small businesses led by entrepreneurs who are attempting to take advantage of the riches of the information sector to provide new products and services.
The Left’s push for a higher minimum wage, and Obama’s new order to force businesses to pay overtime to anyone making less than $50,000 a year will simply encourage the proliferation of robots, electronic cashiers, and more part-time workers. Over time the creativity of entrepreneurs could provide the new jobs that will replace the ones being automated or outsourced. Cheap money and relatively cheap labor should be helping, but a number of factors are at work. We have an administration that deeply believes that more regulations makes life better, which is clearly part of the problem.
Big businesses can cope. When the minimum wage jumps to $15 an hour, a chain of drugstores can afford to install automatic checkout machines that won’t get $15 and hour plus overtime, plus healthcare, plus sick leave, plus being late for work. It’s not so easy for small business.
Control and Regulation and the heavy hand of government have a cost. The Left is basically clueless. This time it’s affecting us all.
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