Wednesday, January 21, 2015

First Time in [recorded] History: More Businesses Close Than Startup

As the world was rightly focused on Paris and Europe last week because of the Islamic terrorist attack in Paris and credible threats by Al Qaeda in Yemen and by ISIS around Europe, this alarming report from Gallup regarding the United States economy was overlooked by many of the major news outlets.  And what was missed was an historical economic event in the United States.

For the first time since recordings were taken [that started in the 1970s], there were more business in the United States that closed than businesses that started up.  

David Asman host of Forbes on Fox
The Forbes on Fox Panel

Not all news media overlooked this important report.  On the Fox News Channel Saturday morning two hour block entitled the Cost of Freedom, the Forbes on Fox gang led by host David Asman took up this issue at the start of their show.  Their great panel, led by David Asman had a very interesting discussion on what the economic report meant.  David Asman pointed out that the report from Gallup organization's chairman and CEO Jim Clifton stated that "let's get one thing perfectly clear, this economy is never truly coming back unless we reverse the birth and death trends of American businesses."

Listen to the one place where this economic news was reported-The Fox News Channel.

Good job David Asman and panel.

Forbes on Fox Discussion on Saturday January 17, 2015:

This from the Gallup Business Report "American Entrepeneurship: Dead or Alive?":  " The U.S. Census Bureau reports that the total number of new business startups and business closures per year -- the birth and death rates of American companies -- have crossed for the first time since the measurement began. I am referring to employer businesses, those with one or more employees." 

Jim Clifton the author of the Gallup report continues: "Business startups outpaced business failures by about 100,000 per year until 2008. But in the past six years, that number suddenly reversed, and the net number of U.S. startups versus closures is minus 70,000."

Mr. Clifton give this foreboding warning: "I don't want to sound like a doomsayer, but when small and medium-sized businesses are dying faster than they're being born, so is free enterprise. And when free enterprise dies, America dies with it."

To read the entire Gallup Business Report by Jim Clifton please click here.

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