4 ms·

Not noted in the article, but I feel like a lot of the reasons that the rate of people starting their own business is declining is that the costs of essential s

by tmh79 9y ago

Not noted in the article, but I feel like a lot of the reasons that the rate of people starting their own business is declining is that the costs of essential services like housing, education, healthcare and childcare have been increasing at a rate much greater than inflation [0]. It was comparably easier to pay for essential services 30 years ago than it is today, and it is difficult to take the risk of starting your own business when you need to pay higher costs for basic life necessities. [0] http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2016/08/18/College%20Inflation.png http://www.zerohedge.com/sites/default/files/images/user2305...

cheez 9y ago
Interestingly enough, the industries that show the highest growth according to that chart have significant government involvement (here there is subsidized daycare, not sure about the US).
- jayd16 9y ago
  Are you not just projecting your own bias? Governments regulate cars, TVs, toy safety, cell phones, etc.
  - cheez 9y ago
    The government doesn't subsidize those things though.
    - spamizbad 9y ago
      The government absolutely subsidizes at least two the those industries: Cell phones/service and automobiles. https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reor... https://www.fcc.gov/general/lifeline-program-low-income-consumers https://www.fcc.gov/general/lifeline-program-low-income-cons... https://www.nap.edu/read/4816/chapter/5 https://www.nap.edu/read/4816/chapter/5 https://en.wikipedia.org/wiki/C-DOT https://en.wikipedia.org/wiki/C-DOT the list goes on... (I don't know much about those other industries but I'm sure there's billions behind them as well)
      - cheez 9y ago
        Can you find programs? Sure. They are not as high a fraction of the tax dollar as the others.
    - stevenwoo 9y ago
      Correct me if I'm wrong, but I recall reading the US government gives some sort of tax benefit to the employer for providing parking spaces for employees. Some people say this subsidizes suburban sprawl. https://books.google.com/books?id=ZIqIN2j2LOUC&pg=PA82#v=onepage&q&f=false https://books.google.com/books?id=ZIqIN2j2LOUC&pg=PA82#v=one...
      - zaroth 9y ago
        This was on HN a few days ago. My own comment in response is here. [1] To save you the click, IMO it's an utter BS claim. [1] - https://news.ycombinator.com/item?id=15258878 https://news.ycombinator.com/item?id=15258878
    - humanrebar 9y ago
      Regulations are subsidies for incumbents with procedures and specialists for handling all the regulation. See also: https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Regulatory_capture
kylehotchkiss 9y ago
Can't forget these massive massive student loans people have to pay off.
eighthnate 9y ago
Costs are a problem for sure. But the biggest factor is the FED. They have slowly increased rates the past 1.5 years and have stated that they are going to increase interest rates further and pop the economic bubble. Not only that, Yellen has said the FED is going to shrink their balance sheet. Credit is drying up and becoming more expensive and will be for some time. All business activity will slow ( new or established ). And we'll get a recession soon. It's only after the recession, when the FED decreases rates and loosens credit controls that business activity will start to increase again.
- lovich 9y ago
  Should the rates be kept at 0 or near it forever? What happens when there's a recession despite the low rates, is the government supposed to pay banks to take their money? Some of your points can be argued for and I'd agree with them, but to put it out like the big bad government is just looking to turn off the economy is pretty disingenuous
  - eighthnate 9y ago
    > Should the rates be kept at 0 or near it forever? Of course not. > but to put it out like the big bad government is just looking to turn off the economy is pretty disingenuous Where did I say this? Also, the FED isn't "the big bad government". They are a private corporation. Why do so many people on hackernews read into things and get defensive? Recessions are a necessary part of an economy. All I said was that the FED exists to pop bubbles via their interest rates. I didn't say it was good or bad. I was just pointing out why recessions happen.
    - lovich 9y ago
      Forgive me if I read into your comment incorrectly. To me it read as if you are stating that the fed increasing the interest rate at all is what is going to lead to a recession and that businesses won't be started until they lower the rate again, even though that rate is historically low. Also the Fed is not a corporation like all the others in the US. They are indepentish because they aren't answering on day to day basis to the political side of the government but they still ultimately work for the government

by tmh79 9y ago

cheez 9y ago

Interestingly enough, the industries that show the highest growth according to that chart have significant government involvement (here there is subsidized daycare, not sure about the US).

jayd16 9y ago
Are you not just projecting your own bias? Governments regulate cars, TVs, toy safety, cell phones, etc.
- cheez 9y ago
  The government doesn't subsidize those things though.
  - spamizbad 9y ago
    The government absolutely subsidizes at least two the those industries: Cell phones/service and automobiles. https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reor... https://www.fcc.gov/general/lifeline-program-low-income-consumers https://www.fcc.gov/general/lifeline-program-low-income-cons... https://www.nap.edu/read/4816/chapter/5 https://www.nap.edu/read/4816/chapter/5 https://en.wikipedia.org/wiki/C-DOT https://en.wikipedia.org/wiki/C-DOT the list goes on... (I don't know much about those other industries but I'm sure there's billions behind them as well)
    - cheez 9y ago
      Can you find programs? Sure. They are not as high a fraction of the tax dollar as the others.
  - stevenwoo 9y ago
    Correct me if I'm wrong, but I recall reading the US government gives some sort of tax benefit to the employer for providing parking spaces for employees. Some people say this subsidizes suburban sprawl. https://books.google.com/books?id=ZIqIN2j2LOUC&pg=PA82#v=onepage&q&f=false https://books.google.com/books?id=ZIqIN2j2LOUC&pg=PA82#v=one...
    - zaroth 9y ago
      This was on HN a few days ago. My own comment in response is here. [1] To save you the click, IMO it's an utter BS claim. [1] - https://news.ycombinator.com/item?id=15258878 https://news.ycombinator.com/item?id=15258878
  - humanrebar 9y ago
    Regulations are subsidies for incumbents with procedures and specialists for handling all the regulation. See also: https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Regulatory_capture

kylehotchkiss 9y ago

Can't forget these massive massive student loans people have to pay off.

eighthnate 9y ago

Costs are a problem for sure. But the biggest factor is the FED. They have slowly increased rates the past 1.5 years and have stated that they are going to increase interest rates further and pop the economic bubble. Not only that, Yellen has said the FED is going to shrink their balance sheet. Credit is drying up and becoming more expensive and will be for some time. All business activity will slow ( new or established ). And we'll get a recession soon. It's only after the recession, when the FED decreases rates and loosens credit controls that business activity will start to increase again.

lovich 9y ago
Should the rates be kept at 0 or near it forever? What happens when there's a recession despite the low rates, is the government supposed to pay banks to take their money? Some of your points can be argued for and I'd agree with them, but to put it out like the big bad government is just looking to turn off the economy is pretty disingenuous
- eighthnate 9y ago
  > Should the rates be kept at 0 or near it forever? Of course not. > but to put it out like the big bad government is just looking to turn off the economy is pretty disingenuous Where did I say this? Also, the FED isn't "the big bad government". They are a private corporation. Why do so many people on hackernews read into things and get defensive? Recessions are a necessary part of an economy. All I said was that the FED exists to pop bubbles via their interest rates. I didn't say it was good or bad. I was just pointing out why recessions happen.
  - lovich 9y ago
    Forgive me if I read into your comment incorrectly. To me it read as if you are stating that the fed increasing the interest rate at all is what is going to lead to a recession and that businesses won't be started until they lower the rate again, even though that rate is historically low. Also the Fed is not a corporation like all the others in the US. They are indepentish because they aren't answering on day to day basis to the political side of the government but they still ultimately work for the government