Explaining the decline in US entrepreneurship • AEI | Pethokoukis Blog » AEIdeas

the San Francisco Fed is out with a report on this issue of falling US business formation. It finds that in recent decades “the number of businesses in the United States has moved much more closely with workforce size” and that “[increasing] the labor supply and hence the supply of potential entrepreneurs can stimulate business formation by increasing demand without raising costs.”

Source: Explaining the decline in US entrepreneurship • AEI | Pethokoukis Blog » AEIdeas

Editor’s note: the CBO estimated that the ACA would reduce the size of the workforce by ~2 million workers; this SF Fed report would imply that would have an adverse effect on business formation.

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