As of August 2012 unemployment in the United States was 8.3%. As bad as that was, it was much better than the European Union which is nearly 13% unemployment (average). Countries like Spain are now over 20%. One of the biggest challenges in the United States is overregulation of small business, and rather than attempting to reduce these regulations, unfortunately we’ve piled on more. Some of these regulations were meant for corporations, to keep them aligned with the ethics of our society, but nevertheless they do affect the little guy, often much more. Okay so let’s talk about this for second shall we?
Our economic performance in 2012 and 2013 will surely depend on the performance of our small business community throughout this great nation of ours. If every small business in the country merely hire one more person, we would have easily created more than enough jobs to satisfy our employment goals. Some say that companies should start hiring people first, therefore more people will have a paycheck, therefore they will spend more money buying the products and services of all the other businesses, therefore the economy will be hyper accelerated.
While this is an interesting theory, and can mathematically be proven, you must understand that businesses are in business to make money, not throw it away. They must operate in a place to stay efficient and profitable. If we want businesses to hire more people we need to make it easier for them to hire people, cut the red tape, and therefore cut some of the risk out of the equation, but unfortunately right now we (as a nation, I’d personally never do anything like that) are doing just the opposite, which is my point here.
You see, the unemployment in our country and the success of our smaller companies and entrepreneurs are interlinked. We can’t have one without the other. Without healthy and strong entrepreneurial companies we can’t expect to have low unemployment figures, nor can we meet our economic performance goals allowing for more taxation funds into our government to provide all the services that these politicians have graciously promised.
The regulation issue is a sticky point with many people, however it’s time we looked at the regulations at all levels of government; municipal, county, state, and federal government levels. Until we make it easier to do business, and simplify the process, there is just too much chaos and risk, and cost for a business owner to choose to hire more people. Indeed I hope you will please consider all this and think on it.