Let me say right off the bat that I am no economist and would never even try to fake being one here on the ‘Grok. That said, I see this chart as being extremely troubling. Our traditional economics here in America has depended people, drawn to America on the idea that they too could make their own American Dream, that were willing to take that risk. They knew and understood that while the risk to succeed meant great riches if they did indeed succeed, they could also nose-plant – yet took that risk anyways.
Some, being imprudent, failed to do the requisite homework, failed to calculate the risks, went ahead and risked it all anyways by starting up their business, and did the nose plant. And yes, some did succeed despite themselves (re: anyone remember Pet Rocks?). Most look, however, evaluate those risks and as this chart shows, have decided that the future is too unknowable to risk it.
My take? I believe that it is Government, churning out 10s of thousands of pages of new laws and regulations, that is causing most of the “risk to be avoided” atmosphere. Over the past few years, we have heard from business founders from the likes of Home Depot and FedEx and tech companies all saying that the regulatory environment would not allow them to succeed if they were in start up stage now.
I have worked for several startups over the decades – like most, they failed. TMEW and I had our own start up which was starting to do well (until her illness intervened). To be honest, I don’t think that I’d want to try doing a start up again – partially of the “been there done that and missed the brass ring”, partially in that I am getting a tad long in the tooth (and doing the ‘Grok is what gives me a lot of satisfaction) but much of it is WHY would I want to have to become a Government Regulatory Expert FIRST before concentrating on what the start up is really about?
It seems to me that Government (like another well known group that some might know) has decided that it WILL be your partner in your business – and in ways and fashions that are counterproductive to what you want to actually do. This takes away from concentrating on those things that your succeeding actually depends on. “What difference does it make?” (TM by Hillary) if a freezer that I am not using, off in a corner and turned off, doesn’t have a thermometer (and for which we got dinged) while making sure that I had the right number of day care teachers, brand new equipment, and good materials for curriculum?
Has it gotten to the point where people who normally would do a first time start up have decided that the time and expense that HAS to be paid to Government is now a losing proposition and too much to bother? That the change to our culture created by Progressivism to take risk out of our lives by punishing everyone else has removed a trait that Americans have been known for for centuries, that as being risk takers?
Think I’m kidding? How many things have been “taken away” from the Marketplace simply because somebody THINKS someone could get hurt by it? That kids no longer have playground equipment like jungle gyms because somebody might fall and skin their elbows? The constant litany of “don’t do this” and “don’t do that” and “don’t even think of” we hear day in and day out – as if we adults are all kids and unable to make decisions for ourselves. If everything is verboten before you try that thing, why would you ever want to try anything?
Remember, Freedom and Liberty can be regulated away just as easy as when done at the point of a gun – sometimes easier. Takes longer, though, but those that regulate take the long view. Bureaucracies are like that.
(H/T: AEIdeas)
