Thursday, October 07, 2010
The Importance of Startups in Job Creation and Job Destruction
The Kauffman Foundation has a research article, The Importance of Startups in Job Creation and Job Destruction, that makes an even stronger argument than I did below regarding the importance of new products and ideas driving the economy. Specifically, the author argues that, "net job growth occurs in the U.S. economy only through startup firms." That's a pretty strong statement. If true, then, again, we have a pretty clear reason why the economy cannot be jump-started through Keynesian methods.