Why Small Business Isn’t Hiring
An overwhelming majority of small-business owners surveyed, 85 percent, indicated that they are currently not looking for new workers. Asked why, 48 percent of those not hiring said it was due to concerns about possible rising health care costs, while 46 percent said they were worried about new government regulations.
More on small-business owners holding back from hiring in Politico.
Over the next couple of decades, if Obamacare holds in the high court, don’t be surprised if the percentage that *is* hiring goes up.
….it will go up because some of those small businesses that won’t hire will go out-of-business because they cannot afford to pay healthcare costs/keep up with the costs of regulations.
A persistent pessimism — that inhibits economic growth — is due to uncertainty and a dearth of positive expectations. The Administration truly believes it is the champion of the downtrodden and that it’s aiding small businesses with tax credits and subsidized health insurance, due to begin in 2014. However, many businesses are sitting on cash (and not investing) out of fear for the future. Part of that fear is they will be saddled with costly regulations initiated by an Administration and Congress with an anti-business viewpoint.
This is right on the money.
This article portrays the reasons for why business owners aren’t hiring as if they fall into two unique categories: those stemming from a bad economy and those resulting from government intervention. But this type of classification fails to take into account that “economic” reasons, such as a lack of demand for your product, can just as easily be the product of government market actions, defining your business out of the market. My point here is that many of these business owners are likely getting the sharp end of interventionism, don’t know it, and blame the economy as a whole for it because they don’t recognize the true culprit.