Why Haven’t We Heard This Number Before?

The Bureau of Labor Statistics, according to Forbes publisher Rich Karlgaard (09.20), reports fewer than 500,000 jobs added to corporate payrolls since the end of the recession in November 2001. Not an impressive number. But there is another survey done by BLS, the Household Survey. It calculates that no less than 3.25 million new jobs have been created since 11.01. Karlgaard concludes, “In other words, millions of people are not reporting to work. They’re starting businesses. Technology makes it easy to do so. … Traditional payroll jobs are not coming back in big numbers. Automation and outsourcing are modern facts of life. [There are numerous] disincentives for Big Employers to create jobs. To make up for this shortfall, America needs to have its entrepreneurs and home businesses succeed.” TP comment: Amen … on all scores.

Sticking with Forbes and this subject, Editor-in-Chief Steve Forbes reports on a “little” detail that is the sort of thing that will make—or break—Karlgaard’s dream of a more entrepreneurial America. Representative John Shadegg has proposed legislation (the Health Care Choice Act) that would “permit consumers to buy health insurance policies offered anywhere in the country.” Bypassing Byzantine state restrictions would open up competition with a bang … and most certainly lead to dramatic reductions in insurance costs. Steve Forbes tells us, for example, that an average family policy in New Jersey runs $1,250 per month, compared to $450 in Oklahoma. Add in legislation to allow full policy tax deductibility and tax-free Health Savings Accounts, and you boost incentives to start that new business significantly.

Tom Peters posted this on September 13, 2004, in News.