Capitalism transcends universities’ best efforts to kill it


Adam Smith, Portrait of Muir at the Scottish National Gallery

by James C. Sherlock

We have chronicled here the broad and deep attacks on capitalism by the socialist and Marxist clergy led by academics and their students in the media. The attacks are bitter and utterly relentless.

There is hopeful news.

PBS outlets across the country yesterday published an article titled “The unexpected boom of startups. “After the election, it is apparently safe to publish such news.

Separately, the Census Department found that Virginia, year-over-year, week-over-week compared to 2019, saw increases in 2020 in commercial applications of 44.5% (week 44), 38.7 % (week 43), 32.7% (week 42) and 36.3% (week 41). Week 44 of 2020 was Monday October 26 through Sunday November 1.

Unsurprisingly, the same Census Department report, when asked about regional results, showed that the bulk of those gains were in the politically reddest regions of the country. New York, Washington and Oregon were in the 20% range. California 33%.

States of the former South such as South Carolina (68.2%), Georgia (62.4%) Mississippi (89.6%) and Louisiana (73.3%) as well as Pennsylvania (61 , 2%), Ohio (60.9%) and Montana (83.3%) led the charge.

The New Majority Democrats haven’t had time to ruin the business climate in Virginia, but they are working on it.

For the record, business start-ups in the Obama administration increased by less than 2% per year during his first term and less than 3% per year during the second. The first three years under President Trump, new starts increased by an average of 9% each year.

The obvious question is to whom this outpouring of capitalist animal spirits was “unexpected”.

Answer: this same band of brothers and sisters of the left clergy.

From the PBS article linked above.

America is currently experiencing this some call it a “startup boom”. That’s right – even with a raging pandemic and ugly recession, America is experiencing a boom in new business creation.

John Haltiwanger, an economist at the University of Maryland, has worked for decades with the US Census Bureau to measure the creation of new businesses. Every new company that hires workers, he says, must apply for an employer identification number from the government, and when the coronavirus pandemic began, the data showed what to expect: “We have seen a collapse of new business applications, ”says Haltiwanger. But then, about six weeks after the start of the pandemic, the numbers started to rise. At first, he says, they had to verify that the data was correct: “We were, like, what’s going on here? “

And then the new business applications have continued to increase. “The third quarter of 2020 is the highest quarter of apps we’ve ever seen,” says Haltiwanger (their quarterly data go back to 2004).

The same article offers the left’s excuse for this capitalist push.

The biggest area for starting new businesses is online retailing. Of course, at the same time, we’ve seen a brick-and-mortar retail massacre – and we don’t yet know if these new companies will fill the job void. Plus, many of the new businesses are just people who have been laid off and forced to fend for themselves.

Creative destruction. Who could imagine such a thing?

The comment “just the people who were fired” is revealing. This means that the author cannot imagine any other reason for starting a business.

What about Germany, the left’s favorite example of state-controlled industrial policy, at least among nominally capitalist countries.

Germany has achieved (slightly lower unemployment than the United States) using a century-old program called Kurzarbeit, in which the government steps in and helps companies pay their workers in order to keep workers employed. We wrote about the benefits of Kurzarbeit in April.

But Germany doesn’t look as hot as America when it comes to starting new businesses. And Kurzarbeit and other efforts to support existing businesses and prevent creative destruction may be a reason. “It is true that Germany has done a better job than the United States in protecting * existing * jobs,” says economist Jens Suedekum of the Heinrich Heine University in Düsseldorf. “But one problem that will stay with us in Germany for quite a long time is the low rate of new jobs being created.” Suedekum says this particularly hurts young Germans and workers who receive Kurzarbeit benefits during the crisis but are made redundant after the crisis.

This is followed by numerous discussions from the left that “the jury is still out”.

So, in a directly related question, what do local business leaders in the National Capitol region expect from the new administration?

the Washington Business Journal interviewed several of them in “What’s at the top of your wishlist for the next president? DC area business leaders are stepping in.The answers will prove to be an absolute mystery on the left:

Black Business Owner S. Kathryn Allen, Co-Chair and Owner, Title of answer: “Consistency and equity in access to capital for small minority-owned businesses. “

John Parker, President, Hutchinson Design Group: “Stabilization of our economy and reduction of the dependence and influence of big money.

Black businessman Kevin Jennings, President and CEO, Millennium Corp. :“Bipartite decisions between the two chambers and the White House to resolve the many complex issues facing our country today. The national debt!

Michelle Boggs, CEO, McKinley Marketing Partners: “Stimulus, the maintenance of the existing tax structure and the continued dismantling of certain regulations. “

David M. Guernsey, President and CEO, Guernsey Inc .: “Control immigration. Don’t open the floodgates that would likely overwhelm our healthcare system, prolonging the effects of Covid-19. “

Debra Schiff, President and CEO, J Street Group LLC: “Stimulate the economy and employment; providing financial assistance to the unemployed and a paycheck protection program to businesses suffering from the pandemic; tax cuts for the middle class; improve our existing health care policies; protect women’s rights.

David von Storch, President, Urban Adventure Cos. Inc .: “Helping businesses that have been disproportionately affected by the pandemic – especially restaurants, bars and clubs, travel and hospitality, fitness and small local retail and entertainment. “

Ken Leiner, President, Ken Leiner Associates Inc .: “Health Benefits for All Americans.” “

Ryan A. Miller, Executive Vice President and Market Leader, Newmark Knight Frank: “Policies that directly support the growth of American businesses and our economy as a whole, that will restore confidence in markets and spur innovation in all sectors.”

Mark Hottel, Vice President, Harvey W. Hottel Inc .: “Keep the tax rates lower. “

Debbie Tang, Partner, Bridge Partners: “I hope the next administration will overturn the decree on combating racial and gender stereotypes. Hundreds of companies and business groups have already encouraged President Trump to overturn this executive order. Diversity training is not a “scapegoat”. If businesses and their employees can’t have honest conversations about race, America will not move forward. “

Note: Bridge Partners is a diversity and inclusion employee search firm.

The only “entrepreneur” that the Washington Business Journal could find to offer rock-solid support for the left’s agenda was, unsurprisingly, a university president.

Patricia McGuire, President, Trinity Washington University: “We must restore DACA and improve the immigration climate as a source of intellectual talent and strength for our communities. We also need to have a president who can fight racial injustice, reject white supremacy, and restore confidence in the president as the leader of all, not just factions. The next president must accelerate a real economic recovery by creating jobs and restoring confidence in the federal government to be a solid and ethical partner in solving the problems of the communities. We need a president who works with governors rather than attacking them, who ensures that the benefits accrue equally across all states rather than using federal funds as rewards for cronies. “

And now?

If there has ever been a clearer revelation of the difference between the cultural clergy and those who try to make businesses work for themselves, their families, their employees and their communities than the evidence displayed above, I do not haven’t seen her.

We can now see what a Biden administration will do with this good news. Another stop to teach these new small business owners a lesson? More regulations and more taxes to strangle them?

Or will what remains of Mr. Biden’s moderates recognize this as the main hope for the economy’s success and leave them alone to thrive or fail and be replaced by others with better ideas? ?

Or will Mr. Biden even have the personal bandwidth to notice it?

We will see very soon.


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