You’ve probably heard a politician refer to small businesses as the “backbone of the economy” one time or another – and they’re right!
According to the Small Business Administration, small businesses in America account for 99.7 percent of employers, 64 percent of net new private-sector jobs, 49.2 percent of private-sector employment, 46 percent of private-sector output, 43 percent of high-tech employment, 98 percent of firms exporting goods, and 33 percent of exporting value.
Small business is, obviously, a YUGE deal, as our president would say.
Among the many differences between small and big business (aside from their size) is how regulation affects them. Suppose, for instance, Congress was to propose a regulation that would cost every bank, regardless of size, $1 million in regulatory costs a month. A big bank like Wells Fargo might support such a regulation, knowing that it would put intense pressure on the local and community banks they compete with, while costing them essentially nothing in the larger context of their billions in profits.
Thanks to the economies of scale big businesses can utilize, it’s small business that bears a disproportionate burden of the regulatory state’s costs.
And that’s just the regulations! Taxes are another massive cost for small business – but leave it to a new video from Prager University to explain just how.
Know of any liberals who should see that video? Share it with them now!