Entrepreneur Lock

Discussion in 'Politics, Religion, Social Issues' started by jnpy!$4g3cwk, Mar 13, 2014.

  1. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #1
    Entrepreneur Lock is "job lock" when people who would like to start new businesses can't, because they have to stick with their current job or situation because of healthcare availability. The ACA is having a positive effect on entrepreneur lock, and, for that reason alone, should result in job growth. No wonder the plutocrats hate the ACA so much:

    http://www.npr.org/2014/03/12/289452466/how-the-health-care-law-could-spur-new-businesses


    This ties back to a number of other threads on what happened to America, on how the tax laws favor big corporations over small business, and on why people who are unemployed are not starting small businesses like they used to. The biggest impediment to the formation of small businesses has been available, affordable healthcare, and, the ACA is changing that.
     
  2. Huntn macrumors G5

    Huntn

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    #2
    Interesting! As the conservatives close their eyes and cover their ears chanting "see no evil, hear no evil." ;)
     
  3. iJohnHenry macrumors P6

    iJohnHenry

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    #3
    'Free at last, Free at last, Thank Obama Care we are free at last.' ;)
     
  4. VulchR macrumors 68020

    VulchR

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    #4
    Even better to have universal health care: employers are absolved from any responsibility for providing health care for their workers. I fail to understand understand why the pro-business lobby don't lobby for UHC so as to get this load-stone off their neck.
     
  5. iJohnHenry macrumors P6

    iJohnHenry

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    #5
    Perhaps because, as implied, employers are using health care to prevent good employees from moving, when otherwise they might.
     
  6. numlock macrumors 68000

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    #6
    they obviously feel they gain from this in this debt and fear driven society.

    i wonder how many smart people and kids never prosper because they (or their parents) were dealt a bad hand and never recovered.

    as you say one would think that with less or no worries on things like health and more on improving the world and society everyone would gain.
     
  7. Desertrat macrumors newbie

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    #7
    As a kid I did the 4H Club thing. 400 laying hens. Sold eggs and all that. Drove me nuts.

    3,000? That's an egg factory deal. No way they'll be free-ranging the way mine were.

    http://www.animalsvoice.com/moretti/?p=89
     
  8. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #8
    Is there any data that countries with universal health care have higher rates of entrepreneurship per capita compared to the US? If not then I don't see how forcing people to pay for insurance after taxes would create more businesses.
     
  9. thekev macrumors 604

    thekev

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    #9
    Sadly you are right :(. I really hate the way they treat chickens. I worked as a freelancer for many years. You can take the health care cost as a personal writeoff, not something reported on a profit and loss sheet. Even then it's quite expensive compared to what people with really nice employer sponsored plans pay through their place of work. I don't know how much I buy the argument though. The upside to this is that people can actually hold onto insurance policies with pre-existing conditions, but it's quite expensive for anything that comes close to the coverage you might get through a large employer.
     
  10. Huntn macrumors G5

    Huntn

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    #10
    No wonder they want to escape:

    [​IMG]
     
  11. ElectronGuru macrumors 65816

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    #11


    http://www.cepr.net/documents/publications/small-business-2009-08.pdf

    "We use the most recently available, internationally comparable data from the Organization for Economic Cooperation and Development (OECD) to measure the share of employment in small businesses in 22 rich democracies. The OECD data demonstrate that:

    • The United States has the second lowest share of self-employed workers (7.2 percent) – only Luxembourg has a lower share (6.1 percent). France (9.0 percent), Sweden (10.6 percent), Germany (12.0 percent) the United Kingdom (13.8 percent), Italy (26.4 percent) and 14 other rich countries all have higher proportions of self-employment.

    • The United States has among the lowest shares of employment in small businesses in manufacturing. Only 11.1 percent of the U.S. manufacturing workforce is in enterprises with fewer than 20 employees. Eighteen other rich countries have a higher share of manufacturing employment in enterprises of this size, including Germany (13.0 percent), Sweden (14.4 percent), France (18.0 percent), the United Kingdom (18.1 percent), and Italy (30.9 percent). Only Ireland (9.6 percent) and Luxembourg (8.5 percent) have a lower share of manufacturing employment in enterprises with fewer than 20 employees. (Raising the cutoff for a small business to fewer than 500 employees does not significantly alter the relative position of the United States.)


    U.S. small businesses have a much lower share of employment than the comparison economies do in the two high-tech fields for which the OECD publishes data: computer- related services and research and development.

    • The United States has the second lowest share of computer-related service employment in firms with fewer than 100 employees (32.0 percent). Only Spain had a lower share (27.0 percent), while 13 countries with available data had a higher proportion of employment in this sector in small businesses including France (44.7 percent), Germany (48.7 percent), Sweden (49.4 percent), the United Kingdom (67.5 percent), and Italy (73.2 percent).

    • Similarly, the United States has the third lowest share of research and development related employment in firms with fewer than 100 employees (25.3 percent). Only the United Kingdom (22.5 percent) and the Netherlands (20.3 percent) had a lower share, while 9 countries with available data had a higher proportion of employment in this sector in small businesses including France (33.1 percent), Sweden (34.4 percent), Germany (35.0 percent), and Italy (74.8 percent)."
     
  12. jnpy!$4g3cwk thread starter macrumors 65816

    jnpy!$4g3cwk

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    #12
    See post 11 below as well as:

    Fairlie, Robert W., Kapur, Kanika, and Susan Gates. 2011. “Is Employer-Based Health Insurance a Barrier to Entrepreneurship?” Journal of Health Economics, 30(1):146–162.

    A few quotes from the paper:


    After adjusting for a possible source of statistical bias, they find the effect is still large, and, quantifiable:

    You can read the paper here:

    http://www.econstor.eu/bitstream/10419/71310/1/740123378.pdf


    In conclusion, I think one of the sources of lack of entrepreneurship in the current U.S. has been determined: many people are unable or unwilling to risk starting a new business because of lack of healthcare coverage outside of large employer based plans.
     
  13. thekev macrumors 604

    thekev

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    #13
    Blah. That just makes me sad. You know I tried to go vegetarian at one point. I probably did a poor job as I felt like crap the entire time. I don't like the way livestock is treated, and I would prefer not to support such things.
     
  14. ElectronGuru macrumors 65816

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    #14
    Two more data points...

    I would not have started my business had I not been willing (and able) to go without healthcare for 3+ years. My primary supplier had a wife working in a school. They were able to rely on her coverage after he left his standard job. But she couldn't keep that up after she got pregnant so they had to buy their own coverage or go without, too.
     
  15. Zombie Acorn, Mar 15, 2014
    Last edited: Mar 15, 2014

    Zombie Acorn macrumors 65816

    Zombie Acorn

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    #15
    Entrepreneurship != self employed

    Facebook was built by an entrepreneur, he is not self employed.

    If you are merely talking about small businesses then the thread title should be changed. The US is an entrepreneuring powerhouse especially in the tech sector.

    Young adults will pay more for their healthcare than they did before to make up for the coverage of older and pre existing conditions cases. I don't see how this will get them to start new businesses. This isn't UHC.
     
  16. palmerc2 macrumors 65816

    palmerc2

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    #16
    What a load of crap. I have a full time career and I'm pursuing 2 entrepreneurial ventures on the side. Not once have I considered healthcare costs a reason to not leave my career. Real entrepenural "lock" or I like to call it dilemma, is not leaving your current job because it pays the bills, and risk losing for sure money to pursue potential money.

    Also, answer me this, how many people lost their insurance so this person could get insurance? Probably more than one....

    Thank goodness for the governemnt :) :) :)
     
  17. jnpy!$4g3cwk thread starter macrumors 65816

    jnpy!$4g3cwk

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    #17
    So, you folks don't consider someone starting a small business "entrepreneurship"?
     
  18. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #18
    Nearly every business created in the history of the world was started by an entrepreneur. The US has created some of the greatest and most profitable businesses in the world due to these entrepreneurs. Many of them before we had any social safety nets at all. I don't understand how someone could look down at the US and say "not a good place to be an entrepreneur" when some of the most successful technology companies have been developed there just over the past decade.

    Which other countries are putting out stuff like Apple, Microsoft, Facebook, and Google?

    If you want to just focus on small businesses then say so. Its no real secret that corporations have been gobbling up small businesses left and right and it has little to do with health care.
     
  19. jnpy!$4g3cwk thread starter macrumors 65816

    jnpy!$4g3cwk

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    #19
    We are agreed that small businesses are created by entrepreneurs. We are apparently not agreed, although I am not sure, that the U.S. healthcare system is actively discouraging small business creation.

    While some entrepreneurs are already wealthy, and, some of the businesses they create are pretty large at the start, the focus of the research that I posted was, in fact, about small-business entrepreneurs of limited means. Small-business creation is, practically by definition, entrepreneurial. For this purpose, small business => entrepreneurial, even if entrepreneurial !=> small business.

    What the research shows is a large, statistically significant reduction in the creation of new small businesses due to the U.S. healthcare system.
     
  20. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #20
    The problem with most of the statistics I saw posted on here is that they were for self employment. Most successful businesses (even smaller ones) are going to incorporate to reduce their tax liabilities. The lawsuit climate in the US could also pressure small businesses into this as they are personally liable as a self employed individual until they incorporate. Once incorporated they limit their losses to business assets.
     
  21. prostuff1 macrumors 65816

    prostuff1

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    #21
    Then buy only from local farms and have it processed at the place of your choice.

    I just purchased 100 lbs of beef and about 50 pounds of pork from a local farmer. I was able to go and see the farm and pick the place I wanted the meat processed. I even got to tell them how I wanted it cut up as far as steaks, burger, roasts, ribs, etc.

    The 100 lbs of beef cost me about $300 and is some of the best beef you can get. Way better than anything bought in the big box stores.

    I generally only do beef and pork but this fall I will also be doing the same with chicken.
     
  22. Ugg macrumors 68000

    Ugg

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    #22
    Proof please.
     

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