Big Government Kills Small Businesses

We hear a lot about large companies in the
news, but small business is the engine of the U.S. economy. America is home to more than 28 million small
businesses that employ 57 million workers. And when you add owners and employees together,
that’s a community of roughly 85 million hardworking Americans dependent on the success
of small business — most of the private-sector workforce. Small business owners are America’s most
important job creators: U.S. small businesses accounted for almost two-thirds of the net
new jobs created between 1993 and 2013 — a grand total of 11.8 million new career opportunities. In 2012, small businesses created more than
2.1 million net new jobs. Small businesses are the country’s main
job creators because they are often growing and looking for new markets to expand. To do so, they need additional employees along
the way. Large businesses, on the other hand, generally
stay the same size, hiring new employees to replace departing ones. Unfortunately, high taxes and recent government
regulations in health care, finance, and labor disproportionately hurt small businesses and
prevent them from growing and adding new jobs to the economy. Big business with big profits can afford to
comply with red tape in a way that small businesses just starting out cannot. As a result, small businesses still haven’t
recovered completely from the Great Recession — and it shows by the chronically weak labor market. More than 94 million Americans are not working
or actively looking for jobs. The labor force participation rate — which
measures the percentage of employees and job-seekers in the U.S. — is less than 63 percent, the
lowest figure since the late 1970s. To bring small businesses back, and strengthen
the job market, job-killing taxes and regulations must be rolled back. Job creators should be encouraged to hire
more employees, not forced to reduce career opportunities. With 85 million people depending on the success
of small business, it’s easy to see why small business is too big to fail.

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100 thoughts on “Big Government Kills Small Businesses

  1. This video is so general. I completely agree with it, but it proposes to abolish ALL government intervention, when there are clearly exceptions such as those which would have stopped the banking collapse during the great depression. Totally logical and correct video, but super over generalized.

  2. Bernie be like "I'm sorry madam, but I am of the firm believe that if you employ 0.5 or more people than you should be required to pay your workers full healthcare benefits and while we're at it send em to college."

  3. Another video that makes a lot of assertions but doesn't provide information I back it up. These are a waist of time.

  4. I never believed it before, but Government is in the pocket of big business.  50% of the world earns less than $2.50 per day – 80% earns less than $10 per day.  Big business figures if they can just weaken borders, and make job market competition more global via illegal immigration and H-1B visas, they can flood the job seeker market and drive wages into the gutter due to excess supply.  Evidently, doubling the amount of job seekers through Feminism wasn't effective enough.  Bringing in cheap foreign goods robs not just manufacturing, but all types of repair opportunities.  Know where to find a TV repair shop today? A forklift operator in 1882 made around $10 per hour – 35 years later in 2017 that wage is still $10 per hour.  35 years, same exact wage with no cost of living increase.  Health insurance companies give sweetheart rates to major corporations, and force small business owners to make up the deficit because the laws are rigged so they can.  It's become obvious that Government works for their corporate sponsors against regular Americans.  End outsourcing, tax imported goods, and end that H-1B visa scam. Oh, and McDonnell's can hire teens if they need cheap labor.  $10 minimum wage for anyone under 21 and $15 for grown adults.  If you can't use a teen, you can pay a living wage.  The free market is great but right now it seems there is always a thumb on the scale pushing wages down.  Not fair.

  5. Big business hurts small business by reducing competition and influencing government to support its interests instead of small, local, and individual interests. There is no difference between libertarian economics of the left and the right.

  6. I know these comments come from a good place and I sympathize with most, if not all of them, but government is not inherently bad. it only does things that are bad for people when massive, undemocratic institutions (corporations) are allowed to corrupt it away from the people's interests toward their's.

  7. I like the neutrality of this video and that the facts were well presented. Usually PragerU's message is needlessly subverted by the clear bias of the presenters.

  8. People will complain about monoplies when for a company to stay a monopoly forever, it needs to be bailed out from THE monopoly. (The government)

  9. Small government is a pimp to big business–the real killer of small business because they take away competition. Why would I go to a small local bakery when I could get a cheaper pastery at something closer and cleaner like Starbucks, and maybe even some coffee to add to it? It's the consumer that won't let small business grow more than the government, and though I do believe some regulation and taxes do limit growth a bit, it's not responsible for small business not being able to compete and 94 million Americans (that statistic includes children, people who can't work, and people who are retired) not in a job. Big business grows exponentially, so if you take away taxes and regulations they'll still grow more than small business.

    If you wanted small business to be able to compete more, you need to exclusively give them tax credits and subsidies, which is something big government has done and was going to do under a Clinton term. Obama's economic policies are still creating the vast majority of jobs today. I know some Trump lovers will refuse to believe that but whatever… 😂😂😂

  10. it's true, but what doesn't help small businesses is making large multinational corporations richer than ever. companies like Walmart, who crush small businesses. both the left and right have terrible solutions to bring back small businesses. maybe it's time to go with an off the board strategy.

  11. While not entirely inaccurate with respect to the existence of certain economic forces at work here, the disparate impact various of these forces can have on firms depending upon their scale, and the prevalence of "small" businesses over "big" ones (of course, without explicitly defining those terms the distinction is literally meaningless, and certainly conventional definition usually sweep several businesses into the "small" business category that colloquially, and perhaps also within their industry, would NOT be thought of as "small"), this video is a GROSS oversimplification. Frankly, only a credulous idiot would believe that something as complicated as the American economy, writ large, could be explained accurately and exhaustively (or even with any degree of value) in just over two minutes in the first place!

    Nevertheless, it is definitely still true that the majority (perhaps even a large majority) of economic activity in America probably happens at firms (including all legally distinct corporate entities within a singular "family" or zone of control–i.e., treating "two" companies, where one is owned, at least enough to be considered functionally "exclusively", controlling shareholder being another term for this state you might have heard, by the other, as if they were one company) with a few hundred employees at most.

    Sure, transaction costs INDEED impact businesses–of any size. And true, government CAN be a "cause" of those costs (though, not always a bad thing–many, INCLUDING Republican/"conservative" voters, would strongly defend certain government-caused transaction costs, e.g. medicare taxes necessary for medicare, taxes to fund the war machine, border security measures DEFINITELY "transaction costly!", etc.). And yes, it's ALSO definitely true that businesses can be, and are, impacted differently by transaction costs (among other things) on the basis of (among other things) differences in scale/size (though, this is generally if not always equally true REGARDLESS of where the particular transaction cost came from/what caused it, be it government legislation/regulation, preexisting natural conditions/physical laws, industry shifts/practices/customs, etc.).

    Therefore, this video doesn't actually really give you any substantive point at all–we know, as we already did, that transaction costs are a thing that exists, that (all else being equal) are desirable to minimize. We also know, as we already did, that transaction costs can and do affect businesses different based, among other things, upon differences in scale. Lastly, we know, as we already did, that government action (among other potential causes) can affect transaction costs, both to raise AND lower (something the video doesn't bother acknowledging at all; e.g. home mortgage interest rate deductions, lowering transaction costs for "new" or smaller scale, as the deduction only applies to a very limited number/class of real properties, home buyers to enter the market, etc.), and we know, again as we already did, that some of these changes can be "net good" (or on the whole desirable or beneficial, if you prefer, depending upon your perspective/values/goals), and some can be not, and obviously we should try to maximize the former and minimize the latter. Beyond that, the video makes no other points besides what seems to be an attempt at a point consisting in a vague allusion to some regulations/laws that were supposedly passed in some very general and ill-defined subject matter areas ("tax, healthcare, finance, and labor") that (it's not explicitly stated, but clearly implied) imposed increased transactions costs in excess of any offsetting benefits from said changes that may or may not (presumably, the video would have us believe there were none) have been realized. Not exactly substantive or anything to engage with there in terms of an actual ARGUMENT.

    What it DOES do brilliantly, though, is engage credulous simpletons who can't focus their attention on an argument that takes more than 5 minutes to explain with bright colors and quaint animations to not-to-subtly prime them to be favorable towards the favorite feel-good buzzwords of the fascist foot-soldiers for plutocracy. And this of course, is PragerU's greatest (and perhaps sole) talent and usefulness to any other entity outside itself, its staff, and its owners.

  12. Somewhat simplified. The presenter throws "new jobs" and "career" around as though they're the same. They are not. A new job working in a small bakery is simply work. It can lead to a trade certification but it's not the same as law firms starting up looking for very particularly trained individuals committed to being lawyers for 50 years.

  13. Curious about what specific policies are small business killing. This is a serious question as I feel that the argument would be more compelling with evidence and I am genuinely intrigued.

  14. LIES, LIES AND MORE LIES PULLING ON SMALL TOWN REPUBLICAN HEARTSTRINGS. Less business tax and regulations HURT the middle American and only benefit business owners! As in UPPER class. If you own a small business you have nothing to worry about. They use this as a disguise to get around paying. Not your mom and pop, but billionaires who don't want to pay taxes.

  15. "Small jobs accounted for a
    two thirds of all jobs growth between 1993 and 2013." No shit…. because of government incentives put in place by Clinton and Obama. God damn, you think we are so dumb we forgot who was president in that time?

  16. It's not the job market dumbasses. Trust me, there are enough jobs for everyone, the reason we have 94 million without jobs is BECAUSE BABY BOOMERS ARE RETIRING. This statistic does not take retired or disabled americans into account.

  17. I sure do love hearing the "Pro Life" party weigh the benefits of people not dying and/or working themselves to death vs "economic impact"

  18. Trump is getting rid of all the red tape, and even lowering taxes to "create more jobs". What could possibly go wrong?

  19. It's not big government that kills small businesses it's the us economic system and lobbyists that help monopolies

  20. Some regulations are necessary though. Personally I do not believe there is enough regulation in the food industry. For example 75% of honey in the U.S. is not honey at all but rather high-fructose corn-syrup. Furthermore labels claiming 100% parmesan cheese contains 5-20% cellulose despite the label clearly saying 100% parmesan cheese.

  21. In that case, you'd certainly agree we should be heavily taxing large companies and undertaxing small ones, right?

  22. If the small Business can beat others big competitors, I can said that you know the needs and wants of the consumer

  23. Lots of statements made. Very few fact to back them up. Maybe this video is right maybe its wrong. One thing I know for certain. It's a garbage video.

  24. And all it costs is letting the poor starve and shutting down people's healthcare! Good for the small buisnesses!!! Wait….. Trump just ramped up military spending billions of dollars? Oh well guess taxes are still high…

  25. Booga booga REGULATIONS! No actual references to any regulation, no statistics on actual small business tax rate.

  26. The RW legislators are being paid to promote corporatism. Why are you, of all people, surprised? Read the laws as they clear the senate. GET A CLUE.

    Large businesses strive to reduce their overhead. i.e. automation and outsourcing to foreign labor. GET A CLUE.

    And nobody is fighting the AHCA more the big business you miserable liars. Look at who's lobbying who. GET A DAMN CLUE.

    PragerU is indirectly funded by the Kock brothers. Look it up.

  27. i never hired or expanded because of a tax break?…(in fact tax breaks for rich ppl at the expense of other needs hurts) and deregulation was the worst thing that ever happened in my industry…

  28. And who pays the government? Big oil, wallstreet, and all the other big companies that have an interest in keeping the little guy down. We live in a crony capitalist society. If you think I'm wrong just look at Trump's cabinet. I love how conservitards tout capitalisms strengths while blatantly ignoring its negativity repercussions.

  29. this is lies… the lack of regulation is what allows huge conglomerates to be formed and then to do whatever they want, which is often to lay off as many people as they can for increased profits. Regulation is there to protect the workforce, the environment, public health, etc. The statements made here are far too blanket to be from any real university.

  30. More and more propaganda. It's amazing that everyone here in the comment section kneels over every one of your videos, like it's something important. You realize that Josef Stalin and Adolf Hitler both killed generals in purges in order to increase their power? You realize that big governments are the ones helping us, not harming? Is it even necessary to explain to morons here that we as a people do not have to listen to your questions? PragerU, you're like a bad drug. You get people to question their beliefs, and turn them against everyone that appreciated them. The Great Recession itself is the reason why there is a lack of people in the work force, and its effects could not be completely recovered in 8 years. Look at FDR. It took 12 years, 9 years in his presidency, to recover a nation. Republicans made it even worse!! He was not a racist, but he could not lose popularity to the racists back then.

  31. Big banks just buy stocks and feed their bellies.

    big banks should be punished for their reckless bets, yet they are rewarded with record

    low interest rates and bail outs with taxpayers money. Outrageous.

    Result is we ended up with lots of stuff that we don't need.. and huge debt.

  32. Since 2012 , no one has voted in left party in Australia , They all realise big government is the cause for economic problems 50 yrs .lefty party only got 30% of the votes . Right party 70% says a lot doesn't it

  33. What a bunch of crap. This is a propaganda piece. With less regulation, big corporations are free to continue to decimate small business. By the way, did anyone notice that all of the occupations represented in this "info"graphic were all services? Bakers, burger shops, clinics, design studio, coffee shops. That's all that's left for the little guy. Just look at the closest mall. Do you remember when it was packed with stores? Now it's nothing but pizza, nails and taxes. Wake up, people.

  34. Left media in Australia , encourage consumers to buy overseas not locally . Why are prices high locally regulations and taxes on business

  35. Many regulations will only ever apply to 50 plus employee companies etc. To say that regulation and high taxes is the reason for slow growth in small businesses with a straight face is laughable. The economy is so complex generally never one factor causes any other one thing to happen. Its always a combination of things in tandem all entwined in a big mess. But if I had to say any one thing that was a small business killer it's a lack of demand for goods and services and goverment intervention through infrastructure building to create jobs and increase productivity or by using tariffs to regulate inport taxes to make donestic goods cheaper thus keeping capital in the country and keeping up demand for… small business'! This is basic stuff Prager. Unfettered Capitalism is a disaster. Every single successful nation in the world is a mixed market economy. China, the greatest economic miracle the world has ever seen is interventionist to an insane degree. If what you guys believed was true explain how South Korea, Japan and Taiwan got to where they are today in 3 generations. Was it crazy low taxes and an invisible hand job? No its the same way every country who is a first world one got to be where they are today. Through goverment intervention in a capitalist system with the goverment gradually withdrawing as the industries they initially foster and protect become strong enough to play with the other big kids in the "free market playground"

  36. No mention of the fact that big business is killing small business. Corporate welfare for these big businesses and a lack of support for small business is surely hurting their ability to compete. We need to stop favoring big business. What about the repeal of the sherman anti trust act?

  37. I don't know why people even bother opening small businesses with all the regulations and overhead costs. Often times I am the only customer in a business and I don't see how they make any money.
    Maybe they lose it all and write off everything? How is it they are still there? No one is buying.

  38. Yeah 94 million Americans. I don't know where you got the amount.But its not more than 16 million.94 million is 30% of the country.

  39. Big government kills almost everyone's rights. At the end, only old people, disabled people and other unproductive moochers have human rights when government is big. Everyone else is a servant or a slave.

  40. Isn't it funny, in this day and age, regulations are indeed shutting down small businesses left and right, but yet, the regulations are not doing what they are supposed to be doing, and that is to keep Americans safe. Since the government has gotten so involved in businesses, I have seen an increase in recalls such as airbags in automobiles and the various tainted food items like spinach and lettuce. Even our pet food is now having problems, when before all of these government regulations began to take effect, we never seen problems like this.

  41. How about having a progressive tax system that allows small business to grow while taxing the large ones so they can help lift people out of poverty and into education, health care, so on? And in my opinion, just creating jobs isn't sufficient, one has to provide people with work that matters and that give them a decent income.

  42. This video ignores hiring practices only hire as many People as they need to at the lowest wages they can pay. Cutting taxes will not create new Jobs rather it will instead have the owners pocket more of the money instead of having to put it into the Business.

  43. PragerU's constant lying has to STOP! PragerU is right wing propaganda machine which supports big corporations who influence to US politics very heavily. 85% of the American people agree that big corporations have too much power. Wake Up people!

  44. Only losers that like socialism is 30% in the world that listen to Tom Hartman , 70% of world benefit from capitalism not Big government socialism.

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