The Great Hollowing Out Of The Middle Class: New Business Formation Collapses

Jon Alternative Media, Blogosphere, Economy

For a country that prides itself (or used to at least) on the success of the entrepreneur and small business creation, a disturbing trend has developed. According to according to a new analysis by the Economic Innovation Group, fewer new businesses were created in the last five years than any other period since at least 1980.
“It’s hard to put into scale the collapse of new business formation. We have no precedent for that rapid and steep of a decline. It will have a ripple effect in the economy. You’re going to feel that impact five, 10, 15 years in the future” said John Lettieri, co-author of the report and co-founder of EIG.

This post was published at Zero Hedge on June 1, 2016.