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Sunday, June 26, 2016

The decline of entrepreneurship in America

The media is beginning to notice that there are fewer and fewer startups in the USA every year:
If you look at what’s happened in big cities around the U.S. in recent years, it’s easy to think we’re living in Startup Nation. Thanks to the plummeting cost and increased availability of digital tools, as well as greater access to early-stage funding, we’ve seen what the Economist has called a “Cambrian moment,” with digital startups “bubbling up in an astonishing variety of services and products.” The number of companies in Silicon Valley that got seed funding from investors, for instance, more than doubled between 2007 and 2012. Venture capital funding in the U.S. over the last five years has totaled a remarkable $238 billion, and 200 companies today are so-called unicorns, privately valued at more than a billion dollars each.

Meanwhile, though, a host of economic researchers have been telling a much bleaker story: American entrepreneurship is actually on the decline, and has been for decades. As the economists Ian Hathaway and Robert Litan documented in a 2014 Brookings Institution paper, the percentage of U.S. firms that were less than a year old fell by almost half between 1978 and 2011, declining precipitously during the recession of 2007-’09 with only a slow recovery after. According to the Commerce Department, the number of new businesses started by Americans has fallen sharply since 2000, and so too has the percentage of American workers working for companies that are less than a year old. Indeed, in 2013 Americans started fewer businesses than they did in 1980, when the country’s population was much smaller. This decline isn’t just due to the aging of the U.S. population—Americans of all ages just seem less likely to open new businesses than they once were. And, as Hathaway and Litan put it, the decline “has been documented across a broad range of sectors in the U.S. economy, even in high-tech.”
Speaking as a successful entrepreneur who left the country, who is the son of a very successful entrepreneur who is presently in prison, it's not exactly difficult to understand why Americans are considerably less inclined and less able to start businesses than they were 36 years ago.
  1. The rapacious and criminal tax agencies. You would probably not believe the shenanigans and outright lies these agents habitually engage in if you did not see it in black-and-white documents right in front of you. Even those who think my father merited an amount of jail time for his actions are aghast when they find out what actually happened, and how absurdly egregious the behavior of the various agencies was.
  2. The increasing regulatory and reporting burden. Why go to the effort of building up a company when doing so is the equivalent of painting a big red target on your chest? As one of my entrepreneurial friends said after shutting down his company and taking a job for a big tech firm, "it's so nice not having to deal with all that shit anymore." In the USA, self-employment often feels more like working for the government as a paper-pusher. Just trying to get your head around why part-time external contractors who are clearly not your employees must be treated as employees for various compliance purposes is enough to give anyone a headache.
  3. The criminalization of commerce. These days, it's more work to file the paperwork required to get paid by a big corporation than it is to do the work itself.
  4. The dumbing-down of the populace. Thanks to post-1965 immigration, Americans are 4-6 IQ points less intelligent than they were back in 1980. Less intelligent people are less inclined to start jobs.
  5. Emigration. Many of the American expats I meet around the world are highly intelligent and entrepreneurial. Few of them have any desire or intention to return to the USA. This is a fairly small group of people, but they are a statistically significant percentage of the entrepreneurial class.
  6. International competition. The Internet and semi-free trade means that one no longer needs to live in the USA to have access to its markets. So, would-be American entrepreneurs are much more likely to be beaten to the punch by foreign entrepreneurs exploiting American markets than was the case in 1980.
  7. The politicization of culture. Why start, say, a bakery, if you know you're going to be forced to choose between being sued into oblivion and violating your conscience as well as your right to free association?
That being said, the situation isn't much better elsewhere. The worse the global economy gets, the more desperate the various governments are for tax revenue, and the more intensely they go tax-hunting among the successful entrepreneurial class. The first country to offer legal protection and operational assistance to the international entrepreneurs being preyed on in this manner is going to do very well indeed, and do so at the expense of the other countries.

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115 Comments:

Anonymous KoolMoeDee June 26, 2016 6:22 AM  

In my mind's eye I imagine the situation in Italy is a lot worse (no direct experience other than trying to cash travelers checks in an Italian bank). Probably, worst of both worlds between EU and Italian regulations. Are there benefits over there for entrepreneurs?

Blogger American Spartan June 26, 2016 6:31 AM  

More proof low IQ immigration makes everything worse.

I can only wait to see the left stand in pure terror as what is coming, they have earned everything they have coming to them plus ungodly interest.

Blogger Bob Loblaw June 26, 2016 6:34 AM  

#2 is a huge one. There's a reason so many new businesses are internet companies - you don't have a physical product, so you don't need to maintain a presence in different states and you don't have 'elf an' safety or EPA worries.

But it's hard to imagine you can run an economy by having companies sell web services to each other.

Blogger Johann Pearce June 26, 2016 6:34 AM  

Out of any grim situation there are always opportunities to be had. My own country (NZ) was rated 1st in the world (behind Hong Kong) in the ease of doing business scale. It's certainly helped us - just look at how well we've managed to weather the recession compared to similar countries. However, despite our relatively simple procedures, we still have enough red tape around business to give a fighting bull a seizure. Just imagine the extraordinary amounts of new wealth and innovation that could be created in a country with all but the most essential regulations scraped away! An chance for the possibly soon-to-be independant Gibraltar to find its niche in the world, perhaps?

Also Vox, if you've already made a post somewhere amount your father's troubles with the powers that be, could you possibly link it? It sounds like an enlightening read. Thanks

Blogger Phillip George June 26, 2016 6:35 AM  

What soldier wants to fight to the finish for a country that will prosecute a Christian start up business getting prosecuted for failing to do a sword dance pantomime with flaming brandy soaked cup cakes at the Gay after wedding orgy - because hate.
Who wants to "bless" that same nation with their incandescent brilliance.

Anonymous TLM June 26, 2016 7:02 AM  

#2 is a huge pain in the ass and time waster for me, but I could never go back to being a clock punching wage slave having to deal with idiotic HR policies.

Anonymous Aaron June 26, 2016 7:02 AM  

Immigrant-caused decline in intelligence cannot be a cause, vox, which should be fairly obvious if you stop to think about it.

It might reduce per capita innovation, but it cannot reduce absolute innovation.

entrepreneurs come from a tiny percent of the cognitive elite, so the addition of lots of stupid people should in no way reduce the performance of the preexisting cognitive elite. What's more, America has also received a large influx of high IQ foreigners, which should, logically, have increased absolute innovationn to the extent that it depends on IQ.

Declining birth rates among the smartest might have had an effect, but it's hard to see how that relates to immigration.

What's more troubling is the underlying assumption that endless innovation is either possible or desirable, especially for someone who proffeesses to care for traditional social values.

Technology and innovation are socially disruptive. It has always been amusing to me how many socially traditionalist people simply cannot see how capitalism and innovation destroy what they love.

One would think you fled to Europe to connect with a more ancient culture that has stable values of the kind typically destroyed by American style entrepreneurship. Yet you bemoan the decline of that force which destroys what you supposedly love and seek out.

Puzzling, to say the least, but humans are hardly rational are they.

Blogger Salt June 26, 2016 7:07 AM  

Filing income tax is a 4.4 Billion dollar industry @ ~$420/filer estimated by IRS for pre-2014 season. How many does Trump have to keep on staff just to keep up with reporting requirements?

Starting a business is walking into a toxic waste dump.

Blogger VD June 26, 2016 7:19 AM  

Immigrant-caused decline in intelligence cannot be a cause, vox, which should be fairly obvious if you stop to think about it. It might reduce per capita innovation, but it cannot reduce absolute innovation.

You're absolutely wrong. It not only can, it is absolutely bound to do so. As the average IQ of the population declines, the number of members of the cognitive elite being born similarly decline.

Blogger David The Good June 26, 2016 7:23 AM  

Amen. Meshes perfectly with my own observations. I sold the plant nursery I started in part because I realized that no matter how carefully I tried to follow all the rules, there was certainly something I was doing wrong. A lot of stress there. And hiring? Forget it.

Blogger Doom June 26, 2016 7:35 AM  

I honestly think many are missing the point. Politicians want the economies to cool. They want regulation to strangle growth (and competition). They want people working for them or the cronies. All of those things you describe are by design. Just as tptb believe there are too many people, they also believe there is too much economic... uncertainty... too much competition... too much advancement. They want to solve this by having government and big business keep others out, down, small, and always changing hands. That isn't even a conspiracy theory.

I honestly don't know about your father. But that would make sense. A small enough fish to fry, but not so small that he wouldn't be noticed, as an example of what they can do. Putting everyone on notice. Very likely for no other reason than that a bigger competitor and .gov got hot under the covers, and off the books. Or... maybe just because. Chaosmongers work that way.

Brexit and Trump, for now about as much hope that people have decided not to go that way any longer, any further. Small fries, might not help, but it's something... a start... or an end.

Blogger daddynichol June 26, 2016 7:42 AM  

Add to the list: The fear of lawsuits. From developing simple owners manuals to "slip and fall", we have to have a lawyer to try and protect us from other lawyers.

Anonymous Spinrad's Agent June 26, 2016 7:48 AM  

#3. The amount of paperwork required when contracting to a US-based company these days is so time consuming that I'm at the point of turning them down as a matter of course.

#5. I've watched the numbers of Americans rise in Hong Kong and China for over 20 years. Many who've started businesses and to whom I talk have no intention of going home until retirement (and perhaps not even then).

This post is spot on.



Blogger Human Animal June 26, 2016 8:04 AM  

Let's not forget that the bureaucracy absorbs high IQ people to keep it running. 200k+ Americans bright enough to do graduate STEM work are scribbling other people's taxes into order, and that was just in the private sector.

Add to the list: The fear of lawsuits. From developing simple owners manuals to "slip and fall", we have to have a lawyer to try and protect us from other lawyers.

Public Police, Education, Medicine - They need lawyers too. And the things lawyers make, walls of paperwork and jargon to insulate them from possible liabilities.

Blogger Jack Ward June 26, 2016 8:07 AM  

@6 Arron;
A dumbed down populace will be much more easily convinced or coerced into keeping in office those low feeders that want competition stifled. The more difficult it is for the entrepreneur the less competitors for the huge corporate entities that pay them off. Thats one aspect of 4 or more lower IQ points.

@10 Doom:
You have it nailed. Our enemies are many and not all of them wear black and behead people on utube.

Blogger Human Animal June 26, 2016 8:11 AM  

You would probably not believe the shenanigans and outright lies these agents habitually engage in if you did not see it in black-and-white documents right in front of you.

Did the public forget Aaron Swartz yet? I know the memory hole is hungry, but it was only a few years ago.

Blogger Rantor June 26, 2016 8:14 AM  

In my county it costs at least $40,000 in licenses and government fees to open a shop. That is on top of whatever you need to spend to build, furnish and staff said shop. Despite being one of the most affluent counties in the US, there are plenty of shops in regional malls and strip malls that remain unoccupied. The current recession with real 20% unemployment is a factor. Oh wait, what have we learned about immigration? That it lowers wages and boosts native unemployment?

The decline of American intellect is a problem. The permanent state of recession caused by excess government borrowing/spending is a problem. The giving of free money to prop up the financial sector increases the gap between the super rich and the middle class. Obamacare's enormous tax on the people is also not helpful.

I am praying that Brexit, Trump, and European nationalists can bring about a change, rid us of criminal and illegal immigrants, and implement some sensible, pro free-market policies that reduce the power of the states.

Anonymous Hrw-500 June 26, 2016 8:29 AM  

For the dumbling down of the populace, I spotted this blog post from the Irish Savant at http://irishsavant.blogspot.ca/2016/06/scary-stuff.html who have a good rant about it.

And no offense but dropping maths at Wayne State University is not the brightest idea it all.

Blogger Orville June 26, 2016 8:34 AM  

I'll add that I think Americans have lost their entrepreneurial mindset. Conversely at least some of the foreigners that come here start up businesses in a country with an unfamiliar language and legal system, and are successful. So the system still works.

I'm making the transition from upper management wage slave to business creator and owner, and it's not easy. I think laziness is another cause. American's have become lazy.

As far as the regulatory crap, I hire and fire and am close enough to the other stuff, plus, being a federal contractor has a whole other layer of shit to deal with. I would never have employees in my new business unless the profit potential was literally screaming at me to expand.

On top of that the whole silicon valley, vc funding, fun-house is not representative of starting a business for most of us. And the old ways maybe aren't the best either. I've been watching and studying others, Vox, Mike, and others who have varied streams of income. With all the risks detailed above by Vox, I just couldn't see starting a single line business like a bakery or tow company.

Blogger Avalanche June 26, 2016 8:37 AM  

@6 "addition of lots of stupid people should in no way reduce the performance of the preexisting cognitive elite."

But it sure-as-hell removes ANY desire to work my butt off to pay for THEIR support (in all its many expensive demands: food, housing, medical care, 'bamyphones, infrastructure, schooling, crime "mgmt") and risk my company on both immigrant and "native" entitlement butt-hurt. WHY would I go to all that trouble just to support people I don't know and don't want in my country?

And it's not "just" intelligence that makes an entrepreneur -- all these allegedly 'smart' immigrants don't usually have the entrepreneurial drive -- they just want those well-paid American jobs they're pushing Americans out of!

(That sai... er, written: I am working to carry-on / rebuild a small American MFG company (after the death of my husband). The onerous taxes and stupid laws make my life much harder than it should be!

Ridiculous example: *I* cannot get an obamycare subsidy (through I'm paying a boatload for others to have them!); nor can I AFFORD the cheapest plan, because the govt counts "company profits" as MY (personal) income, so "I make too much." Even though I cannot pull out all the profit every year to try to pay their forced tithing! But ooooh, all those poor folks get theirs! (Well MINE! {disgusted frown})

Blogger Orville June 26, 2016 8:40 AM  

@13 Let's not forget that the bureaucracy absorbs high IQ people to keep it running.

If you mean FedGov, I'd beg to differ. Plus private sector pay is better in most cases. I'm all for STEM, but STEM is not the answer, nor are there tons of high paying jobs just waiting there.

Blogger Cecil Henry June 26, 2016 8:47 AM  

Everyone has gone Galt.

The parasites deserve their fate.

http://www.wsj.com/articles/SB123146363567166677

Blogger pyrrhus June 26, 2016 8:47 AM  

As a long time business lawyer, I can attest that everything you say is true in spades...The IRS just makes stuff up in order to justify audits or demands for more taxes from honest folk. The Courts have become nothing more than agencies of various predatory government agencies...Even State governments are seizing assets without a court order. The digital world has been given a temporary pass, but that won't last because bureaucracies keep expanding their reach.

Anonymous Godfrey June 26, 2016 8:56 AM  

We live in an economic system that destroys capital. If a man can't accumulate capital, he won't.

If capital is destroyed, the economic time horizon is significantly narrowed. A man no longer works to accumulate for tomorrow, he merely works to survive the day.

If capital is continually debased - via fiat money and ZIRP - why work? Why risk what little one has in an entrepreneurial venture? Capitalism is the most progressive force in the world. When the ability to accumulate capital is destroyed the world begins to slip back into the past.

Blogger Gordon June 26, 2016 8:58 AM  

Back in your home town, Vox, the good lefties on the city council just passed a law requiring sick leave for all businesses. St. Paul is following. There are no longer any business owners in either body.

Normally large businesses don't mind such laws because they have compliance costs built in. More regulations keep out nimble new competition. But the record keeping for this law is so onerous that even the big ones are complaining.

I work for different companies nationwide th a team hire me to do discrete jobs in stores. Do my employers now need to track how many hours I work in Minneapolis, how many in St. Paul, and so on in order to comply? I asked the author of the law. After a lot of hemming he finally admitted he has no idea. He doesn't care, either, except that they can now fine owners who they don't like.

Blogger pyrrhus June 26, 2016 9:03 AM  

The decline in intelligence has been more than 1 IQ point per decade, as an analysis of SAT scores discloses, and it has affected all races. For example, the Black/white differential remains constant at one standard deviation....So there is much more than immigration involved here...

Anonymous Godfrey June 26, 2016 9:04 AM  

We live in a economic system based on CREDIT EXPANSION, not CAPITAL ACCUMULATION.

Unfortunately for the economically illiterate elites credit expansion has its limits.

Blogger pyrrhus June 26, 2016 9:04 AM  

I don't think representative government can long survive a stupid population and a completely venal Media....

Blogger bob k. mando June 26, 2016 9:05 AM  

another reason for the collapse in entrepreneurship is the fact that so few children today know how anything works.

do you want to open a car repair shop? better know how to fix cars.

do you want to open a welding shop? better have some experience welding.

all this "hands on" stuff that guys USED TO grow up knowing how to do, often learned on the farm, you are actively discouraged against learning in public schools.

Anonymous Godfrey June 26, 2016 9:11 AM  

I see the effects every day. It's getting harder and harder to find people who are willing to do home repair jobs on smaller homes. And while the quality work has significantly dropped off the cost has skyrocketed.

Blogger Orville June 26, 2016 9:11 AM  

@28 Couldn't agree more. Your average guy doesn't know how to do this, especially the younger generations. This is the niche market I'm focusing on with Best Tools For Men.

Vox, please delete if this is inappropriate to mention my own blog.

Blogger Teri June 26, 2016 9:14 AM  

I would think the ability to take risks would be key. We live in a society of risk avoidance.

Anonymous Godfrey June 26, 2016 9:16 AM  

Again, with the destruction of capital comes the significant narrowing of the economic time horizon.

This doesn't bode well for the future.

What kind of societies have a short economic time horizon? Answer: Primitive societies

Anonymous Godfrey June 26, 2016 9:22 AM  

@31
No, we live in a society where risk now outweighs potential reward.

It's simple ROI. People are figuring out that the return on investment (capital, effort, hard work, sweat, knowledge, etc.) in this economic environment is too risky.

Anonymous Aaron June 26, 2016 9:25 AM  

You're not thinking it throught, vox.

If average IQ declines because large numbers of stupid people swell the population, this does NOT cause the "number of members of the cognitive elite being born" to similarly decline.

It merely causes the PERCENTAGE of the population which belongs to the cognitive elite to decline, which is quite a different thing.

While obviously the PERCENTAGE of people in America who are smart has declined since 1965, the ABSOLUTE numbers of smart people has remained unchanged, or at least unaffected by immigration.

I don't see how you can fail to grasp this.

@avalanche and Jack ward, those are good points, but those are indirect effects and I believe vox was addressing the direct effeces of IQ on innovation.

Blogger Orville June 26, 2016 9:26 AM  

@31 Risk is all about fear and scarcity mindset. Something I had to personally deal with, as older people tend to be more risk averse. On the other hand its also all about risk management. Don't put all your eggs in one basket, focus on the smaller likelier payoffs. For instance, I'm starting multiple small online businesses. Some will work, some won't. James Altucher recommends having between 3 and 5 projects going at any one time.

Anonymous andon June 26, 2016 9:30 AM  

what if the govt stopped making the self-employed pay the matching Social Security tax? iirc it is something like 15-16% in total

Anonymous Godfrey June 26, 2016 9:32 AM  

Why educate yourself, start a business, work hard, and sacrifice if you can't accumulate wealth and get a return on accumulated capital?

Why go through all the sacrifice and effort? If man is going to obtain the same outcome by simply being a janitor... then he will be a janitor.

Blogger tz June 26, 2016 9:39 AM  

the number of members of the cognitive elite being born similarly decline. If the elite have 0 or 1 kids, and the other side has 4 or 5, yes. Sanger wasn't wrong about that.

Tax court judge evades taxes

I think it is mostly the compliance costs. The entrepreneur wants to do his thing, but when 30% or more of his time or money end up with useless paperwork it isn't worth it. Even taxes - most would prefer it to be high but a postcard instead of low but an encyclopedia.

We used to have a high-trust society - businessmen wouldn't pollute, cheat, exploit, or do unsafe things, at least not intentionally. Or a few bad apples.

You cannot replace a moral people with paperwork - you only get crony Clintons.

This is one thing oft missed in Atlas Shrugged. The hero entrepreneurs were more moral than the bureaucrats. Compare Trump and Cruz or Clinton.

I've had lots of ideas over the years. I've never started. Long ago, I calculated I'd need six figures to start for all the regulations and compliance and it has gotten worse.

Now the FAA is about to kill drones, except for crony dronies.

Anonymous Godfrey June 26, 2016 9:40 AM  

Capitalism is progress.

As a society destroys capital, it slips deeper into a primitive state.

Anonymous andon June 26, 2016 9:40 AM  

18. Blogger Orville June 26, 2016 8:34 AM
I'll add that I think Americans have lost their entrepreneurial mindset.


I think the schools teach the children these days that being an entrepreneur is a dirty thing. Work for a non-profit or the govt and you'll be regarded a saint.

Blogger James Dixon June 26, 2016 9:43 AM  

> I don't think representative government can long survive a stupid population and a completely venal Media....

It doesn't look to me like it has. I don't think we've had a true representative government in this country for at least 50 years. Some would probably argue far longer, and I'd be hard pressed to find a good argument against them.

Blogger YIH June 26, 2016 9:47 AM  

2. The increasing regulatory and reporting burden. Why go to the effort of building up a company when doing so is the equivalent of painting a big red target on your chest? As one of my entrepreneurial friends said after shutting down his company and taking a job for a big tech firm, "it's so nice not having to deal with all that shit anymore."
Ain't. That. The. Truth. An example:
Ray Z. was kind enough to share his experience of trying to open a bagel shop and create six jobs
[Very good economics blog BTW, you may have seen it featured at ZeroHedge]

Blogger James Dixon June 26, 2016 9:48 AM  

> While obviously the PERCENTAGE of people in America who are smart has declined since 1965, the ABSOLUTE numbers of smart people has remained unchanged, or at least unaffected by immigration.

That is not necessarily true. It could be true, but it's not proven. Please source the absolute numbers you claim if you want your argument to be considered.

> Now the FAA is about to kill drones, except for crony dronies.

The government will not allow competition. Only they will be allowed to have drones.

Anonymous Godfrey June 26, 2016 9:49 AM  

@40
People are naturally entrepreneurial. Yes, the educational establishment attempts to beat it out of people, but it survives.

The real culprit is the fiat monetary scam that destroys accumulated capital (i.e. wealth). ZIRP, really NIRP if you consider inflation, has drastically accelerated the process. Consequently the general economic time horizon of the population is beginning to shrink.

Anonymous bgkb June 26, 2016 10:01 AM  

Americas greatest advantage was that if 2 experts lived 1000 miles away from each other they both spoke the same language with no translator errors. Also snatching up German Scientists after WWII let us walk on the moon.

entrepreneurs come from a tiny percent of the cognitive elite, so the addition of lots of stupid people should in no way reduce

Imagine you need cash and every ATM has lines of people just barely able to understand them. Imagine you are a doctor who has to argue with someone who only graduated high school via social promotion why your treatment was necessary. Even better imagine arguing with a nigger that hemoptysis (coughing up blood) is a legitimate reason for what was ordered, only to ask for a list of acceptable reasons faxed over seeing that cough would have been acceptable.

The fear of lawsuits. From developing simple owners manuals to "slip and fall", we have to have a lawyer

Worked in inner city hospitals for years but never meet a black that fell at home, seriously jewelry stores seem to be the most dangerous place for them.

You have it nailed. Our enemies are many and not all of them wear black and behead people on utube.

Those that wear black robes and swing gavels are far more dangerous to the K selected.

foreigners that come here start up businesses in a country with an unfamiliar language and legal system, and are successful.

Veterans wish they had assess to all the handouts given to immigrants willing to run a store that gives 25 cents on the dollar for EBT money.

But it sure-as-hell removes ANY desire to work my butt off to pay for THEIR support

Could be worse, you could be paying for your house when illiterate in even their native tongue somoli moslems are given a house worth 2 million because a 6bedroom govt house isn't good enough for them. http://www.dailymail.co.uk/news/article-3450746/Jobless-Somali-refugee-family-rehoused-2m-mansion-1-3m-semi.html

ZIKA ANCHOR BABIES WILL COST TAXPAYERS MORE THAN THEIR BIRTH WEIGHT IN GOLD EVERY YEAR THEY ARE ALIVE.

Blogger VD June 26, 2016 10:01 AM  

While obviously the PERCENTAGE of people in America who are smart has declined since 1965, the ABSOLUTE numbers of smart people has remained unchanged, or at least unaffected by immigration.

As James has already pointed out, that's not necessarily true. If the smart population mixes with the less intelligent immigrants, or even fails to breed at replacement levels, the ABSOLUTE number of smart people will decline. Do either of those scenarios happen to apply here?

Moreover, there are other negative factors related to immigration.

The smart white guy who would start a business in his town of 100 white people may not wish to do so in a city of 100 white people and 500 illiterate pagans who he fears might burn it to the ground or seize it out of hand.

Same absolute number of smart people but one less business.

Blogger kudzu bob June 26, 2016 10:05 AM  

@30

Your sight looks quite interesting. I think you might be on to something.

Anonymous Ulric June 26, 2016 10:07 AM  

First time poster.

The biggest issue that I see is that the pool of intellegent and motivated people with skills to start their own business keeps shrinking. Corporations or larger organizations, where many learned their trade, effectively select against intellegence these days. Without a place to learn skills in an industry, it's very hard to start a small business.

Blogger Orville June 26, 2016 10:12 AM  

Thanks Kudzu Bob!

Blogger CM June 26, 2016 10:23 AM  

The politicization of culture. Why start, say, a bakery, if you know you're going to be forced to choose between being sued into oblivion and violating your conscience as well as your right to free association?

I made a hand embroided original stole as an ordination gift. I was informed my work would sell for around $400- $600 and I've toyed w the idea of making wedding accssories and stoles. I have a unique skill that is still pretty rare in the market and a distributor who is interested, but this keeps preventing me from seriously considering the possibilities.

Anonymous andon June 26, 2016 10:24 AM  

46. Blogger VD June 26, 2016 10:01 AM

Moreover, there are other negative factors related to immigration.

The smart white guy who would start a business in his town of 100 white people may not wish to do so in a city of 100 white people and 500 illiterate pagans......


I don't want to serve illegal aliens either, just on principle

Blogger James Dixon June 26, 2016 10:34 AM  

> I have a unique skill that is still pretty rare in the market and a distributor who is interested, but this keeps preventing me from seriously considering the possibilities.

As long as you only deal through the distributor and he handles orders for you, you should be safe from a lawsuit. That removes your ability to refuse service though.

Anonymous Elipe June 26, 2016 10:40 AM  

This is part of why I'm voting for Trump. Trump, out of all the candidates, is the most likely to cut down the fat on business regulations and make it easier to start up businesses.

The "but, but, but no political experience LOL" idiots need to have their skulls smashed against a wall about five times before having it explained to them that you elect a person based on what game they have skin in. If you elect career politicians just because these are the only people with political experience, well, you're going to get exactly that - a career politician, with skin in the politics game. He's going to do what all kinds of career politicians love to do: expand bureaucracy, pass lots of laws and regulations, take bribes, etc.

But if you really want to fix businesses in America, fucking elect a businessman! You know, like Trump.

Fucking "political experience lol" retards, they're a big part of the problem.

Anonymous RJ June 26, 2016 10:41 AM  

"Conversely at least some of the foreigners that come here start up businesses in a country with an unfamiliar language and legal system, and are successful. So the system still works."

These immigrants get grants and low-interest loans from FedGov that are not available to U.S. citizens. That's right, the Feds are subsidizing foreigners using your tax dollars. So the system doesn't work.

Minneapolis

Asians

Angry yet?

Trump 2016

Anonymous CTHat June 26, 2016 11:28 AM  

Don't forget the Marketplace Fairness Act, which was an attempt by the government to tax all internet businesses based on *where their products were being purchased, rather than where the business was located. (Illegal, unconstitutional tax? Yes, as it violates Commerce Clause.)

Also, Vox brought this up a couple weeks ago about the availability of capital being highly restricted - large companies and governments are holding onto it, making it harder for small businesses to get smaller loans.

Shoot, even the fact you have to get extraordinarily large loans to pay off the "risk assessment" of the government regs and the normal compliance costs on top of store space (rent/purchase) with products all mean that a large segment of the population is basically excluded from being entrepreneurs.

Trump also discussed this in his tax fiduciary reforms. He said it's easy for him to start businesses because he has the $1mm it requires, while a yob with an idea cannot raise the funds (one of the two reasons TPTB are terrified of him, I think).

To sum up, like everyone else here understands, The Global Cucks want to retain power of the purse over us peasants who *may actually be independent of their power economically.

I do also think the betacucking academy/bureaucracy in government agencies has a large place in this, but that's a different topic altogether...

Anonymous CTHat June 26, 2016 11:34 AM  

@ #53 - Elipe

I agree with you on Trump - someone who actually understands how money and productivity work and how edged out people are from the economy. He also alludes to the fact that the globalist governments don't want *growth, rather retraction in order to keep all the capital for themselves. He also wants to audit tax sheltering non-profits (like the National Review), which terrifies the politicos and pundits too. Cernovich has discussed this, but Trump hasn't been shy about it either.

Blogger Snidely Whiplash June 26, 2016 11:36 AM  

My son-in-law and I identified a perfect opportunity, a smallish town without any significant internet serve, that could easily be reached with point-to-point 4GHz over a river, combined with Air-Max internet service.
Total investment: about 30K
Ongoing costs: about 3.5K per month
Market: 1500 households
Howver:
Cost of licensing/permits: about 250K
ongoing compliance costs: 150K/yr

Thanks entirely to the costs of dealing with government agencies, these people will never get internet service. They're too small for the cost of running fibre, and the cell companies love the current situation.

Anonymous Gen. Kong June 26, 2016 11:39 AM  

26. Godfrey.
We live in a economic system based on CREDIT EXPANSION, not CAPITAL ACCUMULATION.

Unfortunately for the economically illiterate elites credit expansion has its limits.


You're so polite. What you refer to as "credit expansion" is more aptly termed as 'debt racketeering'. You'll note that there's still only one small cartel who has the legal authority to create counterfeit money used as a basis for the endless expansion of debt racketeering and - whatever Ron Paul's bluster - nobody really knows who exactly its members are. Those connected (usually tribally) to those who control this counterfeiting monopoly are the ones who are designated "the latest super-genius entrepreneur" (NSAbook, for example). The cartel and its various capos and lieutenants issue orders to the political class, the "free" press, the military, etc., etc. - all a very closed and insular system.

The flip side of the issue is the importation of the third world with its low-IQ and poor future time-preferences - the perfect "consumers" in such a racket. Layered on top of this is the edumacayshun system. As even Uncle Yusif noticed: Education is a weapon whose effects depend on who holds it in his hands and at whom it is aimed. There is much truth in this statement. The SJWs (who serve the ruling elite) have known this for at least a century, but most of the targets of this weapon remain so clueless about its actual purpose that they continue to uphold it with their property taxes. Public edumacayshun is nothing more than a genocidal government indoctrination center. Like many completely converged institutions, there's no chance of reforming it. It has to be completely burned to the ground and the ground throughly salted so nothing grows there ever again.

Blogger Weouro June 26, 2016 11:42 AM  

That's how it is in the road construction business. In an effort to become antifragile I bought a dump truck and found there's a lot of red tape and paperwork that bureaucrats have imposed. You're basically at the mercy of the cop who pulls you over. Most owner operators could end up with thousands and thousands in fines depending on how the cop chooses to enforce the regulations.

Anonymous Philalethes June 26, 2016 11:58 AM  

Corruptissima re publica plurimae leges. – Tacitus, ca. 100 CE.

As with feminism*, all of this has been known for a long time. Though the Romans didn't have to deal with Miss Wormwood at the License Bureau.

*Women want total freedom, or rather – to call things by their names – total license. If you allow them to achieve complete equality with men, do you think they will be easier to live with? Not at all. Once they are your fellows, they will become your masters. – Marcus Porcius Cato (the Elder), 234-149 BCE

Anonymous CTHat June 26, 2016 12:06 PM  

This is also why something like 1/4 of the economy is black market - not drugs, but opening a window is technically some kind of violation.

Blogger kurt9 June 26, 2016 12:13 PM  

In my opinion, the decline of entrepreneurship is the number one problem facing America.

Regulation is a big problem. It has expanded enormously over the past 10 years or so. Most of it is federal. But some of it is state-level. Oregon is particularly bad and seems to be in a race to become like California. California is one state you do not want to do any kind of manufacturing business in. Taxation is also a problem.

Crony capitalism is another issue. I think many of the current tech big names such as Google, Facebook, etc. are essentially intelligence contractors. They are the current IT version of the aerospace defense contractors of the 1980's.

I started a company and have been self-employed in the past. I now work for a small manufacturing company (but am trying to get a system integration business going). There is a shit-load of paper work for the Fed's in running one's own business. Its worse with regards to employees.

I can guarantee that the economy will decline further if Clit-bitch gets elected. As a businessman himself, one would think Trump would be motivated to getting rid of regulation if he is elected.

Blogger kurt9 June 26, 2016 12:16 PM  

Entrepreneurship is inherently masculine. The current obsession of discouraging masculinity and promoting "minimization" of boys is only making things worse.

Blogger Were-Puppy June 26, 2016 12:40 PM  

@38 tz
Now the FAA is about to kill drones, except for crony dronies.
---

Rats. There goes my idea of a business where people pay to shoot drones out of the sky.

Anonymous BGKB June 26, 2016 12:43 PM  

CM I have a unique skill that is still pretty rare in the market and a distributor who is interested

Ragnar's Guide To The Underground Economy [Ragnar Benson]

Blogger Were-Puppy June 26, 2016 12:43 PM  

@45 bgkb
ZIKA ANCHOR BABIES WILL COST TAXPAYERS MORE THAN THEIR BIRTH WEIGHT IN GOLD EVERY YEAR THEY ARE ALIVE.
---

Rats. There goes my business idea of farming Zika mosquitos near mosques.

Blogger James Dixon June 26, 2016 12:46 PM  

> Rats. There goes my idea of a business where people pay to shoot drones out of the sky.

I'm pretty sure the FAA's authority doesn't extend to enclosed areas. Do you happen to know of any abandoned aircraft hangers, gymnasiums, or such?

Anonymous Gedrin June 26, 2016 12:50 PM  

@9 what were those onerous rules? I plan to start that way, then expand into vegetables. Hoping to hire some ilk down the line if I can get off the ground.

Blogger Were-Puppy June 26, 2016 12:55 PM  

@66 James Dixon
> Rats. There goes my idea of a business where people pay to shoot drones out of the sky.

I'm pretty sure the FAA's authority doesn't extend to enclosed areas. Do you happen to know of any abandoned aircraft hangers, gymnasiums, or such?
---

If you did that in an enclosed area, it might work in a laser tag or paintball application. But it would rule out using actual shotguns, bows and arrows (maybe), throwing knives,etc because you would damage the enclosure.

Blogger Were-Puppy June 26, 2016 12:56 PM  

Heh, but in an enclosure, you could also add things like remote controlled boats, and those little rc cars :P

Still sounds like a lot of fun, if it was an amusement park

Anonymous Eduardo the Magnificent June 26, 2016 1:08 PM  

There isn't a Wal-Mart in America that doesn't get a 5-year break on property taxes (and other regs, probably) when they open up shop. The little man never gets cut the same deal. Yes, taxes are a problem, but not if you're politically connected.

Anonymous Hermione June 26, 2016 1:17 PM  

I am shutting down my profitable wedding videography company at the end of the year for many reasons, but the three big reasons are 1)inability to find a reliable second shooter, 2) tax shenanigans, and 3) unwilling to make myself and my family a target because I run a wedding related business and I am publicly religious. I pay my taxes to the state online as is required, but they don't pay them to the county like they are supposed to, so I am constantly fielding letters and calls about not having filed and paid my taxes properly even though I have. The last time I spoke on the phone with someone they claimed I had never paid my sales taxes the entire time I have been operating. My photographer friend also got nailed by an obscure money grab, where in the last couple years they have changed the law that specifically photographers (I am in a grey area as a videographer for this) have to charge sales tax on their labor, not just the items they sell. So instead of charging sales tax (which is very high here) on a finished album that is worth $200, they have to charge sales tax on entire wedding packages (closer to $3000). She now owes thousands of dollars in back taxes. I can't afford that if they decide that this also applies to me - six years of back taxes would be a lot of money to have to come up with.

It's not worth any of that to continue in this field.

Blogger pdwalker June 26, 2016 1:20 PM  

One of the joys of Hong Kong is the spirit of entrepreneurship. You've a business idea? Hang up your shingle and go for it*. Paperwork? None, except for a single page tax form you fill out at the end of the year. (There is a second page for additional deductions).

Everywhere you look, you will find small businesses and people working them.

* some caveats apply, some trades require licensing

Anonymous Leonidas June 26, 2016 1:45 PM  

@70

There isn't a Wal-Mart in America that doesn't get a 5-year break on property taxes (and other regs, probably) when they open up shop. The little man never gets cut the same deal.

I'm of the opinion that every new small business should get the first year or $1 million in revenue (whichever comes first) absolutely, completely tax free. Not just income taxes, but sales taxes, property taxes, etc. Everything. Cut the new business a break while it gets on its feet.

Anonymous Dave June 26, 2016 1:56 PM  

Average IQ is also falling *within* each race because high-IQ couples figure they can only afford to pay for two college educations. They spare no expense to give their two children every possible advantage, but genetics being the crapshoot that it is, some of those kids are just not very bright.

To maintain or increase IQ, elites must practice eugenic breeding. That means having 6-10 children and only marrying the best two or three. Aristocrats in southeast Asia did this for centuries while encouraging peasants to breed like rabbits for a plentiful supply of low-IQ slave labor.

Blogger David The Good June 26, 2016 2:08 PM  

@Gedrin

The actual paperwork to launch wasn't bad. What was tough was figuring out what you're allowed to grow and sell and ship... and where. Invasive species lists and random raids. Forget it. It's a great business if you like never knowing if you're doing something that may get your door kicked in.

Blogger Noah B June 26, 2016 2:16 PM  

Since I started my engineering business, and especially over the last ten years, I've seen interference from local governments mushroom. In many cases, land development procedures that used to take a few months now take about a year. The obvious result is that businesses outright refuse to develop in all but the most lucrative of these markets, while economic development department staff sit around pretending to think of new ways to attract businesses.

For ignorant folks like Aaron who can't seem to grasp why a flood of low-IQ immigrants without an understanding of American civics might be a problem, another factor is that nonwhites who eek their way into college are AA'd through degree programs and preferentially scooped up by government agencies. Thus, highly motivated and intelligent entrepreneurs are forced to spend their time explaining and justifying their actions to those who should be employed at licking postage stamps rather than exercising any form of authority.

Blogger Noah B June 26, 2016 2:18 PM  

The first country to offer legal protection and operational assistance to the international entrepreneurs being preyed on in this manner is going to do very well indeed, and do so at the expense of the other countries.

The flip side is that a nation doing this would incur the wrath of the global financial elite, reminiscent of 1933 Germany.

Blogger S1AL June 26, 2016 2:21 PM  

1-3 and 7 are all variations on one major issue (government regulation). 5 and 6 are results of the others (internet business is relatively unregulated). 4 is the odd one out, and the most irrelevant IMO. The people who are entrepreneurs and the subsets of society that produce them are much more likely to be hurt by lack of reproduction than anything else.

The point about not starting a business in an area with ethnic turmoil resulting from immigration is a much stronger observation.

Anonymous A.B. Prosper June 26, 2016 2:23 PM  

Aaron wrote:You're not thinking it throught, vox.

If average IQ declines because large numbers of stupid people swell the population, this does NOT cause the "number of members of the cognitive elite being born" to similarly decline.

I.


Aaron, the total fertility rate among the smarter people is below replacement

College educated women having children late in life have smaller families and in general White and Asian TfR's are below Mexican and Black

This doesn't count the very highly intelligence who rarely reproduce either , the Google/Facebook crowd often do not have the social skills to have families and those that do often have smaller ones.

And yes Mexican TfR's have declined at a faster rate than white, they are still in absolute terms higher

This has been the case for about 2 generations and change , starting in about 1973 or so but it wasn't noticeable till the 1990's or later because the US was overwhelmingly White in most places

So yes in addition to maleducation, the actual root stock of the US has gotten stupider.



Anonymous LastRedoubt June 26, 2016 2:34 PM  

We'd spent nearly three years looking for a decent person to take on for our small business computer consulting work. Person after person that we talked to was just... inadequate.

We actually did not give a crap about certs, degrees, etc., and after a short while explicitly started off interviews with questions about what computers they built on their own, languages they learned on their own, etc., to weed out the "I got a cert and I R Computer Guy" types, but to get the ones willing to do research, investigate, etc.

Finally, finally found one who not only had the skills (rare enough - and we were more than willing to train up) AND the personality/initiative, but also enough social skills to not be an arrogant boor.

Blogger Teri June 26, 2016 2:42 PM  

I work for a company that provides that type of Internet service. They've been in business 20 years. It's hard to explain to people in those areas that they will never get the speeds you get in the cities. Too few people and too expensive.

Anonymous Godfrey June 26, 2016 2:43 PM  

@57
An excellent assessment and one difficult to argue against honestly.

He who runs the monetary fiat scam ultimately owns the world. It's hard not to be "successful" with an inside track on a scam like that.

Blogger Teri June 26, 2016 2:44 PM  

It's actually easier there than in WA state. I do think Oregon passed a stupid version of the $15 an hour
minimum wage. (It's a tier based on location). Even the lowest rate will cost jobs in rural areas.

Blogger Human Animal June 26, 2016 2:47 PM  

As Bob k. mando said, children are discouraged from learning. It involves risk, especially if children do it on their own. The parent doesn't want their own life disrupted, so they turn children into pets.

Blogger Teri June 26, 2016 2:47 PM  

The arrogant boor is hard to avoid in IT :)

Anonymous Jack Amok June 26, 2016 2:48 PM  

The problem is our society treats running a business as a suspicious activity. Employing people even more so. "What's that guy doing over there? He isn't working for some big corporation. And he's... paying people salaries? Good God, he's up to something. We better keep an eye on him!"

This is a direct result of expanding the vote to people who don't, and won't ever, run a business and deal with the tax, regulatory and litigation overheads.

As far as immigrant entrepreneurs, sure, they're prevalent because they come from cultures where running black and grey market business is the norm, and they operate mostly within their enclave communities and are protected from most of the regulators. The guy who started the Mexican restaurant that employs all his cousins and the sons and daughters of his Mexican neighbors? Do you really think he's accurately reporting wages to the IRS?


Blogger weka June 26, 2016 3:21 PM  

@3. Agree about NZ. You can start up a business, and the big issues occur when you start employing people, for the union run Labour party wants to regulate overmuch even here. Aussie regulations are worse, and the US far, far worse, to the point that I won't invest directly in the USA.

@7. In NZ you don't have to do a tax return if you are on a salary. Your employer's PAYE records suffice. You do if you have investments. The tax prep industry has basically died.

Anonymous Eric the Red June 26, 2016 3:42 PM  

re #3...
What do you call a society where there are so many rules and regulations (many of them vague and/or contradictory), that everyone is guaranteed to be breaking at least one of them no matter what they do? I've been looking for a one-word Greek derivative for a while. Note that this does not have anything to do with whether or how such rules and regulations are enforced.

Anonymous Eric the Red June 26, 2016 4:08 PM  

re #3...
What do you call a society where there are so many rules and regulations (many of them vague and/or contradictory), that everyone is guaranteed to be breaking at least one of them no matter what they do. I've been looking for a one-word Greek derivative for a while. Note that this is a separate issue from whether or how such rules & regulations are enforced.

Blogger kurt9 June 26, 2016 4:33 PM  

It's actually easier there than in WA state.

There are plusses and minuses for each of these states (I live in Vancouver). WA has no state income tax. But they have the B&O tax, which is relatively easy to pay. The big thing with WA is labor law, which is more complicated than Oregon.

I do think Oregon passed a stupid version of the $15 an hour
minimum wage. (It's a tier based on location). Even the lowest rate will cost jobs in rural areas.


They did indeed, which is why all of the fast food places will become automated kiosks in the next few years. Regular restaurants will have you order and pay through tablets located at each table (Appleby's is already doing this nation-wide). Only high-end restaurants will be full service. This will be the food service equivalent of the transition from full-serve to self-serve gas in the 1970's.

A surprising number of service jobs are automatable at $15/hour and the robotics keeps getting better. Check out some videos of "delta-style" robots on Youtube. They are quite impressive.

BTW, Oregon has a state law mandating full-service at gas stations. Supposedly this is for safety reasons. I'm wondering when this law will get overturned.

Blogger Snidely Whiplash June 26, 2016 4:57 PM  

kurt9 wrote:BTW, Oregon has a state law mandating full-service at gas stations. Supposedly this is for safety reasons. I'm wondering when this law will get overturned.

It is by and for the non-oil-company-owned gas stations. wile it raises the price of gas, and inconveniences the motorist, the law makes it much more difficult for BP and Shell to operate their own stations in Oregon. Which means virtually all gas sold in Oregon is sold via independent stations, who pay a lot of money to keep that law on the books.

On the other hand, it also means Oregon has a lot of great entry-level jobs for high school kids, the recently imprisoned and other less fortunate individuals.

How that's going to work with the $15/hr minimum wage is an interesting question.

Anonymous Sagramore June 26, 2016 7:02 PM  

 You would probably not believe the shenanigans and outright lies these agents habitually engage in if you did not see it in black-and-white documents right in front of you.

My attitude has gone from outrage to giving them all the rope they need for Execution Day. A Queen's Counsel didn't think I'd actually go to the Queen.

Blogger Robert What? June 26, 2016 8:14 PM  

I own a small (six employees) tech company that I started over twenty years ago. I would never be able to do such a thing in today's America where the federal government and, in the case of Connecticut, the state government, have declared war on small business. One thing these human parasites have not learned, that parasites in nature know by instinct, is that if they overwhelm the host, the host dies. And if the host dies, the parasites die.

Blogger tz June 26, 2016 8:30 PM  

@63 https://aerixdrones.com/ - Aerix makes drones below the weight threshold. They aren't cheap enough to be used as clay pidgeons but will shoo away mourning doves and crows.

Blogger tz June 26, 2016 8:33 PM  

Note how even companies that wish a better future don't offer full "your wife can be 100% Mom on our dime" benefits that were not uncommon in the 1950's.

Anonymous SciVo June 26, 2016 8:50 PM  

Eric the Red wrote:re #3...

What do you call a society where there are so many rules and regulations (many of them vague and/or contradictory), that everyone is guaranteed to be breaking at least one of them no matter what they do. I've been looking for a one-word Greek derivative for a while. Note that this is a separate issue from whether or how such rules & regulations are enforced.


How about bureacro-tyranny? Or you could just say tyranny.

Does it really matter whether punishment is arbitrary because there are no rules, or because everyone is guilty of something? Either way, the end result is arbitrary State power and popular anxiety; just with bureaucro-tyranny, after picking someone to hang, they get to enjoy the surprise of finding out what for.

Anonymous Jack Amok June 26, 2016 11:55 PM  

What do you call a society where there are so many rules and regulations (many of them vague and/or contradictory), that everyone is guaranteed to be breaking at least one of them no matter what they do.

Kakocracy is close ("rule by the shittiest people in society"), but maybe Kafkakrocy is better.

Anonymous rubberducky June 27, 2016 1:29 AM  

I have experience in Indonesia, which is on the low end of the Asian IQ charts. The government is corrupt, but it is pretty small and weak comparatively. You can do your own thing there, and people do. My wife is an Indonesian-American with relatives here and there. Most of the ones in Indonesia have their own companies. None of her American ones do. Same basic group of people genetically, different results.

The attitude and the reach of the government are crucial. I remember when Hillary was busy failing at HillaryCare, she was asked how small businesses were ever going to afford it (they weren't). Hillary said, "I don't have time to worry about under-capitalized businesses." Can you believe this woman is seriously considered as a leader of a nation? What a fraudulent elitist. She only cares about the big players.

But the attitudes of the people are equally important. I found Americans to be typically horrified at the free-wheeling, frontier nature of business in much of Indonesia. They found the lack of regulation to be disquieting. I thought it was exhilarating, we don't have freedom like that in America. Heck, you've got to pay thousands of dollars and spend hours in the classroom just to legally wash and braid hair commercially in Tennessee, and that is but one of a thousand examples!

Anonymous rubberducky June 27, 2016 1:33 AM  

Heck, they are even finding fault with children running lemonade stands. Vast majorities view that as utterly asinine. Yet it keeps happening more and more. Things got to be properly regulated, dontcha know!

Anonymous Aaron June 27, 2016 3:23 AM  

Yes, if smart people have less babies, there will be less smart people overall, but I'm not sure what that has to do with immigration. Are you perhaps claiming that immigration of stupid people is causing the smartest people, the ones who innovate, to have less babies?

As for your other point, it's highly unlikely the cognitive elite who produce entrepreneurs are mating and breeding with Mexican fruit pickers, as I'm sure you know.

Either way, I'm pretty sure you were simply looking at our lower national IQ and assuming the absolute number of smart people must have declined as well, which is obviously not the case. It was a thoughtless, off the cuff remark that anyone might make. Its not a big deal.

That being said, the link between even absolute numbers of smart people and innovation isn't at all clear cut. Ancient Greece and Elizabethan England were far more creative than us, despite having a population only a few million strong.

Obviously a certain number of smart people is needed for innovation, but what that number is, no one knows, and that more is better is not borne out by history. No straightforward link such as you try to draw, can be mafe.

Blogger pdwalker June 27, 2016 3:43 AM  

@98 *laugh* I just sent this video link to a girl from China to explain the "rubber duck thing"

And yes, too many people in North America demand that "there oughta be a law", and that everything needs to be licensed. Insanity!

@99 One cost of immigration is higher taxes to support all those welfare parasites. Higher taxes means less money for those wanting a family - thus fewer children.

Immigration increases demand for housing, thus driving up the cost. Higher housing costs = less money for raising a family.

Of course, none of this applies if you're a welfare parasite and you're willing to live off the government dole.

Blogger James Dixon June 27, 2016 8:11 AM  

> Yes, if smart people have less babies, there will be less smart people overall, but I'm not sure what that has to do with immigration.

The fact that you don't understand the effects of immigration has been rather obvious this entire discussion.

Short story, declining wages and a deteriorating surrounding environment lead to intelligent people having fewer children.

> As for your other point, it's highly unlikely the cognitive elite who produce entrepreneurs are mating and breeding with Mexican fruit pickers, as I'm sure you know.

Again, a conclusion reached with no supporting facts given. Why should we take your word for it?

In point of fact, the current toxic environment of extreme feminism has lead to a number of younger men to not marry at all or to seek marriage partners from outside cultures. It's entirely possible that the less risk adverse entrepreneurial class is leading the way in this matter.

> Either way, I'm pretty sure you were simply looking at our lower national IQ and assuming the absolute number of smart people must have declined as well, which is obviously not the case.

The fact that you leap to conclusions without examining the underlying evidence doesn't mean everyone does.

> No straightforward link such as you try to draw, can be mafe.

And yet you're previous statements assumed it exists. Why else would the absolute numbers be important?

Anonymous Aaron June 27, 2016 9:11 AM  

So, the immigration of stupid people has created conditions that make the super smart innovators have less babies, and that many of the super smart who have babies do so with Mexican fruit pickers and Somali gangsters and such like.

THAT'S what Vox meant when he said the immigration of stupid people has led to a lower average national IQ, and thus fewer smart people to be entrepreneurs.

If you SERIOUSLY think this is what Vox meant, then that's a perfectly coherent position, although to my mind, not plausible.

But I for one, don't think that's what vox meant. Each reader must judge for himself.

If vox now affirms that IS what he meant, I would consider my work here to have borne some fruit.

Oh.....absolute numbers are important, but the link is not necessarily linear snd straightforward. Think it through, you'll see its so.

Adios

Anonymous Aaron June 27, 2016 9:23 AM  

Oh, I agree with you.

We have always been a nation of idiots, and we're certainly getting dumber, it's just that low IQ immigration isn't what's caused a decline in intelligence among whites, Jews, and Asians, except perhaps incidentally and as a secondary effect, which James informs me was indeed vox's point, so perhaps I'm wrong.

It seems reasonable to suppose that innovation cannot go on forever, although modernity seems based on the idea that it can, and indeed should.

Blogger James Dixon June 27, 2016 10:34 AM  

> So, the immigration of stupid people has created conditions that make the super smart innovators have less babies...

By Jove, I do believe he's got it.

> ...and that many of the super smart who have babies do so with Mexican fruit pickers and Somali gangsters and such like.

Which I never said. The term I used as "from outside cultures".

> If you SERIOUSLY think this is what Vox meant,

I never said that was what Vox meant.

> Oh.....absolute numbers are important, but the link is not necessarily linear snd straightforward. Think it through, you'll see its so.

You're the one who said "While obviously the PERCENTAGE of people in America who are smart has declined since 1965, the ABSOLUTE numbers of smart people has remained unchanged, or at least unaffected by immigration.", not me. You obviously seemed to consider it a deciding factor.

> ...which James informs me was indeed vox's point, so perhaps I'm wrong.

Which again, I never said.

Blogger Akulkis June 27, 2016 10:12 PM  

@Aaron.

Another problem you're forgetting with the influx of low-IQ immigrants -- government.

The larger the population, the larger the government. Government tends to give quite cushy pay & benefits to those smart enough to get advanced degrees.

Every smart person working as government employee is one less smart person in the private sector, period; and compared to the reset of the population, a higher probability of being one less entrepreneur.

Now, get this -- just because you were in the crowd of slightly above average in school does NOT mean that you're smart. The truly smart find people like you to be more annoying to hang around than the IQ-100 normies.

Anonymous Aaron June 28, 2016 3:01 AM  

Maybe it's the "deciding" factor - the factor with most weight among a group of factor - but it still isn't in a linear relationship with the outcome.

Beyond a certain point, more may not be better.

It can easily be the most important factor yet subject to the law of diminishing returns.

Why us this so difficult to get?

Seriously, sit down, relax, maybe drink a cup of tea, smoke a cigarette (known to be a cognitive enhancer), and perhaps, in a few hous, days, or weeks, it will come to you.

Get back to me, seriously. I'm concerned about you.


Anonymous Aaron June 28, 2016 3:11 AM  

I disagree. I think I'm very smart. And you're dumb. I'm easily smarter than most people on this blog, including Vox.

Vox said something pretty stupid, and instead of having the balls to man up, he doubled down. I'm not impressed. At all.

And you flying monkeys with your absurd contortions are ridiculous. Now it's about geniuses marrying Mexican fruit pickers so American innovation going down, or that people with entrepreneurial personalities are lured away by government jobs because they are "safe and cushy" because thats what such types crave (!), and with more immigration gov grows.

I mean, Jesus f christ. Seriously, flying monkwys, up your game.

Blogger pdwalker June 28, 2016 3:39 AM  

@110

Well, your puissant argument has convinced me.

Blogger James Dixon June 28, 2016 8:24 AM  

> I disagree. I think I'm very smart. And you're dumb. I'm easily smarter than most people on this blog, including Vox.

Why don't we just let your arguments to date stand and let people decide the probability of that for themselves?

Anonymous Ken June 28, 2016 10:45 PM  

The regressives are doing their damnedest to kill the reward of entrepreneurship. It's becoming very difficult to even SAVE money for a project. Banks dole out somewhere around a measely twenty bucks for every ten thousand saved. With inflation being what it is, this is essentially a negative interest rate. We're punished severly for doing the right thing.

Meanwhile, the niggers, spics and white trash with multiple "baby mammas" and no father are fat and well fed on my hard work. Can't afford my own children, much less enacting an entrepreneurialship idea, but at least Shitonya and her useless future prison inmate brats are well fed.

Bring on the collapse already. I almost can't wait.

Anonymous Aaron June 30, 2016 5:31 AM  

I'm going to explain it to you one more time because you still don't get it :)

I showed how immigration doesn't mean less smart people, just more stupid people, but even if it did, less smart people doesn't necessarily mean less inovation. Its unclear how large a drop in smart people would be needed to make a serious impact.

See, genius? They're two parts of an argument. They support each other. Get it, lol?

Now, if you still can't understand it, my friend, I will have to assume you are making your own individual contribution to the decline of white inteligence :)

Blogger James Dixon June 30, 2016 3:34 PM  

So I'm a sucker for not givimg up on lost threads. Sue me.

> I showed how immigration doesn't mean less smart people,

No, you didn't. You claimed it, but never showed it.

> but even if it did, less smart people doesn't necessarily mean less inovation. Its unclear how large a drop in smart people would be needed to make a serious impact.

And yet we are demonstrably getting less innovation.

> They're two parts of an argument. They support each other. Get it, lol?

Both of which are unproven, and no, they don't support each other.

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