11-14-2015, 11:18 PM
(11-14-2015, 10:42 PM)Benton Wrote: and I realize this is a simplified view of things. But basically, I think more small businesses would make stronger economies overall, albeit harder on the individual business.
Maybe. Haven't really thought about it that way. I don't know the numbers for small businesses of 15-20 people, but I feel like the sweet spot is more 200-300. I don't think it makes the economy stronger - small businesses fail more often and can really struggle with less reserves and borrowing capacity to withstand downturns. Although there is something to be said that 10 small companies can't each eliminate 1/10th a job, but consolidated into one company they could eliminate 1 job. Again, however, you have to be able to eliminate that job to stay competitive globally.
The problem with large employers is there really isn't much local competition for wages, and so if you're unwilling to move there's not someone across the street capable of paying you more to put some upward pressure on wages.
On the other hand, large employers are vital to our general global economic standing - at least if Ford puts a factory in China those profits accrue to shareholders here. Sure, we'd prefer to build and export the car, but someone is going to build that factory in China so we might as well at least get a claim on the profits.
