political fightWhoa. Jared Bernstein, the former top economic adviser to Vice President Joe Biden, just threw cold water on what many politicians want you to believe about small businesses.
They aren't the "engine of job growth," he said.
"In what may be the most misunderstood fact about the job market, although most companies are small — according to 2008 census data, 61 percent are small businesses with fewer than four workers — more than two-thirds of the American work force is employed by companies with more than 100 workers," he wrote yesterday in an op-ed for the New York Times.
Even with the federal government's definition of 500 employees as a "small business," you still get more than half of the workforce employed by large companies, he said.
The issue is incredibly timely, as nearly every politician running for office is touting the importance of small businesses and their impact on job creation.
While Bernstein doesn't advocate ignoring small businesses in policymaking, he does fault theRead More »from Economist: Small businesses are not job-growth engines