Broken institutions impede job growth

In the Wall Street Journal‘s Saturday Essay, Niall Ferguson writes that our broken institutions are a greater impediment to job creation than either fiscal or monetary policies: Nearly all development economists agree that good institutions – legislatures, courts, administrative agencies – are crucial. When poor countries improve their institutions, economic growth soon accelerates. But what about rich countries? If poor countries can get rich by improving their institutions, is it … Continue reading

Restarting the job growth engine

In Restarting the US small business growth engine, John Horn and Darren Pleasance of McKinsey&Company make the same distinction we’ve often made here about the different types of small firms and the misconception about the source of job growth in the economy. Last February we wrote: We believe this argument is based on a category error: the misconception that lumps together “lifestyle” companies and high-growth start-ups. Job growth comes mostly … Continue reading

The secret to job growth is, was, and will be…

Last week the U.S. Department of Labor announced that the economy is losing jobs at the slowest rate since it began tracking the number.  That’s the good news.  The bad news:  the economy is not creating enough new jobs to replace even those. The graph below is only the most recent one we’ve used to make the point that restoring a favorable and predictable business environment, with the right incentives … Continue reading

Interested, dedicated, fascinated by the job

Today marks the 48th anniversary of the Apollo 11 landing and the first steps by humanity on another world.  In honor of the man who took those first steps, we’d like to reprint the 8/28/12 piece we wrote on the occasion of his passing.  ~~~ Astronaut Neil Armstrong passed away Saturday, and The Wall Street Journal reported something the pioneer once said about the success of the 1969 Apollo 11 mission – the odds of which he had … Continue reading

Interested, dedicated, fascinated by the job

Today marks the 45th anniversary of the Apollo 11 landing and the first steps by humanity on another world.  In honor of the man who took those first steps, we’d like to reprint the 8/28/12 piece we wrote on the occasion of his passing.  ~~~ Astronaut Neil Armstrong passed away Saturday, and The Wall Street Journal reported something the pioneer once said about the success of the 1969 Apollo 11 … Continue reading

What is growth equity?

Two recent publications do a very nice job of describing “growth equity” and distinguishing it from early-stage venture capital and buyouts. This piece at Inc.com explains that due to Sarbanes-Oxley young high-growth companies are delaying IPOs, staying private longer, and seeking other sources of capital to fuel their growth: What makes a growth-stage company? Generally, it has its first product or service in the market and is getting traction. At … Continue reading

The Southeastern Growth Corridors

A little over two years ago in a New Geographer piece in Forbes, Joel Kotkin suggested that 2010 would be viewed by future historians as marking the end of the California era and the beginning of the Texas one. This week Mr. Kotkin is in the Wall Street Journal extending his analysis beyond those two states and concluding that there are four “Red State Growth Corridors,” two of which are … Continue reading

Interested, dedicated, fascinated by the job

Astronaut Neil Armstrong passed away Saturday, and The Wall Street Journal reported something the pioneer once said about the success of the 1969 Apollo 11 mission – the odds of which he had placed at 50/50. Mr. Armstrong described the required reliability of each component used in an Apollo mission – statistically speaking 0.99996, a mere 4 failures per 100,000 operations – and pointed out that such reliability would still … Continue reading

The incredible VC jobs machine

Andy Kessler’s piece in yesterday’s WSJ, The Incredible Bain Jobs Machine, is an outstanding exposition on how productivity increases employment – and the often dismal reporting on the topic.  New technologies not only create something never before possible, they create new conditions that make other “before their time” ideas suddenly viable: The inventor or entrepreneur who uses the invention benefits from sales and wealth and hires people to produce the … Continue reading

The Magic of Startups: Jobs

Kent Hoover at portfolio.com helps make a critical distinction about the sources of job growth: it depends less on small businesses than it does on new small businesses.  Hoover reports on the second annual “State of Entrepreneurship” address by Kauffman Foundation CEO Carl Schramm: “The widely repeated claim that small businesses are the vital source of new jobs isn’t supported by the facts,” (Schramm) said. “It may sound good on the … Continue reading

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