Monday, August 25, 2014

The Economic Recovery in One Chart

The below chart comes form the Brookings Institute and it shows new business formation and exiting since the late 1970's.

What stands out is that new business creation has always outpaced exits, even through the recessions of the early 1980's, the early 1990's and in the first decade of the current century. That is all up until the current recession. Even though we are experiencing a 'recovery', how strong of a footing can the economy be sitting on if new business creation continues to lag?

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