Tuesday, November 24, 2015

China creating nearly three times more small businesses per year than the U.S.

Following the 2008 Credit Crisis, banking policies changed as lending to and for small businesses became a risk that these institutions decided was far too costly when they could simply borrow from the Fed, and arbitrage profits from the buying of Treasury Bonds.  And because their primary lending became directed more towards the investment side of their businesses, and to major corporations, small businesses that make up the bulk of America’s job market began to decline in record numbers.
But even as the U.S. was allowing its own general economy to collapse in favor of funding corporate stock buybacks, across the Pacific over in China, their expansion of small businesses began to take shape, and over the past seven years has seen the Far Eastern economy not only move to the top spot in global business expansion, but is now creating nearly three times as many new businesses per year than the U.S. is.


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