Cheer Up

Said the company manager, Russo:
"I'd be bullish if only I knew so,
But in times of distress,
I hate to profess
We'll expand, though we really may do so."

Small businesses say they aren't hiring, yet they keep adding workers.

That's the paradox examined by Kelly Evans, the Wall Street Journal's Ahead of the Tape reporter. As shown in the chart, employment at small companies (50 or fewer employees) has grown by 6.5% since 2001, and such firms have added net new jobs in each of the last five months. On the other hand, the National Federation of Independent Business "optimism index" has averaged below 90, a level associated with a downturn, for the last two years. Although the October index has just come in at 90.2 - the highest since June - only 3% of small business owners told the NFIB that they intend to hire in the next three months. What would explain the gap between the gloomy talk and the more confident walk?

The Socialist Mødel

A hotbed of startup activity,
Though socialist in their proclivity,
Norwegians eschew
The American view
That the government crimps productivity.  

Stability helps to ensure
That the av'rage norsk entreprenør
Will see, in their tax,
Not "a weight on our backs,"
But a price that one gets service før.

The bible of American entrepreneurship, Inc Magazine, goes against the grain of US business thinking with a thoughtful look at Norway, where "Startups Say Ja to Socialism."  Challenging the view that lower taxes mean more economic growth, author Max Chafkin looks for the factors underpinning Norway's higher rate of growth and entrepreneurship in comparison to the United States.  As against America's more service-oriented, "can-do" business culture, Scandinavians enjoy the benefits of a more stable, low-risk environment fostered by good-quality healthcare and education as well as pensions paid by the government.  Conclusion: it's not what you pay; it's the value you get in return.

Hat tip (and happy birthday!) to my good friend Michael Griffiths.