The Job-Generation Controversy shows precisely how anyone --
economists, policymakers, and the general public -- can fall victim
to statistical fallacy and improperly manipulated data. Sometimes,
as this book highlights, the consequences can be serious for
millions of Americans.
For more than twenty years, the Small Business Administration
(SBA) and the National Federation of Independent Business (NFIB),
using erroneous data, have developed and perpetuated the belief
that "Small business creates all the new jobs". Since the early
1990s, this belief has become a mantra allowing the SBA and NFIB to
lobby effectively, under the law, for preferential treatment such
as low-interest loans and exemption from mandated employee benefits
and worker safety regulations. However, as this book shows, while
small businesses have created some new jobs, big businesses, those
with more than 500 employees, remain the primary source of job
generation in the United States.
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