Date of Submission
Spring 2014
Academic Programs and Concentrations
Economics
Project Advisor 1
James Felkerson
Abstract/Artist's Statement
Small businesses have historically been the driver of job creation in the United States economy. During the Global Financial Crisis, small firms were hit disproportionately hard, resulting in a hampered labor sector that has still not fully recovered. Due to the strong role that small firms have played in creating past jobs, combined with the observed slow recovery of the labor markets, it is relevant to ask what (if at all anything) this implies? This paper explores this question in further depth and reveals some interesting findings. Most importantly, the policy responses to this financial crisis were primarily supply-side oriented. Based on this observation, I take a theoretical approach to show that demand-oriented policy would have been a more effective recovery method. This, I argue is based on the belief that the most important goal for small firms is to make sales (not to cut costs through tax incentives, or to expand through having access to credit).
Open Access Agreement
On-Campus only
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Recommended Citation
Eddy, Nicolai J., "The Significance of Small Businesses in the U.S. Economy Post Financial Crisis" (2014). Senior Projects Spring 2014. 44.
https://digitalcommons.bard.edu/senproj_s2014/44
This work is protected by a Creative Commons license. Any use not permitted under that license is prohibited.
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