Unemployment: When the System Chokes the Real Job Creators
Most people believe big corporations are the engine of job growth.
That is a myth.
Small businesses and startups create 65% of new jobs in America.
Crony capitalism kills them.
And when you kill the job creators, you create unemployment—plain and simple.
How Crony Capitalism Destroys Jobs
1. Rising Costs for Small Businesses
Complex regulations, high compliance costs, and expensive licenses disproportionately hurt small businesses.
A major corporation can pay 50 lawyers and 100 accountants.
A small restaurant cannot.
A young entrepreneur cannot.
A mom-and-pop shop cannot.
This forces many of them to shut down or never start at all.
2. Reduced Access to Capital
Politically connected industries enjoy:
Easier loans
Guaranteed contracts
Government credit lines
But the average entrepreneur—especially women, minorities, and immigrants—faces enormous barriers.
When new businesses cannot form, new jobs do not appear.
3. Innovation Gets Suffocated
Innovation requires:
freedom
risk
experimentation
pathways for new players
Crony capitalism hates all four.
Why innovate when you can lobby Congress to protect your monopoly?
Why take risks when the government will bail you out?
When innovation dies, job growth dies with it.
4. Misallocation of Resources
In a healthy free market, capital flows to the most productive ideas.
In crony capitalism, capital flows to the most connected people.
This leads to:
fewer startups
fewer small businesses
fewer new industries
fewer opportunities
slower economic mobility
Economists call this “deadweight loss.”
People call it unemployment.