Veronique de Rugy on America's Small-Business Fetish


On February 12, House Majority Leader Eric Cantor (R-Va.) sent a message to his 62,550 followers on Twitter: "Small business is the job growth engine in this country and we need to pursue policies that reflect that reality to create jobs." Yet as Reason economics columnist Veronique de Rugy observes, Cantor was wrong on both counts. Despite overwhelming conventional wisdom to the contrary, small businesses are not the engine of growth. And the small businesses that do create jobs rarely stay small for long, which makes crafting policies that favor those fast-growing firms both difficult and unnecessary. When it comes to job creation, de Rugy writes, size doesn't matter.