Tell Billionaire CEO Jamie Dimon He’s The Reason Why America’s Small Businesses Are Dying

The live stream of Jamie Dimon’s address (watch below) at the NY Economic Club opens with the billionaire CEO of JP Morgan Chase pointing out a dearth of activity from American small business entrepreneurs over the last ten years since the Wall Street financial crisis:

“Small business formation is lower than it’s ever been in the United States in recovery. This recovery is ten years long, a little over 20 percent. It’s the most anemic recovery from a major recession we’ve ever had. It should have been 40 percent.”

Jamie Dimon, CEO of Morgan Chase. Flickr.

Yeah, maybe because Wall Street financiers have been hogging up so much capital and credit since 2008 through massive federal subsidies.

Like the $700 billion Wall Street Bailout, the Troubled Asset Relief Program, which Nancy Pelosi and George W. Bush teamed up to help pass.

That is 140x more money than the border fence appropriation that has the government tangled up in a record 26-day long shutdown.

Maybe it’s because last year the federal government raised taxes on upper-middle-class income earners by eliminating the federal tax deduction for state and local taxes.

That’s why House Speaker Paul Ryan (R-WI) and Senate Majority Leader Mitch McConnell (R-KY) had to walk back promises that the Republican tax bill wouldn’t increase taxes on any Americans.

And this ended up being a tax increase on a stratum of income earners that those small business entrepreneurs are aiming at sliding into with a successful small business.

Starting a small business and really making it into something that’s truly thriving involves taking risks and venturing time, and work, and money, and energy, toward the possibility of a big payoff.

But tax increases like this reduce the reward for taking all of those risks and succeeding by bringing something really valuable to the market. That’s stifling to entrepreneurship.

And meanwhile when Wall Street banks take exorbitant risks, if they don’t pay off, the finance industry gets a big bailout from the federal government on the back of a small business.

Maybe it’s because of the monetary brinksmanship of the Federal Reserve bank in expanding the Adjusted Monetary Base by a factor of nearly 5x from 2008 to 2015.

To lend all that new money to Wall Street banks at a discount.

The Adjusted Monetary Base is the sum of currency (including coin) in circulation outside Federal Reserve Banks and the U.S. Treasury, plus deposits held by depository institutions at Federal Reserve Banks. These data are adjusted for the effects of changes in statutory reserve requirements on the quantity of base money held by depositories.

A radical experiment with a nation’s money to put it in the most charitable terms. And what you see described in the graph above by the U.S. Federal Reserve Bank of St. Louis is one of the major reasons why so much money has bailed out of institutional finance and into cryptocurrency.

Which has ironically driven the creation of many small businesses by enterprising cryptocurrency engineers and entrepreneurs. In 2017 cryptocurrency startups secured nearly a billion dollars in venture capital in 300 different deals.

Author: Wes Messamore 
Image Credit

Twitter Shares Fall, Ending A Hard Week For Social Media Stocks

Social media companies have not had a good week in the stock market.

Twitter’s shares fell 20 percent on Friday, after the company announced that it had lost users. The number of monthly Twitter users dropped from 336 million to 335 million, according to the company’s latest financial release.

The decline came despite Twitter’s simultaneous announcement that its revenue is up a whopping 24 percent this year, and posted a record profit of $100 million.

But that wasn’t enough for investors.

Twitter has been aggressively purging their website of millions of suspicious user accounts, deleting bots and other accounts that it believes are fraudulent or violate the company’s anti-spam policies.

The crackdown was meant to restore public trust in the platform. Twitter has been criticized for allowing users to use hateful, violent and racist language, and, along with Facebook, has been a tool for Russian influence, as NPR has reported.

In the financial report released Friday, the company acknowledged that “our work sometimes includes the removal of accounts, some of which are included in our metrics,” but that getting rid of problematic accounts will make the service more user-friendly, driving future growth.

The company’s chief financial officer, Ned Segal, wrote on Twitter earlier this month that most of the deleted accounts are never counted in the company’s user metrics.

Nonetheless, the newly announced decline in monthly users clearly worried investors.

Twitter’s slide comes one day after Facebook’s stock took a huge hit, losing $100 billion in value, after the company announced its profits had grown by a third, but that it expected revenue growth to slow down for the rest of the year.

Social media companies, and tech stocks in general, have been reliable drivers of stock market growth in the past, but data breaches, privacy scandals and questions about how social media sites should be regulated have made some investors anxious.

Earlier this year, weak tech stocks dragged down the Nasdaq composite index. Facebook’s stock continued to fall on Friday, and the Nasdaq composite was down more than 1.6 percent.

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: Rebecca Hersher
Image Credit

Don’t forget to join our facebook page for Crypto, Business & Technology news delivered to you daily.