Everybody agrees that, without meaningful job growth, America will not emerge from its current deep economic funk. There is plenty of debate, however, over what drives that job creation engine in our country. I’ve recently read several interesting reports that touch on parts of the American job growth conundrum but do not tie them together. Pooling some compelling statistics from these various sources, I believe that the following conclusions are correct and interrelated :
(1) Job growth drives GDP growth;
(2) New company formation drives job growth;
(3) New companies create the vast majority of new jobs after their Initial Public Offerings;
(4) Increased Initial Public Offerings are required to increase job growth;
(5) If the total annual number of Initial Public Offerings (IPO’s) in the U.S. does not exceed 500, which studies show is the level required to support 3% annual U.S. GDP growth, the U.S. will not generate the job growth necessary to rekindle meaningful sustainable GDP growth in the U.S.;
To read the full, original article click on this link: Connecting the Dots: How New Job Creation, IPO’s, and Venture Capital in America Are Intimately Linked | Pascal's View
