Why Start-Up Businesses Cannot Solve the Unemployment Problem
Thursday, April 8th, 2010I am a big fan of Thomas Friedman, so I avidly read everything he publishes. In the April 4, 2010, Sunday’s New York Times, he published an op-ed piece entitled “Start-Ups, Not Bailouts.” His main argument:
“Good-paying jobs don’t come from bailouts. They come from start-ups.” Will start-ups address our structural unemployment problem?
Yes and no. They will be a great solution for well-educated, enthusiastic young people who are currently unemployed and perhaps discouraged about prospects for jobs and careers. Without some additional interventions, they are not a good short-term or even medium-term solution for older workers who have lost their jobs at big companies or government agencies. As the former CEO of a big company and the current chairman of one start-up business, Dossia, and a board member or investor in several other start-ups, big company or government and start-up jobs and work situations are radically different.







