Can we stop with the Paul Krugman posts already?

[happyslug]

31. The two age groups most likely to start a new business are people in their 20s and people over 65.

Now, 20 year olds starting a business is traditional, but why are people waiting till their turn 65 to start a business? Could it be they then have a steady source of income independent of their business (i.e. Social Security) and health insurance (Medicare)?

Lets look at 20 year olds starting a business, most have older family member their can depend on, they also have the least need for health insurance (until they decide to have children). We like talking about Bill Gates, but his Father was and is one of the top attorneys in Washington State and thus could provide Bill the cushion to fall back on if the business fails. This is true of a lot of people who start businesses, they have family members who can support them if the business fails. These older family members act like Social Security in that they provide a safety net.

People in their 20s also tend to start having a family, but they can delay that a few years and thus NOT need Medical care. Once they have children the need for health insurance becomes clear and for most people health insurance is tied in with their jobs, they are reluctant to give health care up if they decide to start a business. Thus people over 65 becoming eligible for Medicare, no longer need to worry about medical insurance costs and thus like 20 year olds in that regard.

Thus people in their 20s through 60s need their confidence built up, so they can start their own business. The main problems of building up their Confidence is the lack of health insurance AND a lack of a income safety net. When these two problems are addressed, as in the case of people in their 20 without children and people over 65, you have confidence to start a business.

Thus the two things needed is some sort of guarantee income, even for people who have no job (and I do NOT mean unemployment insurance, I mean income even if you QUIT your job without just cause, under Unemployment Insurance if you quit your job except for "Good Cause" and that "Good Cause" must be related to the job you are quitting NOT that you are going to start a business). Such people could then quit their present employment (or if unemployment NOT have to take the first job offered to them, or lose their income) and start their own business if they had other income to pay for basic needs, i.e food and shelter.

In most cases if the person who wants to start a business would also know he or she would have Medical Insurance even if the business fails, you would have more people starting new businesses. People need confidence to start a business and that is related to making sure their have food, housing and medical care for themselves and their children. Unless you are willing to address those three things, food, housing (Both related in Income) and Medical Care you are NOT building up anyone's confidence to even think of starting their own business.