In the attached essay I think Simon Johnson gets it mostly right. He asks the same question that is asked all the time in some circles. “What should the government do to encourage entrepreneurs?” A least he says “not too much.”
He’s right about that but he still gives the obligatory nod to government “encouragement.” He is writing in the New York Times so one has to expect this.
One thing Johnson does not address at all is taxation. Taxes are a huge headwind for small businesses. Once one starts to make money in a business one is hit squarely in the face by Uncle Sam. Many businesses don’t grow at the rate they could because of this burden. That also means fewer jobs are created because of the tax drag. Some businesses are even killed because of taxes.
Instead of SBA loans, why not exempt small business from taxes until a certain revenue level? That would do much to encourage the entrepreneurial spirit and job creation. Just let the creators create.