National Public Radio went looking for one of these fictitious millionaire job creators. ... Many of our job creators are like unicorns, they're impossible to find and don't exist. That’s because only a tiny fraction of people making more than a million dollars, probably less than one percent, are actually small business owners and only a tiny fraction of that tiny fraction is a traditional job creator.
What the senator overlooks, among other things, is that countless jobs are created in the process of their owners becoming millionaires:
Using data from the Census Bureau Business Dynamics Statistics and Longitudinal Business Database, we explore the many issues regarding the role of firm size and growth that have been at the core of this ongoing debate (such as the role of regression to the mean). We find that the relationship between firm size and employment growth is sensitive to these issues. However, our main finding is that once we control for firm age there is no systematic relationship between firm size and growth. Our findings highlight the important role of business startups and young businesses in U.S. job creation. Business startups contribute substantially to both gross and net job creation. In addition, we find an “up or out” dynamic of young firms. These findings imply that it is critical to control for and understand the role of firm age in explaining U.S. job creation.
Becoming millionaires thus is the reward established entrepreneurs earn for the job creation they provided when their firm was a start up.
In any event, show me one private sector job Harry Reid ever created.
