Romney Stifled Start-Up Creation in Massachusetts and Would Do the Same as President; Romney Economics Didn’t Work Then and Won’t Work Now
Key Point: Mitt Romney claimed his business skills and experience would accelerate the economy, but small business activity slowed dramatically in Romney’s Massachusetts. He’s making identical promises today, but independent economists have said Romney’s policies would not address the crisis and could actually make the economy worse. Romney Economics didn’t work then, and it won’t work now.
Romney Economics: Today Mitt Romney is at a small business in Florida, claiming again that his business experience will help it and other small businesses grow. But small business activity slowed dramatically in Romney’s Massachusetts. Romney Economics didn’t work then and it won’t work now.
Massachusetts Under Romney: He failed to create an economic environment that would attract entrepreneurs and encourage small business owners to grow and hire.
- Start-Ups Fell: Under Romney, business starts fell by 10 percent, hitting their lowest point in his last year in office – the same year he now claims his economic policies finally started working. Each year he was in office, start-up growth in Massachusetts lagged behind the national average.
- Going Out of Business: When Romney took office, more entrepreneurs were starting small businesses than shutting them down. When he left, the opposite was true – the number of small businesses shrank during his term.
- Symptom of Decline: The state lagged far behind the rest of the nation, ranking 47th in job growth, 44th in economic growth and 35th in household income. People fled Massachusetts and Romney’s struggling economy in droves, leading to the artificially low unemployment rate Romney brags about today.
Massachusetts After Romney: The state is a now national leader in growth. Its economy has improved significantly, in stark contrast to its poor performance under Romney.
- Start-Ups Are Rising: When the President took office, nationwide start-up creation was plummeting. He reversed the trend, and now more small businesses are being created across the country. National start-up creation went up by nearly 20,000 new businesses in the first couple years of President Obama’s term.
- Back in Business: Massachusetts created more than 5,300 new businesses in the third quarter of 2011, which is the latest data available. Romney never achieved that much growth. Massachusetts hasn’t created that many new businesses in a quarter since the end of 2000, at the height of the tech boom.
- Symptom of Growth: When Romney was governor, Massachusetts grew almost half as fast as the nation as a whole. But in 2011, it had the 7th fastest growing economy in the country and its GDP growth outpaced the nation as a whole.