Politicians praise small businesses as habitually as they laud veterans and first responders. And they should: Local businesses generate better economic ripple effects than national chains.
As a review of academic research pointed out, young entrepreneurial firms account for an outsized share of new-job creation. But you'd never know that to watch state spending on big-ticket deals: The "economic war among the states" is still on steroids, and Florida Gov. Rick Scott has picked up where Texas Gov. Rick Perry left off, openly pirating jobs from other states. Yet as a little-known database has long revealed, interstate corporate relocations typically represent only 1 percent to 4 percent of total job creation each year.