Please update your Flash Player to view content.
Both small businesses and working people win when public policy works to disperse economic power.
A few weeks back, in a piece for Jacobin, an influential magazine on the left, Matt Bruenig argued that promoting small business is “mostly a bad idea,” because small businesses are bad for workers. They pay lower wages, he wrote, and offer fewer benefits.
He’s wrong, both in his specific argument about wages, and also about the deeper question of whether policies that decentralize economic power are good or bad for working people.
On the issue of wages, Bruenig presents a series of graphs to support his conclusions. The main one shows that firms with more than 1,000 employees pay about twice as much as those with a staff of under 10 people. That’s a big gap, and it makes Bruenig’s case against small businesses seem pretty compelling. READ MORE.