Thursday, January 23, 2014

Q: What do Rwanda, Belarus, and Azerbaijan have in common?

A: It's easier to start a new business in each of those three countries than it is in the United States!  From a Fox News article yesterday:
A new study by the World Bank and the International Finance Corp. found that the U.S. ranks well behind countries like Rwanda, Belarus and Azerbaijan in terms of how easy it is for an entrepreneur to start a new business. The U.S. did narrowly beat Uzbekistan, though.
And that's exactly the way large, cronyist corporations in the US like it since excessive regulation, and the associated costs, acts as an effective barrier to entry.  Note: for two related OLS posts, see here and here.