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What is the Economic Impact of the Slowdown in New Business Formation?


Abstract: Economists have emphasized the importance of ?creative destruction? as an engine of growth. The creative destruction process involves a constant reorganization of the economy as old products, firms, factories, and jobs are replaced by new ones. An important part of this process lies in the opening of new firms or establishments.

Keywords: economic; job; gross domestic product (GDP);

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Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2014

Issue: Sep

Order Number: 326