Thread by @scottlincicome

ICYMI: COVID-19 caused a BIG spike in self-employment & new business formation as workers adjust to the "new normal". It's especially surprising since business creation/destruction ("dynamism"), which drives productivity/growth/jobs, has been declining for decades. HOWEVER... /1

https://twitter.com/scottlincicome/status/1333821114255020032

There are a lot of federal/state/local policies that inhibit business formation & burden self-employed workers in many occupations. In fact, the USA ranks poorly in "ease of starting a business"... AND /2

https://twitter.com/scottlincicome/status/1329429227830202368?s=19

We've been besieged in recent years by state occupational licensing rules, which increased from 5% of occupations a few decades ago to 20-30% & have been shown to harm entrepreneurship - esp in "low income" fields, many of which are part of that "COVID entrepreneur" surge /3

Fortunately, there's some hope: occupational licensing reforms have begun in several states, #neverneeded regs have been suspended during CV19, & more reform has bipartisan support in statehouses & the fedgov. It's one of the few policies supported by Obama, Trump & Biden. /4

It's looking more & more like the US economy will be permanently changed by COVID-19, and it's great that US workers are adapting (a testament to their work/creativity & the flexible US labor market).

Now govt needs to get out of their way. /x