Small business isn’t hiring, and the reasons are invisible to those without any real-world small business experience.
Most of the discussions about boosting hiring and employment are detached from the realities faced by actual small-business employers. Pundits protected by ivory-tower tenure or plump think-tank positions can indulge in the luxury of debating the efficacy of modest tax cuts on hiring, but for those in the trenches of small business, these conomic-policy debates are as germaine and valuable as debating how many angels can dance on the head of a pin.
The reality is that adding an employee is very costly and adds multiple layers of risk. Small business is not going to hire another employee because the employer’s share of Social Security taxes is a few hundred dollars less. Adding an employee could, without exaggeration, cost the employer his business and/or his sanity. Think of someone in the ocean with a water-logged life preserver, someone whose head is barely above water. That is the typical small business employer: it won’t take much to push him/her under.