Decline of Economic Dynamism

The U.S. economy is showing a decline in dynamism, evident in the reduction of startups and the aging of firms, contrary to the belief that current job markets are less stable. Although fewer new companies are emerging, many individuals prefer working for larger, established firms instead of taking the risks associated with startups. This shift indicates that what was once seen as temporary churn—a sign of a vibrant economy—has diminished over time, leading to a more stagnant business environment. The contrast with previous decades, where dynamism was higher and startups thrived, raises questions about the overall health and future of the economy.