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Crowdfunding Creates Jobs and Reduces Economic Inequality

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According to the U.S. Census Bureau, one-in-six Americans live in poverty. Hovering just over this line, data suggests that nearly 146-million Americans are now “low income” and that 25% of workers earn wages under minimum. Over the summer, 7.6% of America’s population was unemployed, 40% of which have been jobless for at least half a year. Without a doubt, these facts are distressing. Ever since the recession, conglomerates have been down-sizing fiercely at a rate of almost 1-million jobs annually. As a result, poverty in America has elevated to a place unseen to generations of the past five decades; yet not all hope is lost, as the promise of crowdfunding has yet to peak.

Crowdfunding Creates Jobs

The fact that crowdfunding creates jobs means that many situations of low-income, unemployment, and societal disadvantage may soon be resolved. On average, new firms create 3-million+ jobs a year in the US. Since 65% of these start-ups never survive, entrepreneurship has yet to successfully reduce economic inequality and impoverishment. With crowdfunding, however, the lack of financing that cripples many start-ups is able to be overcome. Although major institutions will not lend money or invest in first-time entrepreneurs — many of which are of a lower status in the US — crowdfunding lifts these prejudices by giving everyone with a solid idea a chance of success. In turn, these small businesses create more jobs, strengthen the economy, and reduce poverty in America.

Crowdfunding Creates Jobs

Though crowdfunding is a huge topic in the States, with the introduction of Kickstarter Canada, there is a good chance that Canada will notice an increase in IT jobs over the next little while. Due to the past success of many tech-based crowdfunders on Kickstarter, many Canadian project starters feel hopeful that they will obtain funds without distributing equity. In this case, these IT firms will have the support they need to launch, secure jobs, and survive the first five tumultuous years.

Like in the US, the growth of the start-up has a liberating potential to heal the job market and restore some of the country’s impoverished residents back to “low” and “middle-income” financial holdings. What are your thoughts on the potential of crowdfunding in this aspect? Is such a point of view too optimistic? There are many factors still to consider, but as many economists maintain, crowdfunding could do wonders for the economy in years to come. Please share your opinions below.

http://www.crowdclan.com/crowdfunding-creates-jobs-and-reduces-economic-inequality/

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