It’s Time to Revive the American Garage Startup

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No one suffers more from recessions than the young. They’re typically among the first to get laid off, the last to get hired, and the most at risk of losing the experience and income that’s foundational for a good life. With an economic downturn looming, governors and state lawmakers should prioritize reforms that encourage a surge of entrepreneurship among high schoolers, college students, and recent graduates.

History proves that recessions spark entrepreneurship. At the height of the Great Recession in 2009, business start-ups reached their highest level in 14 years, beating the famously innovative dot-com years. The brief recession caused by the COVID-19 pandemic and resulting government shutdowns also sparked an entrepreneurial wave. Last year saw a record 5.4 million new business applications nationwide.