Staff Reports
Treasure Secretary Scott Bessent told a Breitbart audience this week that America is quietly in the middle of a start-up boom. He pointed to a sharp jump in Census business applications and said the Trump administration’s pro‑growth tax and deregulation push — plus new AI tools — are making it easier for Americans to try their luck as entrepreneurs. That claim deserves attention, not yawns.
Bessent’s case: record business formation and “reprivatizing” the economy
The headline number is hard to ignore. The Census Bureau reported 578,926 business applications in July — up 8.1 percent from June and more than 23 percent from a year earlier. That is the highest single-month total in the published, seasonally adjusted series. Secretary Bessent used that data onstage to argue the administration is “reprivatizing” the economy and restoring a friendlier climate for new firms. If you believe in small business as the engine of jobs and growth, this is a welcome sign.
Why the surge is happening: AI plus tax and regulatory relief
Bessent didn’t credit luck. He pointed to two big forces: AI and policy. AI tools now let a single founder do work that once needed a team, cutting startup costs and speeding launches. Surveys show many recent founders used AI to get going faster and cheaper. At the same time, tax rules and deregulatory steps — like bonus depreciation and a lighter compliance regimen — put more money in founders’ pockets and remove costly red tape. Put those together and you get more people willing to file the paperwork and try starting a business.
Read the fine print: intent is not the same as payroll jobs — yet
Before the champagne, note the Census caveat. The 578,926 figure measures applications — a first step and a sign of intent — not guaranteed new employers. The Census projects only about 29,959 employer (payroll) formations from that July cohort. A narrower “high‑propensity” slice was roughly 151,857, and the planned‑wages series — the clearest hint of real hiring — is far smaller. Historically, only a minority of applications convert quickly to payroll employers. So yes, cheer the rise in entrepreneurial spirit, but don’t pretend every EIN filing is a new factory hiring dozens of workers overnight.
Keep the momentum: celebrate, but measure success by conversions
Secretary Bessent was right to push this story into the light. More Americans trying to start businesses is what a free economy looks like. But policy wins should be judged by how many of these fledgling firms become employers and hire people, not just by how many papers get stamped. If the administration wants a lasting boom, it should keep cutting red tape, make tax relief durable, and monitor the planned‑wages and high‑propensity series closely. The best outcome is simple: more real businesses, more paychecks, and fewer bureaucrats telling entrepreneurs they need another form. That’s an outcome worth defending — loudly.
