This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: On the Sad State of Small Business

Editor's Note: This article was originally published at 8:30 a.m. EDT on Real Money on June 27. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK (Real Money) -- You want depressing? You want to know the real problem with the American economy? Go listen to the conference call hosted by Paychex (PAYX), the excellent payroll-processing company, which reported earnings Thursday.

This one was a real gut-puncher -- and not because of Paychex itself, which is a first-rate company and a known best-of-breed payroll processor. It was tough to listen to because an undercurrent weaved through the call that said, basically, "We didn't deliver what you wanted because the country didn't deliver what we expected."

The company went out of its way to not blame the economy. The chief financial officer, Efrain Rivera, point-blank said, "Now, we're not using that as an excuse." He said that, in order to get to the growth people are expecting in their payroll-processing business, "You need a slightly different environment in terms of new business formation than the one we have," because right now the nation "basically shows no growth whatsoever in new business formation."

Three years out of the worst downturn since the Great Depression, and we have no new businesses formed of the type at which Paychex excels? I'm talking about the small businesses that are responsible for so much of the job creation in the country. How can that be?

Now, the conservatives in this country blame the government for getting in the way of new business. As someone who has started a half-dozen businesses, I am not going to apologize for the government, as the local, state and federal minefields can be impossible to navigate. The liberals are seemingly willing to excuse the government at every turn, particularly the federal government, citing lack of demand as an issue.

It is true that this government in Washington seems incapable of coming up with something as bold as the interstate-highway system build-out that President Eisenhower did, in a feat of brilliance, in order to shut down a possible recession in the 1950s.

However, that's still a relatively simplistic analysis. You almost begin to think that those who espouse this line of thought have never had to navigate a local hearing, a state regulation about safety or a federal mandate about mandatory health care for workers. Of course, their view never seems to encompass the taxes at every level, including absurd ones that could keep anyone from starting a business.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 16,493.37 -69.93 -0.42%
S&P 500 1,925.15 -5.52 -0.29%
NASDAQ 4,352.6390 -17.1340 -0.39%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs