Filed under: Capitalism, Economy, Freedom, Politics | Tags: Economic Freedom, Spending, Taxes, Unions
Economic freedom helps to create jobs. For over a decade, the Wall Street Journal and The Heritage Foundation have tracked the march of economic freedom around the world with the Index of Economic Freedom. Now there is more evidence from a state-level study from the Federal Reserve Bank of St Louis. The authors state:
Our results suggest that policy-makers concerned with employment should seriously consider the degree to which their own labor market policies, as well as those of the national government, may be limiting economic growth and development in their respective states.
Economic freedom is the fundamental right of every human to control his own labor and property. In a society that is economically free, individuals are free to work, produce, consume and invest in any way they please, with that freedom both protected by the state, but unconstrained by the state.
In economically free states, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself. (click to enlarge)
The stimulus was supposed to bring back the jobs and keep unemployment below 8.8 percent. The reality is something quite different. Long- term unemployment has been growing significantly, and the stimulus bill and other “job bills” didn’t change the trend. There are another 5.8 million workers who want employment but are excluded from BLS unemployment statistics.
Texas significantly continues to outperform the rest of the American economy, especially California. The reasons can be summed up in three little words: unions, taxes and spending. The role of unions, particularly public unions is huge in California. Texas has a relatively low rate of unionization — about a third of Californias.
Texas has had a good long run of small-government, low-tax conservatism. Texas has a trillion-dollar economy that would make it the 15th largest national economy in the world if it were a country. By one estimate, 70 percent of the new jobs created in the United States in 2008 were created in Texas. That’s economic freedom, and it works.
The Obama administration had spent lots of words on job creation, but the legislation passed has favored unions, higher taxes, and lots of spending. For example, the Democrats’ student-loan “reform” which was tacked onto the health-care reconciliation bill caused student lender Sallie Mae to close a call center in Killeen, Texas, eliminating 500 jobs.
The health-care bill itself will eliminate many jobs. Higher taxes, higher premium costs, an ineffective small business credit, and the high cost of complying with health care regulations will hinder growth of small business and make increased hiring unlikely.
The inclination and beliefs of the administration lean toward big government. Few in the administration have any significant experience in the business world, and they do not grasp the fact that government jobs are just another drain on the pocketbook of taxpayers. They are jobs, but it simply doesn’t count as job growth.
Try explaining that to a Democrat.
2 Comments so far
Leave a comment