American Elephants


Another Dismal Jobs Report From an OverRegulated Economy by The Elephant's Child

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The American economy added the fewest number of jobs in April—in seven months.  The job gains in April were the smallest number since last September, and below the average of 200,000 new jobs. Nonfarm payrolls increased by only 160,000 jobs, a disappointing number when the population continues to grow. The numbers for February and March were revised to show 19,000 fewer jobs than originally reported.

The unemployment rate held steady at 5.0 percent, but that was because more people were dropping out of the labor force.

A separate report explained why the U.S. economy isn’t adding as many jobs as it used to. Wayne Crews from the Competitive Enterprise Institute rolled out his annual report card on federal regulation called “The Thousand Commandments.” Rules and regulations from the federal government are now imposing $1.9 trillion in annual costs on the U.S. economy. Add to that official government spending which adds up to $3.9 trillion—that’s a big chunk of taxpayer money going to the government.

Remember, the government has no money of its own. Every cent comes out of taxpayers’ wallets. That means that people have less and less to spend, and when the people don’t spend, business suffers. It’s not enough that sales are down, but the government feels it necessary to tell businesses what to do and how to do it.

The Left has a great deal of trouble understanding this simple fact of life. They believe it is their task to tell businesses how to operate, under what circumstances, and what rules, and then are simply astounded when the number of new jobs fall and business isn’t prospering and creating jobs. Simply demanding extra paperwork means somebody has to take time away from other more useful tasks to fill out more reports. That costs money. Hoover Institution senior fellow John H. Cochrane reported in early May that:

Sclerotic growth is America’s overriding economic problem. From 1950 to 2000, the U.S. economy grew at an average rate of 3.5% annually. Since 2000, it has grown at half that rate—1.76%. Even in the years since the bottom of the great recession in 2009, which should have been a time of fast catch-up growth, the economy has only grown at 2%. Last week’s 0.5% GDP report is merely the latest Groundhog Day repetition of dashed hopes.

Here’s the problem. Republicans talk about cutting regulation and a free market economy, and most people doze off before they even get to the nitty-gritty. But if you want creativity, businesses hiring and expanding, that’s how it happens. Progressives think that it happens by federal agencies demanding more hiring and making more rules for how they should go about it. They assume that anyone working in a government agency is by nature smarter and more attuned to the real world than people who actually work for a living.

A perfect example is a study that shows many employers are hiring more freelancers to avoid having to pay for the increased costs of health insurance caused by the Affordable Care Act. “Nearly one-third of companies intend to work towards “eliminating”  healthcare benefits because of the ACA and 60 percent intend to hire more freelance employees than full-time people. We told them that ObamaCare was going to cost lots more than they expected, but they didn’t believe it.

 


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