Tuesday, October 18, 2011

Lay-offs Caused by Over-regulation

Another major Republicon talking point is the notion that government regulation is absolutely job destroying. Were that the case, of course, we might expect to hear that complaint from businesses themselves. As Bruce Bartlett points out based upon Bureau of Labor Statistics data for 2008, 2009, 2010, and the first half of this year, lay-offs (private, non-farm separations) due to regulations were miniscule - accounting for about 2/10ths of one percent of the reasons for separation. (http://economix.blogs.nytimes.com/2011/10/04/regulation-and-unemployment/). "Lack of demand" on the other hand contributed to 30.6 percent of these seaparations in 2010 !!! Surveys of economists and small business owners overwhelmingly demonstrate the same truth - namely, that the notion that regulation is strangling our otherwise vibrant economy is an absolute canard. It's "lack of demand" stupid !!!

An especially intriguing and thoughtful analysis of this conservative regulation argument was provided by a professor at Montclair State's Sociology Department. As Jay Livingston cleverly ( http://montclairsoci.blogspot.com/2011/09/that-uncertain-feeling.html) hypothesizes - if it is true that regulation is job-killing, then the highest regulated industries should be those that suffer the highest unemployment rates during this recession... The prime candidates he identifies are 1) Mining, Oil, Gas Extraction; 2) Financial Activities; 3) Education and health Services. Will it surprise you gentle reader to discover that these are the economic sectors with the lowest unemployment rates during this recession ????

In short, the entire Republicon political platform lacks any empirical economic basis and their strategies provide no serious effort to assist the American people during some very difficult times. The miracle to me is that so many people can continue to believe some of this tripe..

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