10 Ways the Government is Killing Jobs

[GHook93]

Liberals I invite you to refute any off the ten claims below. Note: Stating Bush did this or that isn't an arugment its a straw man (and a weak straw man)!

Arthur Brooks: Top 10 ways government kills jobs in America | Washington Examiner

As we listen to the rhetoric, remember the reality. These are the Top job killers in America.

1. Uncertainty and business: What you don’t know can (and does) hurt you. Businesses plan around rules. And they are unlikely to invest if they can’t be reasonably sure about what the rules will be. When things are uncertain, businesses hold back cash to protect themselves—and this kills jobs. My colleague Allan Meltzer has made this point in two recent WSJ op-eds: “High uncertainty is the enemy of investment and growth,” he declares in one. “The most important restriction on investment today is not tight monetary policy, but uncertainty about administration policy,” he argues in the other.

2. Uncertainty and the consumer: Uncertainty isn’t just bad for companies—it’s bad for consumers, too. If I think government policy may provoke a double dip in the economy and my job is on the line, there’s no way I’m going out to buy a new car. For that matter, even the possibility of a huge gas tax would make me less likely to make a car purchase decision. All this kills jobs.

3. High corporate taxes: Americans are shocked to learn that we have some of the highest corporate taxes in the world. In fact, Japan is the only developed country with a higher corporate tax rate than the United States. Whether we like it or not, the corporate tax is a tax on jobs. It makes it more expensive for firms to function, which costs jobs. But even worse, it drives companies to find more tax-friendly environments in other countries.

4. Unhealthy health insurance costs: The high health insurance costs associated with hiring new workers hits small businesses particularly hard, according to AEI economist Aparna Mathur. Government health mandates specify exactly what kinds of coverage have to be included in insurance policies. This makes increasing headcount a costly exercise, and so kills jobs. One major CEO told me recently that his hiring was stunted by the new mandate to cover workers’ kids up to age 26.

5. The threat of unionization: In a global economy, it’s fairly simple for a lot of firms to avoid unionization: They can move overseas and take their jobs with them. Policies that favor unions make this decision more attractive.

6. Inability to hire and fire: In Europe, government regulations and employment protection laws reduce the flexibility of firms to downsize their operations when they need to. They also discourage those same firms from upsizing their operations when they would otherwise do so, and are thus a job killer. This is why Spain has a 20% unemployment rate (and about 40% among workers under 25). Restrictions on firing are a job killer.

7. Trade restrictions: Free trade favors consumers everywhere, and benefits workers in industries where America has a comparative advantage. Tariffs and other barriers benefit industries that are already in decline. This is why economists always tell us that over the long run, trade barriers and slow modernization are a net job killer.

8. Credit: Poor credit access especially hurts new and young firms that are eager to expand their operations. The new Consumer Financial Protection Agency could make matters worse by expanding burdensome regulation of these financial markets, killing jobs in the process.

9. Increasing unemployment insurance: Everyone wants to ease the burden on the unemployed, so it is tempting to extend unemployment insurance, as our government has recently—today, to as much as 73 additional weeks. Unfortunately, this kills jobs and economic recovery. Harvard economist Robert Barro estimates that if unemployment insurance had not been expanded, the unemployment rate would now be 6.8% rather than 9.5%.

10. Encouraging frivolous lawsuits: This increases the costs of doing business in America, with one study estimating that we waste as much as $900 billion a year on excessive tort litigation—that’s 6.5 percent of GNP or $12,000 annually for a family of four. As a result, company capital that could be used for expansion and job creation goes to the trial lawyers instead. And like so many anti-business measures, such litigation drives up costs for consumers, which reduces demand and kills jobs even more.

 

[loosecannon]

actually it is lack of demand that is killing jobs.

 

[GHook93]

actually it is lack of demand that is killing jobs.

That was #2 bucko, but glad to see you answered without reading!

 

[loosecannon]

No consumer uncertainty isn't the same thing as being broke, in debt, unemployed, or just terrified that you may lose your house, have a major medical problem or become terminally unemployed.

Get real.

 

[JBeukema]

There is no uncertainty for big business; if they fuck up, Der Staat will bail them out on my dime and yours

 

[JBeukema]

3. High corporate taxes: Americans are shocked to learn that we have some of the highest corporate taxes in the world. In fact, Japan is the only developed country with a higher corporate tax rate than the United States. Whether we like it or not, the corporate tax is a tax on jobs. It makes it more expensive for firms to function, which costs jobs. But even worse, it drives companies to find more tax-friendly environments in other countries.

Bullshit, The top corporations pay effectively 0 in taxes

AMERICAblog News: Paying 0.0% in corporate taxes

 

[JBeukema]

4. Unhealthy health insurance costs: The high health insurance costs associated with hiring new workers hits small businesses particularly hard, according to AEI economist Aparna Mathur. Government health mandates specify exactly what kinds of coverage have to be included in insurance policies. This makes increasing headcount a costly exercise, and so kills jobs. One major CEO told me recently that his hiring was stunted by the new mandate to cover workers’ kids up to age 26.

I was in favour of some form of Medicare Plus

 

[JBeukema]

5. The threat of unionization: In a global economy, it’s fairly simple for a lot of firms to avoid unionization: They can move overseas and take their jobs with them. Policies that favor unions make this decision more attractive.

God forbid we break up the sweatshops


yes... things were so good before the unions...

talk to some of the elders in the old mining towns, moron

 

[JBeukema]

7. Trade restrictions: Free trade favors consumers everywhere, and benefits workers in industries where America has a comparative advantage. Tariffs and other barriers benefit industries that are already in decline. This is why economists always tell us that over the long run, trade barriers and slow modernization are a net job killer.

"


Fuck free trade

 

[JBeukema]

8. Credit: Poor credit access especially hurts new and young firms that are eager to expand their operations. The new Consumer Financial Protection Agency could make matters worse by expanding burdensome regulation of these financial markets, killing jobs in the process.

giving everyone credit they didn't deserve tanked the economy- killing jobs

 

[Ravi]

No consumer uncertainty isn't the same thing as being broke, in debt, unemployed, or just terrified that you may lose your house, have a major medical problem or become terminally unemployed.

Get real.

Yep...the rest of his list is basically rightwing talking points.

 

[Sallow]

5. The threat of unionization: In a global economy, it’s fairly simple for a lot of firms to avoid unionization: They can move overseas and take their jobs with them. Policies that favor unions make this decision more attractive.

God forbid we break up the sweatshops


yes... things were so good before the unions...

talk to some of the elders in the old mining towns, moron

Great triangle fire..

The Story of the Triangle Fire: Part 1

 

[Sallow]

Liberals I invite you to refute any off the ten claims below. Note: Stating Bush did this or that isn't an arugment its a straw man (and a weak straw man)!

Well all refuted.

Gave up already?

 

[edthecynic]

Liberals I invite you to refute any off the ten claims below. Note: Stating Bush did this or that isn't an arugment its a straw man (and a weak straw man)!

Arthur Brooks: Top 10 ways government kills jobs in America | Washington Examiner

As we listen to the rhetoric, remember the reality. These are the Top job killers in America.

1. Uncertainty and business: What you don’t know can (and does) hurt you. Businesses plan around rules. And they are unlikely to invest if they can’t be reasonably sure about what the rules will be. When things are uncertain, businesses hold back cash to protect themselves—and this kills jobs. My colleague Allan Meltzer has made this point in two recent WSJ op-eds: “High uncertainty is the enemy of investment and growth,” he declares in one. “The most important restriction on investment today is not tight monetary policy, but uncertainty about administration policy,” he argues in the other.

2. Uncertainty and the consumer: Uncertainty isn’t just bad for companies—it’s bad for consumers, too. If I think government policy may provoke a double dip in the economy and my job is on the line, there’s no way I’m going out to buy a new car. For that matter, even the possibility of a huge gas tax would make me less likely to make a car purchase decision. All this kills jobs.

3. High corporate taxes: Americans are shocked to learn that we have some of the highest corporate taxes in the world. In fact, Japan is the only developed country with a higher corporate tax rate than the United States. Whether we like it or not, the corporate tax is a tax on jobs. It makes it more expensive for firms to function, which costs jobs. But even worse, it drives companies to find more tax-friendly environments in other countries.

4. Unhealthy health insurance costs: The high health insurance costs associated with hiring new workers hits small businesses particularly hard, according to AEI economist Aparna Mathur. Government health mandates specify exactly what kinds of coverage have to be included in insurance policies. This makes increasing headcount a costly exercise, and so kills jobs. One major CEO told me recently that his hiring was stunted by the new mandate to cover workers’ kids up to age 26.

5. The threat of unionization: In a global economy, it’s fairly simple for a lot of firms to avoid unionization: They can move overseas and take their jobs with them. Policies that favor unions make this decision more attractive.

6. Inability to hire and fire: In Europe, government regulations and employment protection laws reduce the flexibility of firms to downsize their operations when they need to. They also discourage those same firms from upsizing their operations when they would otherwise do so, and are thus a job killer. This is why Spain has a 20% unemployment rate (and about 40% among workers under 25). Restrictions on firing are a job killer.

7. Trade restrictions: Free trade favors consumers everywhere, and benefits workers in industries where America has a comparative advantage. Tariffs and other barriers benefit industries that are already in decline. This is why economists always tell us that over the long run, trade barriers and slow modernization are a net job killer.

8. Credit: Poor credit access especially hurts new and young firms that are eager to expand their operations. The new Consumer Financial Protection Agency could make matters worse by expanding burdensome regulation of these financial markets, killing jobs in the process.

9. Increasing unemployment insurance: Everyone wants to ease the burden on the unemployed, so it is tempting to extend unemployment insurance, as our government has recently—today, to as much as 73 additional weeks. Unfortunately, this kills jobs and economic recovery. Harvard economist Robert Barro estimates that if unemployment insurance had not been expanded, the unemployment rate would now be 6.8% rather than 9.5%.

10. Encouraging frivolous lawsuits: This increases the costs of doing business in America, with one study estimating that we waste as much as $900 billion a year on excessive tort litigation—that’s 6.5 percent of GNP or $12,000 annually for a family of four. As a result, company capital that could be used for expansion and job creation goes to the trial lawyers instead. And like so many anti-business measures, such litigation drives up costs for consumers, which reduces demand and kills jobs even more.

1 The Bush Depression began in Dec 2007 with the Bush tax cuts in full effect and with a certainty that they would continue until 2011.

2 Despite the fact that the GOP have been hoping for a double dip recession for the last 2 years, it will only happen if the teabaggers take control of at least the House in 2010.

3 Most corps pay no taxes.

4 Health cost were rising at a greater pace than inflation and were certain to continue that trend before health care reform.

5 Union membership had been declining when the Bush depression began.

6 This is not Europe. US Businesses have certainly had no problem firing people as the Bush Depression proves.

7 Somehow trade must be going on as we have a trade deficit.

8 Interest rates are at the lowest they have ever been.

9 There are no jobs for the unemployed, so cutting unemployment insurance only reduces consumer demand further causing more unemployment which is what the GOP wants.

10 Law suits are only frivolous when they are somebody else's law suit. CON$ervative law suits are never frivolous. GOP tort lawyers do not need reform, only tort lawyers who support the Dems need reform.

 

[GHook93]

There is no uncertainty for big business; if they fuck up, Der Staat will bail them out on my dime and yours

That doesn't go for small business (<500 or less employees) or even "smaller" large corps. Remember Lehman Brothers and Bearn Streams weren't bailed out! Many nation-wide retailers went OOB!

The bail-out argument is just crap!

 

[Ravi]

There is no uncertainty for big business; if they fuck up, Der Staat will bail them out on my dime and yours

That doesn't go for small business (<500 or less employees) or even "smaller" large corps. Remember Lehman Brothers and Bearn Streams weren't bailed out! Many nation-wide retailers went OOB!

The bail-out argument is just crap!

Who?

I thought you were against government bailouts, anyway. Get your talking points straight.

 

[GHook93]

3. High corporate taxes: Americans are shocked to learn that we have some of the highest corporate taxes in the world. In fact, Japan is the only developed country with a higher corporate tax rate than the United States. Whether we like it or not, the corporate tax is a tax on jobs. It makes it more expensive for firms to function, which costs jobs. But even worse, it drives companies to find more tax-friendly environments in other countries.

Bullshit, The top corporations pay effectively 0 in taxes

AMERICAblog News: Paying 0.0% in corporate taxes

I love this red herring argument. No Corporation pay taxes. They can avoid it like the plague. BULL SHIT.

Corporations can avoid the corporate tax 3 ways:
(1) They don't make a profit!
(2) They use tax rightoff (which are expenses, like investment, employee health insurance, employee retirement, etc.), but write-offs for the most part require SPENDING MONEY.
(3) They ship their operations overseas!!!

Don't forget for everyone of a corporations employees they have the pay the payroll tax. This is a huge KILLER for small businesses!

 

[GHook93]

There is no uncertainty for big business; if they fuck up, Der Staat will bail them out on my dime and yours

That doesn't go for small business (<500 or less employees) or even "smaller" large corps. Remember Lehman Brothers and Bearn Streams weren't bailed out! Many nation-wide retailers went OOB!

The bail-out argument is just crap!

Who?

I thought you were against government bailouts, anyway. Get your talking points straight.

NOT ME, because is hypocritical! I HAVE NEVER taken that stance. NEVER!

While I didn't like giving these corporations billions of dollars (just like the President and Congressman have stated), but it was a necessary evil! I fully stand behind the thinking that if we didn't bailout the Banks, AIG, Auto Companies etc, we would be in a Great Depression with 20%+ unemployment!

I don't support the stimulus! Get it right Ravi!

 

[GHook93]

4. Unhealthy health insurance costs: The high health insurance costs associated with hiring new workers hits small businesses particularly hard, according to AEI economist Aparna Mathur. Government health mandates specify exactly what kinds of coverage have to be included in insurance policies. This makes increasing headcount a costly exercise, and so kills jobs. One major CEO told me recently that his hiring was stunted by the new mandate to cover workers’ kids up to age 26.

I was in favour of some form of Medicare Plus

The biggest issue (other than pre-existing condition, which I am glad Obamacare covered) I see with health insurance in America is the employer based system. The employer picks the plan and insurer for their employees.

But most importantly health insurance is a gigantic cost to our corporations and small businesses. It puts them at a ginormous disadvantage in the global market. It is a huge roadblock for small businesses hiring new employees.

NOTE: I have no idea how to get America away from the Employer-Based Health Insurance System, but I think its a must.

 

[GHook93]

No consumer uncertainty isn't the same thing as being broke, in debt, unemployed, or just terrified that you may lose your house, have a major medical problem or become terminally unemployed.

Get real.

Consumer uncertainty decreases demand, no?