Wednesday, October 20, 2010

Job Killers

http://www.washingtonexaminer.com/opinion/columns/OpEd-Contributor/Arthur-Brooks-Top-10-ways-government-kills-jobs-in-America-105302968.html
These were the top five from this article.  So how does the government help the economy?  Get the heck out of the way!
"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."


Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/columns/OpEd-Contributor/Arthur-Brooks-Top-10-ways-government-kills-jobs-in-America-105302968.html#ixzz12uWJrp57

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