Misrepresentations, Regulations, and Jobs

[TUSooner]

[R]egulatory uncertainty is a canard invented by Republicans that allows them to use current economic problems to pursue an agenda supported by the business community year in and year out. In other words, it is a simple case of political opportunism, not a serious effort to deal with high unemployment.

From ~~ Bruce Bartlett, “Misrepresentations, Regulations and Jobs”; New York Times ("Economix" website); October 4, 2011.

I suggest reading the whole article, it's not too long.
http://economix.blogs.nytimes.com/2011/10/04/regulation-and-unemployment/

According to the NY Times, “Bartlett held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul."

[BU BEAR]

The story cites low demand and poor sales as the primary concern of business owners and the number one cause of layoffs. That is, of course, the most visible manifestation of the problem--in terms of what the owner would see on the income statement and in the shops. But the other factors cited, taxes and regulation, can certainly be the drivers of low demand. If corporations find a country that offers a more advantageous taxing or regulatory environment, they will be tempted to move operations to that country. This will mean that Americans get laid off which takes demand out of the economy (i.e. lower purchasing power----lower sales----lower consumer confidence).

So, are regulations a "canard" devised as an election year ploy. Maybe, but my guess is that regulations and taxes are the monsters that lurk beneath the superficial problem of "low demand" and "poor sales."

[East Coast Bias]

Excellent article. I believe taxes and regulation are truly a "canard" as he relates. Sales and demand are not just the most visible elements but the actual place where the rubber meets the road. Consumer spending(another word for sales) is driven by how consumers perceive the economy and their future in that economy. I think taxes and regulation are more relevant when looking at new business start ups.

[TUSooner]

Some of comments after the article reflect the 2 previous posts. I don't doubt regulations could be a a factor, but the underlying suggestion that the GOP will make any and all sorts of oblations, sacrifices, and offerings at the altar of MegaCorp, Inc. has a ring of truth, methinks.

[sappstuf]

I'm sure all the oil companies, independent contractors, suppliers, ect. all closed down shop in the Gulf because the price of oil was so low and there was no money to be made..

Obama completely regulated them out of business and he did it against court orders to boot.

[TUSooner]

I'm sure all the oil companies, independent contractors, suppliers, ect. all closed down shop in the Gulf because the price of oil was so low and there was no money to be made..

Obama completely regulated them out of business and he did it against court orders to boot.

I happen to agree that the oil moratorium was a POS and illegal, too. But you know damn well that sort of one-off abuse of power is not the kind of "regulation" they are talking about.