I’ll Tell You What Happened to the Jobs

Friday, September 7th, 2012 and is filed under Blog, Economy

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The question everyone is asking is where are the jobs three years after the end of the recession?  Here’s one paragraph from Ed Pozzuoli writing at Forbes, which illustrates exactly why there are no new jobs:

In 2011 alone, regulators largely operating free of Congressional oversight issued 3,807 new rules.  With the economy still struggling to re-enter the fast lane one might assume that the regulatory burden would have been lightened in 2012.  You would assume incorrectly.  So far, 2,298 new rules have been added, and Crews notes that we’re “on a trajectory to beat 2011 rather handily.”

Obama complains that he inherited a recession.  But the reality is that the recession ended 5 months into his term.  The economy was on the road to recovery, albeit a slower one by historical standards.  There is no doubt that the torrent of crushing regulations on businesses, most prominently, Obamacare, Dodd-Frank, labor red tape, and sundry environmental rules, have precluded the recovery.  Additionally, the monetary and fiscal stimulus, the bailouts, and the subsidies have distorted the market so as to ensure that our economy will never return to its original strength.

This is worse than a recession.  Recessions are temporary and usually engender periods of robust growth that wipe out the losses of the downturn.  This is permanent stagnation.  And for that, Obama can never blame his predecessor.