November 14, 2011

US Needs Demand, Not Degulation

By Glenn
Topics:
Austerity
conservatism
Deregulation
Economic Policy
Great Britain
zombies

Theory meet fact.

Data from the Bureau of Labor Statistics show that very few layoffs are caused principally by tougher rules. Whenever a firm lays off workers, the bureau asks executives the biggest reason for the job cuts. In 2010, 0.3 percent of the people who lost their jobs in layoffs were let go because of ‘government regulations/intervention.’ By comparison, 25 percent were laid off because of a drop in business demand.

Cutting regulations will not save or create jobs. Spending, i.e. demand, will.

The opposite is true.  Cutting government spending will makes things worse.  The Conservative government in the UK has been trying to cut its way to expansion and growth.  Growth requires addition, not subtraction.

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