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"Cutting government red tape produces new jobs"

No, really:

An estimated 14 million Americans are unemployed now, counting both those currently receiving unemployment checks and those whose benefits have expired and who have given up looking for jobs. Most experts agree that, even under the most optimistic scenarios, unemployment will remain at 8 percent or above between now and November 2012. So irrespective of ideological considerations — the Phoenix Center is a strong proponent of free markets — Obama would be well-advised to pay close attention to its findings.

According to the Phoenix study, “even a small 5% reduction in the regulatory budget (about $2.8 billion) would result in about $75 billion in expanded private-sector GDP each year, with an increase in employment by 1.2 million jobs annually. On average, eliminating the job of a single regulator grows the American economy by $6.2 million and nearly 100 private sector jobs annually.” The reverse is true as well, according to Phoenix, which said “each million dollar increase in the regulatory budget costs the economy 420 private sector jobs.”

“Our statistical analysis of historical data indicates that federal expenditures on regulatory activity have a significant impact on the size of the private-sector economy and private-sector employment,” says Dr. George S. Ford, chief economist at the Phoenix Center. “While the entire federal budget must be cut to address the deficit problem, the evidence indicates that reductions in the overall federal regulatory budget may substantially impact the growth of economic output and employment.”

It’s hard to imagine any way of making it clearer: Whatever merits it may otherwise have, the federal regulatory bureaucracy is a tremendous drag on the economy, diverting and destroying the very precious investment capital that is essential to generating the growth that creates jobs that pay the taxes that fund the government.

That’s okay. The government can always, say, select a handful of companies, a handful of universities, and whatever tax revenues are left to spend and direct the economy to grow that way.

I mean, it worked for Mussolini, right?

In related news, according to a study by the protein wisdom Institute for Studying the Obvious, cutting calories produces weight loss; cutting jeans off above the knee or anywhere below the crotch produces jean shorts / Daisy Dukes; and cutting a starfish in half produces two starfishes, or at the very least , the pleasure one derives from cutting something precisely in half.

No, really.

13 Replies to “"Cutting government red tape produces new jobs"”

  1. happyfeet says:

    It should be noted that the Phoenix study authors are by no means blind to the fact that some government regulation is essential and has positive benefits. “Our analysis reveals that the costs are very large, which, in turn, implies that regulators should act only when the expected benefits are likewise very large. With a smaller budget, the hope is that the regulators will focus their efforts on interventions with a very high expected net payoff,” said Dr. Hyeongwoo Kim, Phoenix Center adjunct fellow and professor of economics at Auburn University.

    that’s fine in theory but remember what we learned about how this works in practice, yes?

    According to Mark Levin (h/t), this kind of thing happens all the time behind the scenes. In fact, Levin contends that the increasingly leftwing bureaucratic agencies within government actively court lawsuits against them by leftwing activists (for instance, on environmental law), then the agency’s lawyers will reach a settlement agreement out of court with the petitioning activists, thereby effectively changing regulatory rules that affect us all without having to pass laws, and without having to defend their overreach in court.

    union whores and bureaucrats what want to ass-rape america with their hyper-regulatory prongy prong prongs aren’t going to dissuaded by budget cuts

    it’s who they are it’s what they do

  2. Bob Reed says:

    Re-instating the Glass-Steagall law, repealing Dodd-Frank, and ceasing operations completely and then selling off Fannie/Freddie to private capital is at the heart of the real stimulus our economy needs.

    Along with a major spending-ectomy, that is.

  3. sdferr says:

    Along with a major spending-ectomy…

    Or bariatric surgery, perhaps?

    https://proteinwisdom.com/pub/?p=3642#more-3642

  4. zino3 says:

    I’m sorry. Really sorry. Our “representatives” have only one fear – strike that. They have NO FEAR because they ae set for life, no matter what happens to us proles.

    Do you actually think that Mr. Marxist piece of shit even THINKS about the rest of us? As Santa Claus says: “HO! HO! HO!

    Our representatives “feel the pain”?

    BZZZZZZT! Wrong! Wrong! Wrong! They are too busy plumbing the depths of Karl Marx’s ridiculously stupid,and obviously messy, deep, deep butthole.

    What do they care? They and Anthony could care less. THEY ARE SET FOR LIFE at our expense. FUCK YOU, IGNORAMUSES! PAY MY WAY, AND, BY THE WAY, BEND OVER, YOU STUPID ASSHOLES! BUT FIRST, HAND ME YOUR WALLET! IT’S MINE, MINE, MINE!!!!!!

    Bad attitude?

    I don’t think so, but Jon (no “H” for hubris) Stewart might take exception to anyone who thinks that he is not a comedian…

  5. zino3 says:

    OOOOOOHHHH!

    On a roll, huh? One of those days.

    That’s what happens when you have to take a job at Home Depot, where every day is groundhog day!

  6. Swen says:

    Of course cutting government red tape produces new jobs, but not the right kind of jobs. Angelo Codevilla’s excellent little book explains that bureaucrats and red tape are necessary to the functioning of crony capitalism and help maintain the control of the Ruling Class. They don’t care how few jobs they produce or how many they destroy out in flyover country, they only care how many jobs they can create and how much loot they can swing toward their supporters and contributors, because it’s not about jobs, it’s about power.

    I’ve only made it a little way into the book, but so far I can highly recommend it. It’s mostly stuff those of us with a libertarian bent already knew or at least suspected, but presented with more logic and less paranoia than usual. Codevilla makes the Ruling Class out to be less power-mad, Diabolically Evil geniuses, and more utterly self-serving, banally evil putzes, which rings true.

  7. newrouter says:

    The government of the US has been captured, over the course of the 20th century, by an autocratic group of oligarchs, centered around the lawyer’s guild, with significant branches in academia, business, both managers and unions, and the media.

    One of the basic reasons the tea party movement has been attacked so viciously, and hysterically, by the political establishments of both parties is that the very concept of citizens actually wielding political power is anathema to the oligarchs.

    Several major steps are necessary in order to dispossess this professional politcal establishment from its entrenched position of power, not only at the federal level, but also in the state and local organizations. Some progress has been made in these areas, but there is obviously a long and difficult road ahead.

    One of the signs of nearing victory in this battle, which will never actually be finished, and must continue to be fought on a daily basis at every level, will be when the blatant conflict of interest that occurs when lawyers control all segments of government is finally named for what it is, and lawyers are restricted to the judicial branch only.

    This will be a monumental campaign in the individualist march through the institutions, and a significant moment when the law is finally consigned to serving man, as opposed to the current epoch, in which man has been harnessed as the laborer in the vineyard for whom wine is forbidden.

    An intense and wide-ranging conflict confronts us. It will be a long, painful, and bitter war of attrition, as those who truly believe in the liberty of the human spirit engage those who serve only the collective.

    Resistence is not futile, it is imperative.

    Posted by veryretired at June 27, 2011 02:11 AM

    link

  8. newrouter says:

    The government has fallen victim to the most basic and serious of organizational tendencies—it has become completely overtaken with the internal agenda of its members, i.e., to continuously increase their power and budget at all times and all circumstances, and has lost track of its primary, founding purpose—the protection and enhancement of the rights and liberties of the citizenry.

    The growth of state power as the solution to all problems, and the concomitent increase in resources transferred from productive enterprises to political boondoggles of one kind or another, is the engine which powers this ever-expanding, metastasizing cancer.

    Representative government cannot survive if the limits on the power of the state are removed. Once that happens, the state cadres quickly realize that their constituency is not the public, but the various power brokers who manipulate the machinery of state to enrich themselves and their followers from the public treasury.

    What we have seen, especially in the last half century, is the increasingly unrestricted ransacking of the most powerful, wealthy society to have ever existed, until nothing now is left but a pile of unfunded entitlements and a looming bankruptcy.

    Make no mistake—this is truly an existential threat to the very existence of representative government, and to the very concept of individual freedom and liberty.

    The common response throughout history to the onset of any severe crisis is the panicky search by a frightened public for “the man on a white horse” who will lead the true believers to a new promised land.

    We are approaching a period of turbulence comparable to the end of the 19th and first half of the 20th century. There will be no shortage of willing autocrats promising to solve all our problems if we only give them the power to save us from the crisis du jour.

    “Watch Mr Thompson. He has the solutions to all our problems.”

    “Hope and change” is only the empty, rhetorical beginning to a long and perilous journey from the sunlight of a free society to the twilight of serfdom.

    How we respond to these challenges now will set both the tone and course of our society for the next century and more.

    Let us hope, and work, and pray, that in future days, our granchildren will be able to say, “This was their finest hour.”

    Posted by veryretired at June 27, 2011 04:10 PM

    link

  9. Jeff G. says:

    Palin recognized all that, newrouter, and went after her own party as a result. Look up the story of “The Magnificent Seven” in Alaska. Look at the ethics reforms Palin instituted.

    She works for the people. That’s what she sees her job as — and did, both as Mayor and Governor.

    For that reason, she is a very real threat to the political class — and their offshoot industries, including professional inside the Beltway pundits, political analysts, political consultants, the mainstream press, and so on.

  10. zino3 says:

    newrouter –

    “Several major steps are necessary in order to dispossess this professional politcal establishment from its entrenched position of power, not only at the federal level, but also in the state and local organizations. Some progress has been made in these areas, but there is obviously a long and difficult road ahead.”

    I think the first “step” should be pissed off snipers.

  11. newrouter says:

    mr. jeff yes that’s true about my favorite moose hunter. although a big supporter of sp i’m ambivalent on her running in 2012. i think it would be good if the leftards had to make up a new boogey man narrative for allan willing our conservative nominee(cain, bachmann, santorum, even tpaw).

  12. newrouter says:

    mr zino3,

    to be clear those are the words of mr.veryretired over at Samizdata blog

  13. newrouter says:

    It’s the ironic demonstration by Wallace that he, not Bachmann, is the flake, an argument Andy McCarthy seriously makes.

    That would surprise Wallace. He still thinks that the narrative carefully constructed in the late 1990s is normative and normal. It isn’t. That old narrative is hanging in tatters and is barely credible. Barack Obama is the epitome of the perfect media candidate and he is as strange as a man from Mars. What propels Bachmann and Palin’s popularity isn’t so much the content of their politics (though it does) as much as the possibility that the public now trusts plain folks far more than the badged Ivy League/media product. The old elite has gotten so precious that it is now the Other. That distrust of the establishment is going to fuel a widespread search for alternative solutions to current problems. Nobody’s going to wait for the Fitz to clean up Chicago. They know he’s not going to do it.

    That means the search is on for some other way for the public to do it themselves. Who knows if they’ll succeed. All that is clear is that the old ways aren’t going to do the job.

    link

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