Friday, October 22, 2010

Why Big Government Is a Job Killer

Arthur Brooks at the Washington Examiner has a column on the ten ways big government stifles job creation.

"In general," Brooks says, "the worst thing for job creation is a poor entrepreneurial climate. Such a climate is brought on by the large fiscal debt, unpredictable health care costs, and a generally anti-business and pro-regulation approach by government."

He goes on to list and discuss ten ways government policies create this poor climate. Policies such as are favored by contemporary Democrats in general, and President Obama in particular, almost always do the following:
  • Increase business uncertainty
  • Increase consumer uncertainty
  • Impose high corporate taxes
  • Raise health insurance costs
  • Strengthen unions
  • Make it harder to hire and fire
  • Impose trade restrictions
  • Tighten credit
  • Increase unemployment insurance
  • Encourage frivolous lawsuits
Brooks goes on to give a brief explanation how each of these stifles job creation. It's a good lesson in economics and also affords a good insight into why, under the current administration, it has been very hard to climb out of the current recession. Those readers who expect to be testing the job market soon might pay special heed to Brooks' essay.