From the left-wing loony network MSNBC.
Democrats don’t understand economics, Republicans do.
Category Archives: Commentary
Private sector jobs are lost when government creates public sector jobs
Here’s a story in National Review. (H/T ECM)
Excerpt:
In this paper, published in Economic Policy Journal, economists Yann Algan, Pierre Cahuc, and Andre Zylberberg looked at the impact of public employment on overall labor-market performance. The authors use data for a sample of OECD countries from 1960 to 2000, and they find that, on average, the creation of 100 public jobs eliminated about 150 private-sector jobs, decreased overall labor-market participation slightly, and increased by about 33 the number of unemployed workers.
Their explanation is that public employment crowds out private employment and increases overall unemployment by offering comparatively attractive working conditions. Basically, public jobs that offer higher wages, require low effort, and offer attractive fringe benefits attract many workers and crowd out private jobs. This is especially true when the public jobs exist in the private sector (transportation and education, for instance). The impact is bigger when these new employees are paid with new taxes.
The bottom line is that it is possible that, by increasing public employment, the stimulus money is further hurting private jobs.
And that’s why the unemployment rate is so high after a government spending-spree. The money for non-productive public sector jobs come from the productive private sector.
Bobby Jindal explains how Obama’s drilling moratorium will cost jobs
Story here in the Washington Post. (H/T Ace of Spades)
Excerpt:
Against this backdrop, the federal government unwisely chose to add insult to injury by decreeing a moratorium on deepwater drilling in the gulf. This ill-advised and ill-considered moratorium, which a federal judge called “arbitrary” and “capricious,” creates a second disaster for our economy, throwing thousands of hardworking folks out of their jobs and causing real damage to many families. Now this federal policy risks killing 20,000 more jobs and will result in a loss of $65 million to $135 million in wages each month.
To ensure that such a disaster does not happen again, should the federal government increase oversight, or require additional and better equipment or on-site federal inspectors, or even temporarily pause drilling at specific rigs for additional reviews? Of course. Could it? Of course. But by simply stopping all deepwater drilling, federal officials appear more interested in ideology and scoring political points — as they have done with the misguided cap-and-trade legislation — at the expense of Americans who derive their livelihood from the energy industry.
Let’s be clear: This moratorium will do nothing to clean up the Gulf of Mexico, and it is already doing great harm to many hardworking citizens. The effects will extend well beyond Louisiana. Since the moratorium was announced, America has already lost two rigs to foreign countries. More drilling companies are negotiating right now to work elsewhere. Every time we decrease our level of production, we make America more dependent on foreign sources of energy.
On those few occasions when our country suffers a commercial airline tragedy, we do not respond by stopping all air travel for six months. Rather, we get to work figuring out the root cause and set about trying to make air travel safer. We don’t grind everything to a halt and put tens of thousands of people out of work, jeopardizing our economy.
And these jobs are typically male jobs, so you really undermining the man’s role as protector and provider in the family when you go after jobs typically done by men. And I’m sure that some of the foreign countries we buy oil from are not sympathetic with American national security and foreign policy.
What about Paul Ryan?
But Jindal’s not the only one making sense in the news. (H/T Hot Air)
I hope that Bobby Jindal and Paul Ryan run for President in 2012. Ryan is passionate and informed about the budget, and Jindal is passionate and informed about business and job creation. Let’s elect some grown-ups, and get back to the 4.5% unemployment rate that we had under George W. Bush.
WINTERY KNIGHT 