Tag Archives: Federal Government

New study: reducing government regulation creates jobs

From the Washington Examiner.

Excerpt:

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. This provides an important insight into why federal offices like the Environmental Protection Agency do not consider the effect of proposed regulations on the ability of the economy to generate jobs.

If you want job creators to create jobs, ask the job creators what is stopping them from creating jobs. At the top of their list will be government regulations.

Is the United States of America becoming a European welfare state?

Rep. Paul Ryan

Rep. Paul Ryan, writing at Real Clear Politics.

Excerpt:

…an eye-opening study by the Tax Foundation, a reliable and non-partisan research group, tells us that in 2004, 20 percent of US households were getting about 75 percent of their income from the federal government. In other words, one out of five families in America is already government dependent. Another 20 percent were receiving almost 40 percent of their income from federal programs, so another one in five has become government reliant for their livelihood.

All told, 60 percent – three out of five households in America – were receiving more government benefits and services (in dollar value) than they were paying back in taxes. The Tax Foundation estimates that President Obama’s budget last year will raise this “net government inflow” from 60 to 70 percent. Look at it this way: three out of ten American families are supporting themselves plus – through government – supplying or supplementing the incomes of seven other households. As a permanent arrangement, this is individually unfair, politically inequitable, and economically dangerous.

[…]Just to return to where we were at the end of 2007, 8.4 million jobs have to be created. To reduce unemployment to its pre-crisis level of 5 per cent by the end of President Obama’s term, our economy needs to create 247,000 new jobs per month. But we are headed in the wrong direction … except in one field: the government is growing at breakneck pace in expanding federal payrolls.

Although millions of private sector jobs have been lost since the recession began, Washington is on track to add about 275,000 more people to the public payrolls – a whopping 15 percent increase. And we aren’t talking minimum wages here. More federal workers make over $100,000 than those earning $40,000 or less. The average government worker’s salary in 2009 was 21 percent higher than private sector salaries. The average federal worker’s compensation package, including benefits, was nearly $120,000 in 2008, twice the private sector at $60,000. One study shows the private sector benefit package averages $9,900 while the federal package averages almost $41,000. Now the Administration wants Congress to privilege federal workers by writing off their unpaid student loans after ten years. People in productive private sector jobs would keep paying for twenty years. Progressivists would really like everyone to work for the government.

Once you start to pay 50-60 percent of your income to your neighbors who are not working, you don’t try to have a family any more. What is the point? Working harder to provide for them doesn’t get you anything.

10% of US students are subject to sexual misconduct by school staff

Story from Big Journalism. (H/T ECM)

Excerpt:

In 2004, Hofstra University professor Dr. Carol Shakeshaft published a report for the United States Department of Education titled “Educator Sexual Misconduct: A Synthesis of Existing Literature.” It was presented to Congress as part of the No Child Left Behind Act. In it, Shakeshaft stated:

As a group, these studies present a wide range of estimates of the percentage of U.S. students subject to sexual misconduct by school staff and vary from 3.7 to 50.3 percent. Because of its carefully drawn sample and survey methodology, the AAUW report that nearly 9.6 percent of students are targets of educator sexual misconduct sometime during their school career presents the most accurate data available at this time.

According to a study she did of abuse complaints against Catholic priests over a five decade period she concluded that “…the physical sexual abuse of students in schools is likely more than 100 times the abuse by priests.”

[…]But this story, involving mainly public schools, silently went away. The government, not wanting the legal nightmare that would follow, let the whole matter drop.

A story like this should have been huge, but the press had a vested interest in protecting academia. Public schools might get complained about in terms that would motivate politicians to pour more tax dollars into them. But any story that would inspire parents to pull their kids out en masse is spiked. The public institutions that statists love so much, despite their many failings, are protected. The progressive agenda trumped what should have been the story of the year.

One more reason why I oppose public schools and teacher unions. I hope you all watched the recent video I posted on school choice!