If you blame the Sequester for blaming job growth then you don’t have a good grasp on economics.
The Overlooked Jobs Tragedy
April 9, 2013 by Dan Mitchell
When the monthly job numbers are released, most people focus on the unemployment rate.
On many occasions, I’ve cited that number, usually to point out that the unemployment rate is far higher than the Obama Administration promised it would be if the so-called stimulus was enacted.
That episode should be additional proof that Keynesian economics is misguided.
But that’s not the issue we should be worrying about now. Instead, our concern should be what appears to be a permanent reduction in the share of the working-age population that is employed.
As I explain in this interview for Blaze TV, our ability to produce is governed by the quality and quantity of labor and capital in the economy. Unfortunately, it appears that the Bush-Obama policies of bigger government have had a negative impact.
To build upon that interview, here are the very latest numbers from the Bureau of Labor Statistics.
To be fair, the drop you see on the chart started before Obama took office. But he can be fairly blamed for the fact that there’s been no recovery.
The moral of the story is that bigger government is not a recipe for prosperity.
The burden of government spending is too high, the tax code is too punitive, red tape is hindering entrepreneurship, and various handouts are creating a dependency culture that discourages work.
Should we be surprised that the employment-population ratio is grim?
Related posts:
Dan Mitchell’s tribute to Margaret Thatcher
Very well said by Dan Mitchell. A Tribute to Margaret Thatcher April 8, 2013 by Dan Mitchell The woman who saved the United Kingdom has died. A Great Woman I got to meet Margaret Thatcher a couple of times and felt lucky each time that I was in the presence of someone who put her nation’s […]
Dan Mitchell, Ron Paul, and Milton Friedman on Immigration Debate (includes editorial cartoon)
I like Milton Friedman’s comments on this issue of immigration and Ron Paul and Dan Mitchell do well on the issue too. Question of the Week: What’s Your Take on the Immigration Debate? April 7, 2013 by Dan Mitchell A reader from overseas wonders about my views on immigration, particularly amnesty. I confess that this is one of […]
Dan Mitchell on Texas v. California (includes editorial cartoon)
We should lower federal taxes because jobs are going to states like Texas that have low taxes. What Can We Learn by Comparing the Employment Situation in Texas vs. California? April 3, 2013 by Dan Mitchell One of the great things about federalism, above and beyond the fact that it both constrains the power of governments […]
Cartoons from Dan Mitchell’s blog on Obamacare
Third-Party Payer is the Biggest Economic Problem With America’s Health Care System Published on Jul 10, 2012 This mini-documentary from the Center for Freedom and Prosperity Foundation explains that “third-party payer” is the main problem with America’s health care system. This is why undoing Obamacare, while desirable, is just a small first step if we […]
Obamacare cartoons from Dan Mitchell’s blog
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. The funniest cartoon is the one with “Nurse Sebelius” stuffing the huge capsule down the kid’s throat!!! Obamacare […]
Editorial cartoon from Dan Mitchell’s blog on California’s sorry state of affairs
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the sequester, economy, eternal unemployment benefits, socialism, minimum wage laws, tax increases, social security, high taxes in California, Obamacare, Greece, welfare state or on gun control. President Obama’s favorite state must be California because […]
Dan Mitchell of the Cato Institute:HUD has to go!!!! (includes political cartoon)
You want a suggestion on how to cut the government then start at HUD. I would prefer to eliminate all of it. Here are Dan Mitchell’s thoughts below: Sequestration’s Impact on HUD: Just 358 More Days and Mission Accomplished March 12, 2013 by Dan Mitchell As part of my “Question of the Week” series, I had […]
Dan Mitchell: Cartoonists React to the Senate Democratic Budget
I read that President Obama in his meetings with the Republicans would not even say that a balanced budget was a goal. According to the budget presented by the Democratic Senate he is in agreement with their approach. Cartoonists have taken the opportunity to poke fun at that below. I have put up lots of cartoons […]
Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 6
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the sequester, economy, eternal unemployment benefits, socialism, minimum wage laws, tax increases, social security, high taxes in California, Obamacare, Greece, welfare state or on gun control. Here is another one. This Cartoon Does […]
Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 3.3 (Unemployment laws)
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. The Perverse Unintended Consequences of Anti-Discrimination Laws February 23, 2013 by Dan Mitchell I recently wrote about the pinheads […]
The Daily Hatch 