Republicans blame government spending for the slow recovery from the Great Recession, that and high taxes and regulation and the oft mentioned but never defined “uncertainty.” Gosh, the fact that we don’t know what the future will bring has brought businesses to their knees! Has anyone . . . ever . . . known what the future will be? Amazing!
Well, here to pop the Repubs balloon(s) is an article supplied by Reuters:
“(Reuters) Tax and regulatory uncertainty, blamed in some quarters for keeping companies from hiring, has little to do with high U.S. unemployment, according to research by the San Francisco Federal Reserve Bank published Monday. The main reason that U.S. unemployment has remained high is likely because households hurt by the housing crash simply are not spending, according to the research, published in the latest issue of the San Francisco Fed’s Economic Letter. Focusing on the reasons businesses cite for not hiring, the study’s two authors – Atif Mian, a Princeton University professor who is currently a visiting scholar at the San Francisco Fed, and Amir Sufi, a professor at the University of Chicago Booth School of Business – found no correlation between worries about regulation and taxes, and employment growth.
“ ‘Employment collapsed precisely when businesses began worrying about poor sales,’ they said. By contrast, ‘there was almost no correlation between job growth in a state from 2008 to 2011 and the increase in the percentage of businesses citing regulation and taxes as their primary concern.’
“Indeed, states where businesses increasingly cited regulation and tax worries actually had greater job growth than states without such intensifying concerns, though the correlation was not statistically significant, they said.” (Reporting by Ann Saphir)
Well, gosh, Paul Krugman is right and the Repubs are wrong. (At this point I am sure that Fox (sic) News will sneer and say “Oh, the San Francisco Federal Reserve Bank, a known to be liberal bank!”)
It is a good thing that the Repubs don’t mind being dead wrong on most of their issues. It doesn’t affect them like ordinary, you know, rational people. You and I would be tempted to change our minds when proven dead wrong over and over and over again. But Republicans “will not sacrifice their principles;” the foremost of which is “being wrong.”
And why must I get all of my serious news from foreign news agencies (Reuters is in London)? Hello? Is anyone else concerned that Al Jazeera does a better job or reporting political news than ABC, CBS, NBC, etc.? Kudos to Reuters for publishing the news.