The Sluggish US Job Growth; Who Is To Blame? - Page 2
Who is right?
Krugman says there is no evidence supporting this by Republicans that businesses are afraid to expand and create jobs because they fear costly regulations and add, instead, there is “a lot of evidence showing that [this claim] is false.”
I tend to agree with Krugman for several reasons:
First, it makes sense as the party out of power, the Republicans would milk every opportunity there is, to make sure their man or woman (more man than woman) is propelled to the White House as president and hopefully with enough coattails to maintain control of the House and hopefully regain majority control of the Senate.
If that means blocking Obama’s jobs creation legislation, so be it but with a caution: I do not believe Republicans are united in this strategy for I am certain there are those not this conniving enough to throw some breaks for the potential for the strategy to backfire, especially given it would give Obama and the Democrats the opportunity to campaign against the “Do Nothing Congress”—a counter strategy that should pay dividends even notwithstanding the fact that Democrats are part of the Congress and control the Senate, anyway.
However, those Republicans pushing for this “let’s stall and block” strategy must be counting on the fact that there is enough angry Tea Party types out there and if you add the number of the unemployed, assuming they remain in 10-15 million range, and the good old Republicans, they sure are likely to be dancing all the way to the White House.
Indeed, according to this school of thought, it would matter less that the unemployment could even explode to double digits if a Republican assumes the presidency and attempts to return the country to the Bush policies which have been demonstratively proven to be ten times worse than what
Republicans claims Obama’s are.
Second, I tend to agree with Krugman that the Republican argument about “uncertainty” in the business community is demonstrably false. Indeed, the economist Lawrence Mishel of the non-partisan Economic Policy Institute very persuasively argues in a new paper published by the institute that this “uncertainty” explanation by the Republicans is “phony.”
It is from all of this, Mishel summizes, that Republicans and conservatives have propped up this false narrative that employment growth is therefore sluggish because “firms are turning down, and will continue to turn down, opportunities to make goods and services that are profitable today (current sales are very profitable) because they fear regulations will not allow these sales opportunities to be as profitable in the future and they fear making the longer-term commitment of hiring permanent workers.”Continued on the next page