Nobel Prize winning Economist concerned about economy
Paul Krugman, the Nobel Prize winning economist, seriously, I wish I was making that up, is concerned suddenly about the lack of job growth. He doesn't understand why Congress and the President don't act. He doesn't understand how the Washington Elite don't address this when record high unemployment is becoming the new normal.
This noted LIBERAL economist hasn't ever met a tax he didn't like, and feels that Government Regulation is the answer to all the worlds ills. Yet, he doesn't understand why the economic job growth hasn't happened.
Sir, let me take a moment and see if I can explain. Let's say you are the head of a business instead of a paid blowhard at the NY Times. Now, Washington is gunning for you, passing huge regulations on you twice already, first in the form of the Obamacare which everyone now admits will result in skyrocketing costs for medical, that one day, perhaps in the far distant future, will level off. That means your cost to provide Medical to your employees is going to double, and perhaps even triple in the not too distant future. Would you add more expense to that situation by hiring people you don't really need right now? The answer is obviously NO.
Then there is the Wall Street Reform Law. This one on top of regulating the industry to the point where the banks will be little more than puppets of the Federal Government, also creates two dozen enforcement offices for the EEOC, so would you hire a bright young account executive if you have no idea how the EEOC regulations are going to be applied? Wouldn't you wait until you had an exact understanding of the hiring quota's placed upon your business before you hired anyone? I mean, you might get lucky and find a disabled black woman who happens to be a Veteran to work for you as a manager, but you might not. So you would reasonably wait, especially if you DIDN'T NEED ANYONE RIGHT NOW.
Perhaps you run a factory, but you aren't certain how the pending cap and trade, which is liable to be passed right after the November Elections via a Lame Duck Congress, will affect your business. Wouldn't you wait to see what happens before you invest the time, and substantial money to hire someone until you KNEW what the future regulations from a regulation happy Government will be?
So what happened to your trillion dollar Stimulus? I'll tell you. It was a boon to Government, hiring clearly showed that seventy percent of the jobs created were Government jobs. They paid teachers and hired more teachers, despite the fact of lower school enrollments nationwide. They paid Unions for doing what they usually do, little or nothing. They funded every pet project of every special interest and in the end, they got exactly what we predicted when they passed the Porkulus. They got a slight bump in the economy, which didn't really stimulate anything.
Now, in a few short months, taxes are going up across the board. The poorest among us will see their taxes increase by 50%. Earlier I posted the HISTORICAL proof that Higher taxes always equal lower collections by the IRS. Yet, you as a Nobel Winning Economist don't understand that simple factual truth.
Mr. Krugman, apparently you don't know economics very well after all, and thanks to you, I now have even more reason to treat the highly lauded term "Nobel Prize winning" with even greater derision.