Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, October 5, 2012
Anemic Job Growth Continues
By Heritage Foundation @ 3:32 PM :: 4286 Views :: National News, Ethics

Anemic Job Growth Continues

www.Heritage.org

Job growth continues to sputter—this morning's jobs report shows that 12.1 million Americans are still out of work.

Going against other economic indicators, the unemployment rate dropped to 7.8 percent. Economists are already looking into the drop, saying it seems to be a statistical fluke, because it doesn't match up with the sluggish job creation and recent downward revision of GDP growth. Heritage's J.D. Foster says:

One time out of a hundred, the true figure will be much different than the reported figure. One time out of a hundred for a monthly survey means about once every eight years. What seems to have occurred with the September household survey is the one time in a hundred. The last time the household survey showed such a huge jump in employment was in 1983 during the Reagan-era economic boom. Today's economy does not look much like the Reagan boom.

The real story, then, from the more reliable employment survey is the economy created a paltry 114,000 jobs, leaving 12.1 million out in the cold. This story is getting old. And the economy has no good news to look forward to.

Congress has gone home until after the election. When it returns to Washington, the end of 2012 will be staring us in the face. In just a few short months, the largest tax increase in history will hit America. It sounds like hyperbole, and we only wish that were the case. It's been dubbed Taxmageddon, because for millions of workers it will be an end-of-working pink slip scenario. But on January 1, a nearly $500 billion tax increase will slam the economy.

Not only will this mean individual tax increases—if you're a middle-class family, your taxes will go up around $4,100—but the whole economy will also suffer. The Congressional Budget Office has said that unless Congress and the President act, we will be plunged into a new recession extending through 2013—when we haven't even recovered from the previous one.

The irresponsible behavior of Congress and the President in bringing the nation to this state means a significant slowdown is already almost certain. Mounting uncertainty about what, if anything, Washington will do is rapidly draining the vitality out of the economy.

The facts are plain: The economy will shrink and unemployment will spike unless Congress acts to prevent Taxmageddon. If Congress and the President choose to continue to play politics with the economy, we stand to lose 1.6 million more jobs.

Why can't we seem to recover from the most recent recession? According to a new report by Heritage's Salim Furth, a select group of businesses isn't hiring: start-ups.

"Even in recessions, start-up job creation has been a constant—until now," Furth reports. "Employment at start-up companies has fallen for five years in a row, reaching unprecedented lows in 2010 and 2011."

This is devastating because start-ups normally create the vast majority of the net new jobs in the economy, he says. Larger businesses do expand with new jobs, but significant job creation comes from new businesses. And it's more difficult than ever to jump through all the government hoops to create a new business. The system is completely against job creation right now. As Furth says:

With new regulations and business requirements in health insurance, small-business finance, environment, energy, and tax compliance, not to mention the ever-expanding reach of state licensure boards, it is expensive to open a business.

Businesses, and those who would start businesses, are looking at looming tax hikes and new regulations and simply deciding it isn't worth it. There are many new regulations coming soon, but the Administration has gone silent on what they will be. So employers can't even prepare.

Repealing the heavily regulatory Dodd-Frank law and Obamacare, with its 18 new tax hikes, would remove major burdens on businesses and individuals. But that won't happen before next year.

Our elected leaders can prevent Taxmageddon. It would be the best thing they could do for the economy, including job creation, in the short term. There is still time, though it is growing short.

---30---

FEATURED POSTS

QUICK HITS

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT