Lies, lies, all lies!
A study by the Phoenix Center that was published in April received too little attention in the nation’s mainstream media, including The Washington Examiner. With the most recent data showing the economy is clearly stagnating, and with the federal budget talks on Capitol Hill similarly stumbling along, it’s time that the Phoenix study of the effect of federal regulation on private-sector job creation gets the notice it deserves.
According to the Phoenix study, “even a small 5% reduction in the regulatory budget (about $2.8 billion) would result in about $75 billion in expanded private-sector GDP each year, with an increase in employment by 1.2 million jobs annually. On average, eliminating the job of a single regulator grows the American economy by $6.2 million and nearly 100 private sector jobs annually.” The reverse is true as well, according to Phoenix, which said “each million dollar increase in the regulatory budget costs the economy 420 private sector jobs.”
“Our statistical analysis of historical data indicates that federal expenditures on regulatory activity have a significant impact on the size of the private-sector economy and private-sector employment,” says Dr. George S. Ford, chief economist at the Phoenix Center. “While the entire federal budget must be cut to address the deficit problem, the evidence indicates that reductions in the overall federal regulatory budget may substantially impact the growth of economic output and employment.”
It’s hard to imagine any way of making it clearer: Whatever merits it may otherwise have, the federal regulatory bureaucracy is a tremendous drag on the economy, diverting and destroying the very precious investment capital that is essential to generating the growth that creates jobs that pay the taxes that fund the government.
That just CAN’T be right. Why, every good Democrat Socialist knows that the only way to “create or save” jobs is by increasing the size of government and spending more. It’s the federal government that creates those jobs, after all, and the money for these ever-expanding CRUCIAL PROGRAMS can only come from taxing the hell out of The Rich™. Nothing and nobody else but government can solve our problems for us.
Everybody knows that, right?