In the past three days, two conservative blogs have posted on issues which get at the heart of the anemic private sector job creation in the Obama administration — and demonstrate why if the Democrats continue to set economic and regulatory policy, we won’t see the level of job growth promised when the president sold us his American Recovery and Reinvestment Act (AKA the “so-called stimulus”).
The first piece relates directly to that legislation. Over at Powerline, John Hinderaker quotes from a study of the near-trillion dollar bill by economists Timothy Conley and Bill Dupor. Reporting “their findings in a paper titled ‘The American Recovery and Reinvestment Act: Public Sector Jobs Saved, Private Sector Jobs Forestalled‘, they found that the “stimulus”
. . . created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs. State and local government jobs were saved because ARRA funds were largely used to offset state revenue shortfalls and Medicaid increases rather than boost private sector employment.
By sending hundreds of millions of dollars to the states, the Democratic legislation helped bail out many spendthrift jurisdictions, delaying their day of reckoning. No wonder so many states have been struggling this year to find ways to cut spending. Thanks to the 111th Congress, they, in the early Obama years, had federal resources to balance their budgets — and no incentive to economize.
So, the “stimulus” didn’t stimulate the private sector because so much of it went to state and local governments.
Today, at the Washington Examiner, Conn Carroll details how the National Labor Relations Board is trying to game the system in favor of unions, thus making it more difficult for private companies to expand and innovate:
Unions are a major drag on a firms competitiveness. Studies show that unionized firms spend 15% less on research and development than non-unionized firms and 6% less on capital investments. If a firm is in a competitive industry, this can mean death. If a firm is in an international industry, which pretty much all of them are today, it means less (sic) jobs here in the United States.
Read the whole thing!