President Biden ’s Anti‐​Growth Agenda

David BoazE. J. Dionne writes in the Washington Post that President Biden will focus his State of the Union speech on “how to make the economy grow for everyone.” That’s a good topic. Unfortunately, Dionne ’s column illustrates that Biden’s policies will not do that.Dionne mentions “policies that see robust government investments, worker rights and a green tech economy as the path to a new American century. ” And he recommends further initiatives such as “paid leave, universal pre‑K and child care, health coverage expansions, a beefed ‐​up child tax credit, and steps to make housing more affordable.”All those things sound nice, but they will not make the economy grow. They all involve the federal government extracting money from individuals and businesses, taking a cut for a larger bureaucracy, and directing the rest of the money to areas that consumers, families, firms, and investors have not chosen. Or new regulations that increase the cost of hiring workers. You learn in Econ 101 that if the price of something goes up, the amount demanded will go down. It doesn ’t make sense to add extra costs on employment.A new study finds that companies tend to stop hiring at 100, 200, and 500 employees, the points at which EEOC penalties increase. Other regulations thatimpede free ‐​lance employment oradd to employer obligations will tend to reduce job opportunities and wages.Dionne ’s challenge is a good one: “how to...

Source: Cato-at-liberty - February 7, 2023 Category: American Health Authors: David Boaz Source Type: blogs