- In 2013, the U.S. labor force participation rate was at its lowest level in 20+ years for every age ranging 20 to 54 years.
- The Congressional Budget Office (CBO) had projected a 160M labor force in 2013. The actual rate was 155M. That translates into a $557B shortfall in potential national income.
So, knowing that he's not creating jobs while saying that he is creating jobs, what's the President proposing? According to research published by Economics 21:
- To raise the federal minimum wage 40% to $10.10/hour. This policy raises hiring costs and increases unemployment.
- To expand Obamacare into a single-payer system. The CBO says Obamacare in its present iteration will cause more than 2M full-time workers to leave the work force within the next couple of years. But, get this: In 2012, the majority of those Americans ages 18 to 64 who were in poverty had no job, not even for one week. Only a paltry 11% of those people had full-time jobs.
The antidote is J-O-B-S. Legislation that increases labor costs and reduces work incentives does not create a climate conducive for increasing the number of U.S.
The Motley Monk understands why the President doesn't get that. But, The Motley Monk doesn't understand why the majority party of the U.S. House of Representatives doesn't. Isn't the Republican Party supposed to champion conservative, economic pro-growth policy?
Perhaps it's all one, big C-O-N-J-O-B.
Let the discussion begin...
To read the research in Economics 21, click on the following link:
"Jobs: The best way to fight poverty."