An Unusual Economy?..Thomas Sowell
Many in the media are saying how unusual it is for our economy to be so sluggish for so long, after we have officially emerged from a recession..... In a sense, they are right..... But, in another sense, they are profoundly wrong.
The American economy usually rebounds a lot faster than it is doing today....... After a recession passes, consumers usually increase their spending..... And when businesses see demand picking up, they usually start hiring workers to produce the additional output required to meet that demand.
Government intervention may look good to the media but its actual track record — both today and in the 1930s — is far worse than the track record of letting the economy recover on its own.....
But such unemployment rates have been common for years in Western European welfare states that have followed policies similar to policies being followed currently by the Obama administration.
Those European welfare states have not only used the taxpayers' money to hand out "free" benefits to particular groups, they have mandated that employers do the same. .......Faced with higher labor costs, employers have hired less labor.
If employers knew that ObamaCare would add $1,000 to their costs of hiring an employee, then they could simply reduce the salaries they offer by $1,000 and start hiring.
But, since it will take years to create all the regulations required to carry out ObamaCare, employers today don't know whether the ObamaCare costs that will hit them down the road will be $500 per employee or $5,000 per employee.
Many businesses work their existing employees overtime or hire temporary workers, rather than get stuck with unknown and unknowable costs for expanding their permanent work force.
Franklin D. Roosevelt's administration followed policies very similar to those of the Obama administration today......
He also got away with it politically by blaming his predecessor.