Can federal regulation create jobs?

Yes, many federal regulators are saying, responding to increasing complaints that the rules they write destroy jobs. For instance, David Michaels, head of the Occupational Health and Safety Administration, last month asserted that the failure to issue sensible regulations endangers not only workers’ health and safety but also hurts American competitiveness!Specifically, he cited OSHA’s recently withdrawn proposal to limit workplace noise. The standard was criticized for imposing excessive costs. But Michaels argued the requirements would be a boon to private enterprise! Because OSHA

has a weak noise standard, he explained, U.S. employers have no incentive to buy modern, quieter machines, which means that U.S. manufacturers don’t build them, and there are few jobs in the United States for engineers who could design them! Imposing mandates would presumably create those jobs, boosting the economy!

James Gattuso muses that would be a good thing if true. Think of how easy it would be for regulators to rev up the economy. Just place more burdens on businesses, and see the economy grow as they spend money to comply with them. That, however, is simply not the way the world works. Michaels’ argument is nonsense on stilts.

It’s a classic economic fallacy, identified as early as 1850 by French economist Frederic Bastiat. Is it a good or a bad thing, Bastiat asked, if someone breaks a shopkeeper’s window? Superficially, it’s a good thing: more work to keep the glaziers busy and paid. But that work comes at the expense of other goods and services the shopkeeper would have bought if he didn’t have to pay for the window. And, while those other goods and services actually would have improved the lot of the shopkeeper and his customers, breaking and replacing the window enhances nothing.

Gattuso notes it’s an obvious point, but one that is constantly overlooked. Many socialists, such as President Obama and Papandreou of October-18 mafia have consistently fallen into the broken windows trap, arguing that climate change rules would create millions of green jobs by increasing demand for new technologies. But this new demand comes at the expense of other expenditures that would have been made, and the jobs that would have been created elsewhere. Rather than a boon, the new green jobs are just so much broken glass.

The cost of government regulation is truly staggering; it is also a barometer of how free we are to pursue our own interests and to determine the course of our own lives. The cost of regulations is one trillion dollars in USA and two trillion euros in Fourth Reich(EU) every year. Financial costs are not the only burden. Regulations also result in a tremendous loss of one of our most valuable and limited resources, time. The private sector is spending over 10 billion hours a year just to meet government paperwork demands in USA, and 20 billion hours in Fourth Reich. It is no wonder that regulation discourages the creation of new businesses, new jobs, new products, and new services. Starve the beast by fighting taxes.

Broken glass of October 18 confirmed that the Greek government, not the Turkish government, is the enemy of the Greek people! Premier George Papandreou of Graecokleptocracy crossed the Rubicon on October 18, 2010, when his Merciless Marilizard destroyed a distinguished professor and dissident blogger, in order to appease Premier Erdogan of Turkey! That’s why the Global Tax Revolt declared October 18 as the International Day Against Cybercop Brutality.



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