Linswritings

Do regulations slow economic growth?

Posted on: November 16, 2011

If you are a critical thinking type of person you would say yes regulations slow economic growth. Why? Because regulations cost money, businesses have to pay more money to comply with regulations thus having less money to pay a salary or wage. This in turn creates less jobs and leading to less economic growth.

However, if you are Harry Reid and his liberal/progressive friends you really believe that regulations don’t kill jobs and stifle the economy. According to an article on Town Hall by Katie Pavlich, she calls this type of thinking as ObamaNomics or LibNomics.

The other day Harry Reid had the nerve to stand up in Congress to bash Republicans who are focused on slashing regulations as a way to improve the economy. Harry Reid said, “My Republican friends are yet to bring a single piece of evidence that the regulations they hate so much have the economic harm they claim. That’s because there isn’t any.”

Unbelievable, what planet is Harry Reid living on? I guess liberals just don’t get it and never will.

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4 Responses to "Do regulations slow economic growth?"

A couple of articles for your reference;

http://www.csmonitor.com/Business/On-the-Economy/2011/1114/How-much-impact-does-regulation-actually-have-on-jobs

http://www.washingtonpost.com/business/economy/does-government-regulation-really-kill-jobs-economists-say-overall-effect-minimal/2011/10/19/gIQALRF5IN_story.html

These are good liberal articles. However, as a conservative I really don’t agree about government regulations being a wash when it comes to job creation. The only jobs it really creates are government jobs to make sure regulations are carried out. Now I’m for good regulations, i.e. air pollution, water pollution even banking regs, but in the long run over regulating will create problems. One of the articles cite the housing meltdown. The Republicans and even Mr. Bush were saying that what the housing banking industry was doing was going to cause a problem. But Barney Frank and Chris Dodd kept saying it was okay. See what happened? Try selling your house in this market today, it takes years to sell. Also if you remember the regulation of how much credit card companies can charge for interest on your card. How did that go? All the credit card companies jacked up their interest to 15% up to 29% and refuse to lower interest rates. Who’s making money on that one? No wonder bankruptcies are at an all time high. I’m for getting government out of our lives and doing what they are suppose to do according to the Constitution – help defend this country and keep us safe. But I thank you for your articles and respect your ideas.

Frank stated that that the operations of Fannie and Freddie were okay and it has been shown that they had negligible impact on the overall housing crisis. Their problems arose when they took on the subprime mortgages from the banks who first made them and traded in them.
And to blame the government or one party solely is a bit of a stretch because there are SOOooo many people who bought homes they could not afford and did not question the incredibly high prices of those homes that essentially weren’t worth the materials they were built with. In addition, there was a huge increase in buying of 2nd homes and/or homes to “flip” to make easy money. Greed was the driver in this area.
And the Dodd-Frank bill did not result in credit card interest rates, the cc companies rose them before it was implemented to get their money in under the wire. It’s similar to the big banks failed attempt to charge debt card fees. The Dodd-Frank bill created transparency in the banking industry so these banks had to disclose all their hidden fees and put caps on those fees. These are fees people did not have much knowledge about and just paid because they got charged them. Once this changed the banks decided to introduce these new charges and blame the bill when in fact it’s a case of them having to be more transparent. People are just now becoming aware of the ridiculous fees the big banks charge. And we saw how that turned out. The free market system finally worked in the consumers’ favor when a ton of people left those banks and sent a harsh message stating customers are not going to stand for that.

And as far as keeping government out of our lives, I suspect if it actually pulled back to the point many think they want it to, there would be an uprising by many of those same people who suddenly realized they liked and needed those government services they directed so much hate at.

And thank you too for being civil and offering calm debate.

found your website on yahoo and was just what i was looking for, keep it up 🙂

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