The US needs more jobs.
While the headline unemployment rate shows the rate mostly recovered from the depths of the most recent Recession, by adding back in people who have given up hope of finding a job, plus those working part-time but really wanting full-time jobs, it shows US unemployment around 23% – at Great Depression levels.
New business start-ups are a major source of new jobs, as well as being
a force for labor reallocation (people moving to new positions). Start-ups and labor reallocation, together referred to as Business Dynamism, both work to increase innovation, which is what raises the Standard of Living for all Americans.
Business Dynamism has been in a steep decline for 35 years, according to a study by Ian Hathaway and Robert Litan. They find this decline across industries and across states and cities of our great country.
The Atlantic Magazine investigated what the barriers to innovation are and found the number one obstacle – Government Regulation and Bureaucracy.
Looked at from the other direction, if regulation & bureaucracy pose the biggest obstacles to innovation, and the innovation comes largely from new business start-ups and job re-allocation rates, which is where the new jobs are created, then more jobs can come from greatly reduced regulation & bureaucracy.
Now, regulation & bureaucracy exist at the federal, state, and local levels. Many times, state and local laws are put in place to secure federal money, which is another reason to want a ban on federal monies going to states and cities (we’ve talked about this before).
Action Item: Reduce Regulation & Bureaucracy
Require an independent cost benefit analysis before any new Regulation may go into effect and before a new Bureaucracy may be created or expanded
Require that all existing Regulations and Bureaucracies be re-examined with an independent cost benefit analysis within 5 years. Any Regulation or Bureaucracy not reviewed within the 5 year deadline will become null and void.
Require that all existing Regulations and Bureaucracies failing a cost benefit analysis will become null and void
Pass a Constitutional Amendment prohibiting the federal government from providing part or all the funds for any program at the state or local level, thus removing a cause of much state and local level Regulations and Bureaucracies