An Unusual Economy?

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The vast uncertainties created by ObamaCare create a special problem. 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. Even businesses that have record amounts of cash on hand are reluctant to gamble it by expanding their hiring under these conditions.

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.

As unusual as 9 percent unemployment rates may seem to the current generation of Americans, unemployment rates stayed in double digits for months and years on end during the 1930s. 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.

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  • Winston

    Sowell for President 2012

    • StephenD

      Sowell for Secretary of the Treasury!
      Bolton for President.
      Rubio for Vice.
      Alan West for Defense.
      Trump in the UN…until we have him dismantle it!
      Bachman for Supreme Court.
      Palin for Education, long enough for her to put it all back on the States…and dismantle it too.
      Gingrich for Chief of Staff.
      Perry for Agriculture.
      Romney for Labor.
      I'm sure you and others could come up with better scenarios but this at least would be a start.

  • Dennis X

    bush's tax cuts have been in effect for ax. 6 plus years, so where are the jobs?

    • Jim

      you got it right. The jobs are hiding as interest payments from the fed to the bank's reserves which are massive.

      Bloomberg sued the fed for their records . The fed said exposing their records would bring down the entire universe. Bloomberg won.

      The rule is let the people starve and save the banks.