• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Correction, Senator Reid. Regulations Are Contributing to Poor Job Growth

    Last week, Senate Majority Leader Harry Reid (D-NV) took to the Senate floor and made a bold assertion–that there isn’t any evidence that regulations cost jobs, citing statistics from a Labor Department report that “last year, only three-tenths of 1 percent of people who lost their jobs were let go principally because of government regulation or intervention.”

    In a new paper, Heritage’s James Gattuso takes Reid’s assertion head on, writing “The statistics are of doubtful accuracy and have little to do with the primary cause of joblessness in the U.S. economy today: the lack of job creation.” Gattuso explains the central flaw in the report:

    Employers are asked why they let employees go, not why they did not expand. No one asks would-be entrepreneurs why they did not start an enterprise last month or inventors why they did not invent a product.

    But when employers are asked about their concerns, they increasingly cite regulation. In a survey of small businessmen conducted last month by Gallup, for example, government regulation topped their list of concerns, cited by 22 percent of respondents. Consumer confidence was a distant second at 15 percent, followed by “lack of consumer demand” at 12 percent.

    Of course, no one argues that the drop in job creation is due solely to regulation. But regulation is certainly a big part of the problem—placing a burden on anything will decrease the amount of it that is produced, and regulatory burdens have increased at record rates in the past few years. Reducing these regulatory costs should be part of the jobs solution.

    Read more of Gattuso’s paper, “Joblessness and Regulation: The “Mass Layoff” Fallacy” at Heritage.org.


    Posted in Featured [slideshow_deploy]

    9 Responses to Correction, Senator Reid. Regulations Are Contributing to Poor Job Growth

    1. ron says:

      If harry ried and his fellow dems are right then states like California would still be the 8th largest economy in the world instead of writing I o u's.

    2. Mike says:

      The left has detroyed federalism and filled their pockets. Protecting freedom now means defending states from the feds.

    3. Stirling says:

      Mr. Reid has been drinking the Washington "cool aid" for too long. If employers decide to pull out of this country entirely and go elsewhere to make a "profit" then Washington will no longer be trusted with any "Fuzzy Math" that is used to justify their actions.

    4. Naplesjim says:

      I never spend another dime in Nevada as long as Harry Reid is in office. I'll never understand why the people of Nevada re-elect him over and over.

    5. DPofMI says:

      It's Harry Reid……….nothing else has to be said.

    6. dolphin769 says:

      Get all Ried's supporters' names and throw them all out! Vote out their salaries, their retirements and their benefits. TAKE BACK CONTROL OF

    7. Don Stifle says:

      Methinks, perhaps, an old boxing injury has clouded the mind of Reid; or he believes us all to be fools.

    8. carol,az says:

      NV's been sucker punched_ right along with the rest of America.
      41% of NV's housing is now in some form of foreclosure.
      Bank own_ abandon properties _ both residential and Buss_ throughout NV,
      Real Estate Projects valued in the billions_ along the Miracle Mile_turned into the debtor zone
      Recently reported_ a couple of these unfinished buildings will be torn down_they are so poorly constructed.
      NV has one of the highest unemployment rates in America. _one of the highest welfare costs in America due to harboring a huge illegal population .
      Like its brethren CA _ NV is broke. Tax payers and businesses are fleeing the state like rats off a sinking ship.
      Re-elected Hotel Harry Reid_, who cool aid must be spiked with the same stuff, moon bean Brown and Piglosi are both drinking are proof_ of what is wrong with American leadership.
      An unrecorded number_ in the thousands_ of former residence of both states, have relocated to AZ, New MX and TX.
      (Naplesjim comments above) is hardly an anomaly.
      Thousands of tourists boycotted Vegas because the anti-American leadership witnessed by H. Reid , and the Chamber of Commerce powerful lobby.It not a uban legend.

    9. Bobbie says:

      Mr. Reid's ignorance is a greater contributor "to poor job growth" and disqualifies him as any part of representing the American people, especially THE SPEAKING PART! Please get him rid of, Nevada! He's destroying freedom and liberty of business owners to conduct their business in AMERICA! America doesn't deserve this low life leadership of government ineptness! America will grow the economy instinctively within the people's control! The American Constitution empowers the American individual, not the American government!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.