Obama's Jobs Errors | Daniel J. Mitchell | Cato Institute: Commentary

Obama's Jobs Errors Daniel J. Mitchell Cato Institute: Commentary

Unfortunately, almost everything Washington's done the last 18 months has sent the opposite message.

The "stimulus" boosted federal spending, thus draining funds from private-capital markets and diverting resources from the productive sector of the economy. The main jobs that it "saved" were employees of state and local governments — shielding the public sector from pain even as it inflicted more agony on the private sector.

The health-care law is a cornucopia of new taxes, mandates and regulations — directly increasing the cost of hiring new employees (as well as of keeping old ones on). By telling employers that the cost of hiring is set to rise sharply in the years ahead, it makes them far more cautious about hiring.

The new bailout legislation, though labeled "financial reform," raises costs for financial firms, meaning loans will be more expensive. That is, investing in that truck or computer for that new hire will cost you more.