Economics

"We're In Denial About Growing Administrative State"

Bad news:

Aside from excessive meddling, the other big complaint against regulation is that it hurts the economy. No one really knows by how much, but "there is ample evidence that regulation has expanded and that this expansion has limited economic growth," as Ted Gayer and Philip Wallach of the Brookings Institution recently wrote. One study estimates that regulation has shaved 0.8% off the U.S. annual growth rate which — if confirmed by other studies — would be huge.

Related:

"Congress must stop death by decree: The biggest restraint on economic growth is federal red tape".

"Deconstructing the Administrative State"

Some possible approaches to improving matters:

"Trump Wants to Deconstruct the Regulatory State? Good. Here’s How You Start".

"A Blueprint for Reforming the Federal Government".

Confirming Gorsuch to the Supreme Court could well help: "Gorsuch’s Collision Course With the Administrative State".


"Cruel cuts signal pension crisis"

From the San Francisco Chronicle:

For a small but probably growing number of California’s government workers, the worst-case scenario is here: The failure to adequately fund public pensions is leading to devastating reductions in their promised retirement benefits. If the pension problem were a cloud of carbon monoxide, there would be no more need to wait for a canary to keel over.

What are Liberals going to say when governments across the country start reneging on one of their most sacred promises? In California, don't tell me, I know: it will be the fault, no doubt, of Howard Jarvis and Ronald Reagan. I mean what about the rest of the country?

Related: "Even San Francisco, Flush With Tech Wealth, Has Pension Problems" and "Collapsing pensions will fuel America’s next financial crisis".


"Minimum wage hikes are causing businesses to cut jobs"

Do tell.

In February, Wendy’s CEO Bob Wright said the firm expects wages to rise at least 4% in 2017. Wendy’s has three options to offset the rising costs.

First, they could cut margins, but with an 8% margin, that’s unlikely. The second option is to raise prices. Given how price-sensitive consumers are these days, that too is a non-starter. Finally, the firm could reduce the amount of labor they use… and that’s exactly what they did. Wendy’s eliminated 31 hours of labor per location, per week.