Here's an article
from Newsmax.com that should cause some displeasure to economic right and
the libertarian hoi polloi that is not satisfied with any amount
of deregulation and looks down upon government as a 'regulatory
hound'
While government
regulations do lead to job losses, the overall effect is minimal. Economists’
analyses and federal statistics show that few job losses are a result of
tougher regulations, The Washington Post reports.
The Bureau of Labor
Statistics collects data from companies that lay off workers. According to information
provided by company executives, 0.3 percent of those laid off in 2010 lost
their jobs due to “government regulations/intervention,” while 25 percent were
laid off due to a slowdown in business.
For instance, the Post
noted that while utility provider AEP will cut 159 jobs when it closes a
decades-old coal-fired power plant in Ohio due to new rules from the
Environmental Protection Agency, the company is building a new
natural-gas-fired plant an hour away from the old plant. Hundreds have been hired
to build it, and when completed next year it will employ 25, with a significant
reduction in pollution.
“If you’re a coal
miner in West Virginia, it’s not a great comfort that a bunch of guys in Texas
are employed doing natural gas,” Roger Noll, co-director of Stanford
University’s program on regulatory policy, told the Post.
“Some people identify
with the beneficiaries, others identify with those who bear the cost, and no
amount of argument is ever going to change their minds,” Noll added.
Economists say that
there is little evidence that regulations bring about massive job losses, nor
that rolling them back will lead to a job boom.
“Based on the
available literature, there’s not much evidence that EPA regulations are
causing major job losses or major job gains,” Richard Morgenstern, who worked
at the EPA starting under the Reagan administration, told the Post.
A study by Morgenstern
and others looked at the effect of regulations on pulp and paper mills, plastic
manufacturers, petroleum refiners, and iron and steel mills between 1979 and
1991. The study concluded that higher spending to comply with environment rules
did not cause “a significant change” in industry employment and when jobs were
lost they were often made up in the same industry.
“The notion that we
should deregulate everything because we have a recession is completely
wrongheaded,” Noll said, adding the government could outlaw tractors and create
jobs in the fields but that “would not be a legitimate social goal.”
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