Will Productivity Be Victimized by Increased Federal Overregulation?

February 27th, 2014 | by Morris Beschloss | Comments

With unemployment in danger of expanding during 2014, due to so-called structural productivity requiring less workers than the “hands-on” requirements pre-dating the outburst of technologies, such as computerization, the introduction on a large scale by robotics in once heavy employment labor industries, such as automotive, the post-recession employment picture is bleak. Under these circumstances, it was reasonable to expect that productivity would accelerate to new levels, as costs per unit produced were dramatically reduced.

But to the dismay of productivity analysts, just the opposite has happened. Unfortunately, since the end of the “great recession” in 2009, the average annual productivity rate of 2.5 reached from 1948 to 2007, has done a nosedive to less than half that amassed since 2009. If such a slowdown continues, America’s production future will resemble that of the late 1980′s for the next 15 years.

Why is America’s post-recession rate exhibiting an increasingly lower growth at a time that technology breakthroughs and employment numbers have shrunk, with wages and benefits at a standstill, it’s obvious that the Obama Administration and its Congressional allies have generated production hurdle policies, while passing no legislation to make America’s superb workforce more productive.

The reason for such failures is obvious:
1) Pre-occupation with a mangled healthcare approach that seems to be getting more onerous almost daily as the implementation phase can’t even get off the ground.

2) The enlargement of government agencies by the thousands who produce no additional revenues or value added per unit. In fact, the only major policy passed by the current White House power structure is the Dodd-Frank incubus that has burdened the “small businesses” of this country with paperwork restrictions, and unproductive costs, that seem even worse in application than they did in their original intent.

3) A trillion dollar legislative bill to get the nation’s post recession business and industry structure moving again. Instead of generating badly needed infrastructure for electricity and oil/gas, this money was wasted on the fantasy of climatological purity, by promising taxpayer subsidies to wind, ethanol, uncompetitive solar panel production, and forcing the bankruptcy of coal, all under the banner of “climatological purity.”

With the appointment of John Podesta, a former Clinton Administration crony of “climate control” at any cost, President Obama’s putting that subject as Number One of his second term legacy, this situation will likely shave productivity even more.

These points are literally a “declaration of war” on independent businesses, who are trimming their workforces, or turning them into part-time labor without benefits. Worst of all, nothing is being done to train a more sophisticated labor force. Never before has the richest nation on earth attempted to reverse success into failure. At this point, the Administration seems bent on making a go of it. All in the name of themes that have proven unproductive, if not downright failures.

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