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Steven Rattner recently wrote an article in the New York Times on how the federal government is killing the economy. He says:
According to estimates by the Congressional Budget Office, the pullback in spending by Washington — it declined in 2013 for an extraordinary second year in a row — together with higher taxes will cause the economy to grow by 1.5 percentage points less this year than it would have if the deficit had remained constant.
Using economists’ rough metrics, that’s the equivalent of 1.5 million fewer jobs.
In response, here are 14 recommendations from AEI’s Michael Strain for getting unemployed Americans back to work.
1.) Expand, support, and publicize work-sharing unemployment insurance programs.
2.) Lower the minimum wage for the long-term unemployed and for inexperienced workers, and couple it with an EITC-like payment.
3.) Offer UI-funded relocation subsidies for the long-term unemployed.
4.) Provide lump-sum UI payments, and bonus payments to workers who find jobs.
5.) Reform disability insurance so that it is no longer a permanent exit from the labor force.
6.) Offer assistance to long-term unemployed workers who want to start small businesses and can demonstrate a credible business plan.
7.) Increase high-skill immigration.
8.) Push states to adopt right-to-work laws.
9.) Delay Obamacare’s employment-reducing provisions at least until the labor market has significantly improved.
10.) Reduce the licensing and administrative barriers facing would-be entrepreneurs.
11.) Encourage domestic energy production.
12.) Consider temporarily eliminating or reducing the capital-gains tax on new businesses’ investment.
13.) Permanently reduce the payroll tax and pay for the reduction by, say, increasing Medicare and Social Security eligibility ages.
14.) Reduce occupational licensing requirements.
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