CNS News posted a story yesterday about the fate of the American economy under President Obama. The article cites a Congressional Budget Office (CBO) report projecting that America will never see full employment under President Obama.
The article reports:
The natural unemployment rate, according to CBO, is the “rate of unemployment arising from all sources except fluctuations in aggregate demand. Those sources include frictional unemployment, which is associated with normal turnover of jobs, and structural unemployment, which includes unemployment caused by mismatches between the skills of available workers and the skills necessary to fill vacant positions and unemployment caused when wages exceed their market-clearing levels because of institutional factors, such as legal minimum wages, the presence of unions, social conventions, or wage-setting practices by employers that are intended to increase workers’ morale and effort.”
CBO Director Doug Elmendorf has stated, “we think it will take four more years to get back close to full employment.”
I believe that America will recover from this recession. I also believe that the recovery would be much faster if businesses were not totally over-regulated by the government. A glaring example of this is the fact that the energy revolution that is taking place in America is taking place on private land–the government has blocked fracking on government land. If the government land were opened up and the Keystone pipeline put in place, the economy would recover very quickly.
We can recover, but we need to let private citizens have more power and the government have less. That won’t happen as long as the current Washington politicians are in power.
