I have a high regard for Gary Becker's views, so here's a short para from Becker's blog post that caught my attention. I've learnt a new thing: that Obama is rapidly EXPANDING the welfare state!
I believe two other factors are also important (see my blog post “Why has the Recovery in Employment in the US been so Slow?” 5/6/12). One, stressed by Casey Mulligan, is the growth of many means-tested policies during this recession that encourage some workers to leave the labor force or look for part time work so that they can qualify for mortgage and other government-provided benefits. Of course, the government aid eased the burden of unemployment to the families that qualified for the benefits.
The other reason (see his blog post) is not really a reason (doesn't deal with the underlying causes of uncertainty) so I'll not post it here. And I don't understand the concept of "policy uncertainty" anyway. There is a basic analysis that is missing here. Sometimes even Gary's thoughts need to be taken with a pinch of salt. He should describe WHAT kind of policy is causing uncertainty.
Those of you who have read Aurthur Brooks's The Road to Freedom will recognise what is happening: Obama is destroying the MORAL FIBFRE of America. That's the policy problem in USA today.
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