Regulatory uncertainty: A phony explanation for our jobs problem

Source: Lawrence Mishel, Economic Policy Institute, EPI Briefing Paper No. 330, September 2011

From the press release:
Uncertainty about regulation and taxes is not responsible for the slow pace of job growth in the United States, a new briefing paper by Economic Policy Institute (EPI) President Lawrence Mishel finds. Instead, the primary economic problem in the U.S. continues to be depressed demand for goods and services.

Though businesses have substantial cash on hand and are now a third more profitable than they were prior to the Great Recession, they are not using this money for new hires or for investments. Some politicians and business trade associations have argued that uncertainty about future regulations is discouraging businesses from hiring and investing. Regulatory uncertainty: A phony explanation for our jobs problem examines what employers are doing in terms of investments and hiring and what employers are saying in surveys and finds the results do not support the uncertainty story.

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