Posted by Jay Livingston
It’s nice to have one’s ideas supported in unexpected places.
Last month, I speculated (here) on the reasons job growth has been so dismal. The Republicans explanation is that employers are reluctant to hire because they are “uncertain” about government regulation. My explanation was simpler: “If companies aren’t hiring, the real problem, I suspect, is not lack of certainty but lack of customers.”
The Wall Street Journal, under the capable ownership of Rupert Murdoch, is not widely known as a lefty rag. But last week, they ran an article about this same question. Here’s the lede:
The main reason U.S. companies are reluctant to step up hiring is scant demand, rather than uncertainty over government policies, according to a majority of economists in a new Wall Street Journal survey. . . .It continues:
In the survey, conducted July 8-13 and released Monday, 53 economists—not all of whom answer every question—were asked the main reason employers aren't hiring more readily. Of the 51 who responded to the question, 31 cited lack of demand (65%) and 14 (27%) cited uncertainty about government policy. The others said hiring overseas was more appealing.