Economist Morici: Govt Policies Creating 'Disincentives' to Work

Monday, 30 Jun 2014 03:34 PM

By Sandy Fitzgerald

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Forecasts may show the economy is looking better, but in reality it has made very little growth, and "these are not great times," University of Maryland economist and business professor Peter Morici said.

He told Newsmax TV's "MidPoint" host Ed Berliner on Monday that he blames the media in part for the rosy outlook, but there are many factors that are keeping people from being interested in going back to work and building the economy back up.

Story continues below video.

Note: Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system – Click Here Now

"Increasing healthcare costs and entitlements all over the place is creating enormous disincentives to work," Morici said. "The marginal tax rate's about 50 percent — and not just of you and me, but also for people who are getting food stamps or whatever they call them now that they're on a card, subsidized healthcare, a negative income tax,and so forth, the earned income tax credit."

And as a result, Morici said, many people don't want to work more than part time because they believe they will lose their benefits.

"I've even gotten letters from people saying, 'Why are you against long-term unemployment benefits? I can't go back to work with the benefits I already have. I just need them topped up a bit,'" he said.

And while union leaders and others are calling for raising the minimum wage, the increased buying power that could come as a result would be cut into by "a big subtraction" that includes layoffs, rising prices, and inflation.

"Overall, the pie, the real economy would shrink," said Morici. "You can't get around that. You just absolutely can't get around that. Also, we're in a global competitive environment and simply raising the wages that we pay less skilled workers in America makes them less competitive with people abroad and negative things happen to them."

The economy is also being hindered by union intervention that keeps businesses from easily opening, he said.

"Stuff that takes three to six months in China takes a year to two years here," Morici said. "That's just terribly costly, and it's encouraging employers to go abroad. Not all of them."

President Barack Obama, Morici said, "is doing his very best to put the jack boot on any kind of initiative in those areas and after all, who gets those jobs? There are people in North Carolina, South Carolina, that might work in a furniture factory or an auto parts factory in southern Ohio or, God forbid, West Virginia. They don't vote for Democrats anyway."

Instead, Morici said, the Obama administration chooses to give people government benefits.

"You make it too expensive to create jobs, and then you try to create clients out of the people that don't have them," said Morici.

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Author James Rollins: My Novels Just Ahead of Real Military Tech

Wednesday, 20 Aug 2014 20:43 PM

James Rollins, author of the New York Times-bestselling Sigma Force series, told Newsmax TV on Wednesday that the fict . . .

Radio's Winterble: Ferguson Coverage Is TV, Not Journalism

Wednesday, 20 Aug 2014 19:24 PM

Nationally syndicated radio host Brett Winterble joined "MidPoint" host Ed Berliner on Newsmax TV on Wednesday to discus . . .

'Car Coach': Recall Tracker Is a Great Consumer Tool

Wednesday, 20 Aug 2014 20:11 PM

Lauren Fix, "the Car Coach," joined "MidPoint" host Ed Berliner on Newsmax TV on Wednesday to discuss a rash of automoti . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved