Smith School of Business economist Peter Morici says the U.S. economy just isn't adding jobs fast enough.
"The economy added only 80,000 jobs in June—much less than what is needed to keep up with natural population growth," Morici writes at CNBC.
Morici says the economy would have to add about 13 million jobs over the
next three years—about 360,000 each month—to bring unemployment down to 6 percent.
“Growth in the range of 4 to 5 percent is necessary to accomplish that,” he says.
Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.
Growth is weak and jobs are in jeopardy, because temporary tax cuts, stimulus spending, large federal deficits, expensive but ineffective business regulations, and costly health care mandates do not address structural problems holding back dynamic growth and jobs creation—the huge trade deficit and dysfunctional energy policies, says Morici.
Oil and trade with China account for nearly the entire $600 billion trade deficit, Morici points out.
“Dollars sent abroad that do not return to purchase U.S. exports, are lost purchasing power,” he says. “Consequently, the U.S. economy is expanding at 2 percent a year instead of the 5 percent pace that is possible after emerging from a deep recession and with such high unemployment.”
“Without prompt efforts to produce more domestic oil, redress the trade imbalance with China, relax burdensome business regulations, and curb health care mandates and costs, the U.S. economy cannot grow and create enough jobs.”
Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.
The Oklahoman reports that the recession and conservation efforts have driven down demand for oil while improved drilling techniques have allowed domestic producers to increase their oil output by about 1 million barrels per day over the past three years.
As a result, America's imports have dropped to just less than half the country's usage today.
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