- After five consecutive quarters of decline since the first quarter of 2022, labor productivity reached 1.3% year-on-year growth in the second quarter of 2023, according to the Bureau of Labor Statistics.
- The Biden administration has imposed costly regulations that have resulted in millions of extra hours spent on paperwork and reduced productivity for American businesses.
- “When the federal government enacts large-scale laws and regulations, and the private sector focuses on compliance instead of producing products and services, productivity will inevitably decline,” said chief economist and chief economist at the Center for American Prosperity. senior adviser Michael Volkender told the newspaper. Caller News Foundation. “The Biden administration has added hundreds of millions of hours of compliance paperwork to our economy.”
Labor productivity remains below COVID-19 pandemic levels after Thursday’s announcement of its first year-over-year rise since 2021, with experts citing the lackluster results as part of the Biden administration’s regulations. is mentioned.
Labor productivity in the non-farm sector reached 1.3% year-on-year growth in Q2-2023 after falling for five consecutive quarters since Q1-2022. according to to the Bureau of Labor Statistics. Experts told the Daily Caller News Foundation that the Biden administration has imposed a slew of regulations that impede productivity, and despite these costly regulations, growth has recently returned to modest growth. Told. (Related: These two red flags could spell big trouble for the economy)
“When the federal government enacts large-scale laws and regulations, and the private sector focuses on compliance instead of producing products and services, productivity will inevitably decline,” said chief economist and chief economist at the Center for American Prosperity. Senior Counsel Michael Volkender told DCNF. . “The Biden administration has added hundreds of millions of hours of compliance paperwork to our economy.
U.S. productivity fell to a two-year low of 112.530 index points in the second quarter of 2022 after hitting a record high of 115.405 index points in the second quarter of 2021, according to the BLS. The index figure has yet to recover and will reach 114.017 in Q2 2023.
The Biden administration has enacted 633 new regulatory rules as of Friday, adding a total of $398.5 billion in costs and 232.2 million hours of paperwork, hindering productivity. according to To the American Action Forum. At this point in his presidency, President Trump made further regulatory rule changes in 710, at a final cost of just $36.2 billion and adding 54.5 million office hours.
The new beneficial ownership information reporting requirements, a regulation adopted by the Treasury Department in September 2022, will cost $8.4 billion annually and 53.309,209 hours of paperwork over five years. according to To the American Action Forum.another regulation, requirements related to surprise claims. Part I will be adopted in July 2021 and will cost $2.3 billion annually and take him 5,903,311 hours of paperwork.
“In 2022, the US will contract two quarters of economic growth. [Gross Domestic Product]”It’s what you would normally think of as a recession,” Peter Earle, an economist at the National Bureau of Economic Research, told DCNF. “Since 2021, we have seen the highest inflation in 40 years and the lowest labor force participation rate in decades. There has been a severe disruption to production, and it is no surprise that US productivity has fallen precipitously for more than a year.”
July #job report 🧵:
The economy is slowing, and it’s slowing in exactly the areas many survey data have so far indicated. A quick look inside reveals that the labor market has nearly stalled below its pre-pandemic trend.
(Source for all charts = BLS) pic.twitter.com/NfIJcZHnuu
— EJ Antoni (@RealEJAntoni) August 4, 2023
Gross domestic product (GDP) contracted by 1.6% in the first quarter of 2022 and a further 0.6% in the second quarter of 2022, marking the second straight quarter of contraction for the U.S. economy, with many Market participants use this as an indicator of judgment. If the economy goes into recession, according to Based on Bureau of Economic Analysis data.
Earle told DCNF, “The recent resumption of productivity growth has essentially nothing to do with Bidennomics, the rise of highly skilled workers, or ramping up manufacturing capacity.” “This is simply the product of the ongoing recovery from disastrous pandemic policies and the disinflationary effects of the Fed’s rate hike campaign.”
The Fed raised the federal funds rate in July for the 11th time since March 2022 to combat inflation, lowering the target to between 5.25% and 5.50%.
Inflation fell to 3.0% in June from 4.0% in May, but remains well above the 2% target rate set by the Fed. Fed Chairman Jerome Powell said at a press conference after the July rate hike that inflation would not return to its 2% target until 2025, even at high interest rates.
The White House did not immediately respond to a request for comment from the DCNF.
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