Cross-posted from Legal Planet.
I’ve done several postings about the theory that regulatory uncertainty causes unemployment. I’m skeptical of the claim as a general matter, but if there’s any validity to it, one of the major causes of regulatory uncertainty is the Tea Party, along with other libertarians and opponents of regulation.
It’s not hard to see how the prospect of deregulation could cause businesses to delay investments and hiring:
In addition, defense contractors and others who sell to governments — companies that make fire trucks, or print school books, or build highways — have to be very nervous about new hiring and investments given the threat of budget cuts without any revenue increases.
In short, if regulatory uncertainty did turn out to be a major job killer, you’d have to assign some responsibility for unemployment to the Tea Party and other advocates of deregulation.