Smith Faculty Opinion Article

By Dr. John A. Haslem, Professor Emeritus of Finance E-MAIL WEB SITE

The 30 Seconds Outlook
February 1, 2011

“Encouraging the creation and expansion of businesses should be the focus on government efforts to reduce unemployment.”

- John B. Taylor, Economics One, January 14, 2011. 

It has been argued that reductions in government spending increase unemployment. False, the opposite is correct.

It has been argued that the most effective way to increase employment is to increase investment relative to GDP. True.

The investment share of GDP has the largest negative association with unemployment. True.

Reducing income tax rates on small business would be a correct move to reduce unemployment. True.

Reducing the anti-business sentiment of the Administration would be a correct move to reduce unemployment. True.

John A. Haslem