Econometer takes on labor force drop
Roger Showley, U-T SAN DIEGO
Friday, February 28, 2014
Kelly Cunningham, National University System
It is ludicrous to expect the economy to grow with fewer producers and greater government dependency. Falling labor force participation rates are bad for the economy and socially destructive. A system that penalizes producers and rewards non-producers is slated for failure. The CBO report underscores the flawed U.S. social safety net imposing high marginal rates on working class adults. Eligibility rules often mean individuals lose more than a dollar in benefits for every additional dollar they earn. It is long past time to restructure how we build safety net programs and combat poverty. Unleashing productivity results in greater economic growth.