The Work Force

For John, BLUF:  This is a study of not everybody, but of those in the prime working demographic.  People who should be out in the labor force.  Nothing to see here; just move along.

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New Report Shows Growth of the Welfare State Has Fueled Long-Term Declines in the Labor Force

Here is the sub-headline:

Policies should incentivize employment; not discourage it.

From Foundation for Economic Eduction (FEE), by Journalist Brad Polumbo, 28 October 2021.

Here is the lede plus one:

A massive labor shortage continues to grip the nation and hold back our economic recovery.  With countless pandemic and policy factors influencing the shortage, there’s a heated debate over what’s keeping so many workers out of the labor force.  But a new study confirms that the growth of the welfare state is playing a massive role—and that this trend began long before the pandemic.

Published by experts on the Republican side of the Senate Joint Economic Committee, the analysis reports, “the U.S. has witnessed an unprecedented rise in disconnected prime-age workers over time.”  As shown in the graph below, the men’s labor force participation rate has fallen from more than 97 percent in 1955 to 89 percent prior to the pandemic, while the women’s labor force participation rate has declined in recent decades as well.

This is not good news for the economy.  But, few are talking about it.  We need more people working, so that the Democrats in Washington, DC, can collect more taxes, to pay for their plans.  Or, we could remove disincentives in the work force and use the extra Federal taxes to pay down our towering Federal debt.

The alternative future is this:

We are better off with people working.  Work is a virtue, as Commentator Lawrence Kudlow tells us.

Hat tip to the InstaPundit.

Regards  —  Cliff