Housing, Jobless Benefits and Unemployment

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While there are varying views as to what tomorrow's unemployment report will reveal, it's generally assumed that the number will be too high. But what's not spoken of enough is how the very federal government seen as so eager to put people back to work is blocking the kind of recovery that would make more hiring possible.

To put it very simply, hiring is a cost born by investors and employers. And the problem with the latter in mind is that continued governmental efforts to drive non-market outcomes are reducing the amount of available capital for hires, all the while raising the cost of luring workers from the sidelines.

Somewhat ironically, efforts to prop up the housing market with an eye on jobs are actually making job creation more difficult. To understand why, it has to be remembered that there are no jobs without capital. Simple as that.

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