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It's about the jobs, stupid!

A truly watershed moment took place on CNBC last week.

As "Mad Money" host Jim Cramer dropped in to say farewell to Larry Kudlow and "The Kudlow Report," Cramer made a surprising statement.

The life-long Democrat told Kudlow that he's finally "seen the light" and realizes that the Obama administration is indeed hostile to business thanks to the never-ending stream of regulations and costs it puts on hiring and commercial activity.

Cramer specifically cited the impossible regulatory maze that forces even the smallest businesses to use expensive payroll services like ADP or else take their chances with every agency from the IRS to the EPA.

But there's more — so much more.

Read More192,000 jobs added to nonfarm payrolls in March

Obamacare is the latest example. A new survey by the American Health Policy Institute shows that the ACA will add between $4,800 and $5,900 in new costs per employee and add hundreds of millions to their collective overhead.

I know, I know, our friends on the Left will dispute these numbers and even come up with a few studies that insist that the added costs from Obamacare and other new laws won't really affect hiring.

Here's where I'm going to ask everyone to ignore contradictory surveys and appeal to your common sense.

Remember when your parents told you that the things you wanted cost money? And then they told you that you'd have to choose the things you wanted most because you'll never have enough money to get everything you want?

Well, that's true even if we're talking about health care, clean water, and rear view backup cameras, etc. etc.

Someone has to pay for these things, and when someone pays for one thing, another thing is sacrificed. They also told us we had to have our dinner before we got dessert.

In the case of all these added costs, its corporations and small business owners who are doing the paying. Many times, the new costs for the latest new regulations aren't that high. But add it all up, and it's a death by a thousand cuts. And in the end, jobs are being lost.

Read MoreObamacare's problem: You can't fix stupid: Novak

That sacrifice comes in two ways. First, the highly efficient corporate world will continue to find more ways to get more done with fewer employees.

Second, smaller businesses don't expand, fold, or simply not get created in the first place because we've set the bar to entry way too high. And the small business effect is far more ominous, because small business is always the bigger driver of new employment. Unlike Corporate America small businesses can't always afford the more automated and efficient solutions, so they're more inclined to higher more people when they have a need. But not when those people come at an ever increasing and more complicated price.

The total number of jobs created every month doesn't show the whole story. Try focusing on the "hours worked" part of the jobs report instead. As economist Ed Lazear explained on CNBC last month, rising labor costs are forcing businesses and even state governments to cut total hours worked even as the economy as a whole adds jobs. The lost work hours are negating the job gains and then some. It's the equivalent of 1 million jobs lost since September.

Read MoreHow is the monthly jobs report compiled?

This all comes down to priorities. Yes, we want more health coverage, cleaner workplaces, more WiFi, etc. But getting more people employed was supposed to be the highest priority for both parties, wasn't it? You'd be amazed at how many other problems get solved when more people are actually working for better wages.

The March jobs report, released this morning, showed that 192,000 jobs were added to nonfarm payrolls. That was pretty good, considering the spotty recovery, but we didn't quite hit the number we wanted. Economists had expected 200,000, according to a poll by Thomson Reuters.

We could really get job explosion if we stopped building new hurdles.

Read MoreThe economy lessons hidden in 'Game of Thrones'

Of course, no matter what the report said, you know what comes next: Someone from the Obama administration will come on CNBC and honestly say that we need to do more to improve the job situation.

Well, everyone from Art Laffer to Jim Cramer is telling us how to do it: make it easier to hire by eliminating or at least suspending many of these regulations until we see real evidence of labor market improvement with more hours worked and real wage growth.

Keep it simple, stupid.

Jake Novak is supervising producer of "Street Signs." Follow him on Twitter @jakejakeny.

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