Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Jobs

Study: $15 Minimum Wage Would Force McDonald’s to Increase Prices 38 Percent

This article appeared online at TheNewAmerican.com on Monday, February 20, 2017:

English: The official logo.

James Sherk, a Hillsdale graduate and now the Bradley Fellow at the Heritage Foundation, found that if a $15 minimum wage is enforced across the country, fast food prices will jump far more than initially thought. A 10-piece Chicken McNuggets, currently priced at $4.49, would jump to $6.20. A Starbucks Grande Mocha Frappuccino would increase from $4.56 to $6.29, while a 6-inch turkey sub at Subway would cost $5.87, up from $4.25. A Whopper Meal from Burger King would jump to $8.96 from $6.49.

A CrunchWrap Supreme, Crunchy Taco and large drink from Taco Bell would cost $8.27, up from $5.99; a Wendy’s Son of Baconator Combo, currently $6.69 would cost $9.23; a Chick-fil-A Chicken Sandwich Combo, priced at  $5.95, would cost $8.21; and a Pizza Hut Medium Hand-Tossed Cheese Pizza, on today’ menu at $11.95, would jump to $16.55.

That’s a 38-percent increase, far higher than many old-school economists have concluded, and it puts the lie to union claims that raising the minimum wage to $15 an hour would result in a transfer of wealth from rich business owners to low-paid workers. Sherk’s analysis concludes that there would be a transfer, but it wouldn’t be from the business owners: It would be from their customers.

First, those owners with a McDonald’s franchise aren’t rich and they’re not likely to become rich. Ed Rensi, who worked for McDonald’s for 30 years, ending up as the company’s CEO in 1991 and retiring in 2007, told Forbes:

Keep Reading…

The Broken Promise of Minimum wage laws

This article was published by The McAlvany Intelligence Advisor on Monday, February 20, 2017:

The promise is that by requiring businesses to pay their employees $15 an hour, the net result is that everyone will live better. The low-paid people will have more money to spend, the upward “ripple” effect on other higher-paid people in the organization will also have more money to spend, the economy will grow, there will be more jobs hiring people who will then have more money to spend, and so on into the woodwork.

This was the claim by that “poverty” expert, former Senator Teddy Kennedy whose family’s wealth extended backwards for generations, who said that

Keep Reading…

Blowing Up the Globalists’ Plans

This article was published by the McAlvany Intelligence Advisor on Monday, February 13, 2017:

Logo of United Nations Refugee Agency.Version ...

Logo of United Nations Refugee Agency.

The Royal Institute of International Affairs (RIIA) grew out of failure. Known alternatively as Chatham House, it was conceived during the Paris Peace Conference of 1919 (also called the Versailles Peace Conference). It was decided that, once the so-called “peace” terms were put in place to punish Germany and its allies after the War to end all wars, various insiders decided a one-world government was needed to keep such a catastrophe from occurring in the future. It birthed the

Keep Reading…

Realtors in Vancouver Moving to Seattle Along with Investors

This article was published by The McAlvany Intelligence Advisor on Friday, February 10, 2017:  

Vancouver on a rainy day

Vancouver on a rainy day

The collapse of the real estate market in Vancouver, BC, is forcing realtors there to “double-license” in Seattle (where home prices are half what they are in Vancouver) in order to stay in business. Some of them are representing sellers with property in Vancouver who are simultaneously buying in Seattle. The ripple effect in Vancouver is impacting builders and construction workers as well as those in related service industries.

Back in August, the tune was much different: home prices had increased by 50 percent over the previous three years thanks to foreign investors wanting property in Vancouver. “It’s a bubble!” was the cry and so do-gooder politicians in the local government decided to erect a tariff: starting on August 1 the “foreign buyer transfer tax” of 15 percent would be imposed on any foreign buyer of real estate in the city.

Within six weeks the high end of the market was off by 20 percent, and realtors were scrambling, builders were pulling back, and workers were being laid off.

The parallel with Trump’s plans to build a wall along the country’s southern border through tariffs of 35 percent is uncanny, with the results likely to be the same as Vancouver’s. Fred Floss, the chairman of the economics department at SUNY Buffalo State, says that imposing a tariff on Mexico will have a similar slowing effect in the United States. Because the US mainly imports auto parts and small engines from Mexico, “anything that has a small engine in it will start to cost more … the scary thing is that a lot of those motors go into things Americans make. So if all of a sudden it gets to be more expensive to make goods in the United States, then we’re going to start to see layoffs because our goods aren’t going to sell.” He added: “In other words, [Americans are] going to pay the cost of the wall” both directly and indirectly.

The ripple effect in Vancouver is just beginning to be felt as the slowdown starts to impact support jobs related to the real estate industry. Homeowners who have enjoyed seeing their paper profits escalate are now facing the new reality: their homes aren’t worth what they were as recently as last summer, and those who took advantage of low rates either to buy new or obtain a home equity loan are increasingly finding themselves underwater and unable to find a buyer to bail them out.

International trade unhampered by tariffs benefits consumers and sellers alike. Every trade results in each party being better off economically. Competition drives the prices of goods and services down, allowing purchasers to enjoy a higher standard of living. Those profiting from making the products consumers want, whether they be small motors, cell phones or automobiles, will be encouraged to expand their production, hiring new workers who then are able to increase their own purchasing power. Ad infinitim.

Adam Smith was right:

Every individual necessarily labors to render the annual revenue of the society as great as he can….

 

He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention…. (emphasis added)

 

By pursuing his own interests, he frequently promotes that of the society more effectually than when he really intends to promote it.

And then Smith adds his warning for Mr. Trump:

I have never known much good done by those who affected to trade for the public good.

Meddling always has its unintended consequences. Is Mr. Trump aware of what’s going on in Vancouver?


Sources:

The Wall Street Journal: For Chinese Home Buyers, Seattle Is the New Vancouver

Seattlepi.com:  Vancouver smacks Chinese with real estate tax, but will they head south?

Background on US tariffs

WGRZ.com: How the Trump Tariff Proposal may Impact your Budget

Investopedia:  The Basics Of Tariffs And Trade Barriers

Adam Smith’s “invisible hand” quote

Is Vancouver Tax on Foreign Investors a Lesson for Trump?

This article appeared online at TheNewAmerican.com on Thursday, February 9, 2017:

View on Vancouver on October 1, 2005

Vancouver, B.C.

The impact of the 15-percent “foreign buyer transfer tax” — a real estate tax that is only applied on foreigners, not Canadians — levied by Vancouver, a West Coast city in the Canadian province of British Columbia, was felt almost immediately: Real estate prices began falling, realtor listings took longer to sell as buyers disappeared, and, consequently, revenues anticipated from instituting the tax aren’t likely to meet expectations.

Observers said the tax was levied to protect the local real estate market from becoming “overheated” thanks to increasing demand from foreign investors. “Remember the Great Recession” became the mantra. What goes up must come down, etc. Indeed, prices have increased by nearly 50 percent over just the last three years, driving the median cost of a home in Vancouver to $1.5 million.

Members of the city council imposed the 15-percent tariff on August 1, and by the end of September investment in the high end of the market had already dropped

Keep Reading…

Intel’s Announcement of New Arizona Plant Negates Trade Deficit Concerns

This article appeared online at TheNewAmerican.com on Wednesday, February 8, 2017:

US-DeptOfCommerce-Seal

Brian Krzanich, head of Intel, probably didn’t know he was making the case for free trade, despite the fact that trade deficits happen, when he announced from the White House on Wednesday morning his company’s plans to build a new plant in Chandler, Arizona. In a microcosm, his announcement perfectly expressed just how free trade between nations and their citizens generally benefits everyone. Krzanich said his company was planning to build a $7 billion microchip plant in Chandler that would directly employ 3,000 people with “high-paying jobs,” and generate a total of 10,000 jobs when support services for those new jobs are factored in.

Krzanich said that most of Intel’s customers are overseas. Last year Intel’s gross revenues exceeded $10 billion, so, doing the math, it’s likely that Intel will sell $6 to 8 billion worth of chips to foreigners. That creates a trade “surplus” for the United States of between $6 and $8 billion. That will offset some of the trade “deficit” just announced by the Commerce Department the day before, of about $500 billion, an announcement that was met with much wringing of hands and gnashing of teeth by economists claiming that that deficit put the United States at some type of unfair disadvantage to the rest of the world.

However, in the real world, trade deficits are not necessarily bad. When someone buys an automobile or a t-shirt or a cellphone, the money they spend winds up as revenues for manufacturers located overseas. Then those manufacturers have excess American dollars that are now available for investment. Many of those dollars get cycled back to the United States, either by buying U.S. goods and services, or U.S. treasuries, or real estate or businesses, which then generate more products to sell overseas.

In 2016, Americans bought from foreign countries $171 billion worth of automobiles, engines and auto parts, $94 billion worth of clothing, $80 billion of crude and refined oil products, $73 billion of cellphones and other household goods, $58 billion of pharmaceutical drugs, with the balance made up of telecommunications equipment, toys, games, sporting goods, televisions, and video games.

In return foreigners — individuals, companies and governments — bought from the United States $65 billion worth of civilian aircraft and engines, $86 billion on travel to the United States, $78 billion on “intellectual property rights” (mostly leases or patents that foreign companies pay to American companies), $70 billion on financial services, with the rest made up of soybeans, chemicals, and newsprint.

The difference is $502 billion. Americans spent $502 billion more abroad than foreigners bought from us. Is that a problem?

Not for companies such as Intel. Its highly regarded technology, in the form of microchips that outperform its competitors, is in great demand worldwide. Foreign companies will use some of those American dollars that Americans spent to buy them. Intel, for its part, will invest billions in new plants and in hiring new people, paying them good salaries, in order to supply that foreign demand. Intel certainly hopes that foreigners will continue to buy them in massive quantities so that it can continue to expand, build, and hire, and so forth.

As Dan Griswold, writing for Cato, put it: No one would do business with anyone else unless both were better off afterwards:

Nations do not trade with each other: people do. America’s trade deficit with the rest of the world is only the sum of the individual choices made by American citizens. Those choices, to buy an import or to sell an export, only take place if both parties to the transaction believe it will make them better off.

In this way, the “balance of trade,” is always positive.

However, Griswold is likely putting too kind a face on trade deficits, per se, for while free trade seems universally beneficial, the use of fiat money — money not backed by a valuable asset such as gold — in the process of trading could lead to hyperinflation in a country, causing widespread devastation. Whether one calls that a trade problem or a currency problem, it is still a problem inherent in trade, maybe especially for the United States. See the article “So I’m Told Trade Deficits Are Good.”

In general, though, if politicians made it even easier for companies here and abroad to do business, then everyone would be even better off, and concerns about trade “wars” and “tariffs” and “mercantilism” would fade back into the woodwork where they belong.

Jobs Report: Across-the-board Growth, Except for Government

This article appeared online at TheNewAmerican.com on Friday, February 3, 2017:

Friday’s jobs report from the Labor Department’s Bureau of Labor Statistics (BLS) for January surprised on the upside in almost every category with job growth of 227,000 new jobs, beating economists’ predictions by more than 50,000. The report reflected numbers from the week before President Donald Trump was inaugurated, and showed growth in every major category, including manufacturing. On the flip side, government employment dropped by 10,000 jobs.

This is the best jobs report in the last four months, and exceeds 2016’s average monthly jobs growth of 187,000. Construction added 36,000 jobs, retail trade added 46,000 jobs, financial services grew by 32,000 jobs, professional and business services increased by 39,000 jobs, education and health services jumped by 24,000 jobs, leisure and hospitality added 34,000 jobs, and manufacturing added 5,000 jobs.

The job market was attractive enough to entice those not in the work force to begin to look for work once again, increasing the workforce participation rate. The labor force increased by 584,000 in January while wages continued to increase, rising 2.5 percent over the past year, and long-term unemployment dropped.

The report reflected a positive change, especially in manufacturing versus government. Over the last year the manufacturing sector lost 46,000 jobs while government employment under the Obama administration jumped by 162,000 jobs. Future reports from the BLS will confirm whether the January reversal has legs.

The January report is merely a snapshot of an economy in transition, which makes it difficult to draw long-term conclusions. Part of its rosy tone may reflect anticipation of the fulfillment of Trump’s promises, such as repealing ObamaCare, cutting taxes and regulations, and removing executive-order impediments that flowed from Obama’s pen especially as he was making his exit.

A broader picture suggests that, as good as the report is, the underlying economy is doing even better. Baby Boomers are exiting the jobs market and retiring at an estimated 10,000 every day. That’s nearly four million leaving the workforce every year. And it could continue for years as the Baby Boomer cohort exceeds 75 million.

There’s also the factor of robotics increasingly replacing jobs as cost-cutting continues to drive automation, along with the push from minimum-wage laws. And yet the jobs report reflected a growing economy that is able to overcome those negatives.

In addition, there is the difficulty of measuring exactly how many people are working and for whom. The Wall Street Journal raised the issue in its recent report “The End of Employees,” which said, “Never before have American companies tried so hard to employ so few people.” The problem, said the Journal, is that “no one knows how many Americans work as contractors, because they don’t fit neatly into the job categories tracked by government agencies [such as the BLS].”

For example, Southwest Airlines has about 53,000 real full-time, full-benefits employees, but another 10,000 outside employees. Google’s parent Alphabet uses contract staff from various outside staffing agencies such as Zenith Talent, Filter, and Adecco, running up an annual bill for those services in excess of $300 million. When Todd Gibbons, CEO of the Bank of New York, was quizzed on the matter, he responded, “It’s just too hard to tell exactly what’s going on with [our] head count and how people compute it and whether [we’ve] got contractors versus full-time employees.” If he doesn’t know how many people work for BNY, how would the BLS know?

What is clear is that January’s report, if it is sustained in the months ahead, reflects the new paradigm emanating from Washington: one of support and encouragement backed by real efforts to unleash the free market by removing some (many) of the impediments placed before it by previous administrations.

Apple Supplier Foxconn Negotiating $7 Billion Plant in Pennsylvania

This article appeared online at TheNewAmerican.com on Monday, January 23, 2017:

Speaking at a meeting at company headquarters in Taiwan on Sunday, Foxconn CEO Terry Gou (shown, on left) expanded on his company’s plans to build a $7 billion flat-panel display facility in Pennsylvania. He said the factory could employ between 30,000 and 50,000 people, depending on what kind of deal he could strike with state officials.

Those plans were inadvertently disclosed following a meeting in December between Donald Trump and Softbank CEO Masayoshi Son. A photo revealed a clipboard Son was carrying that clearly said:

Keep Reading…

Is Obama Worst U.S. President?

This article appeared online at TheNewAmerican.com on Friday, January 20, 2017:

English: President Barack Obama's signature on...

President Barack Obama’s signature on the health insurance reform bill at the White House, March 23, 2010.

If one asks Joe Hoft, a corporate executive with a Fortune 300 company based in Hong Kong about President Obama’s economic policies during his eight years as president, he will note that Obama “currently ranks as the fourth worst president on record in GDP growth.” At just 1.45 percent average annual GDP growth over those eight years, only Herbert Hoover (minus 5.65 percent), Andrew Johnson (minus .7 percent) and Theodore Roosevelt (1.4 percent) have worse records. However, “Barack Obama will be the only U.S. president in history who did not deliver a single year of 3.0 or better percent growth.”

Hoft will remind us that

Keep Reading…

New Job Announcements Before Inauguration More Political than Economic

This article was published by The McAlvany Intelligence Advisor on Wednesday, January 18, 2017:

President-elect Donald Trump has mercilessly hammered American companies with overseas operations, and the message is coming through loud and clear: bring them back, keep them here, or pay dearly once he is in office.

Ford changed its plans, cancelling a project in Mexico and expanding a facility here. Fiat did the same as did Toyota. Sprint’s plans to add new jobs coupled with Lockheed Martin’s willingness to work with Mr. Trump even before he is president all reflect the new reality: Trump plans to keep his campaign promises and create jobs here.

What makes the recent announcements by General Motors and Walmart suspicious is that they not only are timed to appear just before the inauguration, but they also

Keep Reading…

GM, Walmart, Amazon Announce New Jobs Ahead of Trump’s Inauguration

This article appeared online at TheNewAmerican.com on Tuesday, January 17, 2017:

English: Trump

First it was Amazon, announcing last week that it will be creating 100,000 new full-time jobs in the United States over the next 18 months. Said Jeff Bezos, Amazon’s CEO, “These jobs are not just in our Seattle headquarters or in Silicon Valley, they’re in our customer service network, fulfillment centers and other facilities through the country.” When in place Amazon will be employing nearly 300,000 people in the United States.

President-elect Donald Trump was pleased to take some credit,

Keep Reading…

Fiat Chrysler Announces $1 Billion Investment in U.S., Creating 2,000 Jobs

This article appeared online at TheNewAmerican.com on Wednesday, January 11, 2017:

Italiano: Sergio Marchionne

Sergio Marchionne

Fiat Chrysler Automobiles (FCA), the American arm of Fiat-Chrysler, announced on Sunday that it was investing $1 billion in expanding its plants in Warren, Michigan, and Toledo, Ohio — a move which would result in 2,000 new jobs by 2020: “Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup.”

Some have speculated that

Keep Reading…

Trump Meets With Ma: One Million U.S. Jobs Over Five Years?

This article appeared online at TheNewAmerican.com on Monday, January 9, 2017:

Jack Ma, Founder of Alibaba Group

Jack Ma, Founder of Alibaba Group

Monday morning’s meeting between President-elect Donald Trump and Alibaba Executive Chairman Jack Ma, said to be China’s second-richest man, is the latest likely to generate more U.S. jobs. Following on the heels of a meeting in December with Masayoshi Son, the founder of venture capital firm Softbank, Trump continues his quest to bring new jobs to the United States. That meeting with Son ended with the announcement that Softbank would be creating 50,000 new jobs in the United States by 2018.

The details of Monday’s meeting are unclear, but the potential is enormous.

Keep Reading…

Ford Cancels Plans for Mexico Plant, Shifts 700 jobs to United States

This article appeared online at TheNewAmerican.com on Wednesday, January 4, 2017:  

English: Ford Motor Company Headquarters, Dear...

Ford Motor Company Headquarters, Dearborn, Mi.

When Bill Ford, Ford Motor Company’s executive chairman, called President-elect Donald Trump on Tuesday to inform him of his company’s decision to cancel its plans to build a new plant in Mexico and instead shift some of those new jobs to Michigan, liberal eyebrows were raised. Was this a “capitulation” to Trump? Was it a “sell-out?” Was it a “peace offering?”

CNN’s Poppy Harlow interviewed Ford’s president and chief operating officer Mark Fields following the company’s announcement, attacking him mercilessly with loaded questions. She peppered him with insinuations that

Keep Reading…

Trump Says Sprint, OneWeb to Create 8,000 New Jobs in U.S.

This article appeared online at TheNewAmerican.com on Friday, December 30, 2016:  

Donald Trump & Melania enter the Oscar De LA R...

President-elect Donald Trump announced on Wednesday that 5,000 new jobs are being planned by Sprint in the United States, and another 3,000 jobs are being created here by a satellite venture company in Florida called OneWeb. Said Trump:

Keep Reading…

LOL Illinois: Corporate Group Works to Keep State From Becoming a Laughingstock

This article appeared online at TheNewAmerican.com on Wednesday, December 28, 2016:  

English: 1987 Illinois license plate

The name of the group LOL Illinois can taken two ways: Land of Lincoln, or Laughing Out Loud. As Scott Santi, chairman of Illinois Tool Works, which employs 48,000 workers around the world, noted:

There’s a crisis of confidence in terms of a plan to address some pretty significant structural problems in the state. It’s challenging for Illinois to be competitive given the uncertainty around the fiscal crisis.

“Crisis of confidence”? “Challenging”? “Uncertainty”? Illinois was headed into oblivion until Bruce Rauner, the first Republican governor in 12 years, faced reality.

Keep Reading…

Trump Names Carl Icahn Special Advisor on Deregulation

This article appeared online at TheNewAmerican.com on Thursday, December 22, 2016:

President-elect Donald Trump has named a longtime close friend as his “special advisor” on deregulation: multi-billionaire activist Carl Icahn. In acknowledging the honor, Icahn stated, “It’s time to break free of excessive regulation (see above) and let our entrepreneurs do what they do best: create jobs and support communities.”

Icahn started as a stock trader and then moved into a position where he could

Keep Reading…

Trump’s Labor Secretary: Fast-food Magnate Is Anti-Minimum Wage

This article appeared online at TheNewAmerican.com on Friday, December 9, 2016:  

CKE Restaurants

When President-elect Donald Trump nominated Andy Puzder, the head of CKE Restaurants (Hardee’s and Carl’s Jr.), on Thursday, he called him the “ideal candidate,” stating, “Andy Puzder has created and boosted the careers of thousands of Americans, and his extensive record fighting for workers makes him the ideal candidate to lead the Department of Labor. Andy will fight to make American workers safer and more prosperous by enforcing fair occupational safety standards and ensuring [that] workers receive the benefits they deserve. [In addition] he will save small businesses from the crushing burdens of unnecessary regulations that are stunting job growth and suppressing wages.”

Puzder is ideal in more ways than one.

Keep Reading…

“Upside Sensitivity” the New Buzzword as Companies Plan for Trump Economy

This article was published by The McAlvany Intelligence Advisor on Friday, December 9, 2016: 

English: Photo of the AT&T Midtown Center in M...

AT&T Midtown Center in Midtown Atlanta, Georgia.

AT&T’s Chief Executive, Randall Stephenson, spoke to a UBS investment conference on Tuesday, introducing a new phrase that more and more American companies will shortly be adopting: “upside sensitivity” studies. He spoke of how less government oversight and lower taxes would impact his business, expressing optimism that “a more moderate approach to some of those regulations is in the making under a Trump administration.” He then added:

Keep Reading…

U.S. Steel Latest to Bring Jobs Back to the United States

This article appeared online at TheNewAmerican.com on Thursday, December 8, 2016:  

U.S. Steel

In an interview with CNBC on Wednesday, U.S. Steel’s CEO Mario Longhi said he’d like to bring back up to 10,000 jobs to the United States:

We’re already structured to do some things, but when you see in the near future improvements to the tax laws, improvements to regulation, those two things by themselves may be a significant driver to what we’re going to do….

 

I’d be more than happy to bring back the employees we’ve been forced to lay off during [the Great Recession].

His company used to employ 37,000 people but that dropped to just 21,000 as of last December, thanks not only to the Great Recession and its almost immeasurably small recovery but also due to excessive regulations:

Keep Reading…

Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.