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

Finally, a Sensible Solution to Unemployment

Coat of Arms of American Samoa

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When Kevin Hassett, director of economic-policy studies at the American Enterprise Institute, wrote in Bloomberg.com that “the biggest problem with the labor market right now is that wages are too high,” it was the first positive sign of intelligent life in the mainstream media in some time.

Many have written about the damaging effects of minimum wage laws, federal and state unemployment insurance, and other interventions in the labor market that have kept workers out of jobs, including William HoarGary NorthJacob Hornberger, and Walter Williams.

But few have offered free-market solutions to the problem of unemployment in the Great Recession. Until now.

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Why Reich is Wrong

Robert Reich

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When former Labor Secretary Robert Reich offered his solutions for ending the Great Recession in the New York Times, he repeated the same errors expressed in a CNBC debate the week before.

Reich appears to have all the credentials for knowing what he is talking about: degrees from Dartmouth College, Yale Law School, and a Rhodes Scholarship to Oxford University. Having served as a law clerk to the chief judge of the U.S. First Circuit Court of Appeals and then assistant to the U.S. Solicitor General, followed by an appointment by President Jimmy Carter as Director of Policy Planning at the FTC, most would accept his opinions and suggestions for ending the recession as useful and relevant.

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How Relevant Is Ayn Rand Today?

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It was news to many when Scott Powell announced that an obscure novel published in 1957, Atlas Shrugged, “may be second to the Bible as the most influential book read in America.” His statement that BB&T, the 12th largest bank in America, which resisted taking TARP bailout funds, requires reading of that same book as part of its management training program astonished many more.

American Conservative Magazine noted that “a week before the President’s inauguration, more people were buying it than Obama’s Audacity of Hope.

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Fiscal Challenges: A Way Out

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(This article is a follow-up to Conjuring Magic To Cover States’ Debts.)

Economist Niall Ferguson of Harvard wrote an article entitled “Complexity and Collapse” for the March/April issue of Foreign Affairs, a publication of the Council on Foreign Relations. Ferguson uses the visual image of a series of paintings by Thomas ColeThe Course of Empire, which currently hangs at the New York Historical Society, to illustrate his point that every society goes through five stages. He says that Cole “beautifully captured a theory of imperial rise and fall to which most people remain in thrall to this day.”

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Conjuring Magic To Cover States’ Debts

SACRAMENTO, CA - JULY 21:   A sign stands in f...

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The first warning about the possible bankruptcy of the town of Vallejo, California, was reported by the Associated Press on February 28, 2008, when Councilwoman Stephanie Gomes said, “Our financial situation is getting worse every single day. No city or private person wants to declare bankruptcy, but if you’re facing insolvency, you have no choice but to seek protection.”

Marci Fritz, vice president of the California Foundation for Fiscal Responsibility, blamed the action on promises made earlier by the council to the city’s employees concerning salaries and retirement benefits that the city no longer can afford. According to Fritz, these were promises made during economically flush times, and were due to the city council’s unrealistic expectations that those times would continue indefinitely.

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Behind Friday’s Jobs Report: The Real Numbers

Confusing numbers

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Buried in Friday’s employment report from the Department of Labor Statistics were two key numbers that reflected the slowdown in the economy so long denied by the administration: “private sector employment edged up over the month (+71,000). Thus far this year, [such] employment has increased by 630,000, with about two-thirds of the gain occurring in March and April.” (Emphasis added.) The other appeared in the final paragraph of that report: “The change in total nonfarm payroll employment for May was revised from +433,000 to +432,000, and the change for June was revised [downward] from -125,000 to -221,000.” (Emphasis added.)

Taken together, these two numbers reflect the slowing of the economy that has occurred ever since Vice President Joe Biden predicted back in April that “some time in the next couple of months we’re going to be creating between 250,000 and 500,000 jobs a month.”

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Geithner: Welcome to Reality

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Claims that “we are on a path back to growth” by Treasury Secretary Timothy Geithner in an op-ed in the New York Times entitled “Welcome to Recovery” appeared to be based on facts, proof, and hard evidence.

“A review of recent data on the American economy…show that large parts of the private sector continue to strengthen,” he said. “Business investment and consumption…are getting stronger, better than last year and better than last quarter.” According to Geithner, evidence of growth can be seen because

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Temporary Unemployment Benefits—Permanent Welfare?

Horse And Handler Statue,  Department Of Labor

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The White House on July 21 extolled the extension of unemployment insurance by the Senate, claiming it was “not only the decent thing to do but one of the most effective ways to boost our economy.” President Obama signed the extension into law immediately, saying that this was “desperately needed assistance to two and a half million Americans who lost their jobs in the recession…Americans who…will finally get the support they need to get back on their feet during these tough economic times.”

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Great Depression II: Here We Go Again?

The Causes of The Great Depression / FDR Memor...

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The unremitting flow of negative news about the economy has finally caught the attention of the mainstream media, causing an increasing number of economists to make comparisons between today’s recession and the Great Depression.

David Rosenberg, Gluskin Sheff’s chief market economist, commented to his clients that the monster drop in new home sales in June compared to May was not exactly “a one-month wonder” but instead invited comparison of the current recession’s similarities with those of the Great Depression. He said they include:

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Still Waiting for the Recovery

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The economy has gained either 2.5 million jobs or 3.6 million jobs since the Recovery Act was signed into law in January, 2009, depending upon which statistical “model” is used, according to Christina Romer, Chair of the White House‘s Council of Economic Advisers. When compared to the report issued earlier this month by the Bureau of Labor Statistics, neither number is even close.

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Fixing State Budgets will be Painful

Carly Fiorina (MBA 1980), former CEO of Hewlet...

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Pew Research recently polled Americans about ways to bring state budgets into balance and found that respondents did not like any of the options. In its Congressional Connection poll released June 28, Pew Research asked if a federal bailout of financially troubled states should be considered. Barely one in four said yes. Nearly 60 percent said no, that the states should take care of their problems on their own.

Other options offered by Pew included cutting transportation funding, raising taxes, cutting health services, reducing spending for police and fire departments, and slashing the public school budget. Each of those options was also strongly opposed, often by majorities approaching 70 percent.

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The Millennial Generation, Jobs, and Reality

Generation Y

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In a microcosm, Scott Nicholson, at age 24, represents his Millennial Generation well: He graduated from college two years ago and is still looking for work.

But he’s optimistic nevertheless. He moved back into his parents’ home in an upper-middle-class neighborhood outside of Boston, and spends his mornings searching corporate websites for “suitable” job openings. His parents are feeding and clothing him, as well as paying his cell-phone charges and insurance premiums. But they are beginning to get concerned, especially when Scott was finally offered a position at a nearby casualty insurance firm, as a claims adjuster—and he turned it down.

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Financial Reform: Expanding Hubris, Limiting Freedom

Chris Dodd

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When the House passed the 2,319-page Dodd-Frank financial reform bill by a vote of 237-192, all it did was confirm for many the extraordinary hubris of legislators believing they could in fact “fix” the problems they themselves created which resulted in the Great Recession of 2008.

John B. Taylor,  professor of economics at Stanford University says, “The main problem with the bill is that is based on a misdiagnosis of the causes of the financial crisis…the presumption that the government did not [already] have enough power to avoid the crisis.”

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Sharron Angle vs. Harry Reid and the GOP

Senator Harry Reid, Senate Majority Leader

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Sharron Angle is going to have to learn how to fight with both hands in Nevada’s general election battle against Senate Majority Leader Harry Reid, as Manu Raju explains in two articles appearing at Politico.com here and here. With her left hand she will be busy fending off attack ads from the Reid camp for her “extremism,” and with her right hand soothing sitting Senators with whom she might well be working after the election.

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Is the Census Bureau Double Counting Jobs? [VIDEO]

Seal of the United States Census Bureau. The b...

When John Crudele quoted numerous Census Bureau workers about being hired, fired, and then rehired repeatedly, he called them “horror stories.” James O’Keefe, notorious and fearless investigative reporter, calls it part of a trend: “These days, Americans know that people in backrooms are taking advantage of their power. And they’re fed up with it.”

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Jobs? What Jobs?

Henry Hazlitt

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When CNBC announced that the number of workers filing new claims for unemployment benefits fell last week while private employers added new jobs in May, this was “further evidence [that] the labor market was improving.” In more muted fashion, the Associated Press called it a “slow-motion recovery,” but a recovery nevertheless.

This was in line with Vice President Joe Biden’s prediction back in April that the economy would be adding between 250,000 and 500,000 jobs “in the next couple of months.” Similar sentiments were echoed by President Obama on Wednesday in a speech at Carnegie Mellon University:

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Economic Forecast: Summer of Discontent

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After six straight months of gains in consumer spending the April numbers showed no change from March, according to the Commerce Department. This was a surprise to some who have been tracking such things as the University of Michigan’s index of consumer confidence (higher), consumers’ expectations on the economy over the next 12 months (higher), moderate real job creation (higher), savings rate (higher) and manufacturing activity (higher).

Others remained sanguine, holding that “We do not expect household spending to flatline in the coming months,” according to Michelle Girard, senior economist at RBS in Stamford, Connecticut.

Consumers themselves, however, are not a happy lot. According to Rasmussen Reports, only 35 percent of Americans are planning to take a summer vacation this year, and those who are, aren’t planning on spending as much as they have in the past.

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$13 Trillion and Counting

Tax Day Debt Protest 2009

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When former Comptroller General Bill Walker, who headed the U.S. Government Accountability Office, said two years ago that the “official” debt of the United States “is only around $10 trillion,” he wryly suggested that since this number was produced by “government accounting, which…allows one to ignore Social Security, Medicare and the new prescription drug benefit [it was like] ignoring rent, food and utilities in your household budget [and] it will lead to a few bounced checks.” However, he added, “Our real debt is about ten times higher,” or about $100 trillion.

At the time this was a breath-taking number, but Walker was just repeating what Richard Fisher, President of the Dallas Federal Reserve, had said just a couple of months earlier.

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Biden Predicts Job Growth—but Where’s the Evidence?

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Vice President Joe Biden predicted job growth of 250,000 to 500,000 jobs a month in the next two months, according to CNBC on Monday. Biden was speaking at a political fundraiser in Pittsburgh, where he said, “We caught a lot of bad breaks on the way down. We’re going to catch a few good breaks because of good planning on the way up…All in all, we’re going to be creating somewhere between 100,000 and 200,000 jobs next month.”  Even though some have cautioned Biden about his excessive and premature enthusiasm, Biden continued:  “I’m here to tell you some time in the next couple of months we’re going to be creating between 250,000 jobs a month and 500,000 jobs a month.”

However, the evidence and logic backing up Biden’s prediction are clearly lacking.

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Will America Get a Value Added Tax (VAT)?

President's Advisory Panel for Federal Tax Reform

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Former Federal Reserve Chairman Paul Volcker sent up a trial balloon at the New York Historical Society April 6 when he said that a Value-Added Tax (VAT) needed to be considered in light of the huge deficits facing the country. According to Volcker, the VAT is “not as toxic an idea” as many have considered it to be in the past, and “if at the end of the day we need to raise taxes, we should raise taxes.”

He wasn’t the first one to float this recently. Charles Krauthammer wrote late last month that “as the night follows the day, the VAT cometh” and that “a national sales tax near-universal in Europe is inevitable.” Because of the huge deficits facing the nation, exacerbated by the newly passed ObamaCare bill, there is no way out except to raise taxes, according to Krauthammer.

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