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: Unemployment

Tax Cuts of Kansas Already Improving the State’s Economy

This article was first published at TheNewAmerican.com on Monday, July 14, 2014:

Kansas City Skyline 1

Kansas City, Missouri’s Skyline

When Kansas Governor Sam Brownback signed into law the first of several reductions in his state’s income taxes back in May 2012, he wrote:

Our new pro-growth tax policy will be like a shot of adrenaline into the heart of the Kansas economy. It will pave the way to the creation of tens of thousands of new jobs, bring tens of thousands of people to Kansas, and help make our state the best place in America to start and grow a small business.

By cutting the top tax bracket by 25 percent and eliminating taxes on small businesses altogether, he expected great things to happen:

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Texas Beats California: No Income Tax, Booming Economy, Friendly Folks

This article was first published at TheNewAmerican.com on Tuesday, July 8, 2014:

texas our texas

Texas, Our Texas!

Following Toyota’s announcement April 28 that it would be consolidating its three American business headquarters and moving them from California to a new $300-million campus in Plano, Texas, the debate over why has heated up once again. Toyota follows Occidental Petroleum (which is leaving Los Angeles for Houston, after being there for a hundred years), Raytheon (which is moving its El Segundo headquarters to McKinney, Texas), and Legal Zoom (the largest legal-issues website in the world, which has already moved from Los Angeles to Austin). In the past 18 months more than 50 companies have made the same decision to move from California to Texas.

Some say it’s because of the lower cost of living in Texas. The cost of living in Plano is about a third lower than in the Los Angeles-Long Beach area where Toyota is currently located. As calculated by the Dallas-based conservative think tank National Center for Policy Analysis, “People of all incomes will save in Texas,” according to Pamela Villarreal, a senior fellow at the institute. Some will save a little; others will save a lot by moving to Texas to keep their jobs with Toyota. As Villarreal explained, the calculation takes into account property taxes “which are pretty high in Texas” — about twice what they are in California for equivalently priced homes. Once real estate taxes are factored in, a single woman in Texas making $75,000 a year will have about $14,000 more in discretionary income than she would if she lived in California, but married workers making $150,000 a year who move from California to Texas would not see as dramatic a jump in discretionary income.

The Manhattan Institute says it makes sense for California companies to make the move to Texas, owing to California’s high taxes, oppressive regulations, expensive electricity, union influence, and the high cost of labor. According to the U.S. Energy Information Administration (EIA), the cost per kilowatt-hour for commercial establishments in California is 13.11 cents while it’s only 8.2 cents in Texas — a saving of almost 40 percent. For industrial users, the savings are even greater: 10.72 cents per KWH in California versus just 5.86 cents in Texas. That cuts a heavy user’s energy bill in Texas nearly in half. Advantage: Texas

The advantage enjoyed by Texas is reflected in the states’ comparative economic growth rates: nearly four percent last year in Texas versus half that in California. In job growth, Texas regained the jobs it lost during the Great Recession by May of 2011 while California just made it back to even by May of this year — a three-year difference in favor of Texas. Since May 2011, Texas has added more than a million new jobs, while California has added barely 25,000 new jobs since this past May. Advantage: Texas

According to the blog 24/7 Wall Street, Texas ranks eighth among the country’s most quickly growing states with GDP growth jumping by $1.5 trillion in 2013. Its population continues to grow as well, with unemployment below the national average. California is well off the pace. Advantage: Texas

Bradley Allen, a pediatric heart surgeon in Paso Robles, just announced his candidacy for Congress in California’s 24th district, and in the process noted the difference between California and Texas in an opinion article at the Wall Street Journal: “Texas has no state income tax, while California’s 13.3% marginal rate is the highest in the country. Electricity rates are about 50%-88% higher compared to Texas due to the Golden State’s renewable-energy mandate, and its gas is 70-80 cents per gallon more expensive because of taxes.” Advantage: Texas

Allen’s opponent is incumbent Lois Capps, who sports a dismal Freedom Index rating of just 21 out of 100 on constitutional issues. Out of California’s 53 congressional districts, 18 of them have FI ratings of 20 or lower, while just one has an FI rating of 80 or higher. In Texas, by contrast, just three representatives have a rating of 20 or less out of the state’s 36 districts, with one, Rep. Steve Stockman, holding an FI rating of 95. Advantage: Texas

One of the best measures of the difference between the two states is just how much a Californian would have to pay to move his family to Texas. In November 2012, a Californian living in San Francisco would pay $1,693 to rent a 20-foot U-Haul truck and drive it San Antonio. On the other hand, a Texan in San Antonio moving to San Francisco would pay just $893 for the same truck. (Since then the numbers have become even more favorable: A Californian moving his family on August 1 from San Francisco to San Antonio would have to pay $1,890 for the same truck while a Texan moving the other way would pay only $737.) Advantage: Texas

However, David Horsey, writing for the Baltimore Sun, noted that Californians moving to Texas will leave an awful lot behind:

California has Silicon Valley and Hollywood. Texas has oil and gas.

California has Barbara Boxer and Nancy Pelosi. Texas has Ted Cruz and Louie Gohmert.

In California, billionaires get taxed more to pay for programs for the poor. In Texas, billionaires get to keep their money, and the poor go without health care.

[California Governor Jerry] Brown got voters to approve a tax hike to balance the budget and fund education. [Texas Governor Rick] Perry balanced the budget by slashing spending on education.

In lots of places in California, it’s tough to live on a middle class family budget. In lots of places in Texas, it’s hard to live outside a church-going, football-loving, white, heterosexual lifestyle.

Absence of snarky, politically correct, bitter liberals. Advantage: Texas.

 

The President’s Latest Plan to Flood Colleges with New Students

 

College Students Spending Time Outside

College Students Spending Time Outside (Photo credit: York College of PA)

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, June 18, 2014: 

Mr. Obama has never been very good at math or in getting his facts straight. His misunderstanding of basic laws of economics, however, is breathtaking. Last week, on Tumblr, he announced his latest plans to make it easier for high school graduates to borrow their way into college. First he’ll cap their debt repayments at 10 percent of disposable income. Second, if they default after 20 years, their debts will be forgiven.

Often in error but never in doubt, the president said:

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President Announces plans to make College more Affordable

cardboard sign ... College Graduates. Lots of ...

cardboard sign … College Graduates. Lots of them and lots of debt. (FEBRUARY 16, 2012) …item 2.. Searching for jobs in Tallahassee is a burden (Jan. 23, 2013) … (Photo credit: marsmet531)

On Monday, June 9, President Obama announced new executive orders to make borrowing for college easier and less costly as part of his “year of action.” Speaking to students via Tumblr, the president said:

A higher education is the single best investment that you can make in yourselves and your future, and we’ve got to make sure that investment pays off…

In America, higher education opens the doors of opportunity for all…

He dusted off the old shibboleths that a college degree will improve chances to get hired and will result in higher earnings as well:

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Political Expediency wins over Economic Reality in Michigan

 

Lake Michigan Storm

Lake Michigan Storm (Photo credit: Tom Gill.)

This article first appeared at The McAlvany Intelligence Advisor on Friday, May 30, 2014: 

Michigan Governor Rick Snyder is no fool, but he’s also a realist: It’s an election year, pressure from the left to do something (even if it’s the wrong thing) is mounting, there’s a petition drive that could make things even worse, and so he caves and calls it good. In announcing that he signed into law a bill passed overwhelmingly by the legislature to raise the state’s minimum wage law by 25 percent over the next four years, he said:

This is something that is good for Michigan. It’s good for the hard-working people of Michigan and I believe it is economically sound….

I commend my [Republican] partners in the legislature for finding common ground on a bill that will help Michigan workers and protect our state’s growing economy.

Of course the new law will do no such thing.

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Michigan joins Other States in Raising Minimum Wage

Dollars

Seemingly determined to keep the state of Michigan near the bottom in employment rates among the fifty states, Republican Governor Rick Snyder signed into law Tuesday a bill to raise the state’s minimum wage by 25 percent. Snyder rejoiced that this was a good thing:

This is something that is good for Michigan. It’s good for the hard-working people of Michigan and I believe it is economically sound…

I commend my [Republican] partners in the legislature for finding common ground on a bill that will help Michigan workers and protect our state’s growing economy.

At present Michigan ranks 46th among the 50 states with an unemployment rate of nearly 9 percent. By preventing employers from employing those willing to work for less than the state’s new minimum wage, those willing workers won’t be employed. It’s the iron law of economics:

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There are Lies, Damned Lies and the Bureau of Labor Statistics

Mark Twain

Cover of Mark Twain

This article first appeared at The McAlvany Intelligence Advisor on Monday, May 5, 2014:

Perhaps the most famous quote regarding statistics comes from Mark Twain: “There are three kinds of lies: lies, damned lies and statistics.” The only trouble is that Mark Twain said it didn’t originate with him: he got it from British Prime Minister Benjamin Disraeli. But historians haven’t been able to find that phrase in any of Disraeli’s writings!

How appropriate is that? One cannot even validate a quote about statistics to prove

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Rosy jobs Report Headline fails to mask Continuing Underlying Weakness

English: CALEXICO, CA, 4-4-07 --- Hundreds of ...

Photo by Michael Raphael (Photo credit: Wikipedia)

The headlines from Friday’s jobs report from the Bureau of Labor Statistics (BLS) were rosy: employment rose by 288,000 (exceeding expectations) while the unemployment rate fell by 0.4 percent to 6.3, just above the rate dating back to September 2008.

The talking heads from the administration looked only at those headlines and took credit for the gains. Jason Furman, chairman of Obama’s Council of Economic Advisors, said

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Connecticut’s Governor as King Canute

Seal of the Governor of Connecticut.

Seal of the Governor of Connecticut. (Photo credit: Wikipedia)

This article first appeared at the McAlvany Intelligence Advisor on Monday, March 31, 2014:

King Canute appears to have been reincarnated in the body of Connecticut Governor Dannel Malloy. On Thursday, the governor announced, with great fanfare, that by raising the state’s minimum wage to $10.10 an hour, he will be simultaneously raising people out of poverty, restoring business confidence, and bringing days of wine and roses back to the Nutmeg State:

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Connecticut Raises its Minimum Wage to $10.10 an Hour

Governor's Agreement With State Employees

Governor’s Agreement With State Employees (Photo credit: CT Senate Democrats)

In a remarkable display of hubris and economic ignorance, Connecticut Governor Dannel Malloy proudly announced on Thursday that his state is the first to raise the minimum wage to $10.10 an hour:

This is just a step in moving people in the right direction.

We will be lifting people out of poverty in the state of Connecticut. Increasing the minimum wage is not just good for workers, it’s also good for business.

What the new law will really do as it is phased in over the next three years is

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The Minimum Wage: Economists and Weather Forecasters

English: Murray Rothbard in the 90's

Murray Rothbard in the 90′s (Photo credit: Wikipedia)

This article first appeared at The McAlvany Intelligence Advisor on Friday, March 21, 2004:

Establishment economists defending interventionist statist policies like the minimum wage really ought to get out more. Weathermen, when they head home after work, are going to be confronted immediately with the reality of their forecasts and the consequences of being wrong. Economists are rarely if ever visited by the consequences of their predictions when they turn out badly.

One such is Jared Bernstein, who has spent his professional life locked up in a cubicle somewhere,

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Fed Transcripts from 2008 Reveal Experts to be Clueless and Confused

English: President Barack Obama confers with F...

President Barack Obama confers with Federal Reserve Chairman Ben Bernanke following their meeting at the White House. (Photo credit: Wikipedia)

Followers of the Fed have carefully analyzed the 1,865 pages of transcripts it released in February of its eight regularly scheduled meetings and six emergency meetings in 2008 and have concluded that these experts were clueless and unaware of the opening economic abyss yawning before them. Even the New York Times was forced to admit, following its review of the documents, that

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Latest Survey: Small Business will lay off Workers if the Minimum Wage is Raised

Bob Funk, the entrepreneur who founded and now operates Express Employment Professionals (claimed to be the largest privately owned employment service in the country), holds that the best way to determine the impact of a proposed law is to ask those who would be directly affected. It reduces confusion, avoids extended discussions among economists who have never held a real job in their working lives, and eliminates spending on empirical studies designed with the desired outcome in mind. Said Funk:

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President Proposes Doubling the tax Subsidy for the Poor

President Obama’s proposal to double the earned income tax credit (EITC) for the working poor on March 4 came with all the attendant benefits such an expansion would provide: it would reduce poverty while encouraging people not working to get a job. It would expand the existing law to cover an additional 16 million families with 30 million children.

In his State of the Union Address in January, the president warned this was coming,

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Latest CBO Outlook Ignores Birth Rates and Tipping Points

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 5, 2014:

Just reading the headlines, the average citizen is likely to think that now that the deficits are under control Washington can focus on problems elsewhere. The Congressional Budget Office (CBO) estimated in May that the current year’s deficit would come in at $560 billion, half what it was just two years ago. In its report released on Tuesday, it was pleased to note that

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Argentina’s economy is cratering, again

While Wall Street declined by 3 percent over global growth concerns last week, few were noting or even interested in the 11 percent decline in the Merval, Argentina’s stock market index. It hit a high of 5,970 on Tuesday, January 21, the day before the Argentina government devalued its currency, and closed at 5,337 on Monday. The peso itself has been in decline far longer, having lost nearly

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1.3 million Lose Federal Unemployment Benefits, Another 2 million to Follow

Because the budget deal signed into law last week didn’t extend federal unemployment benefits, some 1.3 million people won’t be getting their $1,166 monthly checks, starting in January. By June another 1.9 million will be cut off.

Keynesians are sputtering nonsense about the need to extend benefits. President Obama called it an

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US Treasury sells the rest of its GM shares at a loss, claims taxpayer victory

Treasury Secretary Jacob Lew announced on Monday afternoon that his department had sold the remaining shares of GM that it acquired following the forced bankruptcy of the auto giant in 2009, and made the $10.5 billion loss sound like it was a victory:

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“Saudi Texas” is changing the world’s economic and political landscape

The virtual explosion in Texas’ production of natural gas and oil, thanks to fracking, caught even Citigroup off-guard. In February it apologized for so widely missing the mark in its report the previous year entitled “Energy 2020: Independence Day”:

Momentum toward North American energy independence accelerated last year [2012] well beyond the wildest dreams of any analyst and

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NJ Governor Christie Denies Running for President

Newly reelected New Jersey Governor Chris Christie was busy over the weekend explaining that his focus is back on running New Jersey and not worrying about running for president in 2016. For instance, in an interview on ABC’s “This Week” Christie said:

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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.