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

Illinois Governor Vetoes Chicago Bailout Bill

This article appeared online at TheNewAmerican.com on Monday, December 5, 2016:  

English: Source: http://www.chicagob2b.net/lin...

Illinois Governor Bruce Rauner vetoed a bill on December 1 that would have provided a $215 million bailout of the Chicago public schools. So certain were school officials that he would sign it — allowing them to make a past-due payment to the Chicago Teachers’ Pension Fund — that they made it a part of their budget for next year.

The original bill passed by Democrat supermajorities in both houses was for $700 million, but during negotiations Rauner, a Republican, agreed to $215 million instead, in exchange for a promise that the Democrats would institute real pension reform. Once the bill hit Rauner’s desk, however, all deals were off: Give us the money, said the Democrats, and forget pension reform.

Rauner’s veto message is instructive in several regards.

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Chicago Dreaming

This article was published by The McAlvany Intelligence Advisor on Monday, December 5, 2016:  

Chicago Public School Officials were so sure that they would get another bailout from the state that they actually put it into next years budget. The city is behind on making a $730 million pension payment due its teachers pension plan, and the $215 million they were expecting from the state would allow them to make it.

The bill that passed the state senate unanimously and the house overwhelmingly was headed for Governor Bruce Rauners desk for signing until Rauner (pictured) learned that the Democratic leadership had no intention of keeping their promise to institute significant pension reform in order to get the bailout.

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Venezuelan Currency Lost Half Its Value in November

This article appeared online at TheNewAmerican.com on Monday, November 28, 2016:  

Português: Brasília - O chanceler da Venezuela...

Nicolas Maduro

Bloomberg reported last Thursday that Venezuela’s currency — the bolívar fuerte or “strong bolivar” — has lost 45 percent of its purchasing power so far this month, with six days to go. The underlying cause was put simply by Professor Milton Friedman, a member of the “Chicago School” of economic free market thinking and winner in 1976 of the Nobel Memorial Prize in Economic Sciences: “Inflation is always and everywhere a monetary phenomenon … and can be produced only by a more rapid increase in the quantity of money than in output.”

On the other hand, Venezuela’s president, Nicolas Maduro,

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McDonald’s Response to $15 Minimum Wage: Automation in Every Store

This article appeared online at TheNewAmerican.com on Wednesday, November 23, 2016: 

English: The mdonalds logo from the late 90s

It’s official: McDonald’s says that every one of its 14,000 stores nationwide will be replacing order takers with automated touch-screen kiosks. They’re starting with stores where minimum-wage laws mandate the highest rates, such as Florida, New York, San Francisco, Boston, Chicago, Washington, D.C., and Seattle.

According to CNNMoney:

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Latest Jobs Report Masks Continuing Weakness


This article appeared online at TheNewAmerican.com on Friday, November 4, 2016:  

English: Bureau of Labor Statistics logo RGB c...

English: Bureau of Labor Statistics logo RGB colors. (Photo credit: Wikipedia)

The latest jobs report released by the Bureau of Labor Statistics (BLS) on Friday morning was trumpeted as reflective of an improving economy. The Wall Street Journal said the report “signal[ed] solid momentum in the labor market just days before American voters elect a new president,” while Jeffry Bartash, writing for MarketWatch, said it “shows the seven-year-old economic recovery still has plenty of life despite a slowdown in growth earlier in the year.”

A hard look behind the headline numbers — 161,000 new jobs created in October and the unemployment rate at 4.9 percent — reveals

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Tax Foundation Rates Tax Plans of Trump and Clinton: Trump’s Plan Wins

This article appeared online at TheNewAmerican.com on Thursday, October 20, 2016:

Tax Foundation

Tax Foundation (Photo credit: Wikipedia)

Analysis by the Tax Foundation of all that is currently known about the tax plans proposed by presidential candidates Donald Trump and Hillary Clinton concludes that, if enacted, Clinton’s plan would expand government at the expense of a shrinking economy. On the other hand, Trump’s plan would grow the economy, shrink government’s revenues, raise wages, and expand employment.

But it’s not tax “reform,” claims the study’s author, Kyle Pomerleau,

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What Does “Collapse” Look Like? See Venezuela.

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 19, 2016:

State flag of Venezuela.

State flag of Venezuela.

The term “economic collapse” has been bandied about for so long by so many that the phrase has largely lost its meaning. Michael Snyder has been able to make a living from his blog, “The Economic Collapse,” and there’s even a feeble attempt to define the term by contributors to Wikipedia:

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Candidates Silent as Government Spending Jumps, Deficit Increases

This article appeared online at TheNewAmerican.com on Monday, October 17, 2016:  

On Friday, the Treasury Department published the final revenue and spending numbers for the federal government for Fiscal Year 2016, which ended on September 30. According to Treasury’s report, spending increased significantly (by nearly five percent) over the previous year, to more than $3.8 trillion, while revenues remained essentially flat from the year before, at $3.25 trillion. That left a shortfall of approximately $600 billion, forcing the government to borrow 15 cents of every dollar it spent last year. And the two presidential candidates have remained disturbingly silent about the issue.

Said Robert Bixby, the executive director of the Concord Coalition, a non-partisan group that favors reducing the deficit,

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Behind the Jobs Report: Weakness in Manufacturing, Transportation

This article appeared online at TheNewAmerican.com on Friday, October 7, 2016:  

The headline number from Friday’s jobs report was a tepid 156,000 new jobs created in September. Not only did this number fall short of economists’ expectations of 170,000, it was 19-percent below the average job growth of the last three months and 22 percent below the level of monthly job growth of 229,000 in 2015.

The Bureau of Labor Statistics, the agency reporting from inside the Labor Department, was none too sanguine itself in reporting the results:

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Would Trump’s Corporate Tax Cut Help the Economy?

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

 Removing the noise and the histrionics from Monday night’s presidential debate, there is a clear division between the two major-party candidates on the state of the economy and what to do about it.

The Democrat candidate said that the economy is on the mend, that jobs are being created, that real incomes have just recently increased, and that the outlook for the economy is sanguine.

The Republican candidate held the opposite view: after seven years the economy is still struggling, the recovery is the weakest in recent memory, and the outlook is bleak.

The Wall Street Journal noted that Trump’s case is the stronger,

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Michel Temer, Brazil’s New President, Faces Massive Challenges

This article appeared online at TheNewAmerican.com on Thursday, September 1, 2016:  

English: The newly elected president of the Ch...

Brazil’s new president, Michel Temer

Just after being sworn in as Brazil’s new president, and just before jetting off to the G-20 meeting in China to hobnob with the global elites, Michel Temer took time on Wednesday to make a promise to Brazilians: “From today on, the expectations are much higher for the [new] government. I hope that in these two years and four months [when his term ends in 2018], we do what we have declared: put Brazil back on track.”

That’s an expression more of hope than reality: Little is likely to change except the name of Brazil’s president. Temer faces challenges that would stagger Godzilla:

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Venezuelan Exodus Accelerates

This article appeared online at TheNewAmerican.com on Wednesday, August 24, 2016:  

Prison 015

Since early July an estimated 300,000 Venezuelans have crossed the border into Colombia seeking to purchase basic necessities. Some decided to stay.

Eduardo (not his real name) used to make $18 a month as a systems engineer in Venezuela, but that wasn’t enough to feed his family. With inflation reducing the purchasing power of the Bolivar Fuerte by half nearly every month, he fled to Bogota to stay with a friend. Eduardo told the Financial Times: “At least I can find food here. Back in Venezuela we all lacked anything to eat. I’d rather stay here doing whatever [I can], rather than heading back while [Venezuela’s Marxist President Nicolas] Maduro and his cronies are there.”

An accountant who crossed the border into Colombia told the Times that he is going to stay even if “I have to stand at a corner all day selling arepas [a cheap food made from corn meal].”

Families of those who are staying in Colombia are hoping they will receive funds from the border-crossers in order to stay alive. Otherwise, they are likely to starve.

Most of those who can afford to leave the country have already left. The problems in Venezuela started with the takeover of the government by Marxist Hugo Chavez in 1999: First to feel the crunch were many of the 20,000 oil men that Chavez fired from their positions at the state-owned oil company. (Chavez replaced them with incompetent political cronies.) Then businessmen left the country to escape the currency controls imposed by Chavez. They were followed by students who saw the handwriting on the wall. In the last 17 years, an estimated 1.8 million Venezuelans have left the Chavez/Maduro socialist paradise.

Tebie Gonzalez and Ramiro Ramirez cashed out their emergency savings account in order to buy life’s essentials in Colombia in July. They returned home only to face the existential question: What happens when those staples — food and medicines — run out? What will they do?

Daya Silva, a native of Caracas, used a vacation in Buenos Aires to find a job. She found work and returned to Venezuela briefly, carrying a suitcase full of much-needed items for her friends and family: drugs to treat high blood pressure, essential kitchen supplies, and paper goods. But what happens to her friends and family when these run out?

The vast majority of Venezuelans are today facing the same question. Although the number of Venezuelans requesting refugee status has jumped from 127 in 2000 to 10,300 last year, according to the UN, that is a tiny fraction of the 30 million people remaining in the country. With unemployment at 17 percent (government figures are no longer available), with between 76 and 80 percent of the population living in poverty (again, no government numbers are available so these are estimates from independent sources), and with inflation destroying what’s left of the purchasing power of the local currency (inflation is expected to exceed 2,000 percent next year) the average Venezuelan has almost run out of options.

Relocating to nearby Colombia is an option, but Guyana, which borders Venezuela on the east, is having its own set of problems and is deporting Venezuelans back home as fast as they arrive. Brazil, on the south border, is no mecca either, with its own economy being wrecked by socialist policies.

In short, the average Venezuelan lives in a prison forged by the socialism imposed by Chavez and Maduro. The country more and more resembles a concentration camp where the guards are deliberately starving the inmates.

Brazil’s Senate Votes to Begin Impeachment Trial of President Rousseff

This article appeared online at TheNewAmerican.com on Thursday, August 11, 2016:  

Português do Brasil: O presidente Lula partici...

Rousseff and Lula before they were exposed as crooks

In the early hours of Wednesday morning, Brazil’s upper house, following 16 hours of speeches and rancorous debate, voted 59-21 to begin the impeachment trial of the country’s president, Dilma Rousseff (shown). The senate has 48 hours to prepare the impeachment papers, Rousseff has another 48 hours to prepare her defense, and then the actual date for the trial will be set, likely the week after the Rio 2016 Olympics have ended.

For all intents and purposes, however, the trial is already over.

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What Would the Apostle Paul say About the Minimum Wage?

This article was published by The McAlvany Intelligence Advisor on Friday, August 5, 2016: 

One can surmise from his instructions to believers in the church in Thessalonica: “When we were with you, we gave you this rule: Whoever will not work should not be allowed to eat.” What’s less clear is: what if government mandates keep one from working, or keep employers from hiring those willing to work?

St. Paul assumed that people had the freedom to contract out their labor, to sell the one primary thing they possessed: their time and effort in exchange for money. He also assumed that employers, given the opportunity, were free to hire someone who could add value to their businesses.

Minimum wage laws abrogate that essential freedom, with all manner of negative results. One,

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More Proof: Raising the Minimum Wage Increases Unemployment

This article appeared online at TheNewAmerican.com on Thursday, August 4, 2016: 

If more proof were needed that raising the minimum wage would increase unemployment among lesser-skilled workers, the Heritage Foundation’s latest study provides it.

For one thing, the push for a national minimum wage of $15 an hour would actually cost employers $18.61 an hour, thanks to payroll taxes, unemployment insurance and ObamaCare taxes. The proposed increase, if passed into law, would, according to Heritage, impact one-third of all American workers, and hurt the most those working in lower-cost states.

The math is simple, and deadly.

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Rio Gets $900M Emergency Disbursement From Gov’t for Olympics

This article appeared online at TheNewAmerican.com on Monday, June 20, 2016:  

Português: Placas promovendo a candidatura do ...

On Friday, just seven weeks before the Rio 2016 Olympic Games are to begin, the governor of the state of Rio de Janeiro, Francisco Dornelles, declared a financial emergency, saying that his state has run out of money.

In his official statement, Dornelles said the state — which is helping the city of Rio prepare for the Games, which begin on August 5 — is facing a “public calamity,” adding:

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Brazil’s Interim President Says “Trust Me,” Installs Corrupt Bureaucrats

This article appeared online at TheNewAmerican.com on Monday, May 16, 2016:  

Upon taking over Brazil’s presidency from disgraced former President Dilma Rousseff on Thursday, interim president Michel Temer asked his skeptical citizenry to “trust” him, saying that his new administration would be Brazil’s “salvation”:

Trust me. Trust the values of our people and our ability to recuperate the economy…. It is essential to rebuild the credibility of the country abroad to attract new investments and get the economy growing again…. It is urgent to restore peace and unite Brazil. We must form a government that will save the nation…. It’s urgent to seek the unity of Brazil. We urgently need a government of national salivation.

Even if he truly intended to do any of that, the challenges he faces almost defy description.

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Bad to the Bone: Brazilian President Promises to Appeal Her Impeachment

This article was published by The McAlvany Intelligence Advisor on Wednesday, May 11, 2016:  

Luiz Inácio Lula da Silva, 35th President of t...

Lula, the one who started Brazil’s present decline

Even before the upper branch of the Brazilian government – the Federal Senate – votes to impeach the country’s President, Dilma Rousseff, she has promised she will appeal her conviction to the country’s Supreme Court, which is populated with her own hand-picked cronies.

The corruption is so vast and runs so deep that the average Brazilian,

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Puerto Rico to Default on $422M Payment Today; Likely Another $2B in July

This article appeared online at TheNewAmerican.com on Monday, May 2, 2016:  

Puerto Rico continued its “death spiral,” with its failure to make a $422 million interest payment on Monday on some of the island’s gigantic $73 billion debt. This comes on the heels of missed payments over the last year, and will be followed up by a $2 billion payment due on July 1, which it is also widely anticipated to miss. The payment is due from the island’s Government Development Bank (GDB), the main bond issuer and the island’s fiscal agent.

So far Governor Alejandro Garcia Padilla (above) has, as noted previously in The New American, been able to keep the lights on and the water running by moving money around on the island’s balance sheet, paying only those with the highest and most enforceable claims and dealing as best he can with those holding lower credits. It was Padilla who said his island was in a “death spiral” as far back as last July, because his 3.5 million inhabitants, half of whom live in poverty, didn’t have the money.

But for decades Padilla and his predecessors acted as if they did have it,

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Nothing is Likely to Change in Brazil

This article was published by The McAlvany Intelligence Advisor on Wednesday, April 20, 2016: 

One of Warren Buffett’s favorite expressions is “when the tide goes out, everyone will see who’s been swimming naked.”  In Brazil the tide went out at the start of the Great Recession and now the whole world can see who was swimming naked.

When President Lula was elected in 2002 the commodity boom was underway, and Brazil was enjoying the ride. Its major exports are soybeans, sugar, and iron ore, and under Lula Brazil’s GDP was running 10 percent a year. Lula implemented major expansions of the welfare state, including putting in place such generous pension plans that state workers could retire at age 54 for men and at age 52 for women at 90 percent of their final pay. The average Brazilian’s household income rose, and statists worldwide pointed to Brazil’s success story, naming it as one of the BRIC countries that would soon overtake the developed nations of the world, and doing it while expanding government spending.

But when Dilma Rousseff took over in 2011 the Great Recession was revealing the true nature of spending far beyond the ability of the economy to sustain it. In 2014 the government’s finances were in such dreadful shape that

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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.