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Jobless claims data calms concerns on labor market
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Jobless claims data calms concerns on labor market
Lew calls on Europe to pursue pro-growth policies
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Townhall Finance – One of the great things about federalism, above and beyond the fact that it both constrains the power of governments and is faithful to the Constitution, is that is turns every state into an experiment.
We know, for instance, that people are leaving high-tax states and migrating to low-tax states.
We also know that low-tax states grow faster and create more jobs.
I particularly enjoy comparisons between Texas and California. Michael Barone, for instance, documented how the Lone Star State is kicking the you-know-what out of the Golden State in terms of overall economic performance.
I also shared a specific example of high-quality jobs moving from San Francisco to Houston. And I was also greatly amused by this story (and accompanying cartoons) about Texas “poaching” jobs from California.
In this discussion with Stuart Varney of Fox News, we discuss how Texas is leading the nation in job creation. More
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Stock market falls, hurt by technology companies. J.C. Penney cut 27% workers in 2012. Lululemon’s Yoga Pants Miscue to Hurt 2013 Results. Commerzbank hires Citi banker as equity capital markets head
Ross Perot famously observed that the North American Free Trade Agreement would cost so many US jobs that there would be a “great sucking sound” as they were pulled across the border. He may have been wrong about NAFTA in particular, but was prescient about the intersection of market forces and government policy. America would have done well in the 1990′s to ponder the consequences of globalization and the rise of China and India.
Supporters of Barack Obama jump at every positive wiggle in job statistics as proof that the recession is over and the economy has recovered. But when one examines the data more closely, something is always crawling out from underneath the rocks. Mike Shedlock at Market Watch takes a look at the superficially cheerful news that robust job growth in February caused a dip in the official unemployment rate to 7.7%.
Shedlock points out that the household survey, on which the official rate is based, showed an increase of 170,000 jobs, which includes an increase of 446,000 part-time jobs. But if you assume that the part-time jobs are being taken by people displaced from full-time jobs, you come up with a potential loss of 276,000 full-time jobs. Shedlock believes the rosy numbers will be revised downwards.
Not to worry, though - the spinmeisters always come up with a new story to please the Obama cultists.
The reality: Obamacare is starting to bite. It imposes expensive health care mandates on employers whenever employees work more than 30 hours per week. Not surprisingly, employers in a weak economy are cutting hours with a vengeance as they prepare for the full implementation of the Affordable Health Care Act. The predictable result: fewer full-time jobs, many more part-time jobs, and no real improvement in the employment picture apart from statistical noise. People are shuffling along a downscale path to lower compensation, longer hours, unstable employment tenure and ever-increasing reliance on government benefits to make ends meet.
Image credit: Allan Warren via Wikipedia
Very interesting analysis from the Phoenix Center:
Friday, absent Congressional and Presidential action, the Budget Control Act’s Sequester kicks in, forcing across-the-board spending cuts of $1.1 trillion spread out over nine years, with $85 billion cuts coming in 2013. Without question, this reduction in federal spending will impact the economy, particularly as we measure it. Government spending is a component of aggregate demand, and reduced demand in the economy will have its consequences. Also, government spending is a component of Gross Domestic Product (about 23% of it), and since recessions are indicated (in part) by declining GDP, a cut in federal spending increases the probability of an indicated recession by the simple math of it.
While such mandatory cuts will be painful, there nonetheless may be a “silver lining” to the Sequester: Forced reductions to the operating budgets of many federal regulatory agencies may lead to increased economic growth.
As we noted last year in our paper entitled Regulatory Expenditures, Economic Growth and Jobs: An Empirical Study, my colleagues and I at the Phoenix Center used fifty years of data and modern econometric methods to quantify the relationship between government spending on regulatory activity and the important goals of economic growth and job recovery. We found that reducing the size of the federal regulatory budget by even modest amounts will have significant positive effects on both GDP and private sector job growth. Since a portion of the Sequester cuts hit regulatory agencies, these mandatory cuts may offer a positive influence on economic activity.
Assessments of the budget impacts of the Sequester indicates that a number of federal regulatory agencies will see meaningful cuts. The budgets of the Department of Energy, the Environmental Protection Agency, and the Department of Labor are expected to see cuts of about 8%. Not all regulatory agencies are affected, however.
Using the results from our study, we can make some predictions about how the Sequester’s mandatory budget cuts may positively impact our economy. As you can see in the table below, our analysis indicated that even a small 5% reduction in the regulatory budget will result in about $75 billion in expanded private-sector GDP each year. While the reduction in spending will reduce government employment by about 12,000 jobs, the economy is predicted to see an increase in employment of 1.2 million jobs annually. Roughly, eliminating the job of a single regulator grows the American economy by $6.2 million and nearly 100 private sector jobs annually. A regulatory budget cut of 10% produces an additional $149 billion in GDP and 2.4 million private sector jobs. As we measured it, the decline in the regulatory budget is likely to be closer to the 5% figure, so it may be that whatever economic activity is lost from the reduction in government expenditures, it could be made up by the stimulation of economic activity in a less-regulated economy.
It is, of course, hard to say exactly what the full economic impacts of the Sequester will be, since its implementation will be complex, spread over time, and distributed across a number of agencies and economic sectors. However, the Sequester does reveal a lot about the state of the country—i.e., our quality of government—than just the immediate impacts of a spending cut. Sequestration is not just about dollars; instead, the sequestration process speaks (and has spoken) to the competence and courage of our nation’s leaders.
ISSA: The President’s Across-The-Board Pay Hike Flies in the Face of Debt Reduction
“What actually is being asked to be given up by the typical federal worker – the one the President is calling a huge sacrifice – is $274 per employee per year,” Issa said on the floor.
When time and time again, President Obama has called for a “shared sacrifice” to tackle our ballooning national debt, it’s the height of hypocrisy to issue an across-the-board pay hike for federal employees that would take on another $11 billion to the taxpayers’ tab.
It should be noted that the President’s own Simpson-Bowles Commission advised the contrary, concluding: “In a time of budget shortfalls, all level of government must trim back. In recent recessions, millions of private sector and state and municipal emmployees had their wages frozen or cut back…in Contrast, federal workers’ wages increase annually due to automatic formulas.”
“In fact, during the so-called ‘pay freeze’ federal employee pay has gone up by $3,328 while private sector pay has gone up only $1,404. The federal employee attrition rate is the same now as it was before the so-called ‘pay freeze,’” Issa said in a statement.
Today, the House of Representatives passed H.R. 273 by a vote of 261-154.
Wal-Mart (NYSE:WMT) pledging to help military veterans, saying they plan to hire more than 100,000 in the next five years. The world’s largest retailer will make it official with an address delivered by the company president and CEO Bill Simon at the ann