THOUGHTS ON OBAMA'S BUDGET: Review & Outlook: 5,100 More IRS Agents - WSJ.com
We should be focused on the percent of GDP spent by the government and its impact on the economy (see Art Laffer) and not on making sure everyone who took early retirement, didn't want to study or complete high school, etc. gets the same benefits and healthcare as those who went to graduate school and work 60 hour weeks.
Clearly the country is at an ethical divide here (is it comparable to the divide separating those folks who believe in 'birth control' from those who believe birth control is a 'sin'? I don't know.)
It was clear however that in talking about 'education' (and the need for more and better), Obama failed to challenge the seniority system of the public teachers unions who have created the greatest mess with respect to employment.
And, this is the immediate and most pressing need - to wit, that those with college educations have less than 5% unemployment right now (Dec 2010/Jan 2011). But unemployment gets lumped together for those with all levels of education and is reported at 9% (17% on U6).
Thus, the news media and politicians would seem to prefer to 'not' recognize the unemployment bifurcation (can they be that stupid?).
And, the same fail to recognize that the cost (capital) required to create jobs where large capital is needed to compensate for high salaries is huge (see LA 'shovel ready' report where the cost per job was $2 million each).
Thus, it would seem (off the top) that Obama is unable to grasp the true nature of employment, the source of much of the education problem and the need to support the creation of capital to create jobs (vs. giving it away in entitlement consumption).
One could go on and on - but it would seem as though Obama has dug himself a hole and doesn't know it.
Tuesday, February 15, 2011
Friday, February 11, 2011
Higher Pay Gains Seen for 2011 - WSJ.com
QUESTIONS ON JOB OPTIONS: Higher Pay Gains Seen for 2011 - WSJ.com
George, I was thinking more about the typical family with two wage earners on reasonable salaries.
To start with, when they have a family, they have lots of choices - amongst which is one partner staying home to raise the kids.
Since any domestic work is paid for with 'after-tax' dollars, I've often seen the tradeoff where one spouse stops working.
However, most of what they do is within the ability of someone with a lesser level of education being able to handle rather well.
Thus, why shouldn't any payments to someone out of 'earned income' be tax deductible?
Plus, instead of making maids, nannies, etc. be 'employees', why not let them be 'independent contractors'? Besides making their employment easier (after all, we are trying to create jobs for the lesser educated), it will let them see how government is adding to their salary with all of the 'benefits' that employers have to pay?
If the government feels these people aren't competent to handle benefit filings, then this is a constructive option to outsource some private work to people like H&R Block - except that instead of just taxes, these people will file all of the government benefit taxes that independent contractors could pay?
The end result is that a number of skilled workers (current unemployment less than 5%) might stay in the workforce. Thus, added productivity; less pressure on wages; etc.
And, those who can't find work, would suddenly be able to contribute to the overall well-being of society by having a real job?????
George, I was thinking more about the typical family with two wage earners on reasonable salaries.
To start with, when they have a family, they have lots of choices - amongst which is one partner staying home to raise the kids.
Since any domestic work is paid for with 'after-tax' dollars, I've often seen the tradeoff where one spouse stops working.
However, most of what they do is within the ability of someone with a lesser level of education being able to handle rather well.
Thus, why shouldn't any payments to someone out of 'earned income' be tax deductible?
Plus, instead of making maids, nannies, etc. be 'employees', why not let them be 'independent contractors'? Besides making their employment easier (after all, we are trying to create jobs for the lesser educated), it will let them see how government is adding to their salary with all of the 'benefits' that employers have to pay?
If the government feels these people aren't competent to handle benefit filings, then this is a constructive option to outsource some private work to people like H&R Block - except that instead of just taxes, these people will file all of the government benefit taxes that independent contractors could pay?
The end result is that a number of skilled workers (current unemployment less than 5%) might stay in the workforce. Thus, added productivity; less pressure on wages; etc.
And, those who can't find work, would suddenly be able to contribute to the overall well-being of society by having a real job?????
Thursday, February 10, 2011
Bernanke Moves to Reassure Republicans - WSJ.com
A CAMEL OR NOT A CAMEL?: Bernanke Moves to Reassure Republicans - WSJ.com
Greece found out that loading up on debt and fiscal mismanagement was like loading up a camel - it suddenly quit acting like you wanted. Luckily the Greeks were bailed out.
An open question would seem to be whether the piling on of debt and overspending on entitlements in the US will end up more like a 'straw on the camel's back' situation or not?
Greece found out that loading up on debt and fiscal mismanagement was like loading up a camel - it suddenly quit acting like you wanted. Luckily the Greeks were bailed out.
An open question would seem to be whether the piling on of debt and overspending on entitlements in the US will end up more like a 'straw on the camel's back' situation or not?
Wednesday, February 9, 2011
Fed's Lacker Says Bond Purchases Need Re-Evaluating - WSJ.com
LET THEM EAT CAKE BELIEFS: Fed's Lacker Says Bond Purchases Need Re-Evaluating - WSJ.com
Why don't we start talking more specifically about the segmentation across the unemployment statistics?
In other words, where is the slack when college graduate unemployment (per BLS statistics - either adjusted or not) is below 5%?
In a modern (i.e. US economy), is there really a substitution effect in the economy for those with limited reading, math and logic skills?
Is there in fact a need to rethink the labor market and tax and benefit laws in ways to make more jobs available for those with little education and skills? (The latest activities of the Democrats have clearly gone in the opposite direction here and, as shown by where American companies are investing, there is little current opportunity to bring low-skill (and what should be low gross cost of employment) jobs back to the US.)
So, shouldn't journalists be taking Bernanke, et al. to task for saying there is 'slack' in the economy? It's like Marie Antoinette said when bread was short, "Let them eat cake". (The substitution for skilled labor is more technology, not more unskilled labor - at least in the US).
Why don't we start talking more specifically about the segmentation across the unemployment statistics?
In other words, where is the slack when college graduate unemployment (per BLS statistics - either adjusted or not) is below 5%?
In a modern (i.e. US economy), is there really a substitution effect in the economy for those with limited reading, math and logic skills?
Is there in fact a need to rethink the labor market and tax and benefit laws in ways to make more jobs available for those with little education and skills? (The latest activities of the Democrats have clearly gone in the opposite direction here and, as shown by where American companies are investing, there is little current opportunity to bring low-skill (and what should be low gross cost of employment) jobs back to the US.)
So, shouldn't journalists be taking Bernanke, et al. to task for saying there is 'slack' in the economy? It's like Marie Antoinette said when bread was short, "Let them eat cake". (The substitution for skilled labor is more technology, not more unskilled labor - at least in the US).
Tuesday, February 8, 2011
Obama Budget Proposes Broader Unemployment Taxes - WSJ.com
DOUBLE SPEAK: Obama Budget Proposes Broader Unemployment Taxes - WSJ.com
And if one wondered if the cajoling of business by Obama wasn't 'double-speak', I guess the question is answered.
It's sort of typical of socialists and do-gooders that they hope people won't get the big picture (i.e. the gross cost of employment) and, it is looking more and more like the administration doesn't put things together either.
So, here we have clear evidence that the cost of employing Americans is going to be increasing - but, (per Obama) "Hey businesses, why not bring jobs back to America?" Too bad we can't say the president isn't from another planet. It's just that he had no idea about running a business, meeting a budget, etc.
And if one wondered if the cajoling of business by Obama wasn't 'double-speak', I guess the question is answered.
It's sort of typical of socialists and do-gooders that they hope people won't get the big picture (i.e. the gross cost of employment) and, it is looking more and more like the administration doesn't put things together either.
So, here we have clear evidence that the cost of employing Americans is going to be increasing - but, (per Obama) "Hey businesses, why not bring jobs back to America?" Too bad we can't say the president isn't from another planet. It's just that he had no idea about running a business, meeting a budget, etc.
Obama Says Tax Breaks Should Now Spur Hiring - WSJ.com
ALL TALK, NO ACTION: Obama Says Tax Breaks Should Now Spur Hiring - WSJ.com
What has Obama really done (vs. said)?
It would appear Obama is trying to "talk-the'talk" without "walking-the-walk" as the old saying goes.
When one looks at the BLS statistics related to joblessness based on level of education,
http://www.bls.gov/news.release/empsit.t04.htm
it is clear that the problem is there aren't jobs for those who have limited reading and math and logic and learning skills based on the salary and wage and benefit structure (read also union bias of the administration) extant in the US.
These are issues which could be addressed but are being obfuscated.
The US economy and its place in the world requires higher levels of skills and those without these skills are of less and less value in an information based economy.
It is not that the lower skilled can't be integrated into the economy, but the policies to integrate them are not coming from the administration.
It is probably a matter of differing opinion as to whether Obama thinks talking will make America a place people want to do business, but tax rates are high, unions are pandered to, entitlements are out of control, the budget is out of control, immigration policies remain anti-business, etc.
Where is some action? Doesn't the administration know that talk is cheap but that's all it is. Where are the permits to start drilling in the Gulf - for instance?
What has Obama really done (vs. said)?
It would appear Obama is trying to "talk-the'talk" without "walking-the-walk" as the old saying goes.
When one looks at the BLS statistics related to joblessness based on level of education,
http://www.bls.gov/news.release/empsit.t04.htm
it is clear that the problem is there aren't jobs for those who have limited reading and math and logic and learning skills based on the salary and wage and benefit structure (read also union bias of the administration) extant in the US.
These are issues which could be addressed but are being obfuscated.
The US economy and its place in the world requires higher levels of skills and those without these skills are of less and less value in an information based economy.
It is not that the lower skilled can't be integrated into the economy, but the policies to integrate them are not coming from the administration.
It is probably a matter of differing opinion as to whether Obama thinks talking will make America a place people want to do business, but tax rates are high, unions are pandered to, entitlements are out of control, the budget is out of control, immigration policies remain anti-business, etc.
Where is some action? Doesn't the administration know that talk is cheap but that's all it is. Where are the permits to start drilling in the Gulf - for instance?
Sunday, February 6, 2011
Economists React: ‘Ton of Noise’ in Jobs Report - Real Time Economics - WSJ
WHERE TO LOOK TO REMOVE SOME CHATTER: Economists React: ‘Ton of Noise’ in Jobs Report - Real Time Economics - WSJ
It's worth taking a look at this chart from the BLS which someone included in their comments to a current Barron's article.
It breaks down employment and unemployment by level of education.
For those with college degrees it rather clearly shows an unemployment level of less than 5%.
It's too bad all of the commentary in the press on the employment figures released Friday don't take into account some of the evidence from this chart.
http://www.bls.gov/news.release/empsit.t04.htm
It's worth taking a look at this chart from the BLS which someone included in their comments to a current Barron's article.
It breaks down employment and unemployment by level of education.
For those with college degrees it rather clearly shows an unemployment level of less than 5%.
It's too bad all of the commentary in the press on the employment figures released Friday don't take into account some of the evidence from this chart.
http://www.bls.gov/news.release/empsit.t04.htm
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