Tag Archives: Democrat

Do unemployment benefits discourage people from working?

I noticed that the latest jobs report showed that the percentage of work-eligible Americans working was at a 38-year-low.

CNS News reports:

A record 93,626,000 Americans 16 or older did not participate in the nation’s labor force in June, as the labor force participation rate dropped to 62.6 percent, a 38-year low, according to the Bureau of Labor Statistics.

In June, according to BLS, the nation’s civilian noninstitutional population, consisting of all people 16 or older who were not in the military or an institution, hit 250,663,000. Of those, 157,037,000 participated in the labor force by either holding a job or actively seeking one.

Now, let me ask you this. Does paying people to not work cause more people to not work? It seems to me that whatever you subsidize, you get more of, and whatever you tax, you get less of.

Now look at this article from the radically-leftist New York Times.

It says:

Before this recession, most economists probably thought that some amount of unemployment benefits were just and compassionate, and offered a sense of security even to people who were lucky enough to retain their jobs, despite the fact that the program would raise unemployment rates and reduce both employment and economic output.

In other words, unemployment benefits shrink the economy to some degree, but shrinking the economy a bit may be a price worth paying.

Unemployment benefits were thought to reduce employment and output because, by definition, working people were ineligible for the benefits. In particular, an unemployed person who finds and starts a new job, or returns to working at his previous job, is supposed to give up his unemployment benefits. Economists had found that a large fraction of unemployed people delay going back to work solely because the unemployment insurance program was paying them for not working.

Here’s a new study explaining how the “generosity” of the big government Democrat Party actually encourages people to avoid working, and to remain dependent on the government for their “income”.

A study published by two labor economists, Stepan Jurajda and Frederick J. Tannery, looked at employment histories for unemployment insurance recipients in Pittsburgh in the early 1980s. Unemployment rates got quite high in Pittsburgh in those days, reaching 16 percent at one point, and staying over 10 percent for two and a half years.

The chart below summarizes their findings for Pittsburgh.

The chart displays the fraction of persons (in Pittsburgh) receiving unemployment benefits who began working again, as a function of the number of weeks until their unemployment benefits were scheduled to be exhausted. For example, a “hazard” value of “0.04″ for week “-14″ means that, among unemployed persons with 14 weeks remaining until their benefit exhaustion date, 4 percent of them either began working a new job or returned to their previous job.

The chart:

Unemployment offers a disincentive to find work
Unemployment benefits offer a disincentive for Americans to find work

The most troubling thing about this is what is not said in the chart or the study – think about the children growing up in these households where their parents, especially the fathers, are not working. What are they learning about self-sufficiency and the role of government? They are the ones who we are going to task with paying for our lavish entitlement programs in the future. Are people who think that dependency on government is normal being trained to pay for the exploding costs of Social Security and Medicare?

Puerto Rico debt crisis will impact U.S. investors

Which financial companies hold Puerto Rica debt?
Which financial companies hold Puerto Rico debt?

Pay attention to this article from Investors Business Daily if you have investments.

It says:

With the financial world transfixed by Greece’s debt-driven meltdown, Puerto Rico announces it can’t pay its $73 billion in debt. Once again, we’re learning that welfare statism is no replacement for fiscal responsibility.

Compared to Greece’s $353 billion in debt, Puerto Rico’s $73 billion doesn’t sound so big. On a per capita basis, it’s about a third less.

But appearances deceive. Puerto Rico is in deep, owing actually much more than that amount.

We learned this after a report on Monday, co-authored by former International Monetary Fund No. 2 Anne Krueger, revealed the island’s finances are a shambles.

The devastating analysis noted that some 150 agencies ran up deficits that couldn’t even be accurately counted, so the true indebtedness might be even higher — as much as $100 billion by some estimates.

Now Republicans favor privatizing state-owned organizations because the private sector is more efficient. Democrats want to nationalize private sector services so that they can control access to it and use their monopoly to buy votes.

What does Puerto Rico do?

The government has funneled public money to state-owned enterprises that are supposed to be financially independent. Worse, the report said, many workers no longer even look for jobs, since welfare benefits pay more than actual work.

Now guess whether a Republican or a Democrat is to blame for this. Which party likes to borrow money from future generations in order to buy votes with spending right now?

In short, the government has been horrendously mismanaged.

[…]The problem is, Puerto Rico’s dysfunctional economy means the debts only piled higher, with no way to pay them. Deficits grew, too, since spending was never really cut.

Now, as a commonwealth, it can’t declare bankruptcy. It can default, however. That would be messy, creating a financial crisis in the territory, causing businesses to close and sending thousands fleeing to the U.S. mainland. Yet the Democrat-led government has said that, while it hopes to avoid default, it won’t cut either pensions or spending. So disaster looms.

Wow, just like Greece – they refused to cut pensions, raise retirement ages and cut spending, too. There is some good news – we probably won’t have to bail them out:

A bailout? Even President Obama rules that out. If the White House couldn’t bail out union-run Detroit, it sure couldn’t do it for Puerto Rico.

And, despite Padilla’s denials, politics is very much a part of the equation. Just like Greece and dozens of other financial basket cases, Puerto Rico has become a welfare state run by leftist bureaucrats and politicians that overspends on public pensions without having the money to pay for it all.

It’s a story repeated over and over around the world.

If Puerto Rico defaults, it won’t suffer alone, however. As the New York Times notes, “much of Puerto Rico’s debt is widely held by individual investors on the United States mainland, in mutual funds or other investment accounts, and they may not be aware of it.”

So better check your 401(k). Or your hedge fund. Because virtually all of that $73 billion is held by the U.S.

This is not to time for you to quit your job and go on vacations or focus on fun in any way. There is a world-wide financial crisis brewing. It’s nothing to panic over, but this is serious enough for us all to focus on our careers and savings, and cut our own spending. It’s not just Greece or Puerto Rico either, there are other warning signs from other countries, e.g. – China, Japan, etc.


Meanwhile, across the globe, we’re headed toward a reckoning on excessive debt, and it won’t be pretty. The welfare state model with big pensions for all and lavish unemployment benefits is dead. We’re watching its death throes now. Only the politicians don’t get it.

Even here, many states have severe debt problems with underfunded public sector obligations, as well as other problems. There’s just this problem with people wanting to depend on government. There are too many people wanting a free ride, and too few people willing to work and raise the next generation of workers.

Will Democrats blame global warming or the Crusades for the murder of 21 Christians?

Breitbart reports on a new video from Islamic State: (H/T Ari)

A newly released video by Islamic State (ISIS) terrorists showing the mass beheading of 21 Christians condemns the faith’s believers as “crusaders.”

“All crusaders: safety for you will be only wishes, especially if you are fighting us all together,” a man on the video says with a North American English accent. “The sea you have hidden Sheikh Osama Bin Laden’s body in, we swear to Allah we will mix it with your blood.”

The five-minute video, which includes the caption, “The people of the cross, followers of the hostile Egyptian church,” shows Egyptian Coptic Christian men on their knees in orange jumpsuits having their heads severed by black-clad terrorists.

President Barack Obama has yet to comment on the mass beheading of Christians by Islamic State terrorists, since he was golfing on Sunday at a private golf course owned by billionaire Larry Ellison.

The release of the Islamic State’s Christian beheading video comes a week-and-a-half after Obama infuriated Christians by using the occasion of the National Prayer Breakfast to lecture Christians not to get on their “high horse” about Islamic State terrorists burning a caged Jordanian pilot because “during the Crusades and the Inquisition, people committed terrible deeds in the name of Christ.”

The Democrats also declined to specify that the victims of this attack were Christians. That’s the same thing he did when he described the Jewish victims of Islamic terrorism as “a bunch of folks” who were “randomly shot“. Radical Islam is not the problem that Democrats are trying to solve, you know. Obama likes to call this sort of thing “senseless violence” or “workplace violence” in order to avoid impugning radical Islam. The State Department is now saying that radical Islam’s root cause is that we don’t give them “job opportunities“.

Democrats would prefer to ignore radical Islamic terrorism and focus on the real threat.

CNS News explains:

Not radical Muslim terrorism, not an unsecured border, not an ever-growing federal debt that now exceeds $18 trillion, not the fact that 109 million live in households on federal welfare programs. These are not the greatest threats facing us today.

“No challenge–no challenge–poses a greater threat to future generations than climate change,” President Obama declared in his State of the Union Address on Tuesday night.

[…]President Obama then said that the U.S. military is saying that “climate change” is causing immediate risks to our national security–although he did not explain exactly what this meant or how the “Pentagon” had arrived at this conclusion.

“The Pentagon says that climate change poses immediate risks to our national security,” said Obama. “We should act like it.”

Global warming alarmism really means increased regulation of business and consumer activity – that’s the greatest threat we face, according to Democrats. I think what we are seeing is a fundamental lack of seriousness on global security and foreign policy by the golfer-in-chief and his panel of cultural relativist advisors.

This article from the left-leaning Atlantic makes the point that ISIS/ISIL is very much Islamic:

The reality is that the Islamic State is Islamic. Very Islamic. Yes, it has attracted psychopaths and adventure seekers, drawn largely from the disaffected populations of the Middle East and Europe. But the religion preached by its most ardent followers derives from coherent and even learned interpretations of Islam.

Virtually every major decision and law promulgated by the Islamic State adheres to what it calls, in its press and pronouncements, and on its billboards, license plates, stationery, and coins, “the Prophetic methodology,” which means following the prophecy and example of Muhammad, in punctilious detail.

[…]Every academic I asked about the Islamic State’s ideology sent me to [Princeton scholar Bernard Haykel]. Of partial Lebanese descent, Haykel grew up in Lebanon and the United States, and when he talks through his Mephistophelian goatee, there is a hint of an unplaceable foreign accent.

According to Haykel, the ranks of the Islamic State are deeply infused with religious vigor. Koranic quotations are ubiquitous. “Even the foot soldiers spout this stuff constantly,” Haykel said. “They mug for their cameras and repeat their basic doctrines in formulaic fashion, and they do it all the time.” He regards the claim that the Islamic State has distorted the texts of Islam as preposterous, sustainable only through willful ignorance. “People want to absolve Islam,” he said. “It’s this ‘Islam is a religion of peace’ mantra. As if there is such a thing as ‘Islam’! It’s what Muslims do, and how they interpret their texts.” Those texts are shared by all Sunni Muslims, not just the Islamic State. “And these guys have just as much legitimacy as anyone else.”

All Muslims acknowledge that Muhammad’s earliest conquests were not tidy affairs, and that the laws of war passed down in the Koran and in the narrations of the Prophet’s rule were calibrated to fit a turbulent and violent time. In Haykel’s estimation, the fighters of the Islamic State are authentic throwbacks to early Islam and are faithfully reproducing its norms of war. This behavior includes a number of practices that modern Muslims tend to prefer not to acknowledge as integral to their sacred texts. “Slavery, crucifixion, and beheadings are not something that freakish [jihadists] are cherry-picking from the medieval tradition,” Haykel said. Islamic State fighters “are smack in the middle of the medieval tradition and are bringing it wholesale into the present day.”

Democrats are not just unserious about radical Islam, but in Ukraine, too.

Please do read this column from Charles Krauthammer:

Take Russia. The only news out of Obama’s one-hour press conference with Angela Merkel this week was that he still can’t make up his mind whether to supply Ukraine with defensive weapons. The Russians have sent in T-80 tanks and Grad rocket launchers. We’ve sent in humanitarian aid that includes blankets, MREs and psychological counselors.

How complementary: The counselors do grief therapy for those on the receiving end of the T-80 tank fire. “I think the Ukrainian people can feel confident that we have stood by them,” said Obama at the news conference.

Indeed. And don’t forget the blankets. America was once the arsenal of democracy, notes Elliott Abrams. We are now its linen closet.

Why no anti-tank and other defensive weapons? Because we are afraid that arming the victim of aggression will anger the aggressor.

[…]This passivity — strategic, syntactical, ideological — is more than just a reaction to the perceived overreach of the Bush years. Or a fear of failure. Or bowing to the domestic left. It is, above all, rooted in Obama’s deep belief that we — America, Christians, the West — lack the moral authority to engage, to project, i.e., to lead.

I play wargames quite often, and in my experience I find that T-80s are very capable, especially against the Ukraine. The main armament is a very good 125 mm gun with an auto-loader, and unlike the M1A2 Abrams, it does have anti-tank guided missiles. It also has reactive armor, making it resistant to ordinary man-portable anti-tank weapon systems. Yes, it doesn’t have the fire control or speed of the Abrams, but it is a very good tank. It has a very nice low-profile turrent that is hard to hit with unguided anti-tank missiles, especially when it is hull-down.

You are not going to be able to take out one of these from the front with a grenade or a light anti-tank weapon. You will need specialized anti-tank capability, either a well-equipped tank, or a shoulder-fired ATGM (e.g. – Javelin) or a TOW ATGM. In short, we need to arm Ukraine if we expect them to be able to deter a force equipped with T-80 tanks. This is not even to mention what is needed for Ukraine to be able to deal with Russian close-air support helicopters (Mi-28 / Ka-50, etc.) and/or strike aircraft (Su-34).

We really need to think carefully about foreign policy when we vote in elections – weakness and indecisiveness emboldens aggressors. The price of cutting our military budget in favor of Obamacare, green energy, welfare and other crap is that we can no longer reach into hotspots all over the world and prevent small threats from growing into bigger ones. We lose our ability to deter aggression and stop wars before they happen.

Obama threatens to veto No Taxpayer Funding for Abortion Act

Life News reports:

Yesterday, the House passed legislation that will put in place a complete ban on taxpayer funding of abortions that ensures abortions are not directly funded in any federal governmental program or department. The president says he will veto it.

The legislation combines several policies that must be enacted every year in Congressional battles and puts them into law where they will not be in jeopardy of being overturned every time Congress changes hands from pro-life lawmakers to those who support abortions.

The House voted 242-179 for the bill with 239 Republicans and three Democrats voting to ban taxpayer funding of abortions under HR7 while 178 Democrats and one Republican voted against it.

Despite strong support for the bill and expected passage in the Senate, as well as strong public opinion , pro-abortion President Barack Obama says he will veto the legislation.

“I am deeply committed to protecting this core constitutional right, and I believe that efforts like H.R. 7, the bill the House considered today, would intrude on women’s reproductive freedom and access to health care and unnecessarily restrict the private insurance choices that consumers have today,” Obama said in a statement objecting to the bill.

But, according to a Marist poll released today, 68 percent of Americans oppose using taxpayer dollars to fund abortion.

The bill has been around a few years but has only been approved in the House thanks to a pro-abortion Senate. The House voted 227-188 for the bill in 2014 and, on May 4, 2011, the House passed HR 3, the No Taxpayer Funding for Abortion Act, on a 251-175 vote with Republicans voting 235-0 for the bill and Democrats voting 175-16 against it.

Now that Republicans have taken over the Senate from pro-abortion Democrats, the bill is finally expected to receive a vote in the upper chamber.

[…]A majority of Americans object to the use of taxpayer money for funding abortion, according to numerous polls — including a survey CNN conducted in early April showing Americans oppose public funding of abortion by a margin of 61% to 35%.

The bill will also mitigate concerns about abortion funding in the various loopholes in the Obamacare national health care bill that various pro-life organizations warned about during debate on the law. The legislation did not contain language banning funding of abortions in its provisions and the No Taxpayer Funding for Abortion Act would fix that problem.

So, if you are a pro-lifer, and you don’t want to subsidize the murder of unborn children, then maybe you should not vote for Democrats like Obama. Abortion is the biggest moral issue of our generation. It’s very important to understand that if we allow the people who are irresponsible with sex to face the costs of their sexual lifestyle, then they will adjust their decision-making. The more the government takes over health care and reduces or eliminates the costs of immoral behavior for people, the more immoral behavior there will be.

The best thing we can do to discourage immorality is to let people bear the costs of their lifestyle choices themselves. That can include contraceptives, sexually transmitted disease treatment, abortion costs, single mother welfare, sex changes, and so on. One of the reasons why we have such a growth in immoral behavior is because generous Christians and conservatives keep falling for the plea for “compassion” made by big government leftists. Well, we have to decide now that we are not going to pay people to be immoral. That money has to come from somewhere, you know. And the more you pay people to do something, the more they do it.

There is some good news though – the Republicans are going to try again to get a vote on that ban on abortions after 20 weeks.

Yemen rebels eject pro-Western government, Russian troops seize Donetsk airport

Everything is fine! Obama said what a great job he was doing during his State of the Union speech, right?

Middle East Map
Middle East Map

Let’s start with Yemen and the Associated Press:

Yemen’s U.S.-backed president quit Thursday under pressure from rebels holding him captive in his home, severely complicating American efforts to combat al-Qaida’s powerful local franchise and raising fears that the Arab world’s poorest country will fracture into mini-states.

Presidential officials said Abed Rabbo Mansour Hadi submitted his resignation to parliament rather than make further concessions to Shiite rebels, known as Houthis, who control the capital and are widely believed to be backed by Iran.

The prime minister and his cabinet also stepped down, making a thinly veiled reference to the Houthis’ push at gunpoint for a greater share of power. Houthis deployed their fighters around parliament, which is due to discuss the situation on Sunday.

Yemeni law dictates that the parliament speaker – Yahia al-Rai, a close ally of former autocratic ruler Ali Abdullah Saleh – will now assume the presidency. Saleh still wields considerable power and is widely believed to be allied with the Houthis.

There were conflicting reports suggesting that authorities in Aden, the capital of southern region of Yemen, would no longer submit to the central government’s authority. Even before the Houthis’ recent ascendance, a powerful movement in southern Yemen was demanding autonomy or a return to the full independence the region enjoyed before 1990. Southerners outrightly reject rule by the Houthis, whose power base is in the north. The Houthis are Zaydis, a Shiite minority that makes up about a third of Yemen’s population.

This BBC article explains more about why this is bad news for the United States. Maybe they will try to blame this one on a Youtube video, again?

Oh, but there is more good news. Thanks to Obama’s fabulous leadership in foreign policy, the Russians have seized control of a Ukrainian airport.

Map of Ukraine
Map of Ukraine

The Wall Street Journal explains:

Shelling killed at least eight people at a bus stop in Donetsk on Thursday, hours after government forces withdrew from the ruins of the city’s airport following months of relentless bombardment.

With government forces in apparent retreat in several spots, the North Atlantic Treaty Organization offered indirect backing for the Ukrainian government’s claims of a fresh influx of Russian troops into eastern Ukraine.

A military spokesman in Kiev said 10 government troops also had been killed in the prior 24 hours—one of the highest single-day totals in weeks.

Separatist forces captured 16 wounded soldiers during the battle overnight at Donetsk airport—then brought the captives to the site of the bus-stop shelling, where they were forced to kneel before a crowd of outraged locals.

[…]Earlier this week, Ukraine’s President Petro Poroshenko said Russia had sent more than 1,000 troops across the border to fight alongside the separatists, putting the total on Ukrainian territory at 9,000.

[…]On Wednesday, NATO Secretary-General Jens Stoltenberg had reported “an increase in Russian equipment inside eastern Ukraine,” such as tanks, artillery, armored vehicles and advanced air-defense systems.

With fighting intensifying along the so-called line of contact, Gen. Breedlove said the Russia-backed forces have shown “a renewed capability now to bring pressure on the Ukrainian forces,” gaining ground “in several places.”

While the airport, about 10 kilometers (6 miles) northwest of the city, is in ruins, the government’s withdrawal from the main terminal was a significant blow, at least to morale, after months of dogged resistance.

“Last night we took a decision to leave the terminal and pull back to new lines,” military spokesman Vladislav Seleznyov said. He said the terminal had been damaged to such an extent that it could no longer be defended, but that fighting around the airport was continuing.

Another spokesman, Col. Andriy Lysenko, said some buildings were still standing and being defended, such as the remnants of the airport tower and fire station.

Remember when Obama ridiculed Romney for thinking that Russia was a threat to world peace? Obama said to Romney “The 1980s Are Now Calling to Ask for Their Foreign Policy Back”. I think that was a mistake.