Tag Archives: Work

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?

JP Morgan Chase tells employees to celebrate gay rights or else

Gay activist vandalizes pro-marriage sign
Gay activist vandalizes pro-marriage sign

This is from Breitbart News.

Excerpt:

A document provided to Breitbart News shows the investment banking behemoth JP Morgan Chase has joined a long line of major corporations in putting pressure on employees to sign up for the cause of gay rights. And they have not-so-subtly let each employee know not signing up will be noted.

Employees are being told “to help create an environment for open and honest dialogue.” The document notes descriptors such as “wife” and “boyfriend” are frowned upon, and “partner” is preferred. Not referring to your wife as your wife “offers up the opportunity for more inclusive conversations.”

[…]JP Morgan urges employees to “print and display your ally placard,” which implies the recalcitrant will be noticed.

The document tells employees to “explore your personal beliefs, use inclusive language, avoid making assumptions by asking conscientious questions, increase your awareness about issues impacting the gay community, include LGBT issues in your everyday life, attend events that celebrate diversity and inclusion, and speak out against hurtful comments.”

[…]Besides the gay pride placard each employee is supposed to display in their workspace, perhaps the most intrusive article in the documents calls upon employees to “include LGBT issues in your everyday life.” JP Morgan brass want employees to “include [LGBT issues] in your life and conversations, just as you would any other topic.”

Employees are urged to “take some time to listen to music, see movies or read books and magazines by and about gay people…there’s no substitute for knowledge.”

[…]This follows a controversy last year when JP Morgan Chase sent each employee a survey asking them if they were a “gay ally.” JP Morgan employees reached out anonymously to Breitbart News and other outlets about the pressure put on them to violate their own religious consciences.

Now imagine that you are working for this company or another like it and they are asking you to wear a symbol of the gay agenda on your desk. What exactly are you supposed to do, as an observant Christian, Muslim or Jew? Your Scriptures don’t condone you doing that, but your performance review or promotion may depend on being a “team player”. Should you violate your conscience for the sake of your career? Well, you might be tempted to do it if you were supporting a wife and several children, but maybe not if you were single. You might be tempted to do it if you had a lot of outstanding loans, like student loans . You’re more likely to have unpaid student loans if you chose to study something easy like English than if you studied petroleum engineering.  You might feel more obligated to violate your conscience if you had many children, instead of just a few or none.  You might feel more obligated to violate your conscience if you were making payments on an expensive house and/or an expensive car. You might feel more obligated to violate your conscience if you didn’t have a strong enough resume to get another job.

Do you see how all your life decisions fit in with this? Your freedom to honor your conscience or not depends on the decisions that you make. Your choice to do hard things instead of easy things will affect whether you have freedom to follow your conscience or not. The time is coming, and is now here, when your religious liberty will hinge on your seriousness about life decisions. Were you self-controlled? Were you self-disciplined? Were you self-sacrificial? Did you do things that you didn’t feel like doing in school, at work, and with money? If you were prudent and said no to fun, travel, spending, etc. then you can more easily afford to have religious liberty. Think about the threats before they happen, and make good decisions in your early life. Build yourself a castle with your decisions about education, work and money, so that you don’t have to care when non-Christians force you to choose between God and your belly.

Here are a few verses that were significant to me when I was in high school and college, and had to make the decisions that would either leave me with freedom or force me to comply with the JP Morgan Chase people in the world:

Eccl 12:1:

1 Remember also your Creator in the days of your youth, before the evil days come and the years draw near when you will say, “I have no delight in them”

Prov 25:28:

28 Like a city that is broken into and without walls
Is a man who has no control over his spirit

John 9:4:

4 We must work the works of Him who sent Me as long as it is day; night is coming when no one can work.

Luke 14:28:

28 For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it?

I think it’s always a good idea to think “how will I make decisions that allow me to achieve the practical result of what these verses are saying?” We want to be obedient to what God says, not to what our feelings say. It may feel good to indulge our feelings, but that never works if we are trying to be serious about achieving real-world results. Feelings only work in the movies.

How fathers teach children to work hard and believe in God

Marriage and family
Marriage and family

Here’s a good article for Father’s Day from Arthur Brooks in the radically leftist New York Times, of all places.

Excerpt:

The data confirm that hard work is correlated with well-being. The University of Michigan’s Panel Study of Income Dynamics polls thousands of American families, and its 2009 results show that people who feel good about themselves work more than those who don’t. It asks how often the respondents felt so sad that nothing could cheer them up. My analysis of the study showed that people who felt that way “none of the time” worked 10 percent more hours per week than those who felt that way “most of the time.” This holds true when we eliminate people who worked zero hours, so it is not merely that unemployed people are miserable. This doesn’t prove that extra work hours chase away sadness, but it weakens any argument that the cure for the blues is a French workweek.

So vocation is crucial to leading a satisfying life. Who teaches this truth to children? Many traditions emphasize the role of fathers. Jesus defended himself to the Pharisees for working on the Sabbath by saying, “my Father is always at his work to this very day, and I, too, am working.” And the Talmud instructs us, “For a man not to teach his son a trade or profession is equivalent to teaching him to steal.”

The best way for a father to teach this is by example. This explains why a child’s ability to grow up to be a productive adult is so strongly predicted by the presence of a working father in the home. The Princeton sociologist Sara McLanahan has for decades studied what happens to sons and daughters when their fathers are absent. She finds that after controlling for demographics, children in fatherless families are roughly twice as likely to drop out of high school as kids in intact homes. Even after controlling for student talent via standardized test scores, a sharp decline in grades and attendance persists. And young men who grow up without a father are 1.5 times more likely to be idle — that is, neither in the work force nor in school — than those with a father in the home. And this brings us to a particularly serious issue this Father’s Day: Our growing national jobs deficit. In 1953, just 14 percent of adult American men were neither working nor seeking work. Today, that rate has more than doubled, to 30 percent. And this doesn’t only reflect an aging population with more retired men: Just after World War II, 8 percent of noninstitutionalized males ages 25 to 54 were not working. Today, 17 percent of that same group of men are idle.

So fathers are important for teaching children to work, which is how they become independent and able to share with others in need. That’s valuable. And that was certainly true for me – my father took me to work all the time and on weekends even. And when I was in high school, he encouraged me to work in the summers and take a job in the evenings year-round. Looking back, this is definitely one the things that went right in my story.

But there’s more that fathers can do. Take a look at this statistical evidence on fathers and religious belief of children.

Excerpt:

In 1994 the Swiss carried out an extra survey that the researchers for our masters in Europe (I write from England) were happy to record. The question was asked to determine whether a person’s religion carried through to the next generation, and if so, why, or if not, why not. The result is dynamite. There is one critical factor. It is overwhelming, and it is this: It is the religious practice of the father of the family that, above all, determines the future attendance at or absence from church of the children.

If both father and mother attend regularly, 33 percent of their children will end up as regular churchgoers, and 41 percent will end up attending irregularly. Only a quarter of their children will end up not practicing at all. If the father is irregular and mother regular, only 3 percent of the children will subsequently become regulars themselves, while a further 59 percent will become irregulars. Thirty-eight percent will be lost.

If the father is non-practicing and mother regular, only 2 percent of children will become regular worshippers, and 37 percent will attend irregularly. Over 60 percent of their children will be lost completely to the church.

Let us look at the figures the other way round. What happens if the father is regular but the mother irregular or non-practicing? Extraordinarily, the percentage of children becoming regular goes up from 33 percent to 38 percent with the irregular mother and to 44 percent with the non-practicing, as if loyalty to father’s commitment grows in proportion to mother’s laxity, indifference, or hostility.

[…]In short, if a father does not go to church, no matter how faithful his wife’s devotions, only one child in 50 will become a regular worshipper. If a father does go regularly, regardless of the practice of the mother, between two-thirds and three-quarters of their children will become churchgoers (regular and irregular). If a father goes but irregularly to church, regardless of his wife’s devotion, between a half and two-thirds of their offspring will find themselves coming to church regularly or occasionally.

A non-practicing mother with a regular father will see a minimum of two-thirds of her children ending up at church. In contrast, a non-practicing father with a regular mother will see two-thirds of his children never darken the church door. If his wife is similarly negligent that figure rises to 80 percent!

The results are shocking, but they should not be surprising. They are about as politically incorrect as it is possible to be; but they simply confirm what psychologists, criminologists, educationalists, and traditional Christians know. You cannot buck the biology of the created order. Father’s influence, from the determination of a child’s sex by the implantation of his seed to the funerary rites surrounding his passing, is out of all proportion to his allotted, and severely diminished role, in Western liberal society.

Basically, anyone who doesn’t have a benevolent, involved father is going to have an enormously difficult time believing that moral boundaries set by an authority are for the benefit of the person who is being bounded. The best way to make moral boundaries stick is to see that they apply to the person making the boundaries as well – and that these moral boundaries are rational, evidentially-grounded and not arbitrary.

You can learn even more about the importance of fathers by looking at these statistics on fatherlessness.

Economist Walter Williams explains how to not be poor

Economist Walter Williams
Economist Walter Williams

Here is his article on wealth and poverty on Creators.

First, there is no real poverty in the United States:

There is no material poverty in the U.S. Here are a few facts about people whom the Census Bureau labels as poor. Dr. Robert Rector and Rachel Sheffield, in their study “Understanding Poverty in the United States: Surprising Facts About America’s Poor”, report that 80 percent of poor households have air conditioning; nearly three-quarters have a car or truck, and 31 percent have two or more. Two-thirds have cable or satellite TV. Half have one or more computers. Forty-two percent own their homes. Poor Americans have more living space than the typical non-poor person in Sweden, France or the U.K. What we have in our nation are dependency and poverty of the spirit, with people making unwise choices and leading pathological lives aided and abetted by the welfare state.

Second, the “poverty” is not caused by racism, but by poor choices:

The Census Bureau pegs the poverty rate among blacks at 35 percent and among whites at 13 percent. The illegitimacy rate among blacks is 72 percent, and among whites it’s 30 percent. A statistic that one doesn’t hear much about is that the poverty rate among black married families has been in the single digits for more than two decades, currently at 8 percent. For married white families, it’s 5 percent. Now the politically incorrect questions: Whose fault is it to have children without the benefit of marriage and risk a life of dependency? Do people have free will, or are they governed by instincts?

There may be some pinhead sociologists who blame the weak black family structure on racial discrimination. But why was the black illegitimacy rate only 14 percent in 1940, and why, as Dr. Thomas Sowell reports, do we find that census data “going back a hundred years, when blacks were just one generation out of slavery … showed that a slightly higher percentage of black adults had married than white adults. This fact remained true in every census from 1890 to 1940”? Is anyone willing to advance the argument that the reason the illegitimacy rate among blacks was lower and marriage rates higher in earlier periods was there was less racial discrimination and greater opportunity?

Third, avoiding poverty is the result of good choices:

No one can blame a person if he starts out in life poor, because how one starts out is not his fault.

If he stays poor, he is to blame because it is his fault. Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And finally, avoid engaging in criminal behavior. It turns out that a married couple, each earning the minimum wage, would earn an annual combined income of $30,000. The Census Bureau poverty line for a family of two is $15,500, and for a family of four, it’s $23,000. By the way, no adult who starts out earning the minimum wage does so for very long.

Fourth, what stops people from making good choices is big government:

Since President Lyndon Johnson declared war on poverty, the nation has spent about $18 trillion at the federal, state and local levels of government on programs justified by the “need” to deal with some aspect of poverty. In a column of mine in 1995, I pointed out that at that time, the nation had spent $5.4 trillion on the War on Poverty, and with that princely sum, “you could purchase every U.S. factory, all manufacturing equipment, and every office building. With what’s left over, one could buy every airline, trucking company and our commercial maritime fleet. If you’re still in the shopping mood, you could also buy every television, radio and power company, plus every retail and wholesale store in the entire nation”. Today’s total of $18 trillion spent on poverty means you could purchase everything produced in our country each year and then some.

Walter Williams is one of my two favorite economists, the other being Thomas Sowell. By sheer coincidence, they both happen to have grown up poor, and they both happen to be black. They understand what causes poverty very well. I recommend their books to you if you want to understand poverty, too.

Why is it so hard for young people to find a job?

Young people have a sense of entitlement
Young people have a sense of entitlement

Bloomberg News discusses the “Professionalism in the Workplace” survey of human resources specialists from York College of Pennsylvania.

Forty-nine percent of [those surveyed] stated that less than half of new employees “exhibit professionalism in their first year.” More than half (53 percent) have noticed “a sense of entitlement” rising among younger workers; almost 45 percent have seen a “worsening of the work ethic,” including “too casual of an attitude toward work” and “not understanding what hard work is.”

Younger workers believe they can multitask and remain productive, the human-resources people told the York researchers. Thirty-eight percent of respondents blamed multitasking for the lack of “focus” among younger workers. The authors of the study explained that the younger generation “believes that it is possible to multi-task effectively” and that using social media, for example, is an efficient way to communicate. In interviews, the applicants check their phones for texts and calls, dress inappropriately and overrate their talents.

“The sad fact is some of these persons probably do not understand what is wrong with this,” the authors note.

Older workers have always complained about younger workers, of course, but there’s a difference: This time they attribute the youthful flaws not to ignorance or waywardness, but to a “sense of entitlement.”

We might forgive 18-year-olds fresh out of high school for lacking employability skills (the manufacturing sector hires many workers lacking undergraduate degrees). But when he or she reaches 23 and has four years of college, employers expect a white-collar worker to recognize basic norms of dress and deportment.

What happened in college, then? The survey by York College’s Center for Professional Excellence assigns colleges part of the blame, observing that letting students miss deadlines without penalty and assigning good grades for middling work only make them form the wrong expectations.

Meanwhile, the UK Daily Mail had the results from a 2013 survey:

Young people’s unprecedented level of self-infatuation was revealed in a new analysis of the American Freshman Survey, which has been asking students to rate themselves compared to their peers since 1966.

Roughly 9 million young people have taken the survey over the last 47 years.

Psychologist Jean Twenge and her colleagues compiled the data and found that over the last four decades there’s been a dramatic rise in the number of students who describe themselves as being ‘above average’ in the areas of academic ability, drive to achieve, mathematical ability, and self-confidence.

But in appraising the traits that are considered less invidualistic – co-operativeness, understanding others, and spirituality – the numbers either stayed at slightly decreased over the same period.

Researchers also found a disconnect between the student’s opinions of themselves and actual ability.

While students are much more likely to call themselves gifted in writing abilities, objective test scores actually show that their writing abilities are far less than those of their 1960s counterparts.

Also on the decline is the amount of time spent studying, with little more than a third of students saying they study for six or more hours a week compared to almost half of all students claiming the same in the late 1980s.

Though they may work less, the number that said they had a drive to succeed rose sharply.

[…]Twenge is the author of a separate study showing a 30 per cent increase towards narcissism in students since 1979.

‘Our culture used to encourage modesty and humility and not bragging about yourself,’ Twenge told BBC News. ‘It was considered a bad thing to be seen as conceited or full of yourself.’

Just because someone has high self-esteem doesn’t mean they’re a narcissist. Positive self-assessments can not only be harmless but completely true.

However, one in four recent students responded to a questionnaire called the Narcissistic Personality Inventory with results pointing towards narcissistic self-assessments.

Narcissism is defined as excessive self-love or vanity; self-admiration, or being self-centered.

Twenge said that’s a trait that is often negative and destructive, and blames its boom on several trends – including parenting styles, celebrity culture, social media, and easy credit – for allowing people to seem more successful than they really are.

I think what I am seeing is that not only do they work less, but they work at things they “like”, rather than at things that will allow them to provide value to others. So, you’re not going to find a lot of computer programmers or petroleum engineers among young Americans, but you will find a lot of people gravitating to jobs that are easy that make them feel good about themselves, and look good to other people, too.

Obviously, there are policy reasons for youth unemployment being so high, but I think this attitude that young people have is definitely part of it.