Tag Archives: Growth

Wages of low-income workers have risen faster than middle and high income workers

In Trump's America, low-wage workers see the highest wage increases
In Trump’s America, low-wage workers see the highest wage increases

By now, everyone has heard about how the unemployment rate is at a record low. Not only that, but the unemployment rates for women, blacks and hispanics are also at record lows. But did you know that wages have been increasing at the highest rate for low-income workers? That’s right. It’s low-wage workers who are seeing their incomes go up the most.

Here’s an analysis done by an economist at Indeed.com, one of the largest online job boards:

The US economy added 130,000 jobs in August, and the unemployment rate was flat at 3.7%.

After this report, we can all take a breath, but not a big one. While we are still seeing many of the disconcerting trends of the past few months, the labor market continues to grow at a healthy rate.

Before assuming that the total job growth number in August is skewed because of Census hiring, remember that these are real jobs taken by real workers. Even if you remove government hiring, which accounts for around 34,000 jobs, this is still a number that is high enough to keep up with population growth. This month’s report reflects a slowing labor market but not necessarily one heading straight for a recession.

Wage growth strongest for low-wage industries

At this point in the expansion, we’d expect wage growth to pick up, but it is continuing to stall. In fact, wage growth continues to be strongest for workers in lower-wage industries. Labor force participation grew in the month, signaling a labor market still drawing workers off the sidelines. Job seekers are still benefiting from this job market, but let’s not count on this lasting forever.

That analysis was done in August of this year, and as you may have heard, the numbers since then have been even better.

CNBC explained:

The jobs market turned in a stellar performance in November, with nonfarm payrolls surging by 266,000 and the unemployment rate falling to 3.5%, according to Labor Department numbers released Friday.

Those totals easily beat the Wall Street consensus. Economists surveyed by Dow Jones had been looking for solid job growth of 187,000 and saw the unemployment rate holding steady from October’s 3.6%.

[…]In addition to the robust November gains, revisions brought up totals from the two previous months. September’s estimate went up 13,000 to 193,000 and the initial October count increased by 28,000 to 156,000. Those changes added 41,000 to the previous tallies and brought the 2019 monthly average to 180,000, compared with 223,000 in 2018.

So my point here is simple. Democrats are mad because they lost the election, and they really aren’t interested in whether president Trump is doing a good job or a bad job. The thing is, president Trump is doing a terrific job if all you care about is numbers. I understand that Democrats love their New York infanticide, their Seattle mayor pedophilia, their Democrat FBI agent adultery, their black face Virginia governor, their Clinton-funded Steele dossier, etc. But for the rest of us who just want to have a job, keep what we earn, and spend it how we want, this has been a great presidency.

It’s not just low unemployment and increased wages. Conservatives are happy about a never-ending stream of conservative judges filling up vacancies on federal courts.

Far-left Politico is not too happy about this:

The Senate confirmation of Lawrence VanDyke and Patrick Bumatay to the 9th U.S. Circuit Court of Appeals this month brought to nine the number of appointments President Donald Trump has made to the 29-member bench that serves as the last stop for nearly all legal complaints lodged in nine Western states. Democratic-appointed judges now hold a three-seat majority, compared with 11 at the start of Trump’s presidency.

If the trend continues, it represents a major shift in the liberal wing of the judiciary, meaning lawsuits for progressive causes won’t find a friendly ear as easily as they have. The circuit has been the go-to venue for activist state attorneys eager to freeze Trump policies on health care, immigration and other social issues. It ruled against Trump’s weakening of Obamacare’s contraceptive mandate, as well as multiple versions of his travel ban.

It’s now weighing the administration’s overhaul of the federal family planning program, the “public charge” rule that denies green cards for individuals who participate in programs like Medicaid — and it could take up the “conscience rule” allowing health providers to opt out of providing care on religious or moral grounds.

[…]The 9th Circuit isn’t the only court whose makeup has changed through Trump’s conservative nominees and McConnell’s singular focus on confirming judges. The 1st Circuit in Boston and 3rd Circuit in Philadelphia now have Republican-appointed majorities.

[…]A 9th Circuit panel of four Democratic appointees and seven Republican appointees in July allowed the administration’s overhaul of the Title X federal family planning program to take effect. The policy bars clinics that provide or refer patients for abortions from receiving program funds for reproductive health services like STD screenings and contraception and prompted Planned Parenthood to quit over the change. Another 9th Circuit panel this year ruled in favor of letting Trump’s Justice Department distribute grants to cities that use the money to crack down on illegal immigration.

[…]The Trump administration will likely seek a reversal of two separate lower court injunctions against the health provider conscience rule and has been asked by DOJ to freeze a recent nationwide hold on Trump’s order to deny legal immigrants entry to the U.S. if they can’t cover their health care costs.

If you have some time, and you want to really understand why the Democrats are so angry, I really recommend this recent show featuring Andrew Klavan:

And I also wanted to reflect on what the booming Trump economy has meant to me personally. I made more money from my mutual funds this year than I earned as a senior software engineer! I understand that “orange man bad” and “impeach the m*th*rf#$%&r. But I cannot deny that I am doing well financially, and it’s very clear from economists that this is directly the result of massive tax cuts, deregulation, and smart trade policies.

Politics isn’t about how you feel, and how you look to your friends. It’s more important than that. We need to have policies that solve problems for people who are struggling to get their American dream. Donald Trump has delivered those policies, and the results are not subject to debate. We have the numbers, and the numbers are very, very good.

Supply-side economist Larry Kudlow: marriage is pro-economic-growth

Here’s a Real Clear Politics editorial from one of the biggest supply-side economics boosters out there.

Excerpt:

The greatest economic challenge of our time is how to restore economic growth. Over the past dozen years, average real growth has slowed to 1.8 percent annually, under both Republican and Democratic presidents and congresses. It’s a bipartisan problem.

And it’s a new one. For the past 50 years or so, the American economy grew at just less than 3.5 percent per year. But we’re now experiencing one of the longest slow-growth periods in the past 100 years. Excluding the Great Depression, I bet it is the longest slow-growth period in a century.

There are any number of fiscal and monetary prescriptions for restoring economic growth. As a Reagan supply sider, I would recommend lower marginal tax rates, lighter regulations, limited government and a sound dollar.

But I want to add this to the list: marriage. I have come to believe that marriage is a key element of a stronger economy.

Like any good economist, he’s got the numbers to back it up, too:

Naomi Schaefer Riley writes that “children of married parents are more likely to graduate high school, less likely to go to jail and more likely to delay sexual activity. And of course, children of unmarried parents are more than five times as likely to live in poverty.”

Economic writer Robert Samuelson notes that single-parent families have exploded, that more than 40 percent of births now go to the unwed, and that the flight from marriage “may have subtracted from happiness.” Citing a study from Isabel Sawhill, he notes that some unwed mothers “will have multiple partners and subject their children ‘to a degree of relationship chaos and instability that is hard to grasp.'”

Heritage Foundation economist Stephen Moore writes “that marriage with a devoted husband and wife in the home is a far better social program than food stamps, Medicaid, public housing or even all of the combined.” Moore points to a Heritage study showing how welfare households are much more likely to have no one working at all, with social assistance becoming a substitute for work.

A recent report from the American Enterprise Institute and the Institute for Family Studies, authored by W. Bradford Wilcox and Robert Lerman, reveals that married men have higher average incomes, seem to be more productive at work and work more and earn more. Wilcox and Lerman write that 51 percent of the 1980-2000 decline in male employment is due to the drop in marriage rates, and is highest among unmarried men. They find that “differing employment rates among married and unmarried men aren’t simply due to education levels or race, either.”

They conclude: “Promoting the importance of marriage, looking for ways to reduce marriage penalties in current means-tested welfare programs and engaging leaders at every level to find ways to strengthen marriage in their communities, are other critical steps to take to restore a culture of marriage.”

I’ll only add this, as I did at the Coolidge Foundation dinner: While restoring economic growth may be the great challenge of our time, this goal will never be realized until we restore marriage.

In short, marriage is pro-growth. We can’t do without it.

In case you missed it, there was a nice new study linking marriage to economic growth. It was put out by the American Enterprise Institute, a fiscally conservative think tank. It’s getting to be that fiscal conservatives are more interested in social conservatism than the reverse. Now if only we could get pro-lifers and pro-natural-marriage people to come towards lower taxes, smaller government, less restrictive regulations and a stronger dollar. How about it, social conservatives? Can you you run your family better when government leaves you more money in your pocket? Fiscal conservatism and social conservatism go together like peanut butter and jelly.

By the way, if you’d like to read a remarkable booklet put out by the Heritage Foundation called “Indivisible”, click here. In it, you’ll find well-known social conservatives advocating for fiscal conservatism, and well-known fiscal conservatives advocating for social conservatism. The essays are short and easy to understand. They don’t try to prove everything, just one little point per essay. You’ll find lots of names you recognize in it, like Jennifer Roback Morse, Michele Bachmann, Paul Ryan and Jay Richards.

State department: not building the Keystone XL pipeline could increase greenhouse gas emissions

From CNS News.

Excerpt:

Not building the 875-mile Keystone XL Pipeline could result in the release of up to 42 percent more greenhouse gases than would be released by building it, according to the State Department.

Not building the pipeline “is unlikely to significantly impact the rate of extraction in the [Canadian] oil sands or the continued demand for heavy crude oil at refineries in the United States,” the department noted in a long-awaited environmental report released January 31st.

But the “No Build” option is likely to result in an increased number of oil spills, six more deaths annually, and up to 42 percent higher greenhouse gas (GHG) emissions, the State Department concluded.

The proposed 36-inch pipeline would transport 830,000 barrels of crude oil each day from western Canada through the Bakken oil fields of Montana and South Dakota before connecting to an existing pipeline in Nebraska on its way to Gulf Coast refineries.

The project will create an estimated 42,100 jobs and add $3.4 billion to the U.S. economy.

This report follows last week’s report showing that the pipeline would have no major environmental impact.

Excerpt:

The long-delayed Keystone XL oil pipeline cleared a major hurdle toward approval Friday, a serious blow to environmentalists’ hopes that President Barack Obama will block the controversial project running more than 1,000 miles from Canada through the heart of the U.S.

The State Department reported no major environmental objections to the proposed $7 billion pipeline, which has become a symbol of the political debate over climate change. Republicans and some oil- and gas-producing states in the U.S. — as well as Canada’s minister of natural resources — cheered the report, but it further rankled environmentalists already at odds with Obama and his energy policy.

Now the State Department is one of the most liberal departments in the government. Unfortunately, this has not appeased the great climate science experts in Hollywood, who donate so much money to Democrat election campaigns. So long as the money keeps flowing from the high school drop-out celebrities, don’t expect this pipeline to get built. For the Democrats, it’s all about staying in power.

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Solar energy firm leaves behind toxic mess after wasting millions in stimulus funding

Dad sent me this article about the Democrat energy policy from Fox News.

Excerpt:

A Colorado-based solar company that got hundreds of millions of dollars in federal loan guarantees before going belly-up didn’t just empty taxpayers’ wallets – it left behind a toxic mess of carcinogens, broken glass and contaminated water, according to a new report.

The Abound Solar plant, which got $400 million in federal loan guarantees in 2010, when the Obama administration sought to use stimulus funds to promote green energy, filed for bankruptcy two years later. Now its Longmont, Colo., facility sits unoccupied, its 37,000 square feet littered with hazardous waste, broken glass and contaminated water. The Northern Colorado Business Report estimates it will cost up to $3.7 million to clean and repair the building so it can again be leased.

“As lawyers, regulators, bankruptcy officials and the landlord spar over the case, the building lies in disrepair, too contaminated to lease,” the report stated.

[…]One of the hazards is the presence of cadmium, a cancer-causing agent that is used to produce the film on the solar panels, the report said.

[…]”If a coal, oil or gas company pulled something like that the EPA would send out SWAT teams and the U.S. Marshals to track down the offenders, bankrupt or not,” the center said in a report of its own.

President Obama touted Abound in a July 3, 2010 announcement of a $2 billion “investment” in green energy projects.

Here’s another trustworthy promise from Dear Leader:

“The second company is Abound Solar Manufacturing, which will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs,” Obama said. “A Colorado plant is already underway, and an Indiana plant will be built in what’s now an empty Chrysler factory. When fully operational, these plants will produce millions of state-of-the-art solar panels each year.”

But less than two years later, the company laid off half of its 400 workers, and then, in the summer of 2012, filed for bankruptcy. It became the third clean-energy company to seek bankruptcy protection after receiving a loan from the Energy Department under the economic stimulus law. California solar panel maker Solyndra and Beacon Power, a Massachusetts energy-storage firm, also declared bankruptcy. Solyndra received a $528 million federal loan, while Beacon Power got a $43 million loan guarantee.

Why did Abound Solar get these loans? Because they had connections in the Democrat Party – that’s why.

Excerpt:

Abound Solar further claims $260 million in private investments, part of which came from billionaire medical heiress Pat Stryker’s Bohemian Companies.  This is where the story gets interesting.

Thanks to Independence Institute investigative reporter Todd Shepherd, we still have access to the Web page that lists Bohemian as an investor even though it does not appear on the company’s current Web site. The exact amount that Stryker has given is not public at this time.

[…]Forbes lists medical heiress and founder of Bohemian Companies/Foundation Pat Stryker as number 331 of its top “400 Richest People in America.” Worth $1.3 billion, the Fort Collins resident could single-handedly fund Abound Solar and still be well above the poverty line.

While some of her fortune has gone to Abound Solar, she also has chosen to donate more than $2.2 million (probably a low figure) to Democrats and their causes over the last several election cycles. Beneficiaries include Barack Obama, one-term Congresswoman and Fort Collins resident Betsy Markey, and Interior Secretary Ken Salazar when he successfully ran for U.S. Senate in Colorado.

The Washington Examiner published e-mails showing that the White House was directly involved in granting loans.

Excerpt:

Previously undisclosed emails made public today by the House Oversight and Government Reform Committee describe multiple instances of White House pressure on career Department of Energy officials to speed up approval of government loans to clean energy firms like Solyndra and Abound Solar.

President Obama is described in one of the emails as having personally approved “moving it ahead,” thus reversing a prior decision by DOE career officials not to extend $2 billion in tax-funded help to AREVA, a French nuclear power company, on an Idaho project.

[…]In another email made public today by the House panel, Silver instructed McCrea to tell a Treasury Department official of White House support for DOE help to Abound Solar.

“You better let him know that WH wants to move Abound forward. Policy will have to wait unless they have a specific policy problem with abound,” Silver said in the June 25, 2010, email.

Abound Solar is a Colorado-based solar panel manufacturer that had used $68 million of a $400 million DOE loan guarantee before filing for bankruptcy earlier this year.

Obama had to pay back his friends who got him elected. He used YOUR MONEY and YOUR CHILDREN’S MONEY to do it. Doesn’t that cause you any alarm? And this was done under the rubric of “stimulating” the economy.

You can see a list of other Obama administration green energy failures here.

How governor Rick Scott created jobs and eliminated a $3.5 billion debt in Florida

This post at A View From The Right had the full transcript of the Florida governor’s recent speech at the recent “Defending the American Dream Summit”. I thought it was interesting to see what he was doing, since I have sort of been neglecting him and concentrating my attention on other Republican governors like Scott Walker, John Kasich, Bobby Jindal and Mike Pence.

He inherited a bad situation from his predecessor:

In 2010, our state was in a free fall. We had lost more than 800,000 jobs during the four years before I took office. Our real estate market had collapsed. Our state debt had grown by about a billion dollars a year for two decades. And, thousands of government regulations were killing job creation.

[…]DC’s spending addiction had spread to Florida. Hard decisions had been delayed and replaced with the shortsighted policies of more debt and more spending. Florida was in a hole, and for about four years the state just kept digging.

When I took office, the bill had come due.

It was time to stop digging and climb out of the hole. We knew the only way out was to create jobs. Taxes are primarily paid by successful companies and people with jobs. In Florida, it was time to make the hard decisions to: Right-size government. Reduce spending. And pay down debt.

Here’s some of what the Scott administration has done:

I took office with a projected $3.6 billion budget gap. As we made the hard decisions to live within our means during my first year in office, there was plenty of criticism to go around. We streamlined services and targeted reforms to help businesses compete. But, we heard from the critics when we turned down stimulus funds and balanced the budget. They said, federal money was “free.” I was told to grab all the free federal money I could.

As part of our effort to reduce fraud and help families, we also passed legislation requiring drug testing for welfare recipients. The critics were mad. They said that drug testing someone applying for welfare was a violation of their rights. I disagree. Welfare is designed to support children, and parents receiving government assistance should be drug free. Illegal drug use has no place in any family. Unfortunately, this reform is still stuck in the courts. But, we will keep fighting.

To further reduce government waste, we reformed our unemployment assistance program. Federal unemployment money was pouring out of DC, but there wasn’t enough oversight in place to limit waste and abuse. We passed a law to require people on unemployment to show they were actively seeking a job every week.

And more:

I have now been in office for more than two years and we are beginning to see the results of conservative, pro-growth solutions in Florida:

*  We have turned around a four-year record of 800,000 lost jobs before I took office, and the private sector in Florida has now created nearly 370,000 jobs over the last 2 1/2 years.

*  Our unemployment rate has dropped below the national average, and Florida’s rate has had the second biggest improvement in the country.

*  We have paid off $3.5 billion in state debt.

*  We have downsized our state government workforce to the lowest level in the history of Florida. Why? Because the private sector is the engine to job creation -– not government.

*  We have eliminated more than 2,600 state regulations on job creators.

*  We paid back $3.5 billion in federal loans for re-employment assistance.

*  And, we did all this while also cutting taxes five times in three years, including: The elimination of the sales tax on manufacturing equipment to help jump-start manufacturing investment. Continuing to roll back the business tax, so that today around 70 percent of our businesses no longer pay it. And, we cut property taxes for homeowners and businesses.

[…]*  After right-sizing government and cutting taxes, this year, we had our first budget surplus in six years. But, it gets better.

*  Just a few weeks ago, our State Revenue Estimating Conference announced that the general revenue now forecasted for 2014-2015 in Florida will be the highest ever. The highest ever.

How are they doing it? With big government spending on “stimulus” programs? No:

Working with the Florida Legislature, we have cut taxes year after year, even while forcing government to live within its means. This year, we are committed to returning even more money to the hard-working Florida families who earn it. I look forward to working with our friends in the Florida Legislature to make these tax cuts a reality.

They are cutting government spending and returning the taxes to the taxpayers. This is a good state to be in now, especially if you want to run your own business. What I liked about the speech is that he is passionate about pro-growth policies. While others seemed to be ashamed of low taxes and small government, Governor Scott is producing results and linking those good results to his conservative policies. I think that the next time we have an election, it should be about choosing the person who has proven that they know how to run an economy. Governor Scott should be in the mix. The best stimulus program is a job, and we should be picking people who have proven that they know how to create jobs.