Tag Archives: Jobs

Trump signs executive order to eliminate job-killing regulations on small businesses

Trump signs good executive action = GOOD TRUMP
Trump signs good executive action = GOOD TRUMP

It’s Tuesday, so I guess it’s time for another executive order. Is it “Good Trump” or “Bad Trump” this time?

Yesterday, the Daily Signal reported this:

President Donald Trump signed an executive order Monday aimed at slashing regulations on American small businesses.

The order will expand regulatory review with the goal of dramatically peeling back federal regulations. The order is the Trump administration’s first step in repealing two regulations for every new regulation put forth, CNBC reports.

The measure also sets a $0 budget for new regulations in 2017, and a cap on the cost of any new regulations going forward. Once in effect, it will require federal agencies to propose any new regulatory rules to the White House for official review.

[…]By signing the order, Trump is following through on his campaign promise to put a moratorium on any new regulations when he takes office. Trump also promised to end “all unnecessary regulations” imposed on the energy industry and to “dismantle” the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act.

It’s good Trump!

Last week, there was another executive order designed to halt pending regulations.

The Washington Free Beacon reports that so far, Trump has halted $181 Billion (with a B) in regulatory costs:

In one of his first acts as president, Donald Trump effectively halted nearly $200 billion worth of regulations, according to a new analysis.

President Trump has taken aggressive action to curb regulations in his first week, promising to cut 75 percent or “maybe more,” and signing an executive order Monday to cut two regulations from the books when every new rule is introduced.

The first move came in the form of a memo to all federal agencies from Chief of Staff Reince Priebus, freezing all recently finalized and pending regulations. The American Action Forum, a center-right policy institute, found the action resulted in stopping rules that would cost the economy $181 billion.

Getting rid of regulations is important, because it frees up small businesses to put more resources on expanding and job creation. Most jobs are created by small businesses, and they are definitely complaining more lately about being overregulated.

Small businesses and regulations
Small businesses and regulations

The American Enterprise Institute explains:

Startups have been on the decline for 30 years, and I have written frequently on some of the possible reasons. One big open question: To what extent is government regulation playing a role in that decline? A blog post by Scott Shane, professor of Entrepreneurial Studies at Case Western Reserve University, offers a few data points that suggest rules and red tape could be hindering business formation. He notes, for instance, small business owners are complaining more about regulation than they have in the past — twice as much as in the 1980s, for instance. And this:

Over the past three-and-a-half decades, federal regulation has been rising, while new business creation has been falling, as the chart above indicates. Researchers at the Ewing Marion Kauffman Foundation, the Hudson Institute, the Hoover Institution and the Heritage Foundation believe the pattern is more than a coincidence. The per capita rate of new employer business creation and number of rules pages in the Federal Register — a common measure of the scope of federal regulation — correlate -0.67 over the 1977 to 2012 period. Similarly, the per capita rate of business creation and the number of pages in the Code of Federal Regulation — another frequently used estimate of government rulemaking — correlate -0.78 over the same period. (A correlation of 1.00 means that two numbers move in perfect concert.)

Correlation may not prove correlation, but it can provide a helpful lead on where to look for the problem.

Trump’s focus seems to be to get job creation started again by lifting the tax and regulatory burdens on those who create jobs. That’s a very different focus than his predecessor.

Millennials who elected Obama will face high taxes, poverty and unemployment

We can't raise taxes enough to fix this overspending
We can’t raise taxes high enough to fix this much overspending

My regular readers have probably noticed that I have stopped blogging about day-to-day politics, ever since the Republican primary candidates with conservative records (Cruz, Jindal, Walker) were eliminated from the GOP primary. I have heard though that the mainstream media is going all in to elect Hillary Clinton. My concern is that many people rely on television news and will never think about two really important issues. First, Obama has been the worst President in the history of the country and has destroyed the economy for decades to come. Second, his disregard for national security and weak foreign policy has emboldened the enemies of Western democracies, e.g.  Russia, Iran, etc. We will see the consequences of this (wars and terrorism) for years to come. Those are the real challenges we face as a nation.

This Hoover Institute article by Victor Davis Hanson explains the big picture that the mainstream media doesn’t care about.

Excerpt:

Consider the $20-trillion national debt. Most Americans accept that current annual $500 billion budget deficits are not sustainable—but they also see them as less extreme than the recently more normal $1 trillion in annual red ink. Americans also accept that the Obama administration doubled the national debt on the expectation of permanent near-zero interest rates, which cannot continue. When interest rates return to more normal historical levels of 4-5% per annum, the costs of servicing the debt—along with unsustainable Social Security and Medicare entitlement costs—will begin to undermine the entire budget.

Count up current local, state and federal income taxes, payroll taxes, property and sales taxes, and new health care taxes, and it will be hard to find the necessary additional revenue from a strapped and overtaxed middle class, much less from the forty-seven percent of Americans who currently pay no federal income taxes. The Obama administration has tried to reduce the budget by issuing defense cuts and tax hikes—but it has refused to touch entitlement spending, where the real gains could be made. The result is more debt, even as, paradoxically, our military was weakened, taxes rose, revenue increased, and economic growth remained anemic at well below 2% per annum.

The national debt is one ticking time bomb, but there are others. Illegal immigration and Muslim refugees create additional financial problems for the next generation of entrepreneurs and workers:

Illegal immigration poses a similar dilemma. No nation can remain stable when 10-20 million foreign nationals have crashed through what has become an open border and reside unlawfully in the United States—any more than a homeowner can have neighbors traipsing through and camping in his unfenced yard.

Likewise, there are few multiracial societies of the past that have avoided descending into destructive ethnic chauvinism and tribalism once assimilation and integration were replaced by salad-bowl identity politics. Common words and phrases such as “illegal alien” or “deportation” are now considered taboo, while “sanctuary city” is a euphemism for a neo-Confederate nullification of federal immigration laws by renegade states and municipalities.

Illegal immigration, like the deficits, must cease, but stopping it would be too politically incorrect and painful even to ponder. The mess in Europe—millions of indigent and illegal immigrants who have fled their own failed states to become dependent on the largess of their generous adopted countries, but without any desire to embrace their hosts’ culture—is apparently America’s future.

Progressive Christians and  left-leaning Republicans join Democrats in imposing costs on the next generation of taxpayers with open borders immigration policies. The bill for importing people who take more in welfare than they pay in taxes has to be paid by someone. Not only will taxes on individuals go up, but taxes on businesses will cause them to create fewer jobs, or move their production to countries that have lower taxes on business.

The rest of the article talks about more ticking time bombs created by young leftist voters. Obama’s anti-police rhetoric has created a crime crisis that will require more police, more incarceration and higher insurance premiums. Obama’s anti-school-choice policies have made it harder for the next generation to get the education they will need to offer value to employers. Without skills, you won’t have a job, and you will be poor – poorer than your parents’ generation.

Although most young leftists are ignorant about foreign policy, that did not stop them from voting to cause crises that will harm our economy, and may also draw us into war. Territorial disputes involving strong countries like Russia and China could easily lead to war. Sponsors of terrorism like North Korea and Iran have gained strength during Obama’s reign of stupidity. Wars that impact trading partners or allies will cost taxpayers money. And millennials are the ones who are going to get the bill for a failed foreign policy.

The article doesn’t mention other crises like the trillion dollar student loan bubble, or the next mortgage lending crisis, or the unfunded pension programs crisis, or Medicare going bankrupt, and then Social Security shortly after, etc. No one in the mainstream media mentions these things, and the millennials aren’t aware of these problems. It’s not in their culture to put financial concerns above having a good time. But closing your eyes doesn’t make a threat disappear. Millennials can’t study English in college, rack up student loans, spend all their money on alcohol, work minimum wage jobs, then travel to Europe in their 20s, and expect everything to work out when they get serious about career and savings at age 30. These crises – which millennials voted for – are going to make their lives harder than their parents’ lives ever were.

Arthur Brooks: why is the American public shifting from optimism to envy?

Labor Force Participation down to 62.8%
Labor Force Participation down to 62.8%

An editorial by Arthur Brooks appeared today in the leftist New York Times. His topic is the shift from optimism to envy, why it is happening, and whether envy makes us happier than optimism.

Excerpt: (links removed)

The Irish singer Bono once described a difference between America and his native land. “In the United States,” he explained, “you look at the guy that lives in the mansion on the hill, and you think, you know, one day, if I work really hard, I could live in that mansion. In Ireland, people look up at the guy in the mansion on the hill and go, one day, I’m going to get that bastard.”

[…]Unsurprisingly, psychologists have found that envy pushes down life satisfaction and depresses well-being. Envy is positively correlated with depression and neuroticism, and the hostility it breeds may actually make us sick. Recent work suggests that envy can help explain our complicated relationship with social media: it often leads to destructive “social comparison,” which decreases happiness. To understand this, just picture yourself scrolling through your ex’s wedding photos.

My own data analysis confirms a strong link between economic envy and unhappiness. In 2008, Gallup asked a large sample of Americans whether they were “angry that others have more than they deserve.” People who strongly disagreed with that statement — who were not envious, in other words — were almost five times more likely to say they were “very happy” about their lives than people who strongly agreed. Even after I controlled for income, education, age, family status, religion and politics, this pattern persisted.

It’s safe to conclude that a national shift toward envy would be toxic for American culture.

Unfortunately, in the wake of the Great Recession, such a shift may well be underway, given the increasing anxiety about income inequality and rising sympathy for income redistribution. According to data from the General Social Survey, the percentage of Americans who feel strongly that “government ought to reduce the income differences between the rich and the poor” is at its highest since the 1970s. In January, 43 percent of Americans told the Pew Research Center that government should do “a lot” to “reduce the gap between the rich and everyone else.”

Why the shift? The root cause of increasing envy is a belief that opportunity is in decline. According to a 2007 poll on inequality and civic engagement by the Maxwell School of Citizenship and Public Affairs at Syracuse University, just 30 percent of people who believe that everyone has the opportunity to succeed describe income inequality as “a serious problem.” But among people who feel that “only some” Americans have a shot at success, fully 70 percent say inequality is a major concern.

People who believe that hard work brings success do not begrudge others their prosperity. But if the game looks rigged, envy and a desire for redistribution will follow.

This is the direction we’re heading. According to Pew, the percentage of Americans who feel that “most people who want to get ahead” can do so through hard work has dropped by 14 points since about 2000. As recently as 2007, Gallup found that 70 percent were satisfied with their opportunities to get ahead by working hard; only 29 percent were dissatisfied. Today, that gap has shrunk to 54 percent satisfied, and 45 percent dissatisfied. In just a few years, we have gone from seeing our economy as a real meritocracy to viewing it as something closer to a coin flip.

There is a good lesson in this for people who want what is best for the poor. Simply receiving money from others is not going to make poor people happy. What we need to focus on is providing the poorest people with opportunities.

One way to help the poor is by giving poor children a better education. Conservatives support school choice, which takes money away from government and puts it back in the hands of parents, letting them choose the best school for their child. Schools have to produce good outcomes in order to earn the money, just like private businesses have to compete for customers. But Democrats oppose school choice, as when they killed the D.C. voucher program that helped poor black students. Less school choice helps public schools to be insulated from competition, which provides worse outcomes to students, especially poor minority students. If we really cared about poor, minority students, we would put pressure on public schools to compete with private schools. But the Democrats don’t want that, they prefer to give favors to their teacher union allies.

Democrats also want to punish job creators with high taxes and burdensome regulations. Democrats passed Obamacare, which punishes businesses with taxes if they allow part-time workers to work for more than 30 hours a week. Many jobs were lost because of this, and many people are now struggling to pay higher premiums for plans with higher deductibles and co-pays. Obamacare is a nightmare of intrusive regulations, too. Now the Democrats are talking about raising the minimum wage, which is going to put even more pressure on employers to lay off workers, because they can’t afford to pay them more money for the same work. For Democrats, this is all to the good, though. Because if the poor don’t have jobs, or can’t work enough hours, they start to see the economic game as “rigged” and they are more responsive to “envy rhetoric”. They start to look to big government for handouts, rather than trying to prevent the government from taxing and regulating job creators.

What we need to see is that it’s not the Democrats’ objective to help people find jobs. They gain when people become more envious, like in European countries, and start to vote to grow the size and power of government to redistribute wealth. Speeches about income inequality never have the goal of giving people jobs. None of Obama’s policies aim to do that. That’s why he won’t build the Keystone XL pipeline, or boost domestic energy development here at home. Instead, they want to extend unemployment benefits and pass the costs on to the next generation. Their goal is to get you unemployed or on disability or on welfare, so that you will vote for the government to continue to take your neighbor’s money to give it to you. That manufactured envy is what keeps the Democrats in power.

This plan to borrow from young people to buy the votes of old people today works for a while, until the money runs out. But by then, the politicians who put in place the redistribution programs are usually long gone .

Republican governor of blue state gets 70% of welfare recipients back to work

Michigan Governor Rick Snyder (R)
Michigan Governor Rick Snyder (R)

This article is from the Daily Signal, and it clearly explains what happens when a blue state hits rock bottom and has to elect a Republican governor to clean up the mess left by a Democrat. In this case, it’s Republican governor Rick Snyder who had to come in and clean up the mess left by Democrat Jennifer Granholm.

Excerpt:

Since Michigan Gov. Rick Snyder assumed office, the number of welfare recipients in the state has declined by a staggering 70 percent, according to a news report.

A total of 64,492 individuals received cash assistance from the state this past August, down from 227,490 in 2011. Snyder, a Republican, took office in January 2011 and was re-elected in November 2014.

Michigan Capitol Confidential, a news site, reported that the decline in welfare recipients could be due to new enforcement of limits on cash benefits. The state has begun enforcing a 48-month lifetime limit for its cash assistance program and a 60-month federal time limit.

The spokesman for the state Department of Health and Human Services, Bob Wheaton, partially credited the drop in welfare recipients to the state’s improving economy.

In an email to Capitol Confidential, Wheaton said: “As the governor said at the time of the decision to enforce time limits, this was returning cash assistance to its original intent—a transitional program to help families as they work toward self-sufficiency while preserving the safety net for families most in need.”

Wheaton also said the program Michigan Works has helped recipients find jobs.

During Snyder’s time in office, the state’s economy has improved, and unemployment has decreased. The unemployment rate in Michigan dropped from 11.2 percent in December 2010 to 5 percent in September 2015.

Honestly, I don’t even think there should be such a thing as welfare. People should be able to put a voluntary contribution into an emergency account, and the government can match that, and if they ever lose their job, they can run their lives off their account. That’s fair. But instead, you have people going on welfare for well over a year, since Obama undid the Welfare Reform bill of 1996.

Maybe that’s why our labor force participation rate is at a 38-year low:

Labor Force Participation 2015
Labor Force Participation 2015

But in Michigan, things are much better. Because they have a Republican running the show. Republicans are not for welfare, they are for helping people back into the workforce. A hand up, not a hand out.

Pre-marriage counseling is good, and pre-engagement counseling is even better

 

Painting: "Courtship", by Edmund Blair Leighton (1888)
Painting: “Courtship”, by Edmund Blair Leighton (1888)

OK, I was chatting with my friend McKenzie who recently got married to an amazing Christian man. She and I are both big believers in asking questions during the courtship. She sent me this article from Verily magazine that has a nice story, and lots of questions.

The article starts like this:

When you know, you know. And with Zach, I knew. Just eleven months into dating, I knew this was the man I wanted to marry. Zach felt the same about me. But instead of putting a ring on it then and there, we decided to seek out a pastor for pre-engagement counseling. You read it right, pre-engagement.

It might sound intense or premature at first, but I am here to tell you that it has been an awesome experience. Sure, the deal isn’t sealed until you say “I do,” but engagement is a huge decision, too. I don’t want to get engaged and then deal with our baggage. When Zach proposes marriage to me, I want my “Yes!” to be with eyes wide open, and pre-engagement counseling has really helped us move in that direction.

What has been so great about pre-marriage preparation? It’s a structured way for us to explore the most important ideas that will be the foundation of our marriage. We have a session once every two weeks for about an hour and a half, during which we’re working through the book Preparing for Marriage by Dennis Rainey with our pastor through homework assignments and discussing together. Of course, pre-marriage counseling can take many forms, but no matter where you might go to get pre-marriage counseling, there are certain things I think any couple should consider before truly committing. Whether you work through them pre-marriage or pre-engagement, like us, is up to you.

She has 4 sections and here they are:

  1. PERSONAL HISTORY
  2. FAMILY
  3. EXPECTATIONS
  4. MONEY MATTERS

The whole essay is very practical, but let me just quote the one that stood out to me:

Few people enjoy talking about money, and Zach certainly did not look forward to this conversation. But money, how we think about it and what we do with it, plays a big part in marital happiness. In our pre-engagement sessions we were posed with great questions when talking about finances. Here are a few of the important questions to cover in a conversation about money:

  • Who will be the primary financial provider in the family?
  • How will you decide on major purchases?
  • Who will pay the bills, balance the checkbook, and keep track of expenses?
  • What is your philosophy of giving (charitable donations to your church or other organizations), and how will you make decisions about giving?
  • What is your conviction about debt and the use of credit cards?

These were just a handful of the financial questions we were asked to think about. We also discussed how we want to handle our finances as a couple and individually (joint or separate bank accounts). It’s a lot to think about, but the goal was to get on the same page.

What I am seeing a lot of these days – I am literally seeing this everywhere – is when older women prefer to date and marry younger men who do not have jobs and who either never did some sort of post-high-school job training or are still students into their mid-20s. And I know why they do that. Younger men who are not serious about providing are very, very easy for older women to manipulate. She can throw out pretty much any crazy plan she wants – and maybe say “God told me” – and he will have no authority from his own life experiences to second guess her. Because he is not responsible or disciplined himself. Young women not only struggle enormously with respecting men, they also prefer men who they do not have to respect, so they can run the relationship based on their own feelings and intuitions.

I have also encountered a very strange attitude among young women where they think that hard work in an area that doesn’t pay is as “promising” as hard work in an area that does. Actually, this isn’t true. Some people work very hard at things that don’t pay, and some people just choose things that do pay and don’t work as hard at them. What matters is not how hard you work, it’s what is in demand. An engineer working a 40 hour week is probably going to make a lot more than a graduate student working 80 hour weeks. Or an assistant professor working 80 hour weeks. The important thing is not to just be busy and organized. It’s much safer to choose a field where you can earn a good salary without killing yourself. Work stress is a stress on the marriage, especially if both spouses have to work because the male provider isn’t making enough.

There is no substitute for earning and saving money. You can’t run a marriage without money – somebody has to pay the bills. Pre-engagement counseling is useful to find out whether one or both people has a proven record of being able to earn, save, and invest. If both people have never earned, saved, or invested, that’s a pretty bad sign. Especially the way things are going with the economy and the national debt. Marriage poses serious financial challenges, and they cannot be wished away. If your plan for prosperity is to discern God’s mysterious will through your feelings and intuitions, then you should make a new plan.