Tag Archives: Jobs

News

Business leaders blame Obama for high unemployment rate

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Story from Reuters about a recent jobs summit. (H/T American Spectator via ECM)

Excerpt:

At a recent symposium, Intel boss Paul Otellini, a contributor to both parties, expressed concern about the “amount of variability in the system” created by the state of policy flux in healthcare, energy and tax policy. “It is very difficult to make a hiring decision,” he said. General Electric chief executive Jeffery Immelt, a strong supporter of Obama’s cap-and-trade proposal, added he would just like to “know what the rules are.”

All in all, a disturbing replay of the 1930s when FDR’s big changes left business reeling with uncertainty and confusion. The “devil you don’t know” and all that.

Small business is certainly with Big Business on this, particularly regarding the mercurial nature of healthcare reform. The substance of ObamaCare continues to morph daily — from the state of the public option to employer mandates to financing expanded coverage – as Senate leader Harry Reid scrounges for votes. On energy, the president will make big promises at Copenhagen even though cap-and-trade looks stillborn in the Senate.

As for financial reform, Senate banking committee chair Chris Dodd has proposed sweeping changes, while the Tim Geithner-Barney Frank version in the House seems beamed in from a universe where the credit crisis never happened. Compromise could prove elusive. Even Obama’s tax reform panel has delayed releasing its findings.

The thing you have to understand about business is that finding and hiring an employee is an expensive process. If this employee has to be laid off later because of government increasing tax rates or regulations, then that layoff poisons the atmosphere in the entire company. If you want businesses to feel comfortable about hiring, you need to convince them that you aren’t going to raise their taxes or expenses, unionize their work force, fine them for hurting the environment, or pass laws that encourage their employees to sue them for being offended, etc.

Legislative initiatives like card-check, health care mandates, cap-and-trade, ENDA, increased government spending, tariffs, “pay equity” laws, restrictions on executive salaries, capital gains tax hikes, etc., make businesses very risk-averse about hiring decisions. If Obama wants to attack businesses, these businesses may just leave the USA and set up shop elsewhere. But more likely they will just stay here and avoid hiring any new employees until the 2012 election.

Commentary

Thomas Sowell explains how politicians cause recessions while getting elected

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Article here at Townhall.com. (H/T ECM)

Excerpt:

After the cascade of economic disasters that began in the housing markets in 2006 and spread into the financial markets in Wall Street and even overseas, people in the private sector pulled back. Banks stopped making so many risky loans. Home buyers began buying homes they could afford, instead of going out on a limb with “creative”– and risky– financing schemes to buy homes that were beyond their means.

But politicians went directly in the opposite direction. In the name of “rescuing” the housing market, Congress passed laws enabling the Federal Housing Administration to insure more and bigger risky loans– loans where there is less than a 4 percent down payment.

A recent news story told of three young men who chipped in a total of $33,000 to buy a home in San Francisco that cost nearly a million dollars. Why would a bank lend that kind of money to them on such a small down payment? Because the loan was insured by the Federal Housing Administration.

The bank wasn’t taking any risk. If the three guys defaulted, the bank could always collect the money from the Federal Housing Administration. The only risk was to the taxpayers.

Does the Federal Housing Administration have unlimited money to bail out bad loans? Actually there have been so many defaults that the FHA’s own reserves have dropped below where they are supposed to be. But not to worry. There will always be taxpayers, not to mention future generations to pay off the national debt.

Very few people are likely to connect the dots back to those members of Congress who voted for bigger mortgage guarantees and bailouts by the FHA. So the Congressmen’s and the bureaucrats’ jobs are safe, even if millions of other people’s jobs are not.

Congressman Barney Frank is not about to cut back on risky mortgage loan guarantees by the FHA. He recently announced that he plans to introduce legislation to raise the limit on FHA loan guarantees even more.

Congressman Frank will make himself popular with people who get those loans and with banks that make these high-risk loans where they can pocket the profits and pass the risk on to the FHA.

So long as the taxpayers don’t understand that all this political generosity and compassion are at their expense, Barney Frank is an odds-on favorite to get re-elected. The man is not stupid.

Can you guess which political party Barney Frank represents?

Commentary

Should government spend so much money to push people into higher education?

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Both fiscal conservatives and social conservatives agree: government spending on higher education should be cut.

Fiscal conservatives oppose government spending on higher education

Consider this podcast from the libertarian Cato Institute.

Here is the MP3 file. (7 minutes)

It’s an interview with Dr. Neal MCluskey.

Topics:

  • does higher education necessarily deliver skills that employers want?
  • do most degrees really benefit employers?
  • should government subsidize higher education?

About the guest:

Neal McCluskey is the associate director of Cato’s Center for Educational Freedom. Prior to arriving at Cato, McCluskey served in the U.S. Army, taught high school English, and was a freelance reporter covering municipal government and education in suburban New Jersey. More recently, he was a policy analyst at the Center for Education Reform. McCluskey is the author of the book Feds in the Classroom: How Big Government Corrupts, Cripples, and Compromises American Education, and his writings have appeared in such publications as the Wall Street Journal, Baltimore Sun, and Forbes. In addition to his written work, McCluskey has appeared on C-SPAN, CNN, the Fox News Channel, and numerous radio programs. McCluskey holds a master’s degree in political science from Rutgers University.

I think people should face the costs of the university education themselves. Then they would choose areas where they could make enough money to live and pay back their loans.

Social conservatives oppose government spending on higher education

My wonderful friend Andrew sent me this notice about an upcoming Family Research Council lecture.

Allan Carlson to Speak on Student Loans at Family Research Council

World Congress of Families founder and International Secretary Allan C. Carlson will deliver a Witherspoon Lecture at the Family Research Council on December 4 at 11:00 am, on “The Crushing Burden of Student Loans on Family Formation For Generation X.”

Studies have shown that significant numbers of graduates who are burdened with college loans are less likely to marry and have children – with negative consequences for society. Thus, there is a need to re-think the entire program.

[…]Allan Carlson has a Ph.D. in Modern European History. He is the author of many books, including “Conjugal America: On the Public Purposes of Marriage” and “The Natural Family: A Manifesto,” with Paul Mero. Click here to order his books.

Click here to download the flier.

Isn’t it amazing that fiscal conservatives agree with social conservatives? Actually, they should agree on many more things, in my opinion. It’s a bad idea for government to redistribute taxpayer money to schools, because the teacher unions just turn around and use it to influence politics, which cannot be good for giving children a quality education. Teacher unions are bad for fiscal and social conservatives – we really need to unite and make sure that they are de-funded, and de-fanged.

A funny story about libertarians

And I have to tell you a funny story. One of the quirky things about me that everyone knows is that I am able to get into the most deep and controversial conversations within a few seconds of meeting someone. For example, in the time it takes to get a blood test, I was talking to the nurse about lethal injections, capital punishment and different goals of the criminal justice system. Well, I managed to beat my score on Monday.

I was passing by a security guard to show him my badge and I noticed a book on his desk. As soon as he turned his back I leaned over the desk and read the back cover. It was a book by Lew Rockwell. So I asked him about it, and then we started talking about how libertarians ought to support social conservatism in order to keep government from having to deal with the fallout from broken homes and crime. I was just about to start talking about John Lott’s study on the link between abortion and increased crime, but there was a line-up by then, so I moved along.

So that’s what my life is like – the joy of a comprehensive Christian worldview means that you are never at a loss for something interesting to talk about. And there is a lot of reading people – knowing who you can talk to and when you’ve gone too far. Practice, practice, practice.