Tag Archives: Jobs

New study: federal control of land hurts job growth in oil and gas industry

The Daily Signal reports on a new study from the Heritage Foundation.

They write:

Current government regulations imposed by the Bureau of Land Management are harming energy production and holding back the U.S. economy, a new study reveals.

“While federally owned lands are also full of energy potential, a bureaucratic regulatory regime has mismanaged land use for decades,” write The Heritage Foundation’s Katie Tubb and Nicolas Loris.

The report focuses on the Federal Lands Freedom Act, introduced by Rep. Diane Black, R-Tenn., and Sen. James Inhofe, R-Okla. It is designed to empower states to regain control of their lands from the federal government in order to pursue their own energy goals. That is a challenge in an oil-rich state like Colorado.

“We need to streamline the process as there are very real consequences to poor [or nonexistent] management,” Tubb, a Heritage research associate, told The Daily Signal.

“Empowering the states is the best solution. The people who benefit have a say and can share in the benefits. If there are consequences, they can address them locally with state and local governments that are much more responsive to elections and budgets than the federal government.”

Emphasizing the need to streamline the process, Tubb pointed to the findings in the new report.

“The Bureau of Land Management estimates that it took an average of 227 days simply to complete a drill application,” Tubb said.

That’s more than the average of 154 days in 2005 and more than seven times the state average of 30 days, according to the report.

The report blames this increase in the application process on the drop in drilling on federal lands.

“Since 2009,” Tubb and Loris write, “oil production on federal lands has fallen by nine percent, even as production on state and private lands has increased by 61 percent over the same period.”

Despite almost “43 percent of crude oil coming from federal lands,” government-owned lands have seen a 13-point drop in oil production, from 36 percent to 23 percent.

So, if we were interested in more job creation (and lower gas prices) then what we would be doing is letting oil and gas companies hire more people and extract more oil. Streamlining the process for new new drilling permits would help a lot. Right now, we still have a very low level of labor force participation. If we want companies to hire more people, we need to make it easier for them to do it. That means a less anti-business climate.

Study: creating jobs in poor countries doesn’t reduce terrorism

He's better at golf than foreign policy
He’s better at golf than foreign policy

Remember last week when the Obama administration told us that terrorism is caused by poverty and joblessness?

Let’s take a look at the research and see if this is true.

Here’s the working paper, authored by a Harvard University scholar from the John F. Kennedy School of Government.

And here’s the abstract:

This article provides an empirical investigation of the determinants of terrorism at the country level. In contrast with the previous literature on this subject, which focuses on transnational terrorism only, I use a new measure of terrorism that encompasses both domestic and transnational terrorism. In line with the results of some recent studies, this article shows that terrorist risk is not significantly higher for poorer countries, once the effects of other country-specific characteristics such as the level of political freedom are taken into account. Political freedom is shown to explain terrorism, but it does so in a non-monotonic way: countries in some intermediate range of political freedom are shown to be more prone to terrorism than countries with high levels of political freedom or countries with highly authoritarian regimes. This result suggests that, as experienced recently in Iraq and previously in Spain and Russia, transitions from an authoritarian regime to a democracy may be accompanied by temporary increases in terrorism. Finally, the results suggest that geographic factors are important to sustain terrorist activities.

More from the body:

However, recent empirical studies have challenged the view that poverty creates terrorism. Using U.S. State Department data on transnational terrorist attacks, Krueger and Laitin (2003) and Piazza (2004) find no evidence suggesting that poverty may generate terrorism. In particular, the results in Krueger and Laitin (2003) suggest that among countries with similar levels of civil liberties, poor countries do not generate more terrorism than rich countries. Conversely, among countries with similar levels of civil liberties, richer countries seem to be preferred targets for transnational terrorist attacks.

I know this is shocking – this the same administration that told us that insuring more people for more stuff would lower health care premiums… and that anyone who though that Russia was a threat was crazy… and that pulling out of Iraq would stabilize the region… could they be wrong about this Jobs for Terrorists program, too? The study seems to say they are wrong again.

But wait, there’s more. We actually know about some terrorists from their terrorist attacks, and we can see if they were as poor and uneducated as the Obama administration tells us they are.

This article is from The Stream.

It says:

According to scholar Scott Atran, a research director in Paris who is part of a NATO group studying suicide terrorism, there is no link between poverty and terrorism. Forensic psychiatrist and former foreign service officer Marc Sageman studied 172 participants in jihad for his book, Understanding Terror Networks, and came to the same conclusion. Princeton economist Claude Berrebi found that members of Palestinian terrorist organizations were frequently better educated and better off economically than the Palestinian Arab population as a whole.

Islamic terrorists tend to come from cosmopolitan backgrounds, are fluent in multiple languages and have advanced computer skills. Their privileged status enables them to accomplish such horrific acts undercover, often without being detected.

Osama bin Laden was the son of a billionaire construction magnate, who had close ties to the Saudi royal family. The younger bin Laden inherited $25–30 million of his family’s wealth. He studied economics and business administration at King Abdulaziz University.

Bin Laden’s top deputy, Ayman al-Zawahiri, who replaced him as the leader of al Qaeda, came from wealthy Egyptian parents. His father was a surgeon and medical professor, and his mother came from a politically active, financially successful clan. Al-Zawahiri also became a surgeon, even obtaining a master’s degree in surgery.

The leader of the 9/11 terrorist attacks, Mohammad Atta, studied architecture in Cairo, Egypt, then entered an urban planning graduate program at the Technical University of Hamburg-Harburg in Germany. His father was a lawyer and his mother came from a wealthy farming and trading family.

The “underwear bomber,” Umar Farouk Abdulmutallab, is the son of a wealthy Nigerian banker and businessman. His father was the chairman of First Bank of Nigeria and has been described by the UK paperThe Times as “one of the richest men in Africa.” Umar studied at several universities, including  University College London, where he studied Engineering and Business Finance and earned a degree in mechanical engineering.

One of the 2005 London bombers left an estate valued at over $150,000. Dawood Ibrahim, who coordinated the 1993 Mumbai bombings, is worth somewhere between $6 and $20 billion. Ibrahim despised his father’s successful banking profession, condemning it as “immoral” and “un-Islamic” for charging interest, and urged him to quit.

Now, my understanding is that when we elect politicians to run the economy, foreign affairs, etc. that we are picking people who understand the issues – not merely people who give speeches that sound nice. If I am hiring someone to fix my car, I don’t want to hear his pet theory about how gremlins are causing the leak. I want people who can see the world clearly, apart from any political correctness or anti-American bias, so that the problems get solved. I want the problems solved effectively and cheaply – that’s what I am used to in the private sector, where competence matters. It seems to me that the next time we have an election, we ought to elect someone who can do the work – not someone who just talks a lot of counter-factual nonsense.

New study: EPA carbon emission regulations eliminate 586,000 manufacturing jobs

Why don’t we build anything in America any more?

Well, we do build many things, but if the question is changed to “why aren’t we building more?” then the answer is that the costs of building things in America are much higher than building them elsewhere. One reason is that we have the highest corporate tax rate in the world. Another reason is that we pass regulations that make it expensive to make anything here.

Here is a report from the Daily Signal about a new study by the Heritage Foundation.

They write:

A new study predicts that more than a half million manufacturing jobs will be eliminated from the U.S. economy as a result of the Obama administration’s proposed regulations to curb carbon dioxide emissions.

“Every state would experience overwhelming negative impacts as a result of these regulations, but especially those with higher-than-average employment in manufacturing and mining,” said Nick Loris, a co-author of study, which was completed by energy experts at The Heritage Foundation—the parent organization of The Daily Signal.

The researchers projected how many manufacturing jobs would be eliminated in each state and congressional district as a consequence of the carbon plan, which is the centerpiece of President Obama’s effort to combat climate change.

The results show that 34 states would lose three to four percent of manufacturing jobs by 2023, and nine other states would lose more.

In Ohio alone, 31,747 jobs would be lost.

The study predicts that the Midwest would be hit the hardest, with Illinois, Indiana, Michigan, Ohio and Wisconsin losing more than 20,000 jobs each.

[…]The analysis comes just months before the Environmental Protection Agency is set to finalize its carbon regulations covering new, existing and modified/reconstructed power plants by mid summer of 2015.

Heritage’s study looked at the totality of the Obama administration’s efforts to limit carbon dioxide emissions—from motor vehicles and power plants, both new and existing.

The EPA’s plan forces states to cut power-industry emissions by 30 percent in 2030 from 2005 levels.

We have to save the planet!!!1!!

Meanwhile, in Boston:

It's global warming! The EPA must save us!
It’s global warming! The EPA must save us!

So, the next time anyone asks you why we don’t build anything anymore, tell them it’s because they voted for Democrats, and how this resulted in higher taxes and more burdensome regulations. Higher taxes and more regulation causes companies to close down here at home and move elsewhere, or they just scale back here and expand elsewhere. Democrats cause American jobs to go overseas, raising the unemployment rate. That’s why our labor force participation hasn’t been this low for decades. It’s basic economics.