Monthly Archives: August 2011

Unemployment Benefits: To Be Clear

I think it’s important to clear a few things up.  And to explain the difference between personal charity and legislative responsibility.

On a human and personal level I get the fact that someone out of work is struggling.  Most likely with personal value issues, household income issues and perhaps larger life skills and career opportunity issues.

I get that.

And to that extent, I resonate with the personal heart string tugging concept of needing to provide relief.  I absolutely agree that helping when one can is the right thing to do.  Without a doubt.

On the governmental and legislative level I know that the best thing that can be done is to make sure that it is as easy as possible for people  looking for work can match up with people looking for workers.n  In short, for the removal of every possible obstacle.

The juxtaposition of those two very valid and noble positions seems to be taking place in our debate.

The fiscal conservatives want less unemployment benefits to be handed out.  Less as in fewer weeks and less money.  The social  liberals want to increase those benefits.  Increase as in extend benefits and with more money.

And they yell at each other.

But they aren’t arguing about the same topic.  The Left are advocating a position of personal charity.  The Right are advocating a position of economic modeling.  Both are right in their specific context, but that context isn’t the same.

So, I would suggest this:

  • My Liberal friends:  Form a non-profit foundation that provides relief to the unemployed.
  • My Conservative friends: Contribute to said foundation.
  • End government mandated charity.

Remember, there must be an incontrovertible condition for the government to relive a man of the fruits of his labor by threat of sword or gun.  And the simple fact that you feel more comfortable with this man having that man’s property does not meet that condition.

The Tea Party Was Right

The government’s credit rating was cut today.  For the first time in the history of the planet the United States of America is no longer a sure bet on it’s credit.  To be sure, AA+ isn’t nothin to sneeze at, but it’s not, ahem, Money.

The impact:

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government’s budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers.

And the why:

“The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” S&P said in a statement.

The deal reached by Congress and signed by the President doesn’t do anything about our fiscal woes.  Cries from the Left that we aren’t raising revenue ring hollow as the United States regularly see year over year revenue gains of over 7%; revenue is NOT the trouble.

Spending is the problem.

And the liberal Left will not listen and take action.  They continue down the path that somehow someone isn’t paying their fair share yet irresponsibly care to put pen to paper and define what that fair share really is.

What we are seeing now is the natural result of the kind of quasi socialism that exists in the world today.

The Tea Party is right.

For Those Who Don’t Believe

Faith.

For those of us that believe, there can be nothing more personal.

I don’t know what it is in your life that touches you so as to approximate the most beloved state you can imagine.

This has come the closest most recently:

Economic Value

A very quick primer on what I think is Economics 101:

  • When two parties voluntarily enter into contract, each one, by definition, comes out ahead.
    • The milk I get from the grocer is worth more to me than the money I give to the grocer.
    • The money the grocer gets from me is worth more than the milk the grocer gives to me.
    • This is an example of a GROWING economy where people yearn to trade.
  • When one or more parties are forced into contract, one or the other -or both-, by definition, comes out behind.
    • When forced to sell milk at a price below market value, the grocer receives less money than the milk is worth.
    • When forced to buy labor at a price above market value, the employer pays more for the labor than the labor is worth.
    • This is an example of a shrinking economy.

As a point of fact.  I actively pursue things that create a situation where I come out ahead.  I avoid those where I come out behind.

This Is Obama’s Economy

‘Nuff said.

I Expect Employment Numbers To Improve

I stumbled upon a recent report, Hat Tip Calculated Risk, that is saying a number of states are changing their unemployment eligibility standards.  Apparently the number of weeks that a person is eligible for unemployment has been a standard 26 weeks:

…the maximum number of weeks that jobless workers can receive unemployment insurance to less than 26 weeks—a threshold that had served as a standard for all 50 states for more than half a century…

So, for 50 years we have been following a standard without question.  It turns out that at least 6 states in the good ol’ US of A actually DO read TarHeel Red.

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Recession Recovery: Unemployment – Obama, Bush, Clinton and Reagan

I have posted on a comparison of the last major recessions.  The first such comparison featured the GDP growth as we march through that recovery.  Each President; Obama, Bush, Clinton and Reagan had a shot at a recovery.

This post will feature the unemployment rate as we continue from recession to recovery.  This specific comparison, or feature, will look at the raw unemployment rate.  All data is taken from the BLS.gov website.

So, what does the data show?

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A Kinder Gentler Tone

The irony is just too much.

It seems not so long ago that a mad-man did the unspeakable.  He took a gun and fired it.  Lots of times.  People died and a nation changed, and a dialogue on dialogue began.

And it got kinda personal.

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A Him

Let’s get one thing clear.

  1. I care for the people less fortunate.
  2. The government has no role in that caring.

Okay, that’s two, but the second is important.  The government has a role.  And that role is to act as the referee in disputes.  It is to make sure that we all face the same rules and laws.  Sure, there is a cost in maintaining a government, so we tax to pay for it.  But that role of government is not meant to take money from those who have it and just flat out GIVE it to those who don’t.

When that role is given to the government, bad things happen.  Really bad things.

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Unintended Consequences

It turns out that this global economy has implications. Namely that money is movable and flexible. The other implication is that government is seen as damage and as much as possible people will avoid it; even uber-liberal ones like George Soros.

“It emerged that George Soros is to close his hedge fund to outside investors and will refund $1 billion to those who have put in money. The prominent financier blames new regulations that require investment advisors to register with the SEC.”

Nice.