Archive for 2012

WALTER RUSSELL MEAD: Why Nothing Is Shovel Ready Anymore: Part Two. “Drum’s post points toward, but doesn’t really analyze one of the contradictions at the heart of modern liberal policy. Relying on the government to do more and more, while also making the government more and more accountable to oversight and review by civil society is a recipe for stagnation and failure. With one hand the left gives government greater and greater mandates, making its smooth, swift and efficient operation ever more necessary to social health. With the other, it hobbles and strangles the processes of government in progressively (pun intended) greater amounts of red tape. There is just no way that this mix can produce anything but frustration.”

I MENTIONED STAND-UP DESKS LAST NIGHT, but I got a FitDesk in the mail the other day. I haven’t had a chance to deploy it yet, but I’ll report back.

INVESTOR’S BUSINESS DAILY: 10 reasons why jobs market even worse than weak June employment report.

Related: James Pethokoukis: June Jobs Swoon — America’s Labor Market Depression Continues.

I wonder how much of this is attributable to people “going Galt” in response to Obama Administration overreach?

UPDATE: A reader writes:

Please don’t use my name if you use this….

I saw your thought on employers going Galt due to Obama administration overreach.

I own a small company that I downsized from nine employees to one over the course of this recession. Mostly out of necessity.

I was speaking this morning with another business owner who did the same.

His quote on this was, “I’ll be damned if I’m going to create another job in this environment.”

I have to agree. It has become more and more onerous to add full-time employees. Even if you have the work, you have to measure improvement in revenue against the additional hassle and costs. Also, you have to look at how much of that additional money you’re going to have to fork over to the government.

A lot of those things have been there for a long time, but additionally we’re being told we’re evil and greedy.

The owner is always the last one paid in a small business. Sometimes he or she doesn’t get paid, if it would hurt the business.

With all those factors, it shouldn’t be a surprise to anyone when business owners don’t create more jobs. They should be surprised they actually do create a single job.

Indeed.

HIGHER EDUCATION BUBBLE UPDATE: Western Washington Criticized for Faculty Raises. “Governor Chris Gregoire, a Democrat, and some higher education leaders in Washington State are criticizing Western Washington University officials for agreeing to a faculty contract that grants raises of 5.25 percent this year and 4.25 percent each of the following two years, plus an increase of 15 percent in stipends for department chairs. . . . ‘Your agreement seems to ignore the shared sacrifice that other state employees in general government and institutions of higher education have made during the Great Recession,’ Gregoire wrote in a letter to Bruce Shepard, the university’s president. She added that Western’s raises ‘will hurt current and future efforts to protect and increase funding for public higher education.'”

You’ll see more of this sort of thing, as people fight over slices of a shrinking pie.

UNEXPECTEDLY: Payrolls rise less than expected, jobless rate stays at 8.2%.

Related: U.S. Employers Add 80,000 Jobs As Economy Struggles. “About one-third of the jobs gained in June were in temporary services.”

UPDATE: CNBC: Worst hiring period in 2 years. “There is little hope of an acceleration in the pace of job growth any time soon.” Not until November at the earliest.

Plus: “A measure of unemployment that includes discouraged workers ticked higher to 14.9 percent, its highest level since February, while the labor force participation rate stayed near a 30-year low at 63.8 percent.”

ANOTHER UPDATE: Dan Mitchell: Another Month of Data Re-Confirms Obama’s Horrible Record on Jobs.

Remember back in 2009, when President Obama and his team told us that we needed to squander $800 billion on a so-called stimulus package.

The crowd in Washington was quite confident that Keynesian spending was going to save the day, even though similar efforts had failed for Hoover and Roosevelt in the 1930s, for Japan in the 1990s, and for Bush in 2008.

Nonetheless, we were assured that Obama’s stimulus was needed to keep unemployment from rising above 8 percent.

Well, that claim turned out to be quite hollow. Not that we needed additional evidence, but the new numbers from the Labor Department re-confirm that the White House prediction was wildly inaccurate. The 8.2 percent unemployment rate is 2.5 percentage points above the Administration’s prediction.

Here’s the chart:

Mitchell: “The one thing that is unambiguous is that we’ve never had a jobs recovery as anemic as the one we’re experiencing today.”

Here’s another chart on that, from the Minneapolis Fed:

The red line is the current recession. Click through for a bigger version with more data. This is a predictable result of having an Administration — and for the first two years, a Congress — that views Atlas Shrugged not as a cautionary tale, but as a how-to manual. . . .

LEGAL EDUCATION UPDATE: Lawyers, Law Professors, and the Guilded Age. “Creative destruction often sets in when the economics don’t work, as Jim suggests, and the price of entry to the legal profession today far exceeds the economic return on a law degree for many students. Something has to give.”

LOOKING BACK ON “SCOOP” JACKSON. “A Democrat representing the state of Washington in the U.S. Senate from 1953 until his sudden death in 1983, he deserves to be recalled not only because he merits honor but also because little of today’s politics would be comprehensible without understanding his 30 years in office.”