Yesterday, the Bureau of Labor Statistics released jobs number from the month of April, which found that the economy created 165,000 jobs — slightly more than the 150,000 jobs the economy needs to produce to keep up with population growth.
Employment rose by 165,000 jobs in April, according to the monthly economic report released Friday by the U.S. Bureau of Labor Statistics. And unemployment dropped slightly from 7.6 to 7.5 percent—a minimal change, but one marking a steady, .4 percent drop since January. It’s the lowest unemployment rate in four years.
Employment increases were seen in professional and business services, food services and drinking places, retail trade and health care, according to the report.
The Labor Department also announced revised and more positive figures for February and March: Employment for February was revised from 268,000 to 332,000 jobs gained and for March from 88,000 to 138,000 jobs gained.
There’s definitely some good news there after years of lagging economic growth. But there are still some concerns about another economic slowdown. But it should be noted that the U-6 unemployment rate, which many call the true measure of the jobs picture, inched up to 13.9% from 13.8%. Reuters noted that the “details of the report remained consistent with a slowdown in economic activity.”
During a House Small Business Committee hearing last week, Douglas Holtz-Eakin, who served as director of the Congressional Budget Office from 2003 to 2005, explained that the compliance costs of ObamaCare — passed as the “Patient Protection and Affordable Care Act” — could cost businesses up to $24 billion and 80 million hours of paperwork.
“The [Affordable Care Act] is very costly,” Holtz-Eakin explained to the committee. “It has about $24 billion in reported regulatory compliance costs. These are estimates that come from the administration itself. Eighty million hours of paperwork time spent complying with those regulations. To give you some perspective - that’s 40,000 full time employees filling out paperwork for a year nonstop”
Responding to a question from Rep. Tom Rice about the affects of the bill on the economy and ostensibly the American people, Holtz-Eakin said, “This is a negative; I don’t think there’s anyway around that.”
“Whatever your other objects might be, if you set out to enhance job creation and growth in the United States, you wouldn’t pass a bill with a trillion dollars of tax increases, a large entitlement program, and this amount of regulation,” Holtz-Eakin continued. “That isn’t a good strategy.”
Holtz-Eakin also noted that the insurance tax will be passed onto consumers in their health insurance premiums. He also agreed with Sen. Max Baucus’s recent comments that the implementation efforts of ObamaCare will be a “train wreck.”
While there were some signs recently that job creation was picking up steam, all of that seemed to be erased this morning when the Bureau of Labor Statistics released jobs numbers for March:
U.S. employers added just 88,000 jobs in March, the fewest in nine months and a sharp retreat after a period of strong hiring. The slowdown may signal that the economy is heading into a weak spring.
The Labor Department said Friday that the unemployment rate dipped to 7.6 percent, the lowest in four years, from 7.7 percent. But the rate fell only because more people stopped looking for work. People who are out of work are no longer counted as unemployed once they stop looking for a job.
The percentage of Americans working or looking for jobs fell to 63.3 percent in March, the lowest such figure in nearly 34 years.
The economy needs to add around 150,000 jobs per month just to keep up with population growth. Labor participation, which dropped by 496,000 last month, is now at a 30-year low. James Pethokoukis noted that the unemployment rate would be at 10.98% if labor participation was the same as January 2009.
Paul Krugman is known for saying some very odd things. The neo-Keynesian economist has firmly planted himself as a hack for President Barack Obama and the Democratic Party, even if it means going back on policies he once supported.
For example, Krugman once spoke strongly against the idea of monetizing debt. But when the Federal Reserve decided roll out “quantitative easing” — a nice name for debt monetization, shifted gears and defended the program. Krugman, who often cherry-picks data to come to predetermined conclusions, has written fondly of death and destruction because he believes it will drive economic output. He’s also a big fan of death panels to deal with the unfunded liabilities of entitlement programs.
Krugman was also one of the loudest voices calling for economic stimulus in 2009. After President Obama’s stimulus failed to boost the economy, Krugman, who had advocated for a stimulus bill that exceeded the $833 billion price tag that the Obama Administration requested, complained that it wasn’t large enough.
Krugman chastized those who were pushing for spending cuts and later claimed victory. “Intellectually it was, I think I can say without false modesty, a huge win,” he wrote last year. “I (and those of like mind) have been right about everything.”
President Barack Obama, who has overseen four consecutive years of $1 trillion budget deficits and $6 trillion added to the national debt in a little more than four years, issued a proclamation last week designating April as “National Financial Capability Month”:
President Barack Obama, who has increased the national debt by $53,377 per household, has proclaimed April “National Financial Capability Month,” during which his administration will do things such as teach young people “how to budget responsibly.”
“I call upon all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices,” Obama said in an official proclamation released Friday.
“Together, we can prepare young people to tackle financial challenges—from learning how to budget responsibly to saving for college, starting a business, or opening a retirement account,” he said.
Gov. Scott Walker (R-WI), who took on labor unions by reforming collective bargaining laws and in a subsequent recall election, spoke this morning at CPAC 2013 where he rallied the crowd by giving an empassioned defense of conservatism. Gov. Walker, who is thought to be a potential candidate for the GOP nomination in 2016, also went on the offense against President Barack Obama’s economic policies, including ObamaCare.
Based on what I heard this morning, both in his speech and from attendees walking around, Gov. Walker not only delivered one of the best speeches of the weekend, but sounded very Reagan-esque.
You can watch Gov. Walker’s speech below:
That’s great, it starts with an earthquake, birds and snakes, an aeroplane - Lenny Bruce is not afraid. Eye of a hurricane, listen to yourself churn…A tournament, a tournament, a tournament of lies. Offer me solutions, offer me alternatives and I decline…It’s the end of the world as we know it, and I feel fine…” — R.E.M., “It’s the End of the World as We Know It, and I Feel Fine”
Dear world, I sit here writing from an secret underground bunker, the last refuge for my family as the world burns, the moon having turned red and the rivers running with blood, all because the intransigent Republicans refused to budge on (more) tax increases for the rich in exchange for a “balanced” approach of “smart” spending cuts by Obama. We now suffer from the “brutal” and “arbitrary” spending cuts of 2.2% that kicked in when the Republicans allowed the sequester to move forward.
I’ll write as long as I can until my family starves to death, but thirty gallons of water, a case of creamed corn, and a hundred packages of Ramen noodle soup go only so far with a family of ten. Well, nine. I secretly decided to sacrifice my 12- year old son and use him for food. A harsh move, granted, but necessary to prolong life for the rest of us. He’ll probably think I did it because I like him least, but that’s not true. It was a purely practical decision. He is a big, strong boy, with the most muscle mass. Seriously, the kid is as strong as a bull! I sure will miss him.
During testimony before the House Budget Committee in February 2011, Doug Elemendorf, director of the Congressional Budget Office, told Rep. John Campbell (R-CA) that ObamaCare would reduce employment by some 800,000 by 2021. The effects of the law on the job market was a point that many policy analysts were making before its passage.
Unfortunately, the Obama Administration and Democrats in Congress weren’t listening. And now, the Federal Reserve has released a report noting that ObamaCare is leading many businesses to layoff workers:
The Federal Reserve on Wednesday released an edition of its so-called “beige book,” that said the 2010 healthcare law is being cited as a reason for layoffs and a slowdown in hiring.
“Employers in several Districts cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff,” said the March 6 beige book, which examines economic conditions across various Federal Reserve districts across the country.
That line was found in a section of the Fed’s report on employment, wages and prices. That same section also said the Atlanta district noted that healthcare regulations are so burdensome there is a shortage of compliance specialists.
“Atlanta noted a lack of compliance specialists due to heavier regulations in the healthcare industry,” it said.
Via Reason TV: Few energy projects have inspired the level of vitriol surrounding the Keystone XL Pipeline, that would run 1,700 miles from Alberta, Canada through the United States to refineries on the Gulf of Mexico.
The oil sands of Alberta are estimated to hold 170 billion barrels of petroleum, the largest reservoir of black gold outside of Saudi Arabia.
Because the pipeline crosses an international boundary, President Barack Obama has the final say over whether to give the project a green light.
Moody’s Investor Service, one of the three major credit rating services, took a move last week that is sure to send some shockwaves across Europe. Moody’s lowered the United Kingdom’s credit rating due to the debt that will continue to weigh on the country:
Moody’s lowered the U.K.’s domestic and foreign-currency bond rating one notch to Aa1 and changed its outlook to stable. It is the first of the three major ratings firms to do so, though both Standard & Poor’s Ratings Services and Fitch Ratings have the U.K. on negative outlooks.
The move by Moody’s is a psychological blow to the United Kingdom, which is fiercely proud of its historical position on the world stage and keenly attuned to signs of its diminishment. It is also a political blow to Prime Minister David Cameron and his chancellor of the exchequer, George Osborne, who has long justified his painful government spending cuts on the grounds that he is maintaining the U.K.’s triple-A rating.
“We expect the country’s debt will continue to grow in coming years,” said Bart Oosterveld, managing director in charge of Moody’s sovereign ratings group, in an interview. “In our central scenario, we don’t expect the country’s debt burden to stabilize until 2016.”
Cameron had enacted a series of austerity measures, which were met with protests and derision from opponents, aimed at curtailing the United Kingdom’s sizable welfare state. Unfortunately, these measures weren’t enough to keep the country’s credit rating in tact.