The renewed debate over immigration reform has led to some very strong opinions, but one particular issue that has been lost in the mix is the need for more high-skilled workers in the United States.
The visa system for high-skilled workers — known as H-1B visas or STEM visas — is in dire need of modernization. This system allows businesses to temorarily employ foreign workers who have college degrees in various fields, including science, technology, engineering, and mathematics.
The system, however, limits the number of workers who can obtain these visas to 65,000 per year, meaning that many high-skilled workers see employment in other countries instead of waiting to come to the United States.
Along with a number of his colleagues from both sides of the aisle, Sen. Orrin Hatch (R-UT) recently introduced legislation — the Immigration Innovation Act (also known as the I-Squared Act) — that would bring a much needed overhaul to the H-1B visa system and more economic benefit to the United States.
The Immigration Innovation Act would increase the annual cap on high-skilled workers who can obtain H-1B visas from 65,000 to 115,000 and also provide a manner of flexibility that would allow the cap to be raised even higher to meet labor demand inside the United States. The legislation would also remove the cap for high-skilled workers with advanced degrees, which is currently limited to 20,000 per year.
A coalition of freedom-minded groups — including the American Conservative Union, Americans for Tax Reform, and the Competitive Enterprise Institute — have endorsed the plan.
Written by Daniel J. Mitchell, a senior fellow at the Cato Institute. Posted with permission from Cato @ Liberty.
Economists may not agree on much, but we all agree that economic output is a function of capital and labor. Ask a Keynesian, a Marxist, an Austrian, a monetarist, or any economist, and they’ll all agree that living standards are determined by the quality and quantity of these two factors of production.
So it should be very worrisome that there has been a big drop in the share of the population that is employed. Here’s a chart produced from Bureau of Labor Statistics data, showing labor force participation during the 21st Century.
There was a big drop during the recession. That’s the usual pattern, and it definitely isn’t something that can be blamed on President Obama since the downturn began before he took office.
Written by Christopher Preble, Vice President for Defense and Foreign Policy Studies at the Cato Institute. Posted with permission from Cato @ Liberty.
It is no surprise that the defense contractors want to protect their profits by getting taxpayers to pony up more money. Now they have secured the support of Crossroads GPS in a commercial against Senate candidate and former Virginia governor Tim Kaine. The Crossroads ad follows similar ones from Kaine’s challenger, George Allen, and the National Republican Senatorial Committee. All three ads claim that spending cuts under sequestration will result in devastating job losses to the defense industry and Virginia; the Crossroads ad claims 520,000 jobs will be lost. But these estimates are wildly inflated and represent the short-term interests of the defense industry, not the American taxpayer.
President Barack Obama and Mitt Romney squared off last night in Denver for the first of three debates before next month’s election — this debate primarily focusing on domestic policy. By most accounts I’ve read, Romney did really well, while President Obama struggled (I missed the debate because I was flying back to Atlanta from Washington, DC). The Washington Post has a good overview of the first debate, highlighting the contrast between Obama and Romney:
Romney came into the 90-minute exchange after several difficult weeks but appeared rejuvenated by the opportunity to take his case directly to Obama and the American people. He was well prepared and aggressive as he hammered the president. The contrast with Obama was striking, as the president appeared less energetic even as he rebutted some of Romney’s toughest attacks.
The debate is likely to give Romney what he needed most, which is a fresh look from voters — at least those who are undecided or open to changing their minds — and will change the conversation about the campaign, which for the past two weeks has been tilted in the president’s favor. Romney now faces the challenge of trying to build on his performance and keep the president on the defensive in the days ahead.
The good news about our economy is that it hasn’t been struck down by some mysterious act of God. Acts of Government plague our nation – and acts of Government are entirely within our power to change.
Today I will not recite the dismal statistics behind the failed economic policies of this administration, nor the reasons why these policies have failed. The current Presidential campaign has plenty of that, and the fact is that every single American already knows the answer to Ronald Reagan’s simple question: “Are you better off today than you were four years ago.”
Today, I would instead like to look ahead to what the 113th Congress and the 45th President of the United States must do if we are to restore prosperity to this country.
I’d like to outline seven measures that I believe are absolutely essential to repair our economy and restore America as the most prosperous and productive nation in the world.
FIRST AND FOREMOST – IT’S THE SPENDING, STUPID.
Unless and until we dramatically reduce federal spending and the accompanying tax and debt burden, government will continue crowding out private capital and destroying job creation.
Three numbers tell the story very nicely: 39, 32 and 82. Thirty-nine percent is the rate of inflation and population growth combined over the last ten years between 2002 and 2012. Thirty-two percent is the growth rate of revenue in the same period – despite the tax cuts and the recession. Not quite keeping up with inflation and population growth, but pretty close. Eighty-two percent is the figure that’s killing us. Eighty-two percent is the growth of federal spending.
The Bureau of Labor Statistics (BLS) dropped a bomb this morning. Yesterday, there were some positive signals that job growth was increasing compared to recent months. The ADP estimate for August came in at 201,000, which was much higher than the 140,000 estimate.
But the official job report for August was nowhere near expectations. According to the BLS, the economy created 96,000 jobs in August with estimates for June and July being revised downward:
U.S. employers added 96,000 jobs last month, a weak figure that could slow any momentum President Barack Obama hoped to gain from his speech to the Democratic National Convention.
The unemployment rate fell to 8.1 percent from 8.3 percent in July, but only because more people gave up looking for work. The government only counts people as unemployed if they are actively searching.
The Labor Department also says 41,000 fewer jobs were created in July and June than first estimated. The economy has added just 139,000 jobs a month since the beginning of the year, below 2011’s average of 153,000.
That’s not good at all, folks. Remember that the economy needs to create 150,000 jobs each month just to keep up with population growth. So while the spin will be that this is positive, but the economy is still experiencing essentially a net-zero job growth and more people are giving up hope of finding work. Futhermore, James Pethokoukis notes that “[i]f labor force rate had just stayed same as last month, [the]unemployment rate would be 8.4%.”
It’s still far too early in the game to take polls seriously, though it’s hard to ignore them either. Polls really matter around 60 days away from an election. But given how Mitt Romney’s selection of Rep. Paul Ryan (R-WI) for his running mate was supposed to be a political loser from the word “go,” polls are showing that he has received a bit of a bounce.
While Gallup may not show a bounce for Romney in its national tracking poll, other polls aren’t backing that up. Via Hot Air comes numbers from Ohio and Virginia, two very crucial states in the upcoming presidential election, showing good news for Romney. The numbers, however, also show positives for Obama in Colorado and Florida:
Romney has seen the largest gain in Ohio, a state we have seen bounce between the campaigns over the last few months. Today, the GOP ticket leads by 2 points (46% to 44%), compared to July when President Obama led the state 48% to 45%. Romney also gained ground in Virginia – today, he and Paul Ryan hold a 3-point advantage in the race (48% to 45%), while Romney trailed by 2 points in July.
However, President Obama has seen improvements in Colorado and Florida. In Colorado, the Obama-Biden ticket now leads 49% to 46%, an increase from a 1-point lead in July. In Florida, the Democratic ticket trails by just 1 point (48% to 47%), compared to a 3 point deficit in July…
With three and a half months to go until the election, the Obama campaign team is becoming more desperate; unsurprising considering Obama is in a statistical dead heat with Mitt Romney despite having so many things going for him (the power of presidential incumbency, the desire of many Americans to see the first black president be successful, the vast majority of the national media solidly in his camp, etc.). Unfortunately for the Obama campaign, the continued bad economic news and a series of unforced verbal errors by Obama has made the going even tougher for Obama.
The latest low for the Obama campaign came recently when Obama surrogate, deputy campaign manager Stephanie Cutter, accused Mitt Romney of being a felon IF he misrepresented his role at Bain Capital while signing SEC (Securities and Exchange Commission) documents subsequent to his departure. This is a cheap political move, meant to plant the seed of corruption in voters’ minds, regardless of whether the claim is true. This particular one has already been debunked repeatedly, but in keeping with the “Big Lie” propaganda technique written of in Hitler’s book, Mein Kampf, the Obama campaign team keeps throwing it out.
From the Washington Post FactChecker website: “We’ve gone over this problem with the Obama campaign before, awarding three Pinocchios to a January memo the team released blaming Romney for job losses and bad deals that took place after the former executive had stopped working for Bain. . . . These facts essentially exonerate Romney from allegations that he was responsible for any outsourcing, bad deals and layoffs that occurred with Bain’s companies in the early 2000s.”
“Were we directed from Washington when to sow, and when to reap, we should soon want bread.” ~ Thomas Jefferson
Each day we see proofs of the wisdom of the Founding Fathers in the creation of a federalist form of government which gave superior authority to a central government within a very limited sphere, and left all other functions to the states, or the people. Far from being the limited government which our Founders envisioned, the federal government today is a monstrous leviathan which is equal parts incompetence and avarice. This is what happens when government attains more power. Government is the only entity legally able to use force to achieve its goals. Government is a monopoly, and therefore does not have to be efficient or innovative on order to retain its “customers.” It is essentially immune from the disastrous consequences of its decisions and actions. It can compel continued allegiance and higher payments.
A timely example of the results of government expansionism is in the continued stagnancy of our economy. In the last days of the Bush presidency, and expanded throughout the Obama presidency, the federal government took steps which would supposedly save the economy from a financial collapse (which itself was the result of government interference in the market). With the passage of the “stimulus” bill, unemployment was not supposed to reach 8% according to the Obama administration, yet it did that and more. Unemployment spiked above 10% AFTER the near-trillion dollar stimulus was passed, and stayed at or above 9% for almost three years, before dropping to above 8%, a point we were not supposed to have reached at all.
In politics and in business, a consistent message is usually seen as a sign of strength. With the slow trickle of a consistent message, your brand is defined almost imperceptibly by the consumer until your message and brand are linked subconsciously.
When is this a bad idea? When there is inconsistency between your actual product and the “message” you are consistently promoting. You might get away with it for a while, but in time it creates cognitive dissonance in the consumer - they just know something isn’t right.
Case in point — the Obama administration and the jobs reports. Have those monthly talking points become a little, uh, stale? Sounding familiar? Were you expecting hope and change? Below are excerpts from jobs reports from November 2009 to present:
June 2012: “Therefore, it is important not to read too much into any one monthly report and it is informative to consider each report in the context of other data that are becoming available.” (LINK: http://www.whitehouse.gov/blog/2012/07/06/employment-situation-june)
May 2012: “Therefore, it is important not to read too much into any one monthly report and it is helpful to consider each report in the context of other data that are becoming available.” (LINK: http://www.whitehouse.gov/blog/2012/06/01/employment-situation-may)