Unemployment

Secret Memo Reveals Obama’s Effort to Flood Labor Market With Illegals

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“The Congress shall have power… To establish an uniform Rule of Naturalization…throughout the United States;” ~ U.S. Constitution, Article I, Section 8, Clause 4

“The biggest problems that we’re facing right now have to do with George Bush trying to bring more and more power into the executive branch and not go through Congress at all. And that’s what I intend to reverse when I’m president of the United States of America.” ~ Presidential candidate Barack Obama, 2008

 

Barack Obama has always had contempt for the rule of law and the separation of powers built into our Constitution, but now that he no longer faces election his utter contempt for any restrictions on his power has been laid bare. He openly subverts the Constitution and smugly dares his feckless Republican opposition to try and stop him, knowing that they rarely will even make the effort, lest they be lectured — again — from the presidential podium.

Liberals Balk At Paying Cost of “Living” Wage

labor living wage

As it turns out, liberals refuse to put their money where their mouths are…literally.

Earlier this year, labor unions in Los Angeles whipped up low-wage workers into a frenzy with demands for a minimum “living” wage of $15 per hour. They achieved their goal and the $15/hour wage bill was signed into law. This was supposed to be a huge victory for the workers (though, it should be noted, within days of the law going into effect, the same labor unions that lobbied for the $15/hour minimum wage were lobbying government for an exemption for union companies, so that union companies could pay well below the new minimum wage).

Even so, some California business owners decided to show solidarity with the cause of low-wage workers, significantly increasing their starting wage of their own volition.

Vic Gumper, owner of Lanesplitter Pizza (with stores in Albany, Berkeley, Oakland, and Emeryville, California), voluntarily raised wages for his employees to between $15 to $25 per hour. In order to cover the cost of the higher “living” wage, Gumper began advertising $30 “living wage pizzas” to his customers, which include patrons from the Pixar Animation Studios and biotech companies located near his shops. In doing so he declared these pizzas “sustainably served, really…no tips necessary”.

The result? Sales have dropped by 25% as liberals in these communities have balked at having to pony up more money for the pizzas. The hit has been so significant that Gumper has had to close during lunch hour at several locations (think about that…a restaurant that has to close during LUNCH because it can’t afford to stay open!).

Current Job Market for Teens is the Toughest on Record

Thomas Sowell used his latest piece to address a common misconception regarding the left’s avowed concern for minorities. In his column, the renowned economist pointed out that the educational policies pursued by the left in the name of the poor and the minorities often hurt those they claim to protect.

The same can be said about other policies pursued by Democrats who tend to defend that more interventionism will undoubtedly lead to more opportunities for the poor, the young and the minorities.

According to a Brookings Institute study, teens have been having a harder time finding jobs in recent years. In 2000, research shows that 45% of teens in the U.S. had jobs, now only 26% of teens aged 16 to 19 are employed.

Researchers used Department of Labor and Census data to track youth employment among the 100 largest metro areas in the country. The study shows that 1.8 million teens are either actively looking for a job but are unable to get one or they have part-time jobs, whereas they’d prefer to obtain full-time employment instead. The study refers to this pattern as “underutilization,” which means that teens are not satisfied or financially stable to focus solely on school.

In other words, more teens need to work but are unable to find work.

The Decline of American Exceptionalism is Not Inevitable

In one of the most iconic and powerful political ads in America history, Americans were reminded that, under the leadership of Ronald Wilson Reagan, it was once again “Morning in America”. Having suffered through the decline of America’s economic, military, and political exceptionalism under the feckless Jimmy Carter, confidence in America’s future was being restored.

Under Reagan, the ad proclaimed, “Today, more men and women will go to work than at any time in our country’s history…nearly 2000 families will today buy new homes, more than at any time in four years…Under the leadership of President Reagan, our country is prouder and stronger and better. Why would we ever want to return to where we were just four short years ago?” It was a powerful message that resonated with the American people, and Reagan was re-elected in a landslide, taking 59% of the popular vote and 49 of the 50 states, losing only Minnesota (Mondale did not even get a majority in that state, winning 49.72% to 49.4%).

I was a boy of just eight years old when Reagan was first elected. Though I was too young to understand the intricacies and minutiae of the political debates, I remember sitting in front of our old Zenith black-and-white TV and being mesmerized by Reagan, whose cheerful demeanor and unquenchable optimism was inspiring after four years of Carter malaise, where we were told that we would have to accept a declining American economy and the spread of communism. Reagan made me proud to be an American, and I believed him when he said that America had a brighter future ahead, and that we did not have to settle for what America had become.

America, Land of the Free (but get permission first)

“It will be of little avail to the people, that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man, who knows what the law is to-day, can guess what it will be tomorrow.” — James Madison, Federalist No. 62 (1788)

Having celebrated the 237th anniversary of the signing of the Declaration of Independence this past Thursday, I was once again reminded of what a great country we live in; the “Land of the Free” where man is free to pursue happiness as he determines that to be, where you be anything you want to be and do what you want to do…anything at all!

Unless…

You want to choose your own health care plan, one that meets your needs and doesn’t force you to pay for coverage that you don’t need, that doesn’t make you pay for alcoholism coverage even if you don’t drink, coverage for smoking-related illnesses even if you’ve never smoked, pre-natal and maternity coverage even if you are a single man or a great-grandmother whose child-bearing years ended sometime around the Carter administration (sorry, you can’t do that).

Is The American Dream Dead?

American flag

The American Dream—the idea that any American has the ability to pull themselves up by the bootstraps, work hard, make good decisions, and lift themselves from even abject poverty to extreme wealth—is what has always made America different from any other nation on earth.  Only in the United States’ free market capitalist economic system has this level of economic mobility been possible, which is why people from around the world have flocked to the United States throughout its history.  But is the American Dream still possible?

According to a recent Rasmussen Reports survey, 59 percent of Americans believe that it is impossible for any individual American to work hard and get rich, the highest level ever.  Not only that, only 48% believe that it is possible for anyone to work their way out of poverty, while 39% disagree.  Rasmussen also shows that pessimism is at an all-time high, with only 25% of Americans believing that the economy will be better a year from now than it is today.  Given the sorry state of the American economy, that’s a very sad statement.

Guess who else is against the minimum wage?

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Read these paragraphs and see if you can figure out who wrote them:

The Federal minimum wage has been frozen at $3.35 an hour for six years. In some states, it now compares unfavorably even with welfare benefits available without working. It’s no wonder then that Edward Kennedy, the new chairman of the Senate Labor Committee, is being pressed by organized labor to battle for an increase.

No wonder, but still a mistake. Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. A far better way to help them would be to subsidize their wages or - better yet - help them acquire the skills needed to earn more on their own.

An increase in the minimum wage to, say, $4.35 would restore the purchasing power of bottom-tier wages. It would also permit a minimum-wage breadwinner to earn almost enough to keep a family of three above the official poverty line. There are catches, however. It would increase employers’ incentives to evade the law, expanding the underground economy. More important, it would increase unemployment: Raise the legal minimum price of labor above the productivity of the least skilled workers and fewer will be hired.

[…]

The idea of using a minimum wage to overcome poverty is old, honorable - and fundamentally flawed. It’s time to put this hoary debate behind us, and find a better way to improve the lives of people who work very hard for very little.

Guess? Guess? Hmm? Give up? All right then, the individual who wrote this was…

Morning in America, or Mourning in America?

Like a broken record, Obama claims to need four more years to fix the economy because he inherited from George W. Bush the worst economy since the Great Depression. He tells us when he took office he found it was worse than he thought, but that rings hollow. After all, if he thought it was the worst since the Great Depression, how much worse could it have been? Regardless, we need to revisit the claim that this is the worst economy since the Great Depression. Is it really? I think Ronald Reagan would argue differently were he with us today.

According to historical data of the Federal Reserve Bank, when Obama took office, the Fed’s prime interest rate was only 3.25%. By contrast, just one month before Reagan took office from President Jimmy Carter, the prime rate hit an all-time high of 21.5%, dropping to “only” 20.5% the day he took office. The inflation rate Obama inherited was zero, whereas Reagan inherited an inflation rate of 13.5%. The economy under Jimmy Carter was so bad that a new term, “Misery Index”, was created (an economic measure derived by adding the inflation rate to the unemployment rate). The price of gold, a bellwether reflecting economic stability, hit an all-time high in the last year of Carter’s presidency, reaching $2328/ounce in 2011-inflation adjusted dollars. We could go on and on, but the point is that Ronald Reagan would have gladly traded the economy he inherited for the one Obama inherited. Granted, the economy Obama inherited was bad, but not the worst, and he asked us for it.

America Survived 9/11, But Will It Survive Obama?

Eleven years ago, America was attacked by bloodthirsty Muslim terrorists who hijacked commercial jetliners and flew them into the World Trade Center towers, the Pentagon, and failed in a fourth attack on the Capitol Building or the White House. Three thousand Americans died that day in the most horrific and hateful attack on American soil in history, an attack injuring not only the American economy, but the American psyche. We felt vulnerable and afraid. However, if we are to be honest with ourselves, we will acknowledge the attacks of 9/11 as only the second most destructive event during that span and, in terms of long term damage to the stability of the United States, paling in comparison to the damage inflicted upon us by the Obama administration.

Now, I am well aware this will be considered a hyper-partisan attack on our president, but I believe the facts will justify the claim. The terrorist attacks were brutal to watch, and we could witness the devastation and destruction wrought with our own eyes. The terrorists desired to crush our economy and undermine our faith in our government, to weaken us. You might even say that they wanted to “fundamentally transform” America. Yet within two years America was well on her way to recovering from those events.

It was understandable that the economy was severely damaged that day. As noted in Kiplinger Financial, on the day of the attacks, the unemployment rate was just below 5%, and in the aftermath, with hundreds of thousands of jobs lost in the travel, tourism, and financial industries alone, it would rise to just over 6% in 2003. However, by 2007, the unemployment rate was back down to just over 4%, and America had come roaring back.

Another dismal jobs report

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%.”


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