Volume 14, Issue 9: February 28, 2012
- The Politics of Unemployment
- How the White House Is Driving Up Energy Costs
- Mission Creep and Uncle Sams Payroll Costs
- 2012 Challenge of Liberty Summer Seminars
- New Blog Posts
The labor market has improved somewhat since 2010, but not enough to quell valid concerns about the slowness of the economic recovery. News about recent decreases in the unemployment ratea topic that pundits continue to politicizeshould be put into proper perspective. The economy has added about three million workers to private, non-farm payrolls since hitting its bottom, but employment would need to increase by about five million jobs to reach its pre-recession peak in 2008, according to Independent Institute Senior Fellow Robert Higgs.
Moreover, such private employment is currently more than a million persons less than it was in December 2000, more than eleven years ago, on the eve of the dot-com bust, Higgs writes in The Beacon. So, at this point, we have suffered more than the proverbial lost decade in the private labor market. From 2000 to 2010 the U.S. population grew by 9.7 percent, Higgs notes.
One key bottleneck in hiring is the small-business sector. Why arent small businesses hiring more workers? Evidence from recent surveys suggests that uncertainties about the costs of healthcare reform and other regulations have played a significant role. Writes Higgs: Note, too, that when businesses are not hiring because they do not foresee sufficient demand to justify expanding their payroll, this reason may also reflect indirectly the effect of regime uncertainty, which may depress demands by the surveyed small business potential customers.
Private Employment Has Recouped Only Three-Eights of Its Recent Loss, by Robert Higgs (The Beacon, 2/19/12)
A Revealing Window on the U.S. Economy in Depression and War: Hours Worked, 19291950, by Robert Higgs (The Independent Review, Summer 2009)
Although the U.S. Senate refused to vote on legislation to restrict carbon dioxide emissions in 2009, the Environmental Protection Agency is pursuing climate-change regulations in piecemeal fashion on several fronts. It has issued an Endangerment Finding that classifies CO2 as a dangerous pollutant subject to the Clean Air Act (the matter will be taken up by a federal court this month). It has pushed for a doubling of automobile mileage standards by 2025 (an activity traditionally the province of a different agency). And it has stiffened restrictions on coal-fired power stations (even though coal is the cheapest energy source in the United States). These and other measures constitute the White Houses stealth strategy to reduce carbon dioxide emissionsi.e., the other ways to skin the cat, in President Obamas words, according to atmospheric physicist S. Fred Singer.
Moreover, these measures are adding up to higher energy costs and thereby fulfilling one of Obamas presidential campaign pledges. In his 2008 election campaign, Obama promised to make electricity prices skyrocket, Singer writes in American Thinker.
He seems to be succeeding beyond all expectations, as a combination of White House policies is raising fuel prices, Singer continues. But as the cost of essential energy jumps upward, households are sliding into poverty.... Skinning the cat may be a neat way of getting around the express wishes of the Congress and the public, but it is sure to backfire against the Obama White House in the November elections.
Obama Skins the Cat, by S. Fred Singer (American Thinker, 2/25/12)
The Heartland Institute Flap, by S. Fred Singer (American Thinker, 2/20/12)
Climate Science Is Not Settled Despite Arrogance and Smears by Alarmists, by David J. Theroux (The Beacon, 2/21/12)
Hot Talk, Cold Science: Global Warmings Unfinished Debate, by S. Fred Singer
Would Uncle Sam save money by using fewer private contractors and reassigning their tasks to regular government employees? An independent watchdog organization called the Project on Government Oversight says yes: the group released a study that argues that the government could save money by employing, for example, a typical government engineer earning $136,456, instead of a comparable contractor that typically bills the feds $268,653. The idea sounds plausible on the surface, but cutting back on private contractors is no panacea, according to Independent Institute Senior Fellow Charles V. Peña.
One reason that the analysis above is superficial, according to Peña, is that federal employees come with hidden costs, including overhead and long-term federal benefits that dont show up in salary-to-salary comparisons. Consequently, when the Pentagon decided to cut back on contractors and hire more federal employees in their place, its own analysis, flawed though it was, revealed that the cost savings was far less than expected. Its also important to remember that federal government jobs are relatively permanent, while service contracts can be terminated or not renewed, Peña writes in the Washington Times.
More important, to reduce personnel costs the federal government must get realistic about a problem it has been unwilling to acknowledge: mission creep. When the government takes on more and more projects it ends up spending more money no matter whether it uses private contractors or federal employees to undertake those tasks. Unfortunately, the last thing Washington is likely to do is rein itself inbecause that means giving up power, Peña continues. Far better to come up with an imaginary solution to a nonexistent problem than actually act on the real problem.
Overspending Due to Mission Creep, by Charles V. Peña (The Washington Times, 2/20/12)
MyGovCost.orgHome of the Government Cost Calculator
We are pleased to announce the dates for the Independent Institutes 2012 Challenge of Liberty Summer Seminars! The high-school student seminar will be held at our headquarters in Oakland, California, June 1822, and the college student seminar will be held at Notre Dame de Namur University in Belmont, California, July 30August 3.
Last years seminars were a smashing success! Our high-school seminar hosted a record number of students from all over California. Our college seminar attracted students from six different countries and 16 different universities, including University of Prague in the Czech Republic, University of Francisco Marroquín in Guatemala, and Roosevelt Academy in The Netherlands.
Our five-day seminars feature an integrated program of presentations by Independent Institute fellows and key university professors on a wide variety of topics:
- Foundations of Western Civilization and Natural Rights
- Free Markets, Property Rights, and Entrepreneurship
- Money and Banking and Economic Crises
- War and Economic and Civil Liberties
- The Great Depression, New Deal, and Government Failure
- The Austrian School of Economics and History
Reserve your space today!
The Challenge of Liberty Summer Seminars
High-school Students: June 1822
College Students: July 30August 3
From The Beacon:
Two Wolves and a Sheep
Mary Theroux (2/27/12)
Pennsylvania Magistrate Dismisses Harassment Charges Against Muslim Defendant
Melancton Smith (2/27/12)
State Attorneys General File Suit Challenging Contraception Subsidy
Melancton Smith (2/25/12)
SCOTUS Stretches Probable Cause Standard to Find Qualified Immunity
Melancton Smith (2/24/12)
Insinuation as War Propaganda
Anthony Gregory (2/23/12)
This Man Was Almost Elected President of the United States!
Randall Holcombe (2/22/12)
Climate Science Is Not Settled Despite Arrogance and Smears by Alarmists
David J. Theroux (2/21/12)
Solutions for Europe
Alvaro Vargas Llosa (2/21/12)
From MyGovCost News & Blog:
The U.S. Treasury Secretary on the Presidents Budget
Craig Eyermann (2/27/12)
$10 Billion in Green Corporate Welfare: Less Jobs and More Bankruptcies
David Theroux (2/25/12)
The Wrong Trajectories
Craig Eyermann (2/24/12)
Americas Per Capita Government Debt Worse than Greece
Stephanie Freedman (2/23/12)
You can find the Independent Institutes Spanish-language blog here.