Category Archives: Debt

Jobs: Create Them at Your Peril

Business, Debt, Economy, Labor, Regulation

I meant to give you the rundown about the last jobs report, but did not get around to it. Economist Diane Swonk has parsed parts of it.

• Almost half of the 600,000 strong drop in the unemployment rate can be attributed to people either retiring or giving up looking for work entirely.

In general:

• Labor force participation rate is down.
• The 140,000 “gains in private sector employment” are largely due to “retailers hiring more than expected for the holiday season.”
• “Manufacturing remained essentially flat. Manufacturers are also complaining of a shortage of skilled machinists and electricians; many of the most skilled of United Auto Workers (UAW) ranks have now retired.”

The oink-sector did not shed nearly enough jobs:

• 20,000 loss total in public sector jobs.
• Some 5,000 of them are U.S. postal workers. (Alas, the monster describer here is still gainfully employed.)

The United States Secretary of the Treasury in-waiting (if only) has already explained what’s going on in the labor market.

UPDATED: Decoding The Plan to Make Detroit Work (Blame Honky)

Africa, Debt, Economy, Federalism, Government, Intelligence, Race, Racism, Socialism, Taxation

If these minority penalizing budgetary cuts were inflicted in New Hampshire, Desiree Cooper of Detroit Public TV would have probably cried foul. But they aren’t, so Cooper keeps her cool in an excellent factual account about Detroit’s black-dominated city council, and its efforts to save the city’s finances by consolidating services. (Read: directing these to those who PAY.)

This invariably means directing services to the dwindling tax base (You Know Who), so that this productive, paying minority gets the best bang for its huge outlays and goodwill and… STAYS IN TOWN. These good people want to remain in the city they helped build.

Have their overlords realized, perhaps a little late in the day, that keeping the taxpayers who pay their salaries happy might just be the key to their own statist status? As Cooper puts it in this remarkably impartial report: It is these “dedicated Detroiters, the more affluent Detroiters who are part of the tax base [that] the city desperately wants to hold on to.”

Barbara and Spencer Barefield are an example. The couple has “what they consider a small house amongst Palmer Woods’ mansions.” They (and their ilk; nudge-nudge) will be accorded “preferential treatment in this community’s upkeep, maintaining roads, sidewalks and streetlights. That could mean the difference between residents staying or leaving.”

Of course, it is a travesty to frame as “preferential” the provision of basic services in return for enormous outlays. It shows you how far we have gone in assimilating Karl Marx’s maxim, “From each according to his ability, to each according to his need.”

The Barefield are Detroiters of quite a deep dye, as they are prepared to put up with a $900-a-month utility bill!

READ MORE about the “Detroit Works” project, undertaken by Mayor Dave Bing and his crew—architect Rainy Hamilton, Karla Henderson who heads Detroit Works, City Council President Charles Pugh, and others—in an attempt to save the city (and their sinecures?):

With a sprawling city, 139 square miles, and few resources for city services, Mayor Bing took the Detroit Works project as an opportunity to redefine the city’s physical, economic and social landscape. He began by taking inventory, taking a close look at what Detroit really has.
Demographers have identified at least 100 distinct neighborhoods within the city limits. With that in mind, Detroit Works unveiled its short-term plan, classifying the city’s neighborhoods by their quality of housing and stability of population.
The degree of city services and investment would depend on whether the neighborhood is deemed steady, transitional, or distressed.

UPDATE (Dec. 13): Erik in the comment below blames honky in what sounds like vintage Yankee propaganda. You’ll get better historical facts about the South from reading or watching the brilliant timeless “Gone with the Wind.” So too did Mencken write about the civilization destroyed by the “dirty Yankees.” The South was the seat of the country’s aristocracy—and some of the finest families in America.

Although my book, Into the Cannibal’s Pot, advances the cultural argument in explaining underdevelopment, it is also highly critical of it. As follows:

In “Into the Cannibal’s Pot,” I concur to an extent with thinkers such as Etounga-Manguelle. Indubitably, in Africa “magic wins out over reason; community over individual; communal ownership over private property; force and coercion over rights and responsibilities; wealth distribution over its accumulation.”Indeed, human behavior is mediated by values. However, I criticize the cultural argument for “affording a circular, rather than a causal, elegance: people do the things they do because they are who they are and have a history of being that way.”
But “why have some people produced Confucian and Anglo-Protestant ethics—with their mutual emphasis on graft and delayed gratification—while others have midwived Islamic and animistic values, emphasizing conformity, consensus, and control? Why have certain patterns of thought and action come to typify certain people in the first place?” Such an investigation, I conclude, political correctness prohibits.
In any event, bad leaders or bad weather patterns are not what shackle backward peoples. Not exclusively. As cities across England burn because of the “unequal civilizing potential” of certain peoples—James Burnham’s coinage—it has become clear that the values and cultural influences which people (and peoples) bring to the polity cannot be tweaked out of existence like some unsightly nose-hair.

Read it, Erik. Mimicking whitey, if that is indeed your and Sowell’s explanation for black dysfunction, falls flat when it comes to Africa.

One Nation Under Inflation

Debt, EU, Europe, Fascism, Federal Reserve Bank, Federalism, Political Philosophy, Regulation, Socialism, States' Rights

“When it grows up, the EU wants to be just like the US. That was Jose Manuel Barroso’s message to his host at the US Public Broadcasting Service.” The excerpt is is from “One Nation Under Inflation,” now on WND.COM:

“The EU Commission president, a chap called Jose Manuel Barroso, told PBS’s Jeffrey Brown, on November 28, that the European suprastate is not quite up to American statist standards.

Barroso lamented that the EU lacks America’s level of ‘convergence’: ‘We have a common currency, but not, for instance, a common treasury,’ said this slick operator. Fiscal discipline (one wonders what our commissar means by that) can only come about with more ‘pooling of sovereignty.’

The Commission’s president certainly sees the US as a model ‘fiscal union,’ with a high degree of ‘fiscal policy’ ‘integration’ throughout; and is almost envious of the fact that the US federal government possesses ‘the instruments’ that have allowed it to accumulate enormous liabilities: Evidently, America’s debt-to-GDP ratio is larger than the European Union’s.

In a nutshell: Barroso longs for Brussels to be able to do the necessary tinkering to keep the PIIGS of the Eurozone —Portugal, Ireland, Italy, Greece, and Spain—living at the expense of their more industrious, austere neighbors to the north. (Presiding European bureaucrats like himself live-it-up no matter where they reside.) The EU, complained its Capo di tutti capi, needs to create those “instruments.”

When it comes to Newspeak, Barroso still beats Obama.

In any event, when it grows up, the EU wants to be just like the US. That was Jose Manuel Barroso’s message to his host at the US Public Broadcasting Service. So successfully has the Unites States government submerged the sovereignty of its states that a top European technocrat longs to be like us. We must be in worse shape than we imagined. …”

The complete column, The excerpt is is from “One Nation Under Inflation,” now on WND.COM. Read it.

My book, “Into the Cannibal’s Pot: Lessons for America from Post-Apartheid South Africa,” is available from Amazon. (Don’t forget those reviews; they help.)

A Kindle copy is also on sale.

Barnes and Noble is always well-stocked and ships within 24 hours.

Still better, shipping is free and prompt if you purchase Into the Cannibal’s Pot from The Publisher. Inquire about an Xmas special on bulk buys.