Posts tagged with: unemployment

[This post was co-authored with Chris Horst, director of development at HOPE International. He is a This is Our City fanboy and is grateful that Christianity Today has given him freedom to write about manufacturers, mattress sellers, and solar product designers, all working for the common good in Denver, where he lives with his family. Chris blogs at Smorgasblurb, and you can connect with him on Twitter at @chrishorst. His first book, Mission Drift, will hit shelves this spring. The views expressed in this essay are his own.]

oil traffic

Oil boom traffic in Watford City, North Dakota

In a marvelous profile for This is Our City, Brandon Rhodes explores how a 25-member church is contributing to its neighborhood through farmer’s markets, block parties, and yarn-bombings. “They made a decision to radically localize how they practice being church with the common good and the gospel in mind,” Rhodes writes. “…They take a ‘nearby-first’ approach to living it out.”

James K.A. Smith responds at Cardus, and though he, too, celebrates the slow-and-artsy, he also emphasizes the importance of the macro-and-dirty. Decrying what he describes as “a sort of vague Anabaptism” among younger evangelicals, Smith challenges “Portlandia Christians” to consider the systemic challenges that either hinder or empower our cities. “We have scaled our expectations and our efforts as if the rejection of triumphalism means a retreat from systemic change,” he writes. “It’s like we’ve decided we should make lovely art not culture war.”

Turning his focus toward Detroit, which he describes as a “colossal disaster of municipal government,” Smith concludes that “farmer’s market’s won’t rescue the city” but “good government will.” Yet as he goes on to note, the solution is not either/or, but both/and: “It’s peach preserves and policy making. Coffee shops and court nominations. Block parties and bills in Congress.” (more…)

It sounds like a late-night tv scam: make tens of thousands of dollars and don’t work at all! And yet, it turns out that the U.S. government is offering just such a deal. For instance, a welfare recipient in the state of Connecticut can make up to uncle sam's money$38,761, according to a new Cato Institute study. In Hawaii, the figure is $49,175, over 200 percent above the Federal Poverty Level. As The Heritage Foundation has pointed out, nearly half of Americans pay no income tax at this point in history.

Michael Tanner and Charles Hughes have written “Work versus Welfare Trade-off 2013: An Analysis of the Total Level of Welfare Benefits by State.” Tanner has this to say about paying people not to work:

To be clear: There is no evidence that people on welfare are lazy. Indeed, surveys of them consistently show their desire for a job. But they’re also not stupid. If you pay them more not to work than they can earn by working, many will choose not to work.

While this makes sense for them in the short term, it may actually hurt them over the long term. One of the most important steps toward avoiding or getting out of poverty is a job.Only 2.6 percent of full-time workers are poor, vs. 23.9 percent of adults who don’t work. And, while many anti-poverty activists decry low-wage jobs, even starting at a minimum-wage job can be a springboard out of poverty.

Thus, by providing such generous welfare payments, we may actually not be helping recipients.

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51ddbfc3cd43b.preview-300Paychecks are the vehicle for upward mobility, wealth and personal fulfillment in life, says Mike Varney. So why aren’t we doing everything in our power to create more of the jobs that are the source of those paychecks?

It’s all very simple. Companies create jobs. Jobs are what create paychecks. Paychecks are what gives individuals and families purchasing power and choice in their lives. Jobs and paychecks create futures and give humans a sense of purpose, contribution and connection. Jobs are the ticket that enable people to climb from survival to self-actualization on psychologist Abraham Maslow’s Hierarchy of Needs.

Joblessness creates the opposite effect: a downward spiral from hope to despair. Aspiration to desperation. In speaking with many of our local non-profit leaders, I have developed a real appreciation for the link between joblessness and insidious societal problems such as domestic abuse, drug and alcohol abuse, child abuse, homelessness and destruction of the human spirit. Societal ills are generally reported to increase and decrease in direct correlation to employment. Poverty and joblessness have no place to take root in a society where opportunity abounds and where people have a strong work ethic.

Read more . . .

Alejandro Chafuen, president and chief executive officer of the Atlas Economic Research Foundation and board member of the Acton Institute, recently wrote a piece for Forbes.com discussing youth unemployment in the United States. According to the latest report, U.S. youth unemployment is at 16.2 percent which is more than double the adult unemployment rate. The unemployment rate for youth in Europe is currently at 24 percent. Chafuen asks, “Can we learn from the European experience?”

Using data compiled by the economic freedom indices of the Fraser Institute in Canada, and the Heritage Foundation, in the United States, we recently looked at how economic freedom, labor regulations, social spending, and regulatory climate, correlated with youth unemployment. Against our preconceptions, at least as shown with our simple static analysis, there were no convincing results.  I will spare the reader the statistical jargon and graphs and focus on apparent contradictions. (more…)

German Finance Minister Wolfgang Schaeuble is a frustrated man. With unemployment rates in Germany hovering at around 8 percent, and Greece and Spain at almost 60 percent, he believes the EU is on the brink of “revolution.” His answer is not to protest signscrap the welfare model however; he wants to preserve it.

While Germany insists on the importance of budget consolidation, Schaeuble spoke of the need to preserve Europe’s welfare model.

If U.S. welfare standards were introduced in Europe, “we would have revolution, not tomorrow, but on the very same day,” Schaeuble told a conference in Paris.

Not everyone agrees. Italian Labour minister Enrico Giovannini says European youth are being asked to put their lives on hold, and that this is “unacceptable.” Werner Hoyer, head the European Investment Bank, acknowledged that there is no plan at this point to direct the spiraling downturn of the EU economy. There is, instead, a country-by-country “patchwork” approach. For instance, Greece is attempting to focus on job training and entrepreneurship for 350,000 young people, and France is working on a similar plan within its own borders. (more…)

If  you’re a young American adult (the 25-to-34 age range), and you have a good job, count yourself blessed. Most of your peers aren’t so lucky. The New York Times reports that “[o]ver the last 12 years, the United States has gone from having the highest share of employed 25- to 34-year-olds among large, wealthy economies to having among the lowest.”

Of course, young Europeans have been dealing with this for years. Greece, Spain and Portugal have unemployment rates between 17-27% (Greece being the highest), and the outlook is grim for most of the European Union (EU). Even taking into account that many young people may be studying or raising families and therefore not looking for full-time work, the deterioration of the EU’s economies is obvious. But it’s not just lack of jobs. As Samuel Gregg, Acton’s Director of Research, points out in his book Becoming Europe, “Europe’s social systems are under consider­able internal strain from the remorseless deterioration associated with unaffordable welfare states, population decline, low produc­tivity levels, and the preferential treatment of politically connected insiders.” (more…)

Record unemployment rates in Europe have been published and they should alarm Americans. Why? Because we are headed in the same direction. Nile Gardiner, of The Telegraph, is quite sure of this:

The United States isn’t just gliding towards a continental European-style future of vast welfare systems, economic decline, and massive debts – it is accelerating towards it at full speed. Or as Acton Institute research director Samuel Gregg puts it in his excellent new book published today [January 8] by Encounter, America is already “becoming Europe,” with the United States moving far closer to a European-style welfare state than most Americans realize.

The American Interest spins a further tale of woe, citing an 11.8 percent unemployment rate for the 17-nation Eurozone. Pity Spain: they have a 27 percent unemployment rate. Yes, you read that correctly: 27 percent. And young people (those under 25) are especially hard hit: 24 percent unemployment in the E-zone, with over 50 percent unemployment for young people in Spain and Greece.

Is it too late for America to reverse course? Read “Becoming Europe” by Samuel Gregg.

Read Nile Gardiner’s “128 million Americans are now on government programmes. Can America survive as the world’s superpower?

The Congressional Research Service (CRS), a group that works exclusively for the U.S. Congress, issued a report with one of the greatest titles I’ve ever seen on a government document:

Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”)

Now the first nine words are nothing special, typical policy-wonk speak. But whoever added in the word “millionaires” with scare quotes and parentheses is a genius. Most people would have been nodding off around the word “Insurance” but seeing millionaires (that’s such a quaint word nowadays) in the title makes you wake up and ask, “Wait, are they saying that millionaires got unemployment insurance?”

The answer: Yes. Yes they did. Millionaires have indeed been getting unemployment insurance. In fact, almost 3,000 of them in 2008 were on the dole:
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“Unless incentives suddenly stopped mattering during this recession, says Casey B. Mulligan, an economics professor at the University of Chicago, “it appears that the expanding social safety net explains some of the excess nonemployment among unmarried women who are heads of households.”
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In my commentary this week, I reflect on the unemployment rate of many newly separated military veterans of our Armed Forces. The grim jobs outlook affects our reservists and National Guard forces too. As You Were, a book I reviewed on the PowerBlog in late 2009, touched on this topic quite a bit.

My first job out of college was working on veterans issues for former Congressman Gene Taylor (D-Miss.) I was able to meet and get to know combat veterans from battles like Okinawa, the Chosin Reservoir and Khe Sanh. It was a rewarding and educational experience.

I suspect we will hear more from Washington about how to solve this problem with additional centralized government action. But we already have real commitments and promises to veterans that must be honored and a debt of $15 trillion and growing that is staring down at us. My commentary is printed below in its entirety.

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Playing Politics with Unemployed Veterans

Getting the U.S. economy back on a path to solid growth and the job creation engine jumpstarted is dominating the headlines, talk shows and policy debates in Washington right now. Many of the legislative prescriptions focus on the dismal unemployment woes of newly separated military veterans, whose rates outpace the civilian population. The troubling figures reveal a persistently bleak and stagnant economy.

National unemployment currently hovers around 9 percent, while unemployment for veterans of the Afghanistan and Iraq wars is more than 13 percent. Veterans in the age group of 18-24 are worse off, with an unemployment rate of 30 percent. Dead last in the Union is Michigan, where 30 percent of all former service members are unemployed.

These numbers may only get more discouraging as defense budget cuts push more and more from the active duty ranks into a weak job market.

Federal legislation passed at the end of last year seeks to address the problem with tax credits for companies who hire veterans. The measure could help some, but tax incentives like these generally offer no substantial improvement for removing people from the unemployment rolls.

Better immediate solutions would be omitting special licenses and training required by states to work in certain fields. There is no reason a combat medic in Iraq should not be able to work as an emergency medical technician. Many already have more training than their civilian counterparts do.

In his election-year State of the Union address, President Barack Obama painted a vision of a post-WWII society where triumphant veterans came back and created the strongest economy in the world. In his words, they understood that they were “part of something larger.” Part of that “something larger” after the defeat of fascism was a growing free economy, but they also faced a long twilight struggle against the spread of communism.

To restore prosperity today, President Obama called for a “common purpose” to rally behind. But the obvious common purpose, the reduction of the staggering national debt, was largely ignored by the commander-in-chief during his address. For the unemployed, all Americans, and a free economy, the debt is the largest obstacle to restoring prosperity and reawakening the most expansive economy the world has ever seen. The failure of the American government to live within its means threatens to eviscerate the promises made to America’s veterans. It is a classic case of one moral failing leading to another.

The “something larger” greeting veterans when they come home today is a national debt of more than $15 trillion and an economy burdened by more and more regulations. The White House has already requested a debt ceiling increase to a whopping $16.4 trillion dollars. So great is the obstacle, and so serious is the threat, Indiana’s governor Mitch Daniels dubbed it “the new Red Menace.”

The threat to veterans is substantial. Although veterans’ benefits are justly generous, the government’s fiscal crisis has put those guarantees at risk. Last year, for the first time, some in Washington talked about the necessity of trimming promised pensions and health benefits for military retirees. Politicians are playing politics with veterans when they talk of reducing promised benefits with one side of their mouth and say they are creating jobs for veterans with the other.

Older military retirees can remember a time when they counted on the promise of free health care for life. Many sacrificed more lucrative private sector careers, nonpayment for overtime, and additional time with their family because of patriotism and promised security. Now they pay premiums for their care.

Thomas Jefferson warned of the moral pitfalls and decay of debt when he said, “The earth would belong to the dead and not to the living generation.” Profligate spending in the past undermines our capacity to honor present commitments.

With their skills, work ethic, and patriotism, veterans have the ability to overcome the challenges confronting them. Most businesses and companies want to hire veterans. All they need is some assurance that their prospects going forward will not be dimmed by burdensome regulation or economic instability stemming from federal fiscal irresponsibility.

Washington does not understand there is little to be done in terms of a prescriptive policy to cure veteran unemployment. The oft forgotten Calvin Coolidge once warned, “Unsound economic conditions are not conducive to sound legislation.”

The best cure is still a market unleashed from needless regulation and spending policies that reflect a moral and rational resolve. In the end, a federal government that is broke can do little for veterans who earned and are entitled to benefits already promised.