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Michelle Malkin - Generous unemployment benefit kills jobs

Being a San Francisco liberal means never having to say you're sorry. Or wrong. Take Nancy Pelosi, please.

Five years ago, California's genius Bay Area Democrat declared that government unemployment checks generate job growth. Yes, really. "Let me say about unemployment insurance," she told reporters, "this is one of the biggest stimuluses (sic) to our economy. Economists will tell you, this money is spent quickly. It injects demand into the economy and is job creating."

She babbled on: "It creates jobs faster than almost any other initiative you can name, because, again, it is money that is needed for families to survive, and it is spent. So it has a double benefit. It helps those who've lost their jobs, but it also is a job creator."

What Crazy-Cakes Pelosi failed to mention, however, is the long-established conclusion of labor economists from all parts of the political spectrum that extending unemployment insurance benefits prolongs unemployment. While she heralded the short-term effects on consumer spending, she ignored the blindingly obvious: outside the land of progressive make-believe, workers respond to incentives. Over the long term, subsidizing joblessness creates more of it.

I bring this all up because a new paper from the venerable, nonpartisan National Bureau of Economic Research concludes that the recent job gains Pelosi and the Democrats are now crowing about may be due to the very policy they fought so hard against: ending extended unemployment benefits.

"We find that a 1 percent drop in benefit duration leads to a statistically significant increase of employment by 0.0161 log points," the NBER economists reported. In practical terms, it means that "1.8 million additional jobs were created in 2014 due to the benefit cut." Take note: "Almost 1 million of these jobs were filled by workers from out of the labor force who would not have participated in the labor market had benefit extensions been reauthorized."

The jobs bump coincided with the expiration of the 99-week UI benefits extension passed as part of the Obama stimulus package. Remember: laid-off workers were already collecting up to 79 weeks of unemployment in half of the states before the last extension. Democrats were pushing for yet another 13-week extension that would have cost tens of billions of dollars more. The cost of the joint federal-state program is borne by employers who pay state and federal taxes on a portion of wages paid to each employee in a calendar year.
Remarkably, the NBER analysis attributed "61 percent of the aggregate employment growth in 2014" to the congressional cutoff in unemployment benefits at the end of 2013. Here's the NBER team's bottom line for Pelosi and her fellow unemployment benefits cheerleaders: "The findings in this paper imply that the negative effects of unemployment benefit extensions on employment far outweigh the potential stimulative effects often ascribed to this policy."

This vindication comes after a hyperbolic campaign by Democrats accusing Republicans of "meanness" and "obstruction" for opposing "temporary" unemployment benefits that have become enshrined permanently.

But it's not just partisan hacks in Washington who've so falsely demonized those opposed to endless unemployment checks as a "job creation" vehicle. During the contentious debate over extending UI checks as part of the Obama stimulus in 2009, I argued on an ABC "This Week with George Stephanopoulos" panel, "If you put enough government cheese in front of people, they are just going to keep eating it." Atlanta Journal-Constitution columnist Cynthia Tucker took offense, mischaracterizing standard economic arguments for moral judgment. "Does the right really believe the unemployed are lazy?" she wailed.

The left-leaning journalism outfit at PolitiFact jumped on board, rating my 100 percent-true reference to decades of labor economics literature on UI's impact on joblessness "half-true". And the George Soros-funded hitmen of Media Matters called me and several other conservatives "reality"-deniers for stating the bloody obvious about UI's warped incentives — even though their favorite "progressive" economist Paul Krugman acknowledged that "everyone agrees that really generous unemployment benefits, by reducing the incentive to seek jobs, can raise the NAIRU" (the minimum rate of unemployment consistent with a stable inflation rate).

The politicians posing as economy-healers and the political operatives posing as journalists will no doubt find clever ways to slice, dice and explain away the latest NBER findings. But this simple truth endures: Government dependency doesn't "create" jobs. It kills them.

(Syndicated columnist Michelle Malkin is the daughter of Filipino Immigrants. She was born in Philadelphia, raised in southern New Jersey and now lives with her husband and daughter in Colorado. Her weekly column is carried by more than 100 newspapers.)

Last Updated on Wednesday, 31 December 1969 07:00

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Mr. Hoyt apparently doesn't see correlation between wages & prices

To The Daily Sun,

Your letter writer, Mr. Jon Hoyt of Plymouth, appears to be under the impression that there is a free lunch. I thought that all intelligent adults knew that this is not possible. If I were to take Mr. Hoyt to lunch and pay for his meal, he would get fed at no cost to himself, but the meal would not be free. It would have been paid for by someone else (me). If he truly believes that such a lunch would be free then he is either in denial or ignorant of basic economics.

Everything has to be paid for by someone. When President Obama announces "free" college education and "free pre-K" (a euphemism for free day care) those things may be "free" to those who avail themselves of these freebies, but they will be paid for by other people (taxpayers). Mr. Hoyt likes to say "government" but that word is actually a euphemism for "taxpayers".

As a taxpayer, I don't have a problem in helping support the very old or the very young or those who are truly physically or mentally disabled. However, as a single person who worked full-time for 53 years and now has the amazing sum of $972 a month in Social Security to live on (which I paid for all those years), I cringe whenever I encounter a younger person who has never worked but is living rent free, with free medical benefits and the opportunity to go to school for free.

Mr. Hoyt also claims that nothing has been done to prevent U.S. citizens from "hiding" money in offshore accounts. Nothing could be further from the truth.

In the last few years, the U.S. government has brought in stringent laws that make it extremely difficult, if not impossible, for U.S. citizens to benefit from investing overseas. In years gone by, income that was earned overseas by U.S. citizens was subject to the taxes of the country in which it was earned. Now all income earned by U.S. citizens anywhere in the world, is subject to taxation by the IRS. In addition, the U.S. government now requires that foreign banks handling money for U.S. citizens report those dealings to the IRS or face punitive fines. (Several Swiss banks have recently paid fines in the billions of dollars for handling the accounts of U.S. citizens and not divulging them to the U.S. government.) It has become extremely difficult for U.S. citizens to have offshore accounts and many former tax havens such as Switzerland, Luxembourg and Panama will only handle huge accounts (in the hundreds of millions) because of the expense involved in handling smaller amounts. (Read the book "Where to Stash Your Cash Legally" by Robert E. Bauman JD, a former Senator for Maryland.)

Truth be told, for U.S. citizens it is impossible to hide money. Unless someone renounces their U.S. citizenship, and moves abroad, any income they earn, anywhere in the world, will be taxed by the IRS. The reason for these extreme actions is because our government is currently bringing in about $5 billion a day in taxes but spending $11 billion. They are desperate for money and will apparently go to extreme lengths to get it. Apparently, they have decided that income earned by U.S. citizens belongs to the U.S. government and they are entitled to take as much of it as they see fit.

Mr. Hoyt, like so many people who think as he does, apparently does not see any correlation between wages and prices. As someone who worked two jobs to put myself and my husband through college I know how hard it is. (After my divorce I had to work three jobs to support myself and my children.) But paying unskilled entry-level people more than they deserve does a major disservice to all those who strive to better themselves. If there is no incentive to strive, most (but, fortunately, not all) people won't strive any harder to achieve better than minimum wage.

From experience I can tell you that in Australia, where minimum wage is approximately $16 an hour, a breakfast sandwich costs about $12 (as opposed to $4 here). I hear Americans all the time complaining about how expensive it is to travel in Europe. In Switzerland, where there isn't actually an official minimum wage, just a recommended minimum, it's hard to find anyone who earns less than about $50,000 a year. But a 6-ounce cup of coffee costs about $6.50 in U.S. money, and a plain salad works out to about $15 U.S. Anyone who does not see the correlation between wages and prices is living in Cloud Cuckoo Land. Every time the government promises a new "freebie" it means that those of us who are not benefiting from it are paying for it.

Anyone with a knowledge of history knows that in the French and Russian revolutions, well-to-do and aristocratic people were butchered and their property confiscated, supposedly to benefit the lower echelons of society. The result in France was that there was another revolution in 1830, and in the case of Russia, (USSR) Stalin instituted programs that caused people to be murdered in the millions, to reduce the population, because the government could not live up to its promise of a good life for all its citizens unless the population was lowered. And of course life was never good for Soviet citizens, unless they were in the ruling class.

Every time the government hands out a "freebie" somebody's taxes increase. Mr. Hoyt apparently doesn't see that, or else he thinks we are all as wealthy as he is and a few more thousand dollars a year in taxes won't be a problem.

Adam Smith was right when he stated that wealth has to be created. Robbing the rich to help the poor has no long term benefits. The government cannot continue to raise taxes ad infinitum, on those who are earning to support those who are not.

Unlike Mr. Hoyt, I do not want to see Senator Ayotte defeated in the next election. Although I do not see eye-to-eye with her on some issues, she at least has enough common sense to know how the world works.

There is no free lunch.

D.M. Williamson

Laconia

Last Updated on Wednesday, 11 February 2015 11:55

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Nothing can change truth that only God can judge these matters

To The Daily Sun,

As he has done in the past, Mr. McCoy, in his most recent letter, invokes scripture to attack the president and those with different beliefs and lifestyles. While I support Mr. McCoy's right to hold these views, I would like to interject a scripture reading of my own, which encapsulates my feelings on the issues: Do not revenge, my dear friends, but leave room for God's wrath, for it is written: "It is mine to avenge; I will repay," says the Lord (Romans 12:19). Judge not, that ye be not judged (Matthew 7:1).

Mr. McCoy is welcome to judge, but he must also be willing to be judged. Jesus Christ rejected the personal judging of others, their lifestyles and beliefs. Jesus clearly sees a pure love of God and for our fellow human beings as the bottom line for being a Christian. He commanded us to love the poor (I believe McCoy refers to them as "bums") and serve the needy without condition.

McCoy continues by stating that the "unrighteous will not inherit the kingdom of God," and while this may be true, God will be the judge, and mankind can run around and have all the debates they like concerning abortion, homosexuals, adulterers, etc., but that will never change the truth that only God can judge these matters. If we believe that God is a God of justice, He will make sure that these issues are made right.

All too often, we have a tendency to condemn people who are different from us, hold different beliefs, and define their "sins" as paramount and our own sinfulness as being insignificant. I do not expect to change anyone's views on these most controversial topics, I seek only to give those who will hear, the choice to allow God to determine what is right and wrong in each individual case, and not a soul who God may find innocent by his own reasoning and perhaps ... forgiven.

While I'm certainly not a biblical scholar and not comfortable in quoting the Bible, the line spoken by Jesus when he was asked to condemn a woman accused of adultery seems appropriate in an age where morality is often like instant coffee — Jesus asked those without sin to cast the first stone; who will it be? When God looks upon a gay person, does he endorse the existence of this person as one of his children with love, or reject and condemn them? Our greatest moral failing is to condemn something as a moral failing: no vice is worse than being judgmental.

Lazy, knee-jerk morality is far too often replacing sober debate, which usually requires people to actually read and think before they react.

McCoy continues in his letter, accusing the president of "standing up for abortion". While this statement may fit into McCoy's political agenda, it falls short of telling the whole truth. President Obama has been a consistent champion of reproductive choice and makes preserving a woman's right to choose under Roe v. Wade a priority as president. He also supports expanding access to contraception and health information and preventive services to reduce unintended pregnancies.

I would like to assure Mr. McCoy that we will always remember the painful, tragic events of 9/11. We will also have to live with the knowledge of the thousands of lives lost in a furtive campaign to uncover "weapons of mass destruction".

L.J. Siden

Gilmanton

Last Updated on Wednesday, 11 February 2015 11:50

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I am prepared to serve as a selectman for Town of Meredith

To The Daily Sun,

My name is Rosemary Landry and I am running for a position on the Meredith Selectboard. I have learned a lot about town government by attending the Selectboard and Planning Board meetings. I will concern myself with town issues and the citizens of Meredith. I will focus on bringing more residents into the decision-making issues that relate to our town.

During the summer of 2014, Ralph Pisapia and I started a petition to fix Meredith Neck Road. We obtained over 100 signatures and invited Joe Kenney, our Executive Council representative, to view the road structure, which he did. Joe Kenney said he would look into the last time the road was paved and we are presently waiting on his response.

I like to travel to the different towns of New Hampshire, where I attend meetings, meet new people, and listen to their concerns. I have attended Northern Pass meetings, Wind Watch, Care Group that meets in Bristol, and listened to their Wind Resource RBO [Rights Based Ordinance]. Recently I attended the New Hampton Selectboard meeting, per request of a board member. I have even traveled as far north as Lancaster. I also attend the Statehouse hearings and listen to the bills being presented, and if there is a citizen's rights issue, I sometimes rise to speak.

My parents were Irish immigrants, who came to this country, fell in love, married and had eight children. I now have dual citizenship in USA and Ireland. I still have family in Ireland and I visit as often as I can. I am a mother of three and I have 11 grandchildren. I am a registered nurse and I have worked in every aspect of nursing, but my love has always been pediatric nursing. I worked for years on a pediatric unit as a clinical coordinator. Communication skills and multi-tasking were essential, but the main focus was always for the protection of patient and family, and teaching was essential. Actually, the nurses were the advocates in front of the physicians.

When my son was in law school, I developed a keen interest in legal ethics. I am a certified paralegal, and thanks to my son I had numerous books to read, in addition to the course books. I also developed a keen interest in writing, so I took a creative writing course and now I love to write Poetry in Motion.

I will be an advocate for the residents of Meredith. It has always been my nature. Please cast a vote for me on March 10.

Rosemary Landry
Meredith

Last Updated on Wednesday, 11 February 2015 11:42

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Plan to knock-down Belmont Town Hall for parking makes no sense

To The Daily Sun,

A handful of people stood up at the Belmont deliberative meeting on Jan. 31st and made some common sense recommendations that were voted down by a handful of voters.

We wanted to save the Belmont Mill in a way that will ultimately provide income to the town to pay the debt service that is required to save the mill.

The town selectman want you, the taxpayers, to pay $3.4 million to save the mill and move the present 4,000-square-foot town hall to the 17,000-square-foot mill, knock down the present town hall and bank to provide additional parking. They also propose to put an additional building attached to the mill for storage — an additional 625-square-feet to the present 17,000-square-feet. They want to use all four floors for 18 employees. That works out to be approximately 950-square-feet per employee. Compare that to the present town hall with 18 employees of  225-square-feet. That comes out to be 4.2 times more room.

Just to give you some idea of space, 950-square-feet is equivalent to a 30 foot by 30 foot garage or a comfortable three-bed room apartment. To make a further comparison, the Laconia City Hall is also 17,000-square-feet, but Laconia has a population more than twice that of Belmont, and double the number of (city hall) employees.

What the selectmen are telling all the thousands of taxpayers of Belmont is that you have to pull in your belts to pay for the borrowed debt service for the next 20 years and what they did not include is the additional funds for insurance, heating, air conditioning, maintenance and upkeep we will be paying for as well. I believe that it is better for our well-paid employees to pull in their belts until we use our common sense to provide an additional 4,000-square-feet of office space in the present town hall or fix the bank building to move some of the office space out of the present town hall.

For a selectman to suggest that the present town hall be knocked down for parking space does not make sense. The town hall is a historic building and was built over a hundred years ago when there were no power tools available.

Belmont has the highest property taxes in the county and we are in the 70 percent range in the state. Our tax rate went up 23 percent. That's because in the recent appraisal the value of all the taxed properties in town went from approximately $700 million to $550 million, which means we will all be paying more property taxes in the future.

We have 3,000 registered voters in town. It is up to you to decide the outcome of this bond issue. A "Yes" vote will guarantee a substantial increase your future property tax bill. Please vote on March 10 at the Belmont High School from 7 a.m. to 7 p.m.

George Condodemetraky

Belmont

 

 

Last Updated on Wednesday, 11 February 2015 11:26

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