Category Archives: Unemployment
Many people have been talking about job creation lately, especially politicians. But is government the best creator of jobs? And is job creation the best thing for the economy? Professor Steve Horwitz explains that there is a difference between creating jobs and creating wealth. Creating jobs is relatively easy, but the most economic progress is made when jobs are eliminated because they become unnecessary. This does lead to some unemployment, but the alternatives are worse. To prevent transitional unemployment would also halt innovation, growth, and the reduction of poverty. So what is the best way to create valuable, meaningful jobs? Professor Horwitz says, “The best job-creation program in human history is the free market and the entrepreneurship it generates.”
This video is a must watch. Interesting, frightening and refreshing to hear somebody from outside our country assess the economic mess in the United States and Europe. There is some great information contained in the graphics on the right side which can be better read in HD quality and fullscreen.
Pierre Poilievre is a Member of Parliament for Nepean-Carleton, he was first elected in 2004 and has since been re-elected in 2006, 2008, and 2011. In April of 2012, MP Poilievre stood up in the House of Commons to defend economic freedom and to warn his colleagues of a fiscal cliff that many economies like the US and European Union are headed to.
This video is the enhanced version of his original House of Commons speech on the economy and how to avoid a fiscal cliff.
“It’s over. This is it,” Gregory Rayburn tells “Today.”
Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said in announcing that the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”
Hostess Brands Inc. had earlier warned employees that it would file to unwind its business and sell off assets if plant operations didn’t return to normal levels by 5 p.m. Thursday. In announcing its decision, Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.
Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.
The Irving, Texas-based company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers’ pensions last year.
NBC’s Savannah Guthrie read a statement on “Today” from the bakers’ union that said: “Despite Greg Rayburn’s insulting and disingenuous statements of the last several months, the truth is that Hostess workers and the union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers.”
Rayburn responded that he had been “pretty straightforward in all the town hall meetings I’ve done at our plants to say that in this situation I think there is blame that goes around for everyone.”
He denied that the decision to shut down could be a last ditch negotiation tactic to get the union back to the table.
“It’s over,” he said. “This is it.”
MORE . . .
- Twinkie Maker Hostess to Shut Down After Strike – Bloomberg (bloomberg.com)
- Twinkies maker Hostess is going out of business, putting almost 18,500 out of work (business.financialpost.com)
- URGENT: Twinkies-maker Hostess will wind down and sell off operations in fight with unions (foxbusiness.com)
- Twinkie-maker Hostess closing for good (kshb.com)
Americans could be waiting another five years for a return to normal employment based on the sluggish pace of the U.S. economy. After nearly four years in office, President Obama has overseen the worst recovery since the 1960s.
This week’s chart comes on the heels of Friday’s employment report, which showed an uptick in the unemployment rate to 7.9 percent.
MORE . . .
- Chart of the Week: Slowest Economic Recovery Since the 1960s (heritage.org)
- Obama’s Imperial Presidency Is Killing Recovery (realclearpolitics.com)
While real consumer spending growth remains perilously close to recessionary levels for another year, one of our favorite indicators of real consumer sentiment (as opposed to the anchoring bias-driven surveys we are force-fed a few times per month) is the growth in spending on eating meals out. As Bloomberg Briefs notes, spending on dining out has fallen from 4.5% growth at the beginning of the year to under 1.8% growth currently (the lowest since May 2010). Add to this the slowdown in jewelry spending and the drag on discretionary spending likely from Sandy and we suspect the modicum of estimate revisions that have started to be published by sell-side analysts will need a little more adjustment.
Real Consumer Spending remains stagnant…
while easting out is plunging…
Charts: Bloomberg Briefs
- Real Economy Still Sliding As ‘Eating Out’ Continues to Go Down (zerohedge.com)
- How To Spot A Keynesian (rubinoworld.com)
- 3rd Quarter GDP Growth Due to Government Spending, No Reason to Celebrate (reason.com)
Add Facebook to the cadre of media that are helping President Obama cover up his responsibility for the deaths of four Americans in Benghazi, Libya.
The Special Operations Speaks PAC last week posted an image comparing SEALs’ loyalty when Obama needed them to how two SEALs were ignored by the White House during the firefight at the U.S. mission on September 11. The meme was shared by more than 30,000 and seen by hundreds of thousands of people.
Over the weekend, Facebook apparently panicked, pulled the image and gave SOS a warning that it was in violation of Facebook policy.
Larry Ward, president of Political Media Inc., which maintains the SEALs page, told Breitbart that he copied the Facebook warning and reposted the original image with the warning as a caption.
As a result, Facebook suspended SOS for 24 hours.
And yes, Facebook CEO Mark Zuckerberg is said to be an Obama supporter.
MORE . . .
- Facebook Censors Navy SEALs to Protect Obama on Benghazi-Gate (thegrimcreeper.newsvine.com)
- WOMEN’S GROUP Slams Obama For Abandoning SEALs in Benghazi (Video) (thegatewaypundit.com)
- Facebook Censors Navy Seals To Protect Obama On Benghazi-Gate (redalertpolitics.com)
- Facebook Censors Navy Seals to Protect Obama on Benghazi-gate (tarpon.wordpress.com)
- Facebook Closes Down SEALs to Shield Obama (moonbattery.com)
So you were suspicious about those September job creation numbers touted by the Obama Administration? You had good reason to be.
The payroll data firm ADP, which recently became partners with Moody’s Analytics, revised their estimate of the September jobs created down from 162,000 to 88,200. That new number is considerably less than the Labor Department’s count of 114,000, which included 104,000 from the private sector.
When the Labor Department’s job numbers came out for September, there was an uproar; many observers thought the numbers were manipulated to benefit Barack Obama’s reelection. As Jack Welch, former head of General Electric, tweeted after the Labor Department’s release: “Unbelievable jobs numbers…these Chicago guys will do anything…can’t debate so change numbers.”
But the revised ADP numbers have sparked strong suspicion that the October numbers will be worse than the Labor Department will let on.
Todd Schoenberger, managing principal at the BlackBay Group in New York, said: “It’s huge, no doubt about it. Their changing the methodology tells me that if the number is cut in half with that revision, then the revision we’re going to see Friday is going to be a disaster.”
ADP is taking no chances this time; they will announce their October count on Thursday before the Labor Department announces theirs on Friday. ADP said its new reports will offer a more detailed breakdown of the numbers while they increase the numbers of businesses analyzed.
- September Surprise! Jobs Count Revised Down, October Bleak (riehlworldview.com)
- ADP to revamp their jobs reporting (hotair.com)
- Non-shocker of the day: September jobs data revised by half (twitchy.com)
- ADP revises September 2012 jobs sharply down (impeachobamatoday.wordpress.com)