The Keystone to America’s Future
America doesn’t do a whole lot of new construction these days. The time of the Large Public Works Project ended some time ago. The WPA is a depression-era memory, something to find a Wikipedia link for. The Interstate Highway System is now a maintenance issue, not a means to build something new. People use Hoover Dam as a prop to advertise their TV show, but those same individuals support environmental impact studies and prevailing union wages that would make the same project virtually impossible today. A combination of economic constraints, environmental pressure, and lack of efficiency conspire to keep things from being built. In order to get something done, you would need an ideal project. In order to fight off inevitable opposition, you would want to cover the following: Net Positive Environmental Impact No action or inaction is perfect for the environment. It is a question of the lesser of evils. Assuming you accept the United States will not stop using fossil fuels … [Read More...]
The Presidential Economy
The United States economy is slowing after expanding for a few years, perhaps having already slipped into recession. Excess capital from European investors and institutions has flooded the economy for the past couple of years, often leading to additional risk taking. Banks have moved away from focusing on basic lending and are now looking to partnerships with the speculators to earn a better return. Finally, the bell tolls for Wall Street. A bad bet sinks a leading financial … [More...]
The Fields of America Lie Fallow, Unemployment Lingers and Capital Sits on the Sidelines
Recently we analyzed the jobs situation, explaining that the latest unemployment report, announcing the decline of the unemployment rate from 9.0% to 8.6%, was actually BAD news. The issue in short was that many people decided to stop looking for work, while the actual number of jobs created was less than the number needed to keep up with population growth. In that same report, the BLS estimates that “U6,” which is unemployed, underemployed, and discouraged workers, is 15.6%, which … [More...]
Bad News: Unemployment Drops
My friend Jon has been unemployed in California for almost two years now, which puts him in good company. Last month, he ended his unemployment. Congratulations, right? You’re thinking that the next line will be how he had to take a step down or accept part time work, and that’s how bad things are in California. But, if you were a bettor, you should NOT bet that he found a job – any kind of job. Last weekend I heard a Wall Street Journal report on jobs on the radio. The … [More...]
Will China Bury the U.S.?
Apparently, we are doomed to fall inexorably further behind a rising China unless we start acting more like they do. So says Andy Stern, ex-President of the SEIU and frequent Obama White House visitor. Stern is not alone in his sentiments, while his position is a bit more extreme, many mainstream pundits and corporate executives have argued we need a serious government industrial policy to compete in the 21st century. We’ve heard this story before. In the 1980s, Japan was poised to become … [More...]
You Say You Want an Occupation
After several weeks of occupation, the various Occupy sites are slowly being broken up by local authorities. Literally and figuratively, where do they go now? After providing moral support to the occupiers, will Democrat leaders like President Obama and Minority Leader Pelosi follow them wherever they go? OWS is the successor to two previous protest movements. The one everyone thinks about is the New Left from the late 60's/early 70's. At the time, this fractured the Democratic Party, … [More...]
Four Ways to Close the Income Inequality Gap
Income inequality is in the news on a daily basis. Occupy Wall Street maintains the top 1% live in a different world than the rest of us. A recent study by the Congressional Budget Office (CBO) agrees. Apparently, from 1979 to 2007, the now famous top 1% saw inflation adjusted annual income increase by 275%. The top 10% (excluding the top 1%) saw a 65% increase, while further down the ladder; the poorest fifth only experienced an 18% increase. Many want to blame the 1%, figuring they are … [More...]
