Trump should set a goal: fix the business climate so a million Americans a year can start companies.
By Carl J Schramm • Wall Street Journal
This week more than 160 countries are celebrating Global Entrepreneurship Week. The Kauffman Foundation, which I once led, created this event eight years ago to encourage other nations to follow the American tradition of bottom-up economic success. Yet this example has been less powerful in recent years, as American entrepreneurship has waned. Fortunately, President-elect Donald Trump has plenty of options if he wants to resurrect America’s startup economy.
Consider the economic situation that the president-elect is inheriting. Despite the addition of 161,000 jobs in October, the labor-force participation rate fell to its second lowest level in nearly 40 years, according to the St. Louis Federal Reserve. More people have joined the ranks of the chronically unemployed, slipping into poverty at alarming rates as their skills decay and dependency on public assistance grows. Considering population growth, America needs at least 325,000 new jobs every month to stanch the growing numbers of discouraged workers, according to the Bureau of Labor Statistics. Continue reading
by Daniel J. Mitchell • Foundation for Economic Education
Hillary Clinton has an editorial in the New York Times entitled “My Plan for Helping America’s Poor” and it is so filled with errors and mistakes that it requires a full fisking (i.e., a “point-by-point debunking of lies and/or idiocies”).
We’ll start with her very first sentence.
The true measure of any society is how we take care of our children.
I realize she (or the staffers who actually wrote the column) were probably trying to launch the piece with a fuzzy, feel-good line, but let’s think about what’s implied by “how we take care of our children.” It echoes one of the messages in her vapid 1996 book, It Takes a Village, in that it implies that child rearing somehow is a collective responsibility. Continue reading
By Michael J. Coren • Quartz
We’re supposedly living in the age of startups when people can create new businesses, enrich themselves, and employ their fellow Americans. That narrative, like much economic optimism these days, is now mostly a tale for coastal cities, and a tenuous one at best.
Fewer new businesses were created in the last five years in the US than any period since at least 1980, according to a new analysis (pdf) by the Economic Innovation Group (EIG), a bipartisan advocacy group founded by the Silicon Valley entrepreneur Sean Parker and others. Businesses that did form are also far more concentrated than ever before: just 20 counties accounted for half of the country’s total new businesses. All of them were in large metro areas.
by Kenneth Bloomquist
Standing before an audience of college students, President Obama remarked that “As Americans, we can and should be proud of the progress that our country has made over these past six years. This progress has been hard, but it has been steady and it has been real. And it’s the result of the American people’s drive and their determination and their resilience, and it’s also the result of sound decisions made by my administration.” These remarks sound more defensive than confident. The President asserted that Americans should feel proud of the modest economic gains his administration frequently cites, but given that over half of Americans still consider the economy to be meandering through a recession it seems they have overwhelmingly rejected his outlook and chosen to remain humble instead.
Perhaps they’re being overly pessimistic? In the President’s defense, the metrics commonly used to measure the duration of recessions do indeed place the end of the Great Recession in 2009. Since then, GDP has risen slowly, but steadily, at an adjusted rate of just over 2% per year. The unemployment rate has fallen from its 2009 high of just under 10% to just under 6%, and new jobs are being created at a pace which is improving with time. And yet despite the graphs and charts, Americans refuse to be optimistic no matter how often they are told to be. The economy as described in press conferences doesn’t seem to be same one which most Americans live and work in, where family and friends remain unemployed or underpaid, where they have been passed over for raises, and where there just isn’t enough income leftover to save. Americans may not all have advanced economics degrees, but they are intuitively aware when times are good and when times are bad, and they remain skeptical even when bombarded by a steady stream of rose-tinted statistics. Continue reading
2016: Presidential candidates, both announced and prospective, used Labor Day to fire off some pretty harsh criticisms of President Obama’s economy. That’s not news. What is news is who was doing the firing.
Just listen to some of the heated rhetoric about the results that seven long years of Obamanomics have produced:
“I am hot. I am mad, I am angry.”
“There is something profoundly wrong when … the average American is working longer hours for lower wages and we have shamefully the highest rate of child poverty of any major country on earth.” Continue reading
by Francis Menton • Manhattan Contrarian
The government’s latest GDP numbers, through Q2 2015, are now out, and they include some revisions to Q1, as well as other revisions for the period 2012 – 2014. Lenore Hawkins analyzes the numbers at Elle’s Economy, in an article titled “GDP Numbers Keep Getting Worse.” One consequence of the revisions is that Q1 2015 went from a slight decline to a slight increase. But the other revisions to earlier years, particularly 2012 – 2014, had the effect of lowering previously-reported GDP substantially:
In the 138 years from 1870 to 2008, the US economy expanded by about an average of 3% a year. After the revisions to GDP data from 2012-2014, we see that the U.S. economy since the financial crisis has been growing an average of 2.0% a year versus the earlier 2.3%. . . . Most importantly, 2010-2014 was weaker in every quarter except the second and 2015 so far has been the worst yet!
So why doesn’t the U.S. economy just get going like it always did in the past — even as recently as the decade of the 1990s and from 2001 – 2008? Could there be something different about the Obama regime? Continue reading
by Nicolas Loris • Daily Signal
It may be the most “important” from a top-down, regulatory mandate for high energy prices, but it won’t accomplish much, if anything, in terms of combating climate change.
Even though electricity generation accounts for the single largest source of carbon dioxide emissions in the United States, the estimated reduction is minuscule compared to global greenhouse gas emissions.
Climatologists estimate that the administration’s climate regulations will avert less than two hundredths of a degree Celsius by 2100. Continue reading
On the 800th anniversary of the Magna Carta, an unhinged regulatory state is our doomsday machine.
by Holman W. Jenkins, Jr. • Wall Street Journal
AT&T is a taxpaying corporate citizen in good standing and agreed to a perfectly legal takeover with fellow taxpaying corporate citizen DirecTV. We know it was legal because the Justice Department approved the deal, saying it raised no concerns under the antitrust laws.
And yet to proceed with a consensual, private-market transaction AT&T still had to concede to a long list of demands, without a meaningful recourse—fighting in court would have taken too long and destroyed the value of the deal—presented by another government agency, the Federal Communications Commission.
Who cares about the swelling power of bureaucratic discretion in Washington over big business, since it doesn’t threaten your personal freedom and prosperity. Or does it? That question lurked in the background of a Hoover Institution discussion on June 25, hosted by economist and podcaster extraordinaire Russ Roberts. The occasion was the 800th anniversary of Britain’s Magna Carta, a landmark in the struggle for a rule of law. Continue reading
by Morgan Chalfant • Washington Free Beacon
The Labor Department released the figures Friday, Reuters reported. The Employment Cost Index, the general measure of labor costs that is used as an accurate indication of labor market slack, ticked up only 0.2 percent in the second quarter.
Down from a 0.7 percent gain in the first quarter, this represents the smallest gain since the government started measuring the employment cost index in 1982.
Some economists had anticipated that the figure would see a 0.6 percent increase in the second quarter.
“This data has periodically proved to be very lumpy and the sharp deceleration is inconsistent with other measures of wage inflation that are trending higher, not falling off a cliff,” said Eric Green, chief economist at TD Securities in New York City. Continue reading
by Stephen Moore • NY Sun
What ever happened to the old-fashioned American work ethic? I ask this because Thursday’s Labor Department report for June found yet another 430,000 Americans of working age (16+) dropped out of the workforce.
Over the last year more only 1.3 million of Americans of working age have entered the workforce even as the population of this same demographic increased by more than 2.8 million. Just over 1 million of this group found jobs. That’s right—of the increase in working age population, less than 36 percent found employment! Continue reading
Freedom and opportunity are on the horizon with a new crop of principled, capable and positive conservatives.
by George Landrith
In the past few weeks and the next couple weeks, we will see most of the expected entrants into the GOP presidential sweepstakes make their plans official. The GOP bench is deep with a number of highly credible and well qualified potential nominees. Part of this deep bench is the result of the conservatives doing well in a majority of the non-presidential and state elections during President Barack Obama’s time in office. The GOP has gained 70 seats in Congress and 910 state legislators around the nation since Barack Obama took office.
If you’re a conservative, there is a lot more good news on the horizon. That deep bench of well-qualified and highly credible candidates is revealing itself in congressional elections around the nation. Speaking with campaign experts around the nation, one thing is clear — the GOP has a bumper crop of great conservative candidates.
I can’t write about each of them, but perhaps I can pick one that caught my eye and shows real promise. In Florida’s 18th Congressional District, an established name is retiring from the House of Representatives to pursue the U.S. Senate seat being vacated by Sen. Marco Rubio. Rick Kozell has announced his candidacy for the open congressional seat in the Treasure Coast and Palm Beach area.
Here’s what I like about Rick Kozell — he’s an optimistic, principled conservative with a winning vision for the future. He reminds me of a young Ronald Reagan. The press will have a hard time casting him as the stereotypical angry conservative. Kozell is affable, young, smart, and articulate. His smile is natural and his energy and enthusiasm are obvious. Continue reading
Editorial Board • Wall Street Journal
One reading of the midterm election wave is that voters have concluded that President Obama ’s answer to falling incomes and slow growth—higher taxes on the rich and more redistribution—is tapped out. These policies have been up and running for six long years but the middle class is no better off as a result.
On taxes, Mr. Obama often claims that the rich don’t pay their “fair share,” yet the most affluent one-fifth of taxpayers on average supplied 68.7% of federal revenue for 2011. That’s according to the Congressional Budget Office, which last week updated its statistics on the U.S. distribution of income and taxes for 2011 and preliminary calculations for last year.
As for the top 1%, they funded 24% of everything the government does in 2011. The CBO also estimates that the end-of-2012 fiscal cliff deal that lifted the top marginal income tax rate to 39.6%, plus ObamaCare’s taxes on high-income individuals, increased their average federal taxes by 4.3 percentage points to 33.3% of income. The Warren Buffett minimum-tax rule asserted that no millionaire should pay an effective tax below 30%. Mission accomplished. Continue reading
A recent study conducted by NetNames found that in one month alone more than 430 million unique Internet users sought or downloaded copyright infringing music, movies, book, and other materials. This industrial scale theft chills creativity, innovation and investment by depriving creators of a market based return on their investments.. So how do these cyber-thieves steal music, movies, books, and other materials? One tool that is growing in popularity is the shadowy cyberlocker which is designed to sell, not store stolen content.
With so much attention to the “cloud” in today’s online world, it is important that we distinguish between the legitimate cloud storage services like DropBox, Google Drive and Apple’s iCloud, to name only a few. These services allow consumers to store, share, backup, and access data. The so-called cyberlocker business model is very different. Cyberlockers incent users to upload stolen files that are copyrighted and which they have no right to distribute, and then profit by selling subscriptions and advertising. The fact that they pay nothing for the product they sell allows them to enjoy profit margins approaching 90%.
The cyberlocker model is predicated on theft and distribution of stolen property. Continue reading
by Kate Bachelder • Wall Street Journal
A hallmark of progressive politics is the ability to hold fervent beliefs, in defiance of evidence, that explain how the world works—and why liberal solutions must be adopted. Such political superstitions take on a new prominence during campaign seasons as Democratic candidates trot out applause lines to rally their progressive base and as the electorate considers their voting records. Here’s a Top 10 list of liberal superstitions on prominent display during the midterm election campaign:
1. Spending more money improves education. The U.S. spent $12,608 per student in 2010—more than double the figure, in inflation-adjusted dollars, spent in 1970—and spending on public elementary and secondary schools has surpassed $600 billion. How’s that working out? Adjusted state SAT scores have declined on average 3% since the 1970s, as the Cato Institute’s Andrew Coulson found in a March report.
No better news in the international rankings: The Program for International Student Assessment reports that in 2012 American 15-year-olds placed in the middle of the pack, alongside peers from Slovakia—which shells out half as much money as the U.S. per student.
Someone might mention this to North Carolina Democratic Sen. Kay Hagan, who is knocking State House Speaker Thom Tillis for cutting $500 million from schools. Per-pupil K-12 spending has increased every year since Mr. Tillis became speaker in 2011, and most of what Ms. Hagan is selling as “cuts” came from community colleges and universities, not the local middle school. Mr. Coulson’s Cato study notes that North Carolina has about doubled per-pupil education spending since 1972, which has done precisely nothing for the state’s adjusted SAT scores. Continue reading