Mixed Economic News Because Of The Hurricanes

Generally speaking, the economic news is good–the workforce participation rate is up and unemployment is down. That is a good thing. The only negative is the fact that according to CNBC America lost 33,000 jobs in the month of September. That loss is attributed to the hurricanes that hit Florida and the Gulf Coast states.

CNBC further reports:

Even with the surprise jobs number, the closely watched hourly wages figure jumped higher, to an annualized rate of 2.9 percent.

 Economists surveyed by Reuters expected payroll growth of 90,000 in September, compared with 169,000 in August. The unemployment rate was expected to hold steady at 4.4 percent. It declined even as the labor-force participation rate rose to 63.1 percent, its highest level all year and the best reading since March 2014.

“The lousy returns from the September jobs report will make little impression on observers, who essentially gave the labor market a free pass due to the impact of Hurricanes Harvey and Irma,” said Curt Long, chief economist at the National Association of Federally Insured Credit Unions.

An alternate number that includes discouraged workers as well as those working part-time for economic reasons also tumbled, falling from 8.6 percent to 8.3 percent, its lowest reading since June 2007.

The Workforce Participation Rate increased to 63.1. The following chart showing changes in the Workforce Participation Rate is from the Bureau of Labor Statistics:

As you can see, the rate is slowly inching upward.

According to Bloomberg News, Americans are going back to work.

Bloomberg reports:

Americans are coming off the labor market’s sidelines at a pace that intensified in September.

The number of people going from out-of-the-labor-market into jobs jumped to an all-time high last month, the Bureau of Labor Statistic’s employment report showed on Friday, even as the number of people flowing into unemployment fell. While these numbers can be volatile, they provide the latest confirmation that Americans are being pulled into work as the labor market tightens.

The positive changes in the economy are the result of the deregulation that has been going on since President Trump took office. There is still more deregulation needed. If all or part of the President’s tax reform proposals are put into effect, those reforms will also help encourage economic growth.

The Keystone Pipeline Will Be Good For The Environment, But You Might Have To Search A Bit To Find That Story

On March 24th, The New York Post posted an article about the environmental impact of the Keystone Pipeline. I would like to point out that none of the environmental studies on the pipeline done during the Obama Administration ever stated that the pipeline would harm the environment. The objection to the pipeline at that point was that if President Obama allowed the pipeline to be built, the Democratic Party would lose the donations of the radical environmental groups. If they refused to build the pipeline, they would lose a large portion of donations from unions. They made a choice to keep the environmentalists happy and ignore the unions who wanted the jobs the pipeline would create.

The article points out:

Environmentalists like to tout scary spill statistics. But in actuality, oil travels most securely by pipeline, reaching its destination safely 99.999 percent of the time, according to the Association of Oil Pipe Lines and the American Petroleum Institute.

A recent study by Canada’s Fraser Institute provided more reassuring information: Of the rare spills that do occur, 83 percent happen in facilities specially equipped to handle them, not along the pipeline’s route, where they could cause environmental harm. Moreover, 70 percent of the spills that do occur amount to a total of less than a cubic meter of spilled oil.

The article explains the impact of alternative forms of transporting oil:

As energy-related rail traffic increased, 2013 alone saw more train-related crude-oil spills than the entire 37 years prior, combined. And between 2013 and 2015 alone, the United States and Canada saw 10 separate explosions involving oil-laden trains.

To understand how much riskier railway transportation can be, look no further than to Lac-Mégantic, Quebec. In 2013, a crude-oil train derailed, plowing into town at more than 62 miles per hour and exploding. Forty-seven people died, and the blaze wiped out 44 buildings.

The wreck unleashed nearly 1.5 million gallons of oil, and what didn’t char the town seeped into the soil and contaminated the nearby Chaudière River.

Transporting oil by truck also carries major risks. At the peak of the oil boom, The New York Times reported that highway fatalities were the top cause of deaths in the industry — more than 300 between 2002 and 2012. In North Dakota, highway fatalities skyrocketed as energy production soared; at one point, a person was killed in an accident every two-and-a-half days.

A 100 percent risk-free method of energy transportation doesn’t exist, and the Obama administration was well aware of the comparative risks of pipeline, rail and road. Five separate State Department studies examined safety and environmental concerns surrounding the pipeline. Their findings were consistently favorable to Keystone XL.

The most recent State Department report concluded that because of pipelines’ superior safety record, Keystone XL could prevent as many as six fatalities and 48 injuries each year.

Without the pipeline, the oil would travel by truck and rail. Both of these methods have a higher carbon footprint and a higher risk than a pipeline. It is also no coincidence that without the pipeline the Burlington Northern Santa Fe railroad is transporting large amounts of oil through the area where the pipeline will be built. The railroad is owned by Berkshire Hathaway, a conglomerate controlled by Warren Buffett, a close friend of former President Obama. The delay of the Keystone Pipeline was truly a case of ‘follow the money.’

A Few Comments On The Tenth Anniversary Of Hurricane Katrina

My daughter and son-in-law were living in New Orleans ten years ago. At that time they had a two-year old daughter and a six-month old daughter. They evacuated the city (with their two cats) the day before the storm and headed to my sister’s house a few hundred miles north of New Orleans. No one could have predicted what happened next. They returned to their home a few days before Thanksgiving.

There are a few things I would like to say about the storm and the aftermath. For a few months they lived in Kansas City where a local church adopted a number of families from New Orleans and helped them deal with their losses. My daughter and her family suffered very little actual loss, but we found out later what the impact of the experience on the young children was. Two years after the storm as they were preparing to move to another city, their older daughter asked, “When we move this time, can I take my bed and my toys with me?”

There were many people after the storm who came forward and helped those who had lost things. There were formal organizations like the Red Cross, the Salvation Army, and Operation Blessing, and there were groups of people who simply saw a problem and did what they could to solve it.

One of my favorite Hurricane Katrina stories was how the city dealt with the abandoned swimming pools in the city that were becoming breeding grounds for disease-carrying mosquitoes.

In July 2006, National Geographic reported:

To battle the bugs, Sackett (Steve Sackett, an entomologist with the New Orleans Mosquito and Termite Control Board (NOMTCB). ) has turned to a natural predator—the western mosquito fish (Gambusia affinis).

The fish can eat up to a hundred mosquito larvae a day. And unlike commercial pesticides, the prolific breeders can replenish themselves.

No pesticides, no chemicals–just fish!

Another inspiring story to come out of this tragedy is that of the Sugarcane Academy. This is a story worth reading about.

Americans are special. We are capable of coming together after a tragic event, and we are capable of coming up with innovative solutions to problems. We need to develop those talents.

Putting Elections Ahead Of Creating Jobs

Truck Hauling 36-Inch Pipe To Build Keystone X...

Image via Wikipedia

The Keystone Pipeline is a $7 billion pipeline, which would run from Alberta to the Gulf Coast.  It would increase energy security in America and directly create more than 20,000 high-wage manufacturing jobs and construction jobs in 2011-2012 across the U.S.

Today’s Wall Street Journal is reporting that the U. S. Government is planning to delay any decision as to whether to allow the pipeline to be constructed until after the 2012 election. They didn’t exactly word it that way, but that is the outcome.

The article states:

State Department officials are expected to say as early as Thursday the U.S. will seek to re-route the pipeline away from an environmentally sensitive portion of Nebraska. Such a move will require an assessment of the new route’s environmental impact, a lengthy process that isn’t expected to be complete until at least the first quarter of 2013.

The problem this pipeline presents for the Obama administration is simple–the environmentalists oppose the pipeline and the unions support it (more jobs). The pipeline would increase the energy independence of America and make us less dependent on oil from countries that hate us.

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