Tag Archives: wages

Actions Have Consequences

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It sounds really compassionate to insist that the minimum wage be a wage you can actually live on, but is that really the purpose of the minimum wage, and what are the consequences of raising the minimum wage? California just found out.

On Tuesday, The Washington Examiner reported:

California’s fast-food minimum wage hike has been in effect for just one month, and the consequences are proving to be fewer hours and potentially fewer jobs for workers.

Pollo West Corporation, the largest franchisee of El Pollo Loco restaurants in California, has said that its franchises went from profitable to losing money overnight when the fast-food wage hike went into effect. It also said that the franchises have reduced worker hours by 10%. Meanwhile, the restaurants had raised prices in February to prepare for the wage hike, leading to a 3% decline in business.

In total, fast food prices have gone up in California by 10% since September, a larger increase than in any other state. Restaurants have already passed those prices on to consumers, as was expected, and are cutting hours and adding kiosks. Fewer hours for employees means less money, fewer sales to consumers means less business, which means fewer hours for employees, and automated kiosks mean a reduced need for employees, which means fewer hours (or jobs) for employees.

For those of us who are mathematically challenged, if you work 30 hours at $15 an hour, you make $450. If your hours are cut back to 20 hours but you make $20 a hour, you only make $400. That is not an improvement.

The minimum wage was never intended to be a living wage. It was intended to be an way for unskilled workers to enter the workforce and learn good work habits–showing up on time, dressing appropriately, being nice to customers, etc. Ideally a minimum wage job provides an opportunity to learn skills that will enable a person to get a job that pays more than minimum wage. Somehow California has missed that concept.

There Is Spin, And There Is Spin

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On January 18th, Issues & Insights posted an article about the difficulty the Biden presidential campaign is having gaining traction.

The article notes:

Rep. James Clyburn, who is a co-chairman of Joe Biden’s reelection campaign, recently tried to explain the president’s predicament by saying that he’s “delivered for the American people in such a way that nobody seems to grasp.”

As campaign slogans go, that’s not exactly “Morning in America.” But the truth is that everybody grasps what Biden has delivered. It’s what he’s delivered that they don’t like.

Clyburn, talking on MSNBC, said the public just needs to “look at the facts and stop listening to all of this tweeting and stuff that’s going on out there that’s not good for the American people.”

We took the South Carolina Democrat’s word for it, and here’s what we found that Biden has delivered, at home and abroad.

This is the list of what President Biden has delivered:

The cost of living has skyrocketed.

Real wages are down.

Poverty is up.

The national debt has exploded.

Deficits are on the rise.

Illegals are flooding across the border.

Attacks on the U.S. are up.

The world is a more dangerous place.

Please follow the link above for further details.

Does anyone want four more years of this?

Things President Trump Got Right

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First of all, why is President Clinton always referred to as President Clinton and President Trump often referred to a Donald Trump? Subtle manipulation by the media?

On Sunday, Breitbart posted the following headline:

New York Times Columnist Admits ‘ Trump Got Three Big Things Right’

If you honestly look at President Trump’s accomplishments and record as President and compare it to where we are now, your choice in November is obvious.

The article analyses The New York Times article:

The January 11 article was posted under the headline: “The case for Trump … by someone who wants him to lose.”

Stephens wrote that “you can’t defeat an opponent if you refuse to understand what makes him formidable [and] too many people, especially progressives, fail to think deeply about the enduring sources of his appeal.”

…“Enforcing control at the border — whether through a wall, a fence or some other mechanism — isn’t racism,” Stephens wrote. “It’s a basic requirement of statehood and peoplehood, which any nation has an obligation to protect and cherish.”

Trump also caught the public’s mood of decline and pessimism, Stephens wrote. “Far too little has changed since then … If anything, Trump’s thesis may be truer today than it was the first time he ran on it,” Stephens admitted.

Trump also amplified the public’s falling trust in experts, professionals, and merit institutions that were supposed to be independent of politics, Stephens wrote.

…Many voters in 20224 will remember Trump’s first term fondly, he said. “Americans have reasons to remember the Trump years as good ones … Wages outpaced inflation, something they have just begun to do under Biden.

I question the claim that wages have begun to outpace inflation. What used to be a $75 trip to the grocery store is still about $125. President Trump represents the hope of the American people that someone will speak up for them in Washington. We don’t want the government meddling in the home appliance market. We don’t the government performing S.W.A.T. raids on citizens that are not a threat to society. We don’t want the government refusing to enforce the law when Supreme Court Justices have their homes unlawfully picketed.

If You Wanted Your Pizza Delivered…

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Beginning in 2024, California’s new minimum wage law passed by the Democrat legislature will go into effect. The new law sets the fast-food minimum wage at $20 an hour. That’s a pretty good place to start if you are a worker. However, what does it do to the bottom line of a company who is in business to make a profit (most companies are in business to make a profit)?

On Thursday, Issues & Insights posted an article detailing the impact the law, which will go into effect in April, has already had.

The article reports:

The state will raise its overall mandated minimum-wage rate from $16 an hour to $16.50 an hour overall, starting in 2024. But some industries will get an even bigger wage shock: fast-food minimum wages go up to $20 an hour starting in April. Meanwhile, workers in the health care industry will see their minimum wage rise to $18, $21 or $23 an hour, depending on the job.

It’s about time, you say?

Let’s start by saying we’re not against anyone getting a raise. But raises should come from the companies themselves, not from government decrees. As study after study in recent years show, government-mandated minimum wage hikes usually hurt those they’re meant to help.

It’s an irony that seems lost on California’s leftist political class, now in total control of the state, continues to “help” those at the bottom rungs of the economic ladder by making it more expensive for businesses to hire them and keep them working.

Already, with California’s looming minimum-wage tax on fast-food chains in the state, employers are tweaking costs by reducing hours, laying off workers and charging you more for that cheeseburger, fries and a drink that you crave.

Though the calendar says it’s still 2023, franchisees of the Pizza Hut chain have announced this week they’re laying off 1,200 drivers who used to deliver their piping-hot pies door-to-door. With the new higher wages, they can’t afford to keep drivers working.

The article points out some other consequences:

So who will suffer?

“Every time we raise the minimum wage, kids lose their jobs,” Ohanian explains. “This isn’t efficient, and it isn’t right. We should not be implementing policies that prevent people from being able to work.”

As for the argument that the hike is needed to “keep up with inflation,” whose inflation are we talking about? Just the workers? How about the businesses? With three-quarters of their costs being labor-related, they have to take immediate action, or go out of business.

And then there are the customers. They, not the businesses, will foot the bill when they buy a suddenly-much-pricier cheeseburger or a pizza. Prices will go up, as they inevitably do, when higher costs can’t be offset by gains in productivity.

For the curious, there are literally dozens of studies and reports out there (including our own) that explode the myths of raising minimum wages, ranging from Walter B. Williams’ 1977 landmark study for Congress that showed minority youths suffered most when minimum wages rise, to more recent studies showing that non-wage losses after a minimum-wage hike offset any gains for workers.

What will now happen, no doubt, is that there will be more automation (robots already prepare food at McDonald’s, Chipotle, White Castle, Panera and other outlets), more self-service terminals, and fewer workers overall.

And, oh yes, stores will close. Marginal stores that can’t make up the higher costs will simply shut down, thanks to inflation and higher wages.

Sometimes when the government aims to help, it simply makes things worse for the people who are struggling to make ends meet already.

 

 

Ten Lies Told

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On Wednesday, The Federalist posted an article listing ten lies President Biden told during his press conference.

This is the list of lies:

1. The Nation’s Problem Is COVID

2. Wages Are Up

3. Biden Created Jobs

4. The Supply Chain Crisis Isn’t That Bad

5. Inflation Was Already A Thing Before I Took Office

6. Republicans Want To Steal Minorities’ Right To Vote

7. Schools Aren’t Closed

8. Build Back Better Will Save Americans Money

9. White House Reporters Are The Most Informed Americans Of All Time

10. I Didn’t Compare My Democrat Colleagues To Racists

Please follow the link above to read the details. Some of these statements are such obvious whoppers I don’t even want to comment on them. I remember how often the press accused President Trump of lying with no evidence. Now we have a President who truly struggles to tell the truth and the media is generally silent. It is my hope that American voters are smarter than the press thinks they are.

Who Is Writing The Democrat Party Platform?

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Bernie Sanders is not the Democrat presidential candidate. He might have been, but the Democrat political establishment has blocked his nomination twice with backroom deals. However, the proposed party platform seems to have a lot of his ideas included. The Democrats blocked his nomination because they felt that his ideas were too far out of the mainstream for him to be elected, so now they are sneaking his ideas into a platform that very few people will actually read. Yesterday Breitbart posted an article about that platform.

The article reports:

The proposed Democrat platform would expand asylum for migrants arriving at the U.S.-Mexico border, freeing them into the interior of the nation while they await their hearings. Gallup research from 2018 finds that nearly 160 million migrants around the world would move to the U.S. if given the opportunity — five million of which are located in Central America.

Likewise, the plan ends construction of the border wall, halts deportations for illegal aliens, ends all travel bans on national security-risk nations, China, Europe, Brazil, and Iran, ends agreements between the U.S. and Central America to reduce illegal immigration, and ends most federal detention of illegal aliens.

The plan also calls for:

    • Restarting DACA for young illegal aliens
    • Restraining DAPA for the illegal parents of DACA illegal aliens
    • Rescinding Trump’s “national emergency” at the border
    • Increasing refugee resettlement
    • Gives Obamacare to DACA illegal aliens
    • Forces Americans to subsidize welfare-dependent legal immigration
    • Expands the scandal-plagued U visa program
    • Restarts employment-based green card system

The massive expansion of illegal and legal immigration — in addition to the hundreds of thousands of illegal aliens and more than 2.5 million legal immigrants and foreign workers added to the U.S. population every year — would come as more than 35 million Americans are unemployed or underemployed.

This is not a recipe for American success. This is a recipe for creating a permanent underclass of people who will be forever dependent on the government and eventually bankrupt the country (see Cloward-Piven Strategy). Every illegal alien that enters the country depresses the wages of Americans in low-skilled jobs. A country needs to have control of its borders in order to protect the rights and futures of those who live there.

Who is writing the Democratic Party platform, and what is their goal?

Some Thoughts On One Long-Term Effect Of The Coronavirus

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On March 1, Forbes Magazine posted an article about the long-term impact of the coronavirus. Obviously the article was written before America went on lockdown and the stock market felt the full impact of the epidemic.

The article reports:

The new coronavirus Covid-19 will end up being the final curtain on China’s nearly 30 year role as the world’s leading manufacturer.

“Using China as a hub…that model died this week, I think,” says Vladimir Signorelli, head of Bretton Woods Research, a macro investment research firm.

China’s economy is getting hit much harder by the coronavirus outbreak than markets currently recognize. Wall Street appeared to be the last to realize this last week. The S&P 500 fell over 8%, the worst performing market of all the big coronavirus infected nations. Even Italy, which has over a thousand cases now, did better last week than the U.S.

So who wins as China loses its place as the world’s leading manufacturer?

The article notes:

Yes. It is Mexico’s turn.

Mexico and the U.S. get a long. They are neighbors. Their president Andres Manuel Lopez Obrador wants to oversee a blue collar boom in his country. Trump would like to see that too, especially if it means less Central Americans coming into the U.S. and depressing wages for American blue collar workers.

According to 160 executives who participated in Foley & Lardner LLP’s 2020 International Trade and Trends in Mexico survey, released on February 25, respondents from the manufacturing, automotive and technology sectors said they intended to move business to Mexico from other countries – and they plan on doing so within the next one to five years.

“Our survey shows that a large majority of executives are moving or have moved portions of their operations from another country to Mexico,” says Christopher Swift, Foley partner and litigator in the firm’s Government Enforcement Defense & Investigations Practice.

Swift says the move is due to the trade war and the passing of the USMCA.

The article points out one of the major problems with manufacturing in Mexico:

Safety remains a top issue for foreign businesses in Mexico who have to worry about kidnappings, drug cartels, and personal protection rackets. If Mexico was half as safe as China, it would be a boon for the economy. If it was as safe, Mexico would be the best country in Latin America.

“The repercussions of the trade war are already being felt in Mexico,” says Miralles.

Mexico replaced China as the U.S. leading trading partner. China overtook Mexico only for a short while.

A strong Mexican economy would solve a lot of problems for America if the drug cartels and other illegal activities could be stopped. A strong Mexican economy would provide incentive for migrants from poorer South American countries to remain there and work. It might ebb the flow of illegals into America that burden the American welfare system and negatively impact the wages of Americans on the lower end of the wage scale.

There will always be drawbacks to outsourcing manufacturing to a country that is controlled by a group of tyrants. American companies who scream about civil rights in America have been willing to overlook sweatshops in China. It is time to add the concept of conscience to the corporate decision-making process.

What Happens If The Trump Tax Cuts Are Repealed?

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Yesterday The Washington Examiner posted an opinion piece with the following title, “Democrats want to repeal most important part of Trump’s tax cuts.”

I would like to note at this point that according to CNS News:

The federal government set records for both the amount of taxes it collected and the amount of money it spent in the first four months of fiscal 2020 (October through January), according to data released today in the Monthly Treasury Statement.

So revenue has increased under the tax cuts–not decreased.

The piece at The Washington Examiner continues:

Democrats are vowing to repeal the GOP’s 2017 tax reform bill, starting with raising the corporate income tax. The Democrat-controlled House Ways and Means Committee recently held a hearing laying the groundwork for this tax increase, falsely claiming that the corporate rate was lowered at the expense of middle-class families.

Reality belies this rhetoric. The corporate tax reduction from 35% to 21% has benefited families and workers alike by growing the economy, raising wages, and creating new jobs.

It’s no coincidence that, in the two years since the tax cut, unemployment has dropped to a 50-year low. It has hit all-time lows for key demographics including women, African Americans, and Hispanics. Thanks to these pro-growth policies, nearly seven million jobs have been created since Trump took office, and there are now fewer unemployed people than job openings.

Wages have also grown.

Annual hourly earnings have grown by 3% or more in the past 12 months. In fact, real median household income has increased by over $5,000 during Trump’s tenure, according to data released by Sentier Research. In addition to this wage growth, the tax cuts have allowed businesses to expand, hire new workers, and increase pay and benefits.

Savings are also on the rise.

When Trump was elected president, the Dow Jones sat at 18,332. It is now at roughly 29,000, an increase of about 60%. This stock market growth benefits the 100 million 401(k)s, the 46.4 million households that have an individual retirement account, and the nearly $4 trillion in public pension funds, half of which is invested in stocks.

And the Congressional Budget Office has revised revenue up by over $1.2 trillion, 80% of the cost of the tax cuts, due to improving economic conditions since the tax cuts were passed.

You have to wonder why the Democrats would want to undermine an economy that is obviously working for everyone. If federal revenue is at record levels, why would you change things?

The piece concludes:

Utility savings for households are another benefit of the corporate rate reduction. As a direct result of the corporate rate cut, utility companies in all 50 states reduced their prices. That means lower monthly electric, gas, and water bills for households and businesses. If Democrats raise the corporate rate, they will be saddling households with higher utility bills.

The Left won’t stop there, either.

Democrats have proposed trillion-dollar annual tax increases that include payroll tax increases, small-business tax increases, income tax increases, and even an increase in the “death tax.” The fact is, corporate tax cuts have grown the economy, lifted wages, and created more jobs. Democrats would undo these gains and harm middle-class families.

Are the Democrats economically ignorant, or do they simply not care about the impact of their policies on everyday Americans?

The Trump Economy Continues To Thrive

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Fox News posted an article today about the January jobs numbers.

The article reports:

U.S. hiring topped expectations in January, as the economy added 225,000 jobs, kicking off the decade on a stronger-than-expected note.

It marks the 112th month of straight gains.

Unemployment ticked up slightly to 3.6 percent, as more people were looking for work, the Labor Department said Friday. The labor force participation rate edged up slightly to 63.4 percent. Average hourly earnings, meanwhile, rose by 7 cents over the past year to $28.44.

“Taken together, the first report of 2020 is a healthy one — showing that a possible redux of the roaring twenties updated for the 21st Century isn’t off the table yet,” Daniel Zhao, Glassdoor senior economist, said.

The labor force participation rate has not been at 63.4 percent since June of 2013.

The article notes:

“The labor market is continuing at a solid pace, and unemployment remains low,” said CareerBuilder CEO Irina Novoselsky. “It’s a crowded market for those battling to attract top talent and businesses are seeing the most traction when touting company culture along with their open positions.”

As the U.S. continues the longest economic expansion on record, investors are looking at the Department of Labor’s monthly payroll and unemployment data for signs that the rapid job growth over the past two years is softening and leading way to an overall growth slowdown.

The report contained a bad omen for manufacturing, which has been in a year-long rut: In January, the sector lost 12,000 jobs, most of which stemmed from motor vehicles and parts.

More Americans are going back to work, and wages at all levels are increasing. That is good news for all Americans.

The Biggest Lie Told In Last Night’s Debate

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Breitbart posted an article last night which detailed the biggest lie told in the Democratic debate in Iowa.

The article reports:

Blue-collar and white-collar Americans “are being clobbered, they’re being killed,” former Vice President Joe Biden claimed at the January 14 Democrat debate in Iowa.

However, unemployment is at record lows, many sidelined Americans are getting jobs, and blue-collar wages are rising at rates not seen for many years amid President Donald Trump’s new curbs on legal and illegal immigration.

The article quotes Joe Biden’s remarks:

Working-class people — where I come from in Pennsylvania, the places I come from in Delaware — I have great support. I have support across the board, and I’m not worried about taking on Donald Trump at all. And with regard to the economy I can hardly wait to have a debate with him.

Where I come from — the neighborhoods I come from — they’re in real trouble: working-class people and middle-class people. When the middle class does well, [the] working class has a way up and the wealthy do well. But what’s happening now: they’re being clobbered, they’re being killed. They now have a situation where they [believe] — the vast majority believe — their children will never reach the stage that they reached in economic security.

I love that [economic] debate because the American public is getting clobbered. The wealthy are the only ones doing well. Period. I’m looking forward to the economic debate.

The article reports the facts:

Wages for blue-collar Americans rose by 4.3 percent in 2019 — or 2.7 percent after inflation — in President Donald Trump’s tightening labor market, according to a December report by Goldman Sachs.

The wage gains come amid very low inflation of just 2.1 percent in December.

…Blue-collar wages are rising faster than white-collar salaries because of different demands from employers, said Tom Donohue, the CEO of the U.S. Chamber of Commerce. “White-collar wages have been moving up over time, a bit, and the demand there, because of technology and other things, is not as high as the demand [for blue-collar skills]. … It’s a reality of the market,” he said January 9.

But Biden wants to increase the flow of foreign workers who will reduce wages for Americans.

“Biden will work with Congress to first reform temporary visas to establish a wage-based allocation process and establish enforcement mechanisms to ensure they are aligned with the labor market and not used to undermine wages,” said Biden’s plan for legal immigration. “Then, Biden will support expanding the number of high-skilled visas and eliminating the limits on employment-based visas by country, which create unacceptably long backlogs,” the plan says.

Hopefully enough Americans are familiar with the actual facts to believe this garbage.

It Really Is A Shame That The Media Has Chosen To Ignore President Trump’s Economic Success

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On Saturday, The Western Journal reported the following:

The Trump economy is giving the greatest benefits to those who have been at the bottom, according to new data from the Council of Economic Advisers.

Data released by the CEA shows that over 11 quarters from the end of 2016 through the first half of 2019, the net wealth of the top 1 percent of American households rose 13 percent. However, that rise is dwarfed by the 47 percent increase seen by the bottom 50 percent of America’s households over that same period.

…The report said that on average, workers’ pay has been rising faster than that of managers, and wage gains for Americans without a bachelor’s degree are rising faster than those for Americans with a bachelor’s degree or higher.

And, in keeping with Trump’s campaign promise to lift up black Americans, “average wage growth for African Americans now outpaces wage growth for white Americans,” according to the White House report.

America’s labor force is growing because Americans who were not formerly even looking for jobs are now employed, the report said.

The article concludes:

The Labor Department’s December jobs numbers, meanwhile, showed that women now are the majority in the American workforce.

“Why is today a milestone? It’s a milestone because it’s really heralding the future and not just telling us where we are today,” Betsey Stevenson, a professor of public policy and economics at the University of Michigan, told The Washington Post.

Larry Kudlow, director of the National Economic Council, said the jobs report has political ramifications.

“This stuff will translate in the election, I’m surprised the Democrats are so pessimistic painting a picture of a deep recession,” Kudlow told The Post. “The key point here is 3.5 percent unemployment continues, and that is a very low number historically and shows you still have a healthy economy and healthy job market.”

There is another aspect of President Trump’s policies that is impacting the wages of working Americans. President Trump’s policy of ending illegal immigration also eliminates some downward pressure on the lower end of the wage scale. Illegal immigrants are willing to work for less than American workers and don’t demand the same benefits. If they are working ‘under the table’, their employee is not paying Social Security taxes on them. Ending the flow of illegal immigrants into America is a positive thing for everyone.

Policies Have Consequences

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Fox News is reporting today that Mayor Douglas Nicholls of Yuma, Arizona, has withdrawn his city’s state of emergency that was declared in response to this year’s migrant crisis at the southern border — saying that the crisis has diminished in recent months.

The article reports:

“I am grateful to be able to withdraw the Proclamation of Emergency due to the Trump Administration’s policy changes that diminish the flow of the migrant family units to the Yuma area and prevent releases into the Yuma community,” Mayor Douglas Nicholls said in a statement earlier this month.

Nicholls declared a state of emergency in April near the peaks of the border crisis, when the number of migrants apprehended or turned away at the border soared to over 109,000. That number would hit 144,000 in May, but then decline sharply in the months since then, down to about 42,000 in November. At the time, Nicholls said the state of emergency was “due to the migrant family releases overwhelming the local shelter system.”

The administration has credited a slew of measures for bringing down the numbers of migrants approaching the border. Most significantly is the ramping up of the Migrant Protection Protocols (MPP) over the summer — which sees migrants returned to Mexico as they await their hearings. So far more than 53,000 migrants have been returned to Mexico under MPP. That has been coupled with asylum agreements with countries such as Guatemala and El Salvador that sees migrants sent there to claim asylum instead

While those policies have drawn significant criticism from pro-migrant and humanitarian groups, who warn that they could send migrants into dangerous areas and place them at risk of violence, the administration claims it is those policies that have helped slow the crisis and end the pull factors that brought migrants north. They also mean that apprehended migrants can be processed quicker and, in many cases, be sent to Mexico or a Central American country rather than released into the U.S. interior. In a press release, Nicholls also credited those initiatives for alleviating the crisis in Yuma.

The constant flow of illegal immigrants flowing into America from our southern border does not help anyone–it puts those immigrants at risk and puts American citizens at risk. It puts downward pressure on the wages of working Americans. It poses a security risk. The wall is not the entire answer–the policies that the Trump administration is putting in place are also very helpful.

Ignoring The Economic Implications

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Yesterday Breitbart posted an article about some recent comments by Senator Elizabeth Warren about immigration. Senator Warren is either unaware of the impact of unskilled immigrant workers on American workers’ wages or she is simply ignoring the facts.

The article reports her comments:

We need a pathway to citizenship for the people who are here and here to stay. They are our neighbors; they are our brothers and sisters. They are here. We need a path — not just for DREAMers — but also a path for grandmas, and for little kids, and for people who came here to work on farms, and for students who overstayed their visas. We need a path that is fair and achievable. Bring people out of the shadows. It is good for all workers, and we need to get them into our unions. [Emphasis added]

The article notes:

Similarly, Warren is promising to expand legal immigration levels, which are already at historically record-high rates. About 1.2 million mostly low-skilled legal immigrants are admitted every year, not including the hundreds of thousands who arrive on temporary visas to compete against Americans for jobs.

…Research by analyst Steven Camarotta has found that every one percent increase in the immigrant portion of American workers’ occupations reduces their weekly wages by about 0.5 percent. This means the average native-born American worker today has his weekly wages reduced by perhaps 8.5 percent because of current legal immigration levels.

While Warren seeks to increase foreign competition against American workers in the labor market, President Donald Trump has pursued policy initiatives to decrease competition, increasing U.S. wages and giving American workers leverage over businesses.

I would like to see people who came here illegally ‘come out of the shadows.’ They need to have some sort of way that they can work to support themselves. However, I don’t want people who came here illegally to be put ahead of people who are going through the legal process to become citizens. That is simply unfair. I am willing to let people who come here illegally have access to legal employment, but I think people who came here illegally should be put in line to become citizens–at the end of the current line. Breaking the law should not result in special privileges.

Elizabeth Warren And Your Retirement Savings

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Occasionally I post an article that I have no understanding of. This is one of those articles. I am posting it because the source and headline are an indication to me that this is important information.

Yesterday Forbes posted an article detailing how Elizabeth Warren intends to change your retirement funds if she is elected. Keep in mind that she is rapidly becoming the Democrat front-runner. The dust up about Biden and the Ukraine may be the party’s effort to remove Biden (because he is not looking electable) and replace him with Warren.

The article reports:

So, as it turns out, Elizabeth Warren’s Social Security expansion proposal is not the only one of her plans to affect Americans’ retirement well-being. But the proposal of hers which will affect Americans’ retirement savings, in their 401(k)s and their IRAs and the funded status of their pension plans (which might be irrelevant for single-employer traditional pension plans guaranteed by employers but matters considerably for multi-employer plans), is tucked away in a component of her platform with the harmless-looking title, “Empowering Workers Through Accountable Capitalism.”

It’s a proposal that’s a repeat of legislation she proposed in 2018, the “Accountable Capitalism Act,” which, as it happens, I dug into at the time on another platform. The most nebulous part of the proposal is the notion that large corporations would be obliged to pursue the “best interests” of a long list of entities, not merely shareholders but also employees, suppliers, customers, the local communities where the companies locations are based, and others, with the fundamental premise that such a corporation “shall have the purpose of creating a general public benefit.” But however much writers such as Kevin D. Williamson decried this as “the wholesale expropriation of private enterprise in the United States” this all appears to be aspirational and symbolic, without any enforcement mechanism included in the legislation, or administrative agency named to ensure the corporation is indeed “creating a public benefit.”

What is far more concrete is a requirement that such “United States corporations,” that is, those with over $1 billion in revenue, would be obliged to bring onto their boards of directors, representatives elected by employees, at a minimum ratio of 40% of the total board members. The website declares:

“Elizabeth’s plan gives workers a big voice in all corporate decisions, including those about outsourcing, wages, and investment,”

and references Germany as an example of a country with a similar approach.

In an abstract way, of course, directors are bound to represent shareholders; if 40% of board members no longer represent the shareholders, than this is, in effect, taking away from shareholders the ownership of 40% of the company. But this is more than just an abstract impact. How much of a difference would it make?

The article explains that Elizabeth Warren’s plans would reduce the value of the stocks. In the German model, only the wealthy own stocks

The article concludes:

Take a look at the estimates from Pensions & Investments: 80% of stock market equity is held by institutions: that means, mutual funds, pension funds, 401(k)s, and the like. In particular, 37% of stock is owned by retirement accounts; when subtracting out foreign owners of US stock (26% of the total), 50% of US-owned US equities are owned within retirement funds. And it should go without saying that there is no way to “punish” the wealthy by causing the value of only the stock they own to go south while somehow protecting the 401(k) and other retirement accounts for the rest of us. It’s cutting off your nose to spite your face and, as someone with a 401(k) account, I’d really prefer not to do this.

As I said, I don’t fully understand what this is all about, but I do know that as many Americans lose faith in our Social Security system, they are creating 401(k) accounts and other holdings in preparation for retirement. I have a feeling that if Ms. Warren is elected, none of us will be able to retire.

Why Do We Need A Secure Border?

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There are a number of different reasons we need to secure out borders–north, south, east, and west.

The researchers at The Heritage Foundation list a few basic facts about our current border situtation:

  • Over the past two years, roughly 235,000 illegal immigrants were arrested—including roughly 100,000 for assault, 30,000 for sex crimes, and 4,000 for homicides.
  • 300 Americans die of heroin overdoses a week, and 90 percent of that heroin is smuggled through our southern border.
  • Loopholes in our immigration law coupled with our porous border encourages parents to send their children on a dangerous journey to the U.S., often at the hands of threatening human traffickers. 68 percent of migrants are victims of violence along the journey. One in three migrant women are sexually assaulted on the dangerous trek to the border.
  • Securing the border is the first step. We also need rational reforms such as a skills-based migration system and an end to chain migration.

So what is the solution? Below are some of the items President Trump has asked Congress to fund:

  • $5.7 billion for construction of approximately 234 miles of steel barrier along the Southern Border
  • $675 million to deter and detect dangerous materials crossing our borders like narcotics and weapons
  • $563 million that would provide for 75 additional immigration judges and support staff who are necessary to reduce the backlog of immigration cases that are sitting right now at the border
  • $211 million for 750 additional border patrol agents, who DHS officials have deemed paramount to this fight
  • $571 million for additional ICE personnel
  • $4.2 billion for detention center materials and personnel

As a first step to combat this crisis, Congress must pass a spending bill that provides the funding that the President has requested. In addition to obtaining increased border security funding today, we must continue to push for real reforms to our legal immigration system. Necessary reforms include ending chain migration, adopting a skills-based immigration system, and closing loopholes in the asylum claim process.

Securing the border should not be a political issue. It is an issue that impacts all Americans–lower wages for low-skilled workers, drugs smuggled in that have killed countless Americans, increased crime, and an unsustainable burden on those government programs designed to create a safety net for Americans in need. It’s time to seal the border and take care of the needs of Americans among us who are homeless or living in poverty,

Socialism In The Nordic Countries

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On Monday The Washington Post posted an article about how the economies of the Nordic countries work.

These are some of the things noted:

Undoubtedly, the Nordic nations, with their high incomes, low inequality, free politics and strong rule of law, represent success stories. What this has to do with socialism, though, is another question.

And the answer, according to a highly clarifying new report from analysts at JPMorgan Chase, is “not much.”

Drawing on data from the World Bank, the Organization of Economic Cooperation and Development and other reputable sources, the report shows that five nations — Sweden, Denmark, Finland, Norway and the Netherlands — protect property rights somewhat more aggressively than the United States, on average; exercise less control over private enterprise; permit greater concentration in the banking sector; and distribute a smaller share of their total income to workers.

“Copy the Nordic model if you like, but understand that it entails a lot of capitalism and pro-business policies, a lot of taxation on middle class spending and wages, minimal reliance on corporate taxation and plenty of co-pays and deductibles in its healthcare system,” the report notes.

This really does not sound like the utopia that Bernie Sanders is pushing–particularly the co-pays and deductions.

The article continues:

Sanders and other left-leaning Democrats promise to pay for tuition-free college and Medicare-for-all with higher taxes on the top 1 percent of earners. Most Nordic countries, by contrast, have zero estate tax. They fund generous programs with the help of value-added taxes that heavily affect middle-class consumers.

In Sweden, for example, consumption, social security and payroll taxes total 27 percent of gross domestic product, as compared with 10.6 percent in the United States, according to the JPMorgan Chase report. The Nordic countries tried direct wealth taxes such as the one that figures prominently in the plans of Sen. Elizabeth Warren (D-Mass.); all but Norway abandoned them because of widespread implementation problems.

The Nordic countries’ use of co-pays and deductibles in health care may be especially eye-opening to anyone considering Sanders’s Medicare-for-all plan, which the presidential candidate pitches as an effort to bring the United States into line with European standards.

His plan offers an all-encompassing, government-funded zero-co-pay, zero-deductible suite of benefits, from dental checkups to major surgery — which no Nordic nation provides.

The Netherlands’ health insurance system centers on an Obamacare-like mandate to buy a private plan; individuals face an annual deductible of $465 (as of 2016), according to the Boston-based Commonwealth Fund.

Dutch consumers’ out-of-pocket spending on health care represented 11 percent of total health expenditures in 2016, according to the Peterson-Kaiser Health System Tracker — the same percentage as in the United States. In Sweden, meanwhile, out-of-pocket spending accounted for 15 percent of health expenditures. Who knew?

The article concludes by noting that the burden for these programs falls on the middle class–the rich will always have tax accountants to limit the amount of taxes they pay–the middle class has no such luxury. Bernie Sanders’ proposals will essentially rob the poor to pay the rich. I really don’t think that is what most Americans have in mind.

The Trump Economy Is Doing Very Well

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CNBC posted an article yesterday about the economy under President Trump.

The article reports:

The total number of workers hired rose to a new high in April, according to Labor Department data released Monday. But despite this, the amount of available jobs still vastly outnumbers unemployed workers.

Hirings increased to 5.9 million for the month, a gain of 240,000 from March, the Job Openings and Labor Turnover Survey (JOLTS) indicated. The hiring rate rose to 3.9%, an increase of one-tenth of a percentage point. The total hirings was the most recorded in the data series’ history going back to December 2000.

On the openings front, the gap between vacancies and available workers continued to be huge.

The article explains:

“In sum, the labor market remains strong and poised for continued solid job growth,” Ward McCarthy, chief financial U.S. economist at Jefferies, said in a note. “Despite the 21.4 [million] private sector jobs that have been generated to-date this cycle, the private business sector continues to generate a very strong demand for labor that is evidenced by the very large number of job openings that business wants to fill. The biggest threat to job growth is available supply, not demand for labor.”

Separations increased by 70,000 to 5.58 million, a rate of 3.7%, which was unchanged from March.

The JOLTS data lags other employment indicators by a month but is nonetheless watched closely by the White House and the Federal Reserve as an indicator of labor market slack. A large number of available workers compared with job openings would indicate a tight market in which wages should be rising.

The current economy has created wage increases and job opportunities for the middle class, which languished under President Obama. Unemployment among minorities is lower than it has ever been and wages are increasing for minorities. This is a success story the media is working very hard to ignore.

Bouncing Back

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Yesterday CNBC reported the following:

After a disappointing February in which just 20,000 jobs were added to the economy, the job market is back on track, adding 196,000 jobs in March.

That’s according to the latest report from the Bureau of Labor Statics, which also showed unemployment remaining at 3.8% and wages increasing by 3.2% from a year ago.

“I think the March report will reassure investors after the weak report in February brought about concerns of a possible slowing economy,” Glassdoor’s chief economist Andrew Chamberlain tells CNBC Make It. “The report is strong across the board and it’s hard to find any weaknesses. It shows that even after 102 months of positive job gains, the economy still has room to grow.”

At some point the economy will slow down. We have not yet dealt with the debt that runaway spending has created in recent years, and we have not yet fully revised trade deals that were detrimental to our country. However, March was a good month for Americans looking for work and Americans in the workforce.

The article reminds us that there may be a recession in the future, but not in the near future:

Though February’s numbers may have been alarming to some, Hamrick, Gimbel and Chamberlain agree that there’s no need to worry about a recession just yet.

“There’s no sign that one is imminent,” says Hamrick, though he adds, “we know that one is inevitable at some point.”

Gimbel adds that, “In 2018, we created, on average, about 200,000 jobs per month. That is astonishing at this point in the recovery and highly unlikely that the economy is going to keep that up moving forward. So if we drop down to creating 180,000 jobs a month, or 150,000 or even 100,000, that is OK.”

Having a businessman as President has been a good thing for the majority of Americans.

The Numbers On The Economy

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On March 13th, CNBC posted at article about the impact of President Trump’s economic policies on wages.

The article reports:

The recent jump in paychecks has come with an unusual characteristic, as workers at the lower end of the pay scale are getting the greater benefit.

Average hourly earnings rose 3.4 percent in February from the same period a year ago, according to a Bureau of Labor Statistics report last week. That’s the biggest gain since April 2009 and seventh month in a row that compensation has been 3 percent or better.

What has set this rise apart is that it’s the first time during an economic recovery that began in mid-2009 that the bottom half of earners are benefiting more than the top half — in fact, about twice as much, according to calculations by Goldman Sachs. The trend began in 2018 and has continued into this year, and could be signaling a stronger economy than many experts think.

The article concludes:

“Taken together, our findings suggest a relatively optimistic consumption outlook given solid income growth across income levels,” Choi wrote. “Even if employment growth slows as labor supply constraints start to bind, this should be partially offset by the continued firming of wages, particularly among lower income workers with higher marginal propensities to consume.”

One danger is that higher wages could start to eat into corporate profits, which have doubled since the financial crisis.

However, it could take years for that to be a significant factor, according to an analysis by AB Bernstein.

“While pressure on capital share is likely to remain, that doesn’t mean that profits are going to fall – in fact profits can lose share at a rate up to about 100bps per year [1 percentage point] and still expect to have positive profit growth,” Philipp Carlsson-Szlezak, chief U.S. economist at AB Bernstein, said in a note. “In other words, overall expansion of net value add can be strong enough to protect profit growth even in the face of a rising labor share.”

Carlsson-Szlezak said wage pressures more likely would be felt at a sector level in industries where labor takes a bigger share of output. For example, information technology and extraction likely would feel the least effects, while hospitality and retail would be hit hardest.

The piece of the puzzle that is missing to ensure a continuing strong economy is getting the federal deficit under control. Unfortunately Congress has been unwilling to do this. If it is not done fairly quickly, all of the positive economic growth we have seen under President Trump will evaporate.

Facts Are Such Inconvenient Things

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The biggest advantage the Republicans will have in 2020 is a strong economy. Because the Democrats know this, they are trying very hard to downplay the economic recovery that is currently taking place. They have invented some interesting facts in their attempt to do this. However, the alternative media has learned to fact check these attempts to downplay President Trump’s economic success.

Townhall posted an article today that includes some recent fact checking.

The article reports on some recent statement by Kamala Harris:

First, I’m not sure many economists or Republicans cite the stock market as the top indicator of economic health, despite her initial straw man claim. There are many other metrics that are more indicative and more helpful to building that argument, which we’ll mention in a moment.  But it’s also worth pointing out that a robust stock market is not merely good news for people who own stocks, as Harris sarcastically says.  Plenty of workers’ benefit and retirement funds, including those of many public sector employees, are tied into the performance of the stock market — so it’s not just investors who benefit when markets are humming along, and it’s not just investors who feel pain when markets sustain hits. 

Second, in her attempt to downplay the impressive, stable and low US unemployment rate, Harris recycles a claim for which AOC was slapped down by fact-checkers a few months ago.  Even left-leaning Politifact assigned her a “pants on fire” rating.  Harris’ spin is less explicitly clumsy and wrong than AOC’s, as she didn’t specifically state that the low rate is directly attributable to people working more than one job, which makes absolutely no sense — but she does use this argument to undercut the (compelling) argument that the economy is in good shape because so many Americans are employed.  While it’s certainly true that a substantial number of people are working multiple jobs in order to make ends meet, it’s not accurate to pretend that this phenomenon is sufficiently widespread as to justify Harris’ talking point.

The article further reports:

The February jobs report found that just five percent of the employed population is working more than one job, down from 5.2 percent one year ago.  The experiences of the people who constitute that five percent matter, of course, but they are not evidence of a larger trend — and certainly not a trend that represents a real basis to shrug off the historically-low unemployment rate.  The jobs report that came out on Friday was a major ‘miss’ on a key number, with the US economy adding only 20,000 jobs last month; economists were expecting 180,000.  That’s a potentially concerning data point, underscoring the folly of simply assuming that the current prosperity streak will continue unabated.  But there were positive statistics, too.  The previous two months’ job creation data was revised upward by 12,000, and the overall unemployment rate fell to 3.8 percent.  That marks 12 consecutive months, a full year, with the U3 figure at or below four percent, which is unambiguously good.

The article concludes:

Sustainability is a fair worry for the White House, but as of this moment, the most useful measuring sticks of the US economy are unemployment (3.8 percent), GDP growth (3.1 percent Q4 to Q4), and wage growth (3.4 percent).  All three are impressive.  Harris’ snarky point, therefore, is weak.  

As wages and jobs increase, voters will have to decide whether to believe what they are experiencing or what they are being told.

The Power Of The Media Illustrated

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This is the current polling from RealClearPolitics:

This is some recent economic news reported by The Washington Times on January 9:

Given the dazzling December economic data, it’s no wonder the press gave it short shrift. According to the U.S. Bureau of Labor Statistics, the economy added a whopping 312,000 jobs, far more than the expected 176,000. After revisions, job gains have averaged an impressive 254,000 per month over the past three months. Job growth in 2018 (an average of 220,000 per month) passed that of both 2016 (195,000) and 2017 (182,000). Payrolls increased by 2.6 million in 2018, the highest since 2015.

The sunny jobs picture encouraged 419,000 new workers to enter the workforce and sent the labor force participation rate up to 63.1 percent. Unemployment rates among blacks, Latinos and women are at or near historic lows.

Job growth has also meant significant wage growth. Wages are up a stunning 3.2 percent from last year and .4 percent from November. December was the third straight month that the yearlong growth in nominal average hourly earnings was above 3 percent in nearly a decade; the last time we saw that trend was April 2009. Wages are also being given an assist by inflation being kept in check.

The article at The Washington Times concludes:

His (President Trump’s) astounding economic track record is their worst nightmare. It puts the lie to the nonsense Mr. Obama, the Democrats and the media have been shoveling for years: That anemic economic growth, high unemployment, the collapse of manufacturing and grotesque trade imbalances were the “new normal.”

It also pointedly demonstrates that the statist vision — radical wealth redistribution, socialized medicine, green energy chimeras, social justice enforcement, limits on free speech, private property and gun ownership, and the rule of the leftist mob — creates only tyranny, poverty, injustice and servitude. (Note the deflection: These are things the left claims to want to eradicate.)

Mr. Trump and his economic thunderbolt are exposing the left and its policies as irredeemably bankrupt, economically and morally. And that is perhaps the biggest reason why they must try to destroy him.

A lot of this economic news has not been reported. However, people do notice when there are more jobs available and there is more money in their paycheck. President Trump’s approval numbers are finally in positive numbers. The economy is booming. What would be the basis for most Americans believing America is headed in the wrong direction? Might it be the constant negative reporting from the media? Can you imaging what President Trump’s approval rating would be if the media were actually balanced? Just remember–the people vote. The media represents only a small percentage of votes.

The Quality Of Life Index

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Who knew that there was a Quality of Life Index? I certainly didn’t, but there is one, and Investor’s Business Daily posted an editorial about it on February 8th.

The editorial reports:

Unemployment at historic lows? Wages climbing at a fast pace? Who knew? The news media, fixated on Trump scandals, hasn’t exactly been broadcasting that good news. And media fact checkers busied themselves after the speech nitpicking Trump’s economic boasts.

But the upbeat assessment clearly resonated with the public, most of whom gave Trump’s speech top marks. Turns out they have been firsthand witnesses to the strength of the economy over the past two years.

How do we know? Look at the IBD/TIPP Quality of Life Index, which asks the public whether they think their quality of life will be better, worse or the same over the next six months.

In the 17 years IBD has been compiling this index, it’s averaged 56.2. Under President Obama, it averaged just 53.7. Even if you only include Obama’s second term, it was well below the 17-year average.

Under Trump? The Quality of Life Index has averaged 59.3. That’s a 10% increase over the average during the Obama years.

To be sure, there’s a partisan element to this. Republicans tend to rate their quality of life higher than Democrats when there’s a Republican in the White House, and vice versa. But look at independents: Their quality of life averaged 52 under Obama. It’s averaging 58.8 under Trump — a 13% bump.

What’ more, the gains are across the board. Households making from $35,000 to $50,000, for example, saw an 8% gain in this index when you compare Trump to Obama. Those making from $50,000 to $75,000, an 11% gain.

This is what winning looks like for the Middle Class.

Let’s Talk About The Rebuttal

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It’s not easy to give the rebuttal speech to the State of the Union. Chances are that you don’t have a copy of what you are rebutting. I guess you can make changes at the last minute, but the majority of your speech has to be written before you have a clue what it is supposed to be about. It’s not a great place to be. That said, however, I would like to take issue with some of the comments made by Stacey Abrams last night. Much of what she said was only half of the truth, and some of what she said was simply not true.

Time posted a transcript of her speech. I would like to talk about sections of that speech.

Ms. Abrams stated:

Just a few weeks ago, I joined volunteers to distribute meals to furloughed federal workers. They waited in line for a box of food and a sliver of hope since they hadn’t received a paycheck in weeks. Making their livelihoods a pawn for political games is a disgrace. The shutdown was a stunt engineered by the President of the United States, one that defied every tenet of fairness and abandoned not just our people – but our values.

It was nice of her to give out meals, but she failed to mention that all of those furloughed workers received every penny of their back pay. The simply got an extra paid vacation.

She further stated:

In Georgia and around the country, people are striving for a middle class where a salary truly equals economic security. But instead, families’ hopes are being crushed by Republican leadership that ignores real life or just doesn’t understand it. Under the current administration, far too many hard-working Americans are falling behind, living paycheck to paycheck, most without labor unions to protect them from even worse harm.

The Republican tax bill rigged the system against working people. Rather than bringing back jobs, plants are closing, layoffs are looming and wages struggle to keep pace with the actual cost of living.

We owe more to the millions of everyday folks who keep our economy running: like truck drivers forced to buy their own rigs, farmers caught in a trade war, small business owners in search of capital, and domestic workers serving without labor protections. Women and men who could thrive if only they had the support and freedom to do so.

Hasn’t she read the economic numbers? On December 20th, The National Review reported:

A recent Wall Street Journal economic analysis of current jobs reports found that worker wages were starting to rise above inflation and that the biggest percentage gains were showing up in the paychecks of the lowest income workers. In other words, income inequality with respect to take home pay was shrinking.

…Remarkable, too, about this chart is that every group that was least likely to vote for Trump has seen an abnormally large gain in jobs and wages. Our supposed racist president has delivered outsized economic gains for blacks and Hispanics — with both groups now experiencing the lowest unemployment rates in at least a half century. So much for Trump’s policies benefiting only white America. The rich are clearly not “the big winners” from Trump’s economic policies.

Contrast that with the economy when Democrats were in charge:

The poor and unskilled that Mr. Obama was supposed to lift out of poverty saw their incomes fall by 7.4 percent for those with less than a high school diploma and 8.2 percent for those with only a high school diploma. In dollar terms, between the time the Obama recovery began in June 2009 and until June 2014, median black household income fell by nearly $3,000, Hispanic households lost nearly $2,500, and female-headed households lost roughly $1,500. In 2015 and 2016, income gains were thankfully reversed for these demographic groups, but many still lost ground over eight years. The income gains under Mr. Obama were mostly concentrated in those Americans in the top 20 percent of income. This is why the income gap between rich and poor rose nearly every year under Obama.

Ms. Abrams, if you truly cared about the success of the middle and lower classes, you would support the policies of President Trump. President Trump’s economic policies have worked. President Obama’s economic policies failed miserably. I would also like to note that illegal immigration depresses the wages of unskilled workers. The Democrat party sold out the working man a long time ago.

 

When Congress Fails To Do Its Job, The Executive Branch Has To Do It

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The Washington Times posted an article today about the Farm Bill that was recently passed. The House of Representatives added a more stringent work requirement to the Food Stamps Program, but the Senate eliminated the requirement. Thus the Farm Bill as it currently stands puts a 20-hour-per-week work requirement only on people between the ages of 18 and 49 who receive food stamps.

The article reports:

President Trump moved Thursday to tighten work requirements for people who receive food stamps, after Congress failed to include the proposal in a $400 billion farm bill that’s headed to the president’s desk.

The Agriculture Department said it is proposing a rule on Mr. Trump’s orders that would move “more able-bodied recipients” of food stamps back into working at least 20 hours per week.

“Long-term reliance on government assistance has never been part of the American dream,” said Agriculture Secretary Sonny Perdue. “As we make benefits available to those who truly need them, we must also encourage participants to take proactive steps toward self-sufficiency. Moving people to work is common-sense policy, particularly at a time when the unemployment rate is at a generational low.”

…Currently, able-bodied adults ages 18-49 without children are required to work 20 hours a week to keep their food-stamp benefits. The House measure would have raised the age of recipients subject to work requirements from 49 to 59 and required parents with children older than 6 to work or participate in job training.

The Labor Force Participation Rate currently stands at 52.9 percent. The Unemployment Rate currently stands at 3.7 percent. Wages at all levels have risen under President Trump. Inflation for 2018 is slightly over 2 percent. There is no reason anyone collecting food stamps cannot find a place to work for 20 hours a week or enter a job-training program that will help them find a job that pays enough for them to get off of food stamps. The Agriculture Department is doing the right thing in looking into strengthening the work requirements to collect food stamps.

I Don’t Like Federal Regulations, But…

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America ideally is a land of equal opportunity. To some extent that is true, but there are some people who abuse their position and take advantage of the generosity of the American people. A story posted in The Boston Herald yesterday illustrates how a charity can be used for personal gain–I am not talking about the Clinton Foundation, but the Clinton Foundation might have gotten a few ideas from what I am about to share.

The article reports:

Do you know how much money Joe Kennedy, the former congressman, is now making at his “nonprofit”?

According to the most recent documents, his “public charity” has filed with the state attorney general, in 2016 Kennedy pocketed a total of $824,929 — $109,336 from Citizens Energy and $715,703 from “related organizations.”

His second wife, Beth, grabbed another $316,573 — $55,222 from Citizens Energy and $261,351 from those “related organizations.”

…Kerry Kennedy, got back into the news recently.

… like her older brother, Kerry, too, is fabulously well-to-do thanks to a family “nonprofit.”

The Robert F. Kennedy Human Rights foundation pays her $352,298 a year, including a $70,000 “bonus.”

…Reading the stories about Kerry’s big payday reminded me of Joe K. And it’s not only him and the second missus who are getting rich off the Citizens Energy gig —  I mean, nonprofit.

According to the public filing, CE’s CEO, one Peter Smith, made $627,983 in 2016. The chief financial officer, Ernest Panos, pocketed $447,260. Joe’s flack in his congressional office —  Brian O’Connor —  now makes $240,962 a year at Citizens Energy.

Charity Navigator, a somewhat reliable source for rating charities, does not rate Citizens Energy Corp because Charity Navigator only rates organizations that are classified as 501(c)(3) and able to accept tax-deductible donations. Citizens Energy Corp is classified as a 501(c)(4). However, just as a point of reference, Charity Navigator does rate the Clinton Foundation as 92.40 out of 100. I find that somewhat questionable.

It seems to me that there are people making large amounts of money due to the generosity of the American people. The government should not be in the business of determining the wages of anyone, but it seems to me that those running non-profit organizations should be paid salaries more in line with the average American. Helping people in need should not be a million-dollar-a-year job. I suspect the only way to deal with this problem is for the American people to pay more attention to the charities they support. More transparency from charities would also be helpful. Americans are a very generous people. It is unfortunate that there are those among us who are taking advantage of that generosity.