The latest from Prager University:
The Truth About the Wisconsin Jobs Picture
Understanding Redistribution and Class Warfare in One Chart
New Prager University Video: Do Higher Taxes Raise More Money?
In Prager University’s latest video, UCLA economics professor debunks one of the Left’s favorite economic fallacies.
Around the Web
Good Job News for Wisconsin
Well, what do you know:
Using seasonally adjusted data, the 12,900 private-sector jobs created in June marks the largest one-month gain in Wisconsin since September 2003. The state’s net new job gain for June is 9,500 jobs, more than half of the nation’s net gain of 18,000 jobs for the same month.
Somehow, I don’t think we can expect any gratitude – or apologies – to Scott Walker or state Republicans from those who’ve been heralding Wisconsin’s complete capitulation to the rich.
So, How’s the Economy Doing?
So, after considering civilian population growth, employment is a painful 4% worse. Also, after considering population growth, GDP is only 2% better. If you give each factor equal weight (why wouldn’t you?), the economy is 2% worse almost 2-1/2 years after Barack Obama’s term as president began. And this is all before considering the frightening and potentially economy-crippling debt overhang and unprecedented deficits as far as the eye can see that Obama’s stimulus and other programs largely created, which would obviously move the meter even further in the “worse” direction.
New on NewsReal – The Obama Presidency in Review, and a Preview of Hope and Change 2012
My latest NewsRealBlog post:
To nobody’s surprise, President Barack Obama has formally announced that he will seek reelection with a video that’s clearly geared toward motivating fans rather than attracting newcomers, as it’s decidedly light on reasons why the incumbent Democrat should be given four more years in the White House.
Fortunately, Newsweek White House correspondent Daniel Stone gets a bit more specific on the Daily Beast, laying out the case he expects Team Obama to make. Let’s take a look at his points, as well as the flip side.
Last week’s economic report showed an unemployment rate continuing to fall—incredibly slowly. It’s not good enough, but it still is progress, Obama will say. Defending the actions the administration took—especially the $987 billion Recovery Act—will fall to Joe “the stimulus sheriff” Biden, who will be fortified by a team of crack researchers preparing colorful graphs showing lines with positive slopes. Obama the president had trouble arguing the hypothetical that “we’d be worse off if I did nothing,” but Obama the candidate might have better luck. Any Republican will publicly doubt him, but would only be able to offer the same hypothetical that he or she would have done any better.
On the other hand, Obama’s going to have to explain the fact that he explicitly claimed his stimulus plan was needed because it would prevent unemployment rising to 8%, we passed it…and unemployment rose past 8% anyway. He’ll have to answer for record job losses. And while the latest economic news is encouraging, it’s tentative—labor force participation is still low, and Obama is unlikely to support one policy that could accelerate recovery further still:
The United States has stood alone while the rest of the developed world has moved forward with a pro-growth strategy of slashing corporate tax rates. The Organization of Economic Cooperation and Development (OECD) reports that its 30-nation membership cut corporate tax rates an average of 7.1 percentage points in the past decade, and the United States will have a federal corporate tax rate one-third higher than the OECD average of 25.7 percent. When Japan’s corporate tax rate is lowered, the United States is one of three nations that will not have reduced the rate.
Corporate taxes are considered the most inefficient of all tax systems. They increase the cost of capital and slow economic growth. Nearly every economist believes that that tax burden falls on individuals, namely the workers and shareholders of the company. A more efficient corporate tax system would increase economic growth and boost the labor market.
New on NewsReal – Hannity Calls Out "Partisan Hack" Weiner for Bush-Bashing Defense of Obamanomics
My latest NewsRealBlog post:
You want a surefire way to cause a cable news stir? Just pit old foes like Sean Hannity and Rep. Anthony Weiner against each other, throw in Rep. Michele Bachmann for good measure, and voila! The battle gets picked up by everyone from Mediaite and The Blaze to News Hounds and the Huffington Post.
Last night’s topic of debate was the United States’ current financial mess:
HANNITY: All right, Congressman, here’s why we are in this position. This is just a fact. You had both Houses of Congress last year — run by the Democrats. You had White House. You guys didn’t pass a budget. It is your responsibility. You should have passed the budget. You didn’t pass a budget. Now we find ourselves at this impasse.
All the Democrats are offering — it’s $4.5 billion in cuts. We have a $1.65 trillion deficit this year, after nearly three trillion of Obama debt in his first two years. And we also have, you know, $3.7 trillion budget.
You can’t find more than $4.5 billion to cut?
WEINER: Well, frankly, let’s get the history right. The Bush administration drove the economy into a cliff and we’ve been digging out ever since.
HANNITY: Blah, blah, blah.
WEINER: Well, let me answer the question. It’s true we also did add a trillion dollars of additional debt and deficit by giving tax cuts to millionaires and billionaires — something many of us opposed. But the fact is, if you look at the president’s budget –
Once again, Bush Derangement Syndrome rears its ugly head. We’re in Barack Obama’s third year as president; it’s remarkable that Democrats still don’t feel embarrassed to lay the blame for all of America’s woes, including the Obama job losses, at the feet of his predecessor. If you still think Obama has little to do with all the red ink we’re drowning in, check out this post at Maggie’s Notebook, which highlights a couple unnerving analyses of Obama’s fiscal policies. They point out that Obama’s gotten credit for the repayment of TARP loans that should go to Bush, and that “the latest Obama budget is his third straight budget calling for over a $1 trillion in spending – which no other president has ever done, and in fact no president has even asked for half that. And get this: Anderson says Obama’s three year spending binge is 37% higher than G.W.’s ENTIRE 8-YEAR PRESIDENCY.” (I’ve tackled Obama’s drunken-sailor ways before here.)
New at NewsReal – Personal Income As a "National Resource": A Look at Michael Moore’s Brave New Collectivist World
My latest NewsRealBlog post:
Sure, we’re all a little spooked about the huge debt our government is accumulating, but everybody can relax now; our favorite anti-American, far-left propagandist, Michael Moore, has the solution. Admittedly, it’ll take some minor changes in the way we think about wealth, which some of you might like, but you’ll get used to it—after all, you’re not greedy, are you?
Moore recently had this to say about the rich:
“They’re sitting on the money, they’re using it for their own — they’re putting it someplace else with no interest in helping you with your life, with that money. We’ve allowed them to take that. That’s not theirs, that’s a national resource, that’s ours. We all have this — we all benefit from this or we all suffer as a result of not having it,” Michael Moore told Laura Flanders of GRITtv.
“I think we need to go back to taxing these people at the proper rates. They need to — we need to see these jobs as something we some, that we collectively own as Americans and you can’t just steal our jobs and take them someplace else,” Moore concluded.
Much has been made about how Moore himself won’t return his own generous share of this “national resource,” but even if he were more magnanimous, his argument wouldn’t be any less outrageous. For one thing, it ignores the fact that the rich already pay a disproportionately high share of the tax burden individually, and US corporate taxes are among the highest in the world, too. For another, we’ve run this experiment several times in American history, and the verdict is in: if you want to raise government revenue and increase prosperity for all Americans, then the direction you want taxes to go is down, not up. As a businessman, you’d think Moore would understand that when businessmen pursue their own interests, it actually does tend to have the effect of “helping you with your life, with that money,” by creating new jobs for the purpose of creating goods and service that people want.