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Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts

Tuesday, June 22, 2021

MIT Data Scientist: Lockdowns Not Correlated With Fewer Deaths (But Are Correlated With More Unemployment)

Dozens of studies show that lockdowns were an ineffective pandemic response. The list just got longer.

In May, Youyang Gu, an MIT-trained engineer and data scientist, released data showing that government restrictions were not correlated with lower COVID mortality in America. Government restrictions were correlated with higher unemployment, however.

“In the US, there is no correlation between Covid deaths & changes in unemployment rates. However, blue states are much more likely to have higher increases in unemployment,” wrote Gu, the creator of covid19-projections.com, a pandemic modeling site. “More restrictions in a state is NOT correlated with fewer COVID-19 deaths. However, more restrictions IS correlated with higher unemployment.”

The COVID-19 pandemic is finally winding down and more and more people are beginning to acknowledge some hard truths about the failures of the collective response to the virus.

George Orwell famously observed that during deceitful times telling the truth is a revolutionary act, so the fact that so many people are finally acknowledging hard truths appears to be a sign we are emerging from deceitful times.

For some, such as Dr. Anthony Fauci, these truths are bitter medicine. As Hannah Cox recently observed, Fauci has been on the wrong side of numerous pandemic confrontations with Sen. Rand Paul—and has found himself on the losing end each time.

Yet facts are stubborn things. And 14 months after the pandemic’s arrival, we have an abundance of data that shows stay-at-home orders backfired and lockdowns were terribly ineffective at slowing the spread of the virus.

The harms of lockdowns, however, are undeniable: economic collapse, millions of jobs and businesses lost, rampant spending, surging debt and poverty, an explosion of drug overdoses, poor mental health, and a collapse of health screenings (including cancer) that will result in hundreds of thousands of excess deaths in the coming years—if not millions.

It will not be easy to acknowledge this failure. As The New York Times noted in 2017, humans struggle mightily to admit we were wrong.

“Mistakes can be hard to digest, so sometimes we double down rather than face them. Our confirmation bias kicks in, causing us to seek out evidence to prove what we already believe,” wrote Kristin Wong. “The car you cut off has a small dent in its bumper, which obviously means that it is the other driver’s fault.”

There’s a name for this psychological phenomenon: cognitive dissonance.

“Cognitive dissonance is what we feel when the self-concept — I’m smart, I’m kind, I’m convinced this belief is true — is threatened by evidence that we did something that wasn’t smart, that we did something that hurt another person, that the belief isn’t true,” Carol Tavris, a co-author of the book Mistakes Were Made (But Not by Me), told the Times.

Tavris added that cognitive dissonance poses a threat to our sense of self.

“To reduce dissonance, we have to modify the self-concept or accept the evidence,” Tavris said. “Guess which route people prefer?”

Coming to grips with the failure of lockdowns is important for several reasons.

For starters, the pandemic of 2020 will not be the last pandemic Americans face. If we’re to avoid the painful experience in the future, we’ll need to better understand how the unorthodox pandemic response came about and determine which public health policies worked and which did not.

But there’s an even larger lesson that can be learned. In his Nobel Prize acceptance speech, F.A. Hayek warned of the danger of mankind’s inability to recognize the limits of its knowledge and power.

“There is danger in the exuberant feeling of ever growing power which the advance of the physical sciences has engendered and which tempts man to try, “dizzy with success”, to use a characteristic phrase of early communism, to subject not only our natural but also our human environment to the control of a human will,” Hayek said.

Dizzy with success in this age of wonders, Hayek feared humans would be bewitched by their accomplishments and believe they could achieve anything if they could only control society—”a striving which makes him not only a tyrant over his fellows, but which may well make him the destroyer of a civilization which no brain has designed but which has grown from the free efforts of millions of individuals.”

We witnessed firsthand in 2020 the fruit borne from this effort to control society to save it. There’s an important lesson in humility there, if humans are wise enough to see it.

Jon Miltimore
Jon Miltimore

Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune.

Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times. 

This article was originally published on FEE.org. Read the original article.

MIT Data Scientist: Lockdowns Not Correlated With Fewer Deaths (But Are Correlated With More Unemployment)

Tuesday, May 18, 2021

Biden Says ‘Generous’ Unemployment Benefits Not Responsible for Biggest Jobs Report Miss in History. He’s Wrong

Following a dismal April jobs report, President Joe Biden took to the podium Monday to defend his administration’s economic policies.

“There’s been a lot of discussion since Friday’s report that people are being paid to stay home rather than go to work," Biden said. “We don’t see much evidence of that.”

A US employment report released Friday showed the economy added just 266,000 jobs in April, down substantially from the 770,000 jobs added in March and about one quarter of what forecasters had predicted.

“Economists were hoping for a figure roughly 1 million jobs larger,” Axios reported, “making this the biggest miss, relative to expectations, in the history of the payrolls report.”

Bloomberg writer Mohamed A. El-Erian, an economic adviser at Allianz SE, said the report constituted “the biggest data miss on record.”

The jobs miss comes two months after Biden signed into law a $1.9 trillion COVID-19 relief package that included a six-month expansion of federal unemployment benefits, which pay unemployed workers an additional $300 per week on top of their state unemployment benefits.

These increased benefits mean in many cases people make less money returning to work, which economists warned prior to passage of the legislation would create a disincentive for workers to return to the labor force.

“Expanding unemployment benefits during a recession has a predictable result: slower employment recovery,” Texas Tech economist Alex Salter told FEE in February. “We should be helping people get back to work—not making it more financially attractive to stay home.”

This is precisely what the Biden administration did, however. The results have been a weak economic recovery and a record labor shortage. For some, like Larry and Roxane Maggio, who ran a deli in New Jersey for a decade, the labor shortage has proven fatal to their business.

“We just can’t find anyone to work,” the Maggios recently told The Philadelphia Inquirer, as they prepared their final catering orders at Ludovico’s.

The Maggios’s experience is not unique. The weak jobs report, the New York Times notes, is an indication the labor shortage business owners have been describing is quite real.

“These numbers are consistent with the story many business leaders are telling, of severe labor shortages — that demand has surged back but employers cannot find enough workers to fulfill it,” writes senior economics correspondent Neil Irwin.

Biden, however, is reluctant to admit that the dismal April jobs report stems from the government’s “generous unemployment benefits.”

“Americans want to work,” Biden told reporters. “As my dad used to say, a job is about a lot more than a paycheck. It’s about your dignity.”

Biden’s father was not wrong that employment is about much more than a paycheck. I’ve pointed this out myself.

My first job, a groundskeeper on a golf course, paid me $5 an hour—which doesn't sound like much. But the job offered me much more than compensation. It taught me how to get up really early and punch a time clock on time, and how to drive a stick-shift and operate light machinery. I received a crash course in landscaping, learned how to take orders, and execute directions. I even managed to improve my slice (just a little) while working there that summer.

It was one of the most rewarding and important jobs of my life, but it would not have happened if someone had said I could make more money by not showing up at 5:30 a.m. each day and working under the hot sun for eight hours. It wasn’t that I was lazy. It’s just that you can’t expect people to go to work for less money than they’d be getting to stay at home. Incentives matter.

Indeed one of the first lessons in economics is that if you tax something, you get less of it. If you subsidize something, you get more of it. This is why economists warn lawmakers must be especially careful about what types of behavior they subsidize.

"You cannot subsidize irresponsibility and expect people to become more responsible," the economist Thomas Sowell has observed.

It’s not complicated stuff. This is why it was obvious to economists from Salter to Lawrence Summers, who served in the Clinton and Obama administrations, predicted that Biden’s juiced unemployment benefits would have negative consequences.

They were right, and those consequences are becoming visible now.

The best thing the Biden administration could do is call a special session and terminate the perverse incentives that are causing people to choose unemployment over work. This is unlikely to happen, however, because it violates the first rule in politics: never admit a mistake.


Fortunately, thanks to federalism, some states are taking matters into their own hands. South Carolina, Arkansas, and Montana, recently fully opted out of the federal unemployment benefit program.

"Continuing these programs until the planned expiration date of September 4, 2021, is not necessary and actually interferes with the ability of employers to fill over 40,000 job vacancies in Arkansas," Gov. Asa Hutchinson wrote in a letter.

Turning away federal money is not an easy thing to do, but it is the proper course.

Joe Biden’s father was right. Work isn’t just about a paycheck; it offers dignity and more, which is precisely why we should reject policies that discourage it.

Jon Miltimore
Jon Miltimore

Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune.

Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times. 

This article was originally published on FEE.org. Read the original article.

Biden Says ‘Generous’ Unemployment Benefits Not Responsible for Biggest Jobs Report Miss in History. He’s Wrong

Wednesday, February 10, 2016

The Big Lie: 5.6% Unemployment

The Big Lie: 5.6% Unemployment


Here’s something that many Americans — including some of the smartest and most educated among us — don’t know: The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading.

Right now, we’re hearing much celebrating from the media, the White House and Wall Street about how unemployment is “down” to 5.6%. The cheerleading for this number is deafening. The media loves a comeback story, the White House wants to score political points and Wall Street would like you to stay in the market.

None of them will tell you this: If you, a family member or anyone is unemployed and has subsequently given up on finding a job — if you are so hopelessly out of work that you’ve stopped looking over the past four weeks — the Department of Labor doesn’t count you as unemployed. That’s right. While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news — currently 5.6%. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren’t throwing parties to toast “falling” unemployment.

There’s another reason why the official rate is misleading. Say you’re an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 — maybe someone pays you to mow their lawn — you’re not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.

Yet another figure of importance that doesn’t get much press: those working part time but wanting full-time work. If you have a degree in chemistry or math and are working 10 hours part time because it is all you can find — in other words, you are severely underemployed — the government doesn’t count you in the 5.6%. Few Americans know this.

There’s no other way to say this. The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.

And it’s a lie that has consequences, because the great American dream is to have a good job, and in recent years, America has failed to deliver that dream more than it has at any time in recent memory. A good job is an individual’s primary identity, their very self-worth, their dignity — it establishes the relationship they have with their friends, community and country. When we fail to deliver a good job that fits a citizen’s talents, training and experience, we are failing the great American dream.

Gallup defines a good job as 30+ hours per week for an organization that provides a regular paycheck. Right now, the U.S. is delivering at a staggeringly low rate of 44%, which is the number of full-time jobs as a percent of the adult population, 18 years and older.

Thursday, May 21, 2015

After Five Years Of Obamanomics, A Record 100 Million Americans Not Working

After Five Years Of Obamanomics, A Record 100 Million Americans Not Working


The Bureau of Labor Statistics (BLS) jobs report for December counted 74,000 jobs created last month. That was less than half the 200,000 new jobs expected.

Nevertheless, the BLS reported those 74,000 new jobs as reducing at least what it calls the U3 unemployment rate by three tenths of a percentage point, from 7.0% to 6.7%. That was because 347,000 workers fled the work force altogether last month, and so were no longer counted as unemployed.

Those 347,000 workers leaving the workforce altogether were almost 5 times (4.689) the 74,000 new jobs created. But the BLS, and the New York Times, still count that as headline unemployment plummeting on net to 6.7% from 7.0%. In fact, all of the decline in the U3 headline unemployment rate since President Obama entered office has been due to workers leaving the work force, and therefore no longer counted as unemployed, rather than to new jobs created.

Those 347,000 for December, 2013, however, are still out there not working, and suffering. Indeed, they joined a near record of more than 102 million Americans not working in December, all still out there and suffering without jobs. Those 102 million Americans are the human face of an employment-population ratio stuck at a pitiful 58.6%. In fact, more than 100 million Americans were not working in Obama’s workers’ paradise for all of 2013 and 2012.

The 102.159 million Americans not working in December is not the all-time record of Americans not working. That all-time record was set in October, 2013, at 102.896 million. The employment-population ratio that month was an even more pitiful 58.2%.

That was the lowest in 30 years, all the way back to 1983, the first year of the recovery from Reagan’s recession, which finally slayed the historic double digit inflation of the 1970s. The employment-population ratio of 57.9% in 1983 was up by the fifth year of Reagan’s recovery to 61.5%, on its way to 63.0% in 1989. That represented an increase of 17 million jobs since that recession started in July, 1981.

But that was when America was following pro-growth economic policies. Today we have President Obama emphasizing equality rather than growth, and after 5 years of Obama as President, we still have not recovered all of the jobs lost since the recession began in 2007. When the recession began in December, 2007, the economy was employing 146.273 million Americans. Today, after 5 years of Obamanomics, in December, 2013 the number of Americans employed was still only 144.586 million, about 1.7 million fewer jobs.

President Obama is not the only President to be challenged by a recession while in office. Since the Great Depression, there have been 10 other recessions before this last one. On average, all the jobs lost in those recessions were recovered within two years after the recession started, as reflected in the official historical data, which is well presented on the website of the Federal Reserve Bank of Minneapolis. But here we are today under President Obama, more than 6 years after the recession started, and we still have not recovered all of the lost jobs!

Moreover, Obama apologists cannot say that Obama’s recovery from the recession is so bad because the recession was so bad. The historical record for the American economy has always been the worse the recession, the stronger the recovery. America has forgotten that experience, because Reaganomics produced 25 years of steady, often booming growth, from 1982 to 2007, with only two, short, shallow recessions. But under every other President in U.S. history, going back for well over a century at least, the economy was in a booming recovery within 5 years as President Obama has had, even under Franklin Roosevelt during the Great Depression!

Today’s economic reality is better represented by what the BLS calls the U6 unemployment rate. That rate includes discouraged workers who have given up looking for a job in the past 4 weeks, and others the BLS considers marginally attached to the work force. It also includes involuntary part time workers who want a full time job but could only find part time work. That U6 unemployment rate was 13.1% in December.

Wednesday, January 22, 2014

Wall Street adviser: Actual unemployment is 37.2%, 'misery index' worst in 40 year

Wall Street adviser: Actual unemployment is 37.2%, 'misery index' worst in 40 year

Don’t believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.

In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.