Tag Archives: jobs

The PRC’s Economic Malaise

Posted on by
Reply

Andrew Browne had some thoughts in a recent Wall Street Journal article. PRC’s Premier, Li Keqiang, wanted to do some serious revamping of the nation’s economic structure and deemphasize a massively overbuilt industrial capacity, shifting the economy more toward consumer production and consumer spending. His words—”This is not nail-clipping; it’s like taking a knife to one’s own flesh”—were reminiscent of his predecessor’s actions. Zhu Rongji eliminated 30 million jobs in an actual overhaul attempt in the ’90s.

Thirty million jobs. That sounds like a lot, but with a workforce of roughly 800 million and roughly 95% employment (because, of course), those 30 million represent just 4% of the workers overall. That’s a sharp cut, but as job cuts go during downturns, it’s not that sharp.

But even that much was too much for Li. Or rather for PRC President Xi Jinping.

[H]igh-level economic policy-making and its practical implementation, once the preserve of the State Council headed by the premier, have increasingly fallen into the hands of Communist Party committees led by President Xi Jinping.

And

…Xi’s political preoccupations: to strengthen the party…to root out challenges to the régime, and to avoid social instability that could in any way threaten the party’s hold on power. If that means delaying unpopular economic adjustments, so be it.

“The party’s hold on power:” read that as Xi’s hold on power, say I. And the people of the People’s Republic can go hang.

The Left’s Iron Curtain

Posted on by
Reply

…is getting a bit taller. I wrote earlier about the Democratic-Progressive Party’s wish to erect an Iron Curtain to keep American companies from leaving for more economically (read: tax) sound environments. Now, Democratic-Progressive Party Presidential candidate and proud Progressive Hillary Clinton is enlarging her Iron curtain. Clinton now is proposing this:

Companies that move jobs and production out of the US would lose previous years’ tax breaks under a proposal Democratic presidential candidate Hillary Clinton released Friday during a speech in Detroit.

The US would seek to “claw back” previous tax incentives for research and development and for domestic manufacturing associated with facilities or jobs that move abroad.

On top of that,

The Clinton campaign didn’t have an estimate of how much money its tax plan would generate for the government.

Of course not. The purpose isn’t to recover monies foregone as incentives to do this or that, it’s strictly to imprison private enterprises within the US, Soviet-style—because private enterprises aren’t jobs factories, rather they are, according to this candidate, jobs welfare programs.

Remember this in the fall.

An Empirical Test

Posted on by
Reply

It isn’t often that we get to run a controlled experiment in economics, but one seems to be beginning in Oregon on the matter of minimum wages.

Oregon lawmakers have approved landmark legislation that propels the state’s minimum wage for all workers to the highest rank in the US, and does so through an unparalleled tiered system based on geography.

The legislation will raise the state’s minimum wage to

$14.75 in metro Portland, $13.50 in smaller cities such as Salem and Eugene, and $12.50 in rural communities.

This will be complete in just six years, by 2022.

And that’s the experiment. Over the course of these next six years, watch employment rates adjust across the three geographies, and watch small business startup and development across those three geographies.

Hmm….

An Academic’s Self-Importance

Posted on by
Reply

Professor Cal Newport, a Georgetown University Computer Science professor, has some interesting ideas regarding how Americans should work and how we should communicate with each other. He laid out these views in a recent Harvard Business Review piece.

This unstructured workflow arose from the core properties of email technology—namely, the standard practice of associating addresses with individuals (and not, say, teams, or request type, or project)….

This is bad, of course, because the individuals doing the work didn’t actually do that. Someboedy else did—those nebulous “teams,” or this thing called a “request type.”

But the big demonstration of an Academic’s self-importance is in this:

But just because this unstructured approach is standard and easy doesn’t mean it’s smart. It’s important to remember that no blue ribbon committee or brilliant executive ever sat down and decided that this workflow would make businesses more productive or employees more satisfied.

Yeah. No Betters told these plebes what to do. They just stumbled around in the dark, using this complex new tool—email!—without guidance, without an Expert’s or a Blue Ribbon Committee’s instruction. Never mind that they got the work done, and better, using this new tool (among others) their way instead of in the Approved Way.

A consequence of this workflow is that an organization’s tasks become entangled in a complicated network of dependencies with inbox-enslaved individuals sited at each node. The only way to keep productive energy flowing through this network is for everyone to continually check, send, and reply to the multitude of messages flowing past—all in an attempt to drive tasks, in an ad hoc manner, toward completion.

Now he’s projecting and assuming everyone shares his shortcomings. Of course in serious work, this isn’t the case. It certainly wasn’t the way we worked—with email and instant messaging—at a major defense contractor that was my latest employer.

Newport’s piece goes on in this vein, but you get the idea.

Democrat Extortion, State Level

Posted on by
Reply

Louisiana Democratic Gov John Bel Edwards is suggesting the legendary Louisiana State University football team’s 2016 season might be canceled—and other doomsday consequences—unless the GOP-legislature swiftly passes a package of tax increases to help close a looming $940 million budget shortfall.

The budget deficit is projected to reach $2 billion by the start of the next fiscal year. The Republicans should call him out on his naked extortion threats. And then pass a budget with $2.5 billion in spending cuts and $500 million in tax cuts. Does Edwards want to balance the budget, or is his precious spending and taxing all he cares about?

After all, the state’s economy runs over $250 billion as of 2015. Surely, they can find $2.5 billion just by shaking the state government’s couch cushions.