Tag Archives: jobs

The Congress and the President

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President Barack Obama is ready, willing—even eager—to work with the 114th Congress, instead of routinely bypassing it, The Wall Street Journal quoted “senior administration officials” as saying at the start of this new year.

Both Houses of this new Congress have introduced bipartisanly supported bills that would authorize construction of the Keystone XL pipeline. And Obama has said he’ll veto that legislation, never minding that 70% of Americans—Obama’s employers, as well as the employers of the new Congress—want the pipeline built.

I’m driven to the conclusion that Obama’s claimed willingness to work with Republicans is just more Obamatalk, and that “cooperate with” still means “be reasonable: do it my way.”

At Last, Shovel Ready Jobs

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And President Barack Obama only had to break the law (and the Constitution) to find them.

The US Citizenship and Immigration Services (USCIS) agency is looking to hire 1,000 new employees to process applications pertaining to President Barack Obama’s new executive action on immigration, the New York Times is reporting.

Never mind that existing immigration law makes his Executive “Action” mandating protection from deportation of illegal entrants into the US illegal. Never mind that his Constitutional mandate, and his oath of office to take Care that the Laws be faithfully executed, make his Executive “Action” illegal.

Because, jobs. And best of all,

The new positions have salaries that range up to $157,000 a year.

That’s better than road building—and they’re indoors, too. Can’t beat that with a…stick.

Good Medicine for Bad Bankers

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That’s the title of an Alan Blinder op-ed in The Wall Street Journal. It’s subtitled One way to keep bankers from behaving badly is to hit them in their pocketbooks with penalties that affect bonuses.

Blinder cited remarks by New York Federal Reserve Bank President William Dudley:

Mr Dudley highlighted the “ongoing occurrences of serious professional misbehavior, ethical lapses and compliance failures” at giant financial institutions. And he warned the audience, which included a number of the world’s leading bankers, that unless the epidemic of bad behavior stops, “the inevitable conclusion will be reached that your firms are too big and complex to manage,” in which case “your firms need to be dramatically downsized and simplified.”

You bet. However, Blinder wants more government interference, even after government’s proven failure to manage economies of any sort. He wants a points system for bank(er)s’ misbehavior, with a sufficient accumulation of points leading to an offending bank’s loss of its banking license. And he wants government to dictate where in a bank its losses should be allocated. Because businessmen and their accountants can’t be trusted with this judgment. But government can be.

No, the best way to achieve “hitting them in their pocketbooks” is to have the bankers’ jobs at risk through free market sanctions on their banks’ continued viability—let those banks fail and enter bankruptcy. And the best way to achieve that would be to eliminate the too-big-too-fail sewage of Dodd-Frank.

Sorry I’m late with this today.  Ate up with dumb and with lazy.

Technology, Oil, and Government

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Falling oil prices are a good thing. Except when they’re not. Or….

The irony in the falling prices is that the success of US producers using hydraulic fracturing and horizontal drilling technologies is partly responsible, along with slowing demand by struggling Asian and European markets. Now that success could come back to bite the so-called fracking industry and other drillers in America.

[Wyoming Governor Matt, R] Mead acknowledged that in the short term, lower gas prices will benefit businesses and residents in his sparsely populated state, where distances between towns are often calculated in hours instead of minutes.

But, he pointed out, “If we see low prices continue for some time, we’ll see rigs start to lay down. And it’s not just the direct revenue. It’s the hotels, restaurants and all that goes with that.”

Not to mention jobs.

This is normal in a free market economy, though. New technologies, or old technologies like fracking whose time has come, are always disruptive. Recall the stereotypical, but no less accurate for that, impact on horse-drawn buggy and whip manufacturers with the advent of the horseless carriage and then the assembly line for making those automobiles cheap.

So it is with fracking. Not only does it make hard-to-get oil and natural gas (much) easier and (much) cheaper to get, it drastically increases the supply of these commodities, each of which individually drastically lowers the price of these, and together they synergistically do.

But when supply overshoots demand, and the price obtainable for oil and gas cannot cover even the lowered cost of extraction, many of the suppliers, extractors, stop producing, stop extracting. This has negative effects on both fracking jobs and the ancillary jobs Mead mentioned.

However, in a free market, supply and demand quickly match each other, and prices—and jobs—stabilize. With the technological advances associated with this commodity, too, as with any technological advance, the new pricing equilibrium will be lower than the prior equilibrium. It’s uncertain whether oil and gas pricing in particular will stabilize at their current levels, continue a little lower, or go a little higher. But it’s virtually certain we’re done with $100 oil for the foreseeable future, which is to the good of utilities, manufacturers, consumers, and anyone and anything that uses energy.

And those jobs? They’ll recover with the stability and predictability of the new normal in oil and gas extraction. The widespread use of fracking and related technologies also will lead to a net increase in employment when all is said and done, just like in those early automobile days.

The kicker here is identified by Kathleen Sgamma, Western Energy Alliance Vice President of Government and Public Affairs [emphasis added]:

There is a point at which the lower commodity price combined with the increased regulatory cost will put new wells out of business—they just won’t be drilled[.]

And [emphasis added]

whether a well is on private, state, or federal land, “because the regulatory environment is such that it makes it more expensive to develop on those federal or tribal lands.”

Government’s intrusive regulation wasn’t a factor in Henry Ford’s disruption.

Good for Amazon

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‘Way last July, amazon asked the FAA for expanded outdoor testing permits (Amazon Petition for Exemption – Docket No. FAA-2014-0474) so the company could engage in serious testing of its planned drone-based delivery system. To date, the FAA has chosen not to respond. Amazon has renewed its request and advised the agency that continued unresponsiveness will force amazon to take its development out of the country [emphasis added].

To date, much of our Prime Air research and development efforts, including flight testing operations, have been conducted inside our laboratory and indoor testing facilities in Washington State. However, we must move beyond indoor testing if we are to realize the consumer benefits of Amazon Prime Air. In the absence of timely approval by the FAA to conduct outdoor testing, we have begun utilizing outdoor testing facilities outside the United States. These non-US facilities enable us to quickly build and modify our Prime Air vehicles as we construct new designs and make improvements. It is our continued desire to also pursue fast-paced innovation in the United States, which would include the creation of high-quality jobs and significant investment in the local community.

Their request also has from the jump anticipated risks: they’ve identified a remote area for testing and would conduct their flights within 400 feet of the ground. Other safety precautions are built in, also. The FAA, though, has continued to be unresponsive. Indeed, its disinterest is amply demonstrated by its suggestion that amazon stop bothering them with drone testing applications and go look for an Experimental Aircraft certificate—which aside from starting a wholly unrelated lengthy permitting process from scratch, is a certificate for manned aircraft and so plainly not applicable here.

The FAA’s…disinterest…also is cynically circular. They’ve already determined (under whatever pseudo-logic, but it’s their story and they’re sticking to it) that small drone operation is per force commercial in nature. Experimental aircraft, by legal definition, cannot be operated commercially—they’re for private pilots flying themselves, and maybe a passenger, for fun and no profit. Of course, the FAA knows this; experimental aircraft certificates are FAA-issued certificates.

Amazon now is emphasizing its determination to proceed:

It is also in the public interest for Amazon to keep its small UAS R&D operations in the United States, and help America establish itself as the leader in development of UAS technology. Our continuing innovation through outdoor testing in the United States and, more generally, the competitiveness of the American small UAS industry, can no longer afford to wait.

And their stick to prod the FAA:

We are poised to significantly expand our distinguished team of engineers, scientists, and aeronautical professionals at Amazon’s next-generation R&D lab in Washington State. Amazon Prime Air currently has dozens of United States job openings for highly-skilled professionals including hardware engineers and research scientists.

And

Amazon urges the FAA to swiftly approve our Section 333 petition, submitted nearly five months ago. Without the ability to test outdoors in the Unites States soon, we will have no choice but to divert even more of our UAS research and development resources abroad.

More businesses—especially large ones, which have the heft to make such claims meaningful—should take the government to task for its desultoriness in responding to requests. This would produce a far better business environment and a far better marketplace for American citizens than does big business’ current practice of crony capitalization.