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Economy

Jobs Trump Healthcare

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I feel drunk but I’m sober, I’m young and I’m underpaid
I’m tired but I’m working, yeah
I care but I’m restless, I’m here but I’m really gone
I’m wrong and I’m sorry baby

—Alanis Morissette, One Hand In My Pocket

If your biggest problem involves choosing between multiple appealing jobs, everything else will seem less important. Because picking the right job is a really big deal.

For the past decade, you’ve probably worried about finding or keeping any job. Many people work several part-time jobs. A lot of young people have to live with their parents. No one seems sure they’ll get a paycheck next week.

When you don’t feel secure and you don’t feel you have choices, every little problem looks bigger and closer. Healthcare seems like a threat. A new president seems menacing. Uncertainty all around.

What it all comes down to
Is that everything’s gonna be fine, fine, fine
‘Cause I’ve got one hand in my pocket
And the other one is giving a high five

—Alanis Morissette, One Hand In My Pocket

But when you feel in control of your life, your brain gets more creative. Those problems that once looked big and close now seem tiny and far away. Specks, really. You can flick them away with your middle finger. And it feels good, doesn’t it?

Donald Trump and the GOP have a chance to put so many problems in the past. It all starts with tax reform. Tax reform that lets people start new businesses. Tax reform that encourages companies to bring foreign money back home to us. Tax reform and regulatory reform that lets companies spend more money on research and development and raises and new jobs.

When America is building, Americans are winning. You want to win, don’t you? You want to get tired of winning. So tired of winning.

You don’t have to celebrate this great moment in history until it lifts you. But you might find yourself smiling and whistling as those great jobs come back, as the factories reopen, as the big problems of today become little specks of problems in your past.

There’s no need for gloom and doom. Maybe we haven’t figured it all out just yet, but you have one hand in your pocket and the other one’s flicking those problems away.

America is about to hit a winning streak. And you’re on that winning team.

Trump, The Jobs President

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You can actually FEEL America getting GREAT again!

ADP payroll report shows President Trump made a big down payment on his promise to be the greatest jobs president ever. 

The economy added nearly 300,000 new jobs last month. Economists expected a rise of 190,000. It was the biggest jump in jobs in 6 years.

The jobs were the good kind of jobs Trump talks about: manufacturing, mining. Jobs with grit. Not a lot of waitresses and bartenders.

According to CNBC:

Companies added jobs at a blistering pace in February, with a notable shift away from the service-sector positions that have dominated hiring for years, according to a report Wednesday.

. . .

In addition to the construction and manufacturing positions, mining and natural resources also contributed 8,000 to the total. Trump has promised to restore mining jobs as well.

The year is off to a sizzling start for job creation, according to the ADP counts. January added 261,000 positions, a number that was revised upward from the originally reported 246,000.

“Confidence is playing a large role,” Mark Zandi, chief economist of Moody’s Analytics, told CNBC. “Businesses are anticipating a lot of good stuff — tax cuts, less regulation. They are hiring more aggressively.”

When people have to choose between one of many great jobs or many great, fulfilling careers, a lot of the trivial issues will disappear. But for today, let’s just say “Thank you, President Trump.”

American Steel

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I know people, and you probably do too, who are out of work from the United Steel Granite City (aka Granite City Steel) closure. It’s disheartening and depressing for people who worked hard all those years, thrown into the street because of bad trade deals and stifling regulations.

But President Trump has ordered the Keystone Pipeline renegotiated to require American steel pipes. That’s great news for our friends and neighbors in GC.

Today, Mr. Trump is expected to sign executive orders to begin construction of the border wall, construction already authorized and funded by Congress. That construction, too, will include American steel.

Isn’t it great to get our fine steelworkers back to work?

Winning.

America’s Business is Jobs, Not College

Reading Time: 4 minutes

Many of us are guilty. I am, too. You, probably.

In high school (and after) we mocked the kids who took shop. The “greasers” who got credit for wrenching on cars or welding or making cabinets. It was the 1980s and shop, along with home economics, became an elective in most schools.

Until the 80s, some practical life skill class was a requirement at most American public and parochial high schools. Only prep schools let students slide. But in the 1980s—perhaps influenced by the satire book “The Official Preppy Handbook,” schools across the socio-economic spectrum dropped shop from the mandatory list. Some dropped it altogether. At that point, kids who signed up for shop were signing up for blue collar work. They were hand-raisers for the mockers.

Cultural contempt for people who do actual work only increased in the three decades since shop became a dirty word. Movies, television, novels, comedians make fun of the people who build their homes, build and repair their cars, program their computers. put out their fires, fix their leaky toilets, and paint their walls. The smirking class scoffs at guys who take a shower at the end of their workdays.

At the same time, American culture has all but made a 4-year college degree mandatory. From Presidents of the United States to high school principals, the people we’re told to respect show little or no respect for the vast majority whose highest education ended in a prom. Yet, from the President on down, we depend far more on those who know how to make things than on those who “stare at their feet and think great thoughts,” as legendary Ohio State football coach Woody Hayes once said.

The Post-Dispatch points out, there’s no incentive for schools produce great workers:

Public schools, meanwhile, are judged by test scores and the percent of students they send to college. Guidance counselors aren’t likely to push young people toward the plant gates.

Today, America has a glut of college-educated pizza deliverers and a shortage of forty-dollar-an-hour machinists and electricians. The St. Louis Post-Dispatch highlights the shortage of skilled labor in St. Louis:

Factories around St. Louis can find plenty of people for grunt jobs — lifting boxes, sorting parts and such. They have a much tough[er] time finding hands-on machinists, computer numerical control, or CNC, machine operators, toolmakers, industrial electricians, multi-skilled maintenance mechanics and other jobs that require math talent and a couple of years of schooling.

A recent national survey of association members found that 90 percent have moderate or serious trouble finding qualified employees.

So, jobs paying $20, $25 and sometimes $40 an hour are going unfilled.

If you think the skilled-labor shortage is an argument for open borders, you’d be very wrong. Skilled workers in Central America, Asia, Africa, and the Middle East lead decent lives in their countries. Unless driven out by war or cartel violence, skilled workers don’t migrate illegally into the US–grunt workers do, the kind of workers America already finds in abundance.

A lot of those grunt workers are recent college graduates. CareerBuilder.com found in a 2014 study that 51 percent of college graduates are working in jobs that don’t require degrees. ZeroHedge.com found one (click here for full story):

Andrea Ledesma, 28, says her parents owned a house and were raising kids by her age. Not so for her.

Ledesma graduated from college four years ago. After moving through a series of jobs, she now earns $18,000 making pizza at Classic Slice in Milwaukee, shares a two-bedroom apartment with her boyfriend and has $33,000 in student debt.

“That’s not at all how life is now, that’s not something that people strive for and it’s not something that is even attainable, and I thought it would be at this point,” Ledesma said.

Her mother Cheryl Romanowski, 55, was making about $10,000 a year at her age working at a bank without a college education. In today’s dollars, that income would be equal to roughly $19,500. Romanowski said she envies the choices that her daughter has in life, but she acknowledged that her daughter has it harder than her. “I think the opportunities have just been fading away,” she said.

Had Andrea opted for machine shop class instead of college, she’d now have 8 years of seniority as a machinist earning somewhere between $60,000 and $80,000 a year. It’s unlikely she will find a job that requires her degree that will make up for the 8 years she lost in college and dead-end jobs.

While it’s true that the aggregate of those with college degrees earns more than the aggregate of those without, that statistic is deceiving. The college-educated number skews high because of ridiculously high salaries of a few. Skilled laborers without degrees are huddled together in a narrower range of salaries. In other words, the gap between a senior machinist and a Fortune 1000 CEO is way bigger than the gap between the machinist and the liberal arts major who sells pizzas.

Further, the college-educated pool includes all levels of education: doctors, lawyers, PhDs, etc. It’s not just those with a 4-year degree and no more. Plus, we don’t need as many Ph.D. historians as we need skilled machinists and electricians. The Department of Labor says only about 1/3 of American jobs require any education beyond high school.

So where do we go from here?

I think America’s attitude about real work is about to change. Donald Trump won on the strength of people who work for a living. To a large extent, so did Eric Greitens here in Missouri. So the people in power owe a big debt to the people who shower after work. Meanwhile, a growing number college-educated young people—the key demographic for advertisers and entertainment producers—can’t afford the products advertised on TV and Facebook. (Products made by people who took shop.) Smart marketers and television writers will soon realize that the actual key demographic in America is young skilled workers, not just young people in general.

As the leftist hysteria over 2016’s election quiets down (and it will), expect to see growing respect and appreciation for the people who work in blue-collar jobs. As college tuition continues to rise faster than inflation and faster than healthcare costs, expect taxpayers to demand that Congress slam the brakes on higher education spending. Some of that money will go to pay the debt, but some tax money can be returned to the states to expand shop classes.

Making America great again requires that America make things again—things that last longer than a pizza or an Old Fashioned cocktail. The jobs that Trump has promised need people who can lift a load and do the math. As one employer told the Post-Dispatch:

He’s picked new high school graduates, hoping to train them, but often found they lack basic skills. “It’s basically all math and hard labor. I have had kids that make the effort, but they don’t have the brain power.”

Calvin Coolidge said, “the business of America is business.” That was almost 100 years ago. Today, the business of America is jobs.

Let’s get to work.

If Donald Trump Scares You, You Should See a Depression

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Guest post by Lee Presser.

America’s fiscal year is October 1 to September 30.  With two month left in FY16, the U.S. Treasury has already paid creditors $380,925,428,211.67 in interest costs.  (That’s $381 Billion)  http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

The average interest rate was just over 2%http://www.treasurydirect.gov/govt/rates/pd/avg/2016/2016_07.htm

 It is expected that the last two month’s of this fiscal year, interest costs will increase another $45 to $66 Billion.  The total FY16 interest cost may be between $426 and $447 Billion. 

 In FY11, the Treasury paid creditors a record $454,393,280,417.03.  (That’s $454 Billion) 

 With the debt at $19.4 Trillion (that’s 19,400 billions of dollars) what do you suppose the interest costs to the Treasury will be when the annual interest rate returns to normal?  (Normal would be 4% to 6%)

 In fiscal year 2015, the federal budget was $3.8 trillion.  Of that amount only $1.11 Trillion was spent on what budgeters call discretionary items; food and agriculture, transportation, social security & unemployment & labor, science, energy & environment, international affairs, housing & community, veteran’s benefits, Medicare & health, education, government, and military. 

 The other $2.69 Trillion was spent on interest and what budgeters call mandatory items; spending on programs that are required by existing law.  Medicare and Social Security are the two largest mandatory spending programs.  They are about 40 percent of the federal budget.  Agriculture, Defense, Education, and Veterans Affairs, also require mandatory spending. 

 As interest costs increase, either discretionary spending decreases or the annual deficit increases.  Mandatory spending is unaffected unless Congress changes the law.  Those mandatory checks always go out. 

 So, when interest goes from $426 Billion per year to $600 Billion per year, $174 Billion in programs that serve you and your neighbors must be cut.  Or, Congress can increase the money supply to continue paying for the programs, which, as you would expect, will lower the purchasing power of your paycheck. 

 Of course, we could vote in new leadership and change the trajectory of government expenditures.  But, for most of you, that’s way too scary. 

Don’t Make These Simple Mistakes About Debt

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Our present crisis is  the result of:

  • Too much borrowing
  • Too much spending
  • Too much government control
  • Too much taxing

Those who argue that America needs to borrow, spend, regulate, and tax more are simply wrong, wrong, wrong.  Their argument is absurd  on its face.

The way to increase revenue to government is to increase the economic activity of the people.  You do that by giving the people maximum control over their destinies.  They will pursue their dreams. In the process, they will fund a responsible and constrained government.

When the government borrows money, it determines for you how you will spend your future earnings.  That, too, is wrong.  Morally wrong.  Make them stop.

Write and tweet your senator and representative today.  Tell them “Stop spending my future. Balance the budget. #tcot”

NOTE:  Welcome to  Nice Deb, whom I met at Smart Girl Summit this weekend.  Please read her blog every day.