Tag Archives: Jobs

Employees React To News 1,400 Jobs Are Leaving The Country

By Rachel Stoltzfoos – Carrier Air Conditioning announced this week it’s shipping 1,400 jobs to Mexico, and the reaction of a room full of employees when they learned the news was caught on camera.

“The best way to stay competitive and protect the business for long-term is to move production from our facility in Indianapolis to Monterrey, Mexico,” a man speaking on behalf of the company says in the video to a large crowd of employees in a gymnasium-like room.-

The crowd immediately erupts in shouts and boos. “That’s why you brought all those motherfuckers here!” one man shouts.

“Listen, we’ve got, I’ve got information that’s important to share as a part of transition,” the speaker continues. “If we could go ahead, if you don’t want to hear it other people do, so let’s quiet down. Thank you very much.”



“We also intend to relocate the distribution center from Indianapolis as well,” he continued. “Relocating our operations to Monterrey will allow us to maintain high levels of product quality –”

“Why would we care?” a man interjects.

“At competitive prices, and continue to serve the extremely price sensitive market place,” the speaker says, as people are heard yelling and exclaiming in the background. “I want to be clear, this is a strictly business decision.”

At that many laugh and continue to boo the speaker. “Once again, let’s please get, more information to share,” he says. “And by no means reflects the performance of this facility or any individual within it.”

The transition will not begin until mid-2017 and will take place over three years. The speaker ensured the crowd they’ll discuss the plan with the employees’ union representatives.

“Through all the transition, we must remain committed to manufacturing the same high-quality products,” he says, to which someone yells loudly: “Fuck you!”

The speaker again pauses to quiet the crowd, and continues: We still have a job to do. This is an extremely difficult decision, it was made most difficult because I understand that it will have an impact on all of you, your families and the community. As we continue and just as we are doing today, we will provide you with as much information as soon as possible about the transition. This will allow you to understand the plan better as well as the impact on you personally. We are committed to treating you with respect throughout this transition, and we will work with your union representatives to help ensure that this is the case.”

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Jeb Bush: ‘People Need To Work Longer Hours’ To Grow The Economy

In an interview with New Hampshire’s Union Leader on Wednesday, Bush was asked if he had any plans for tax reform, such as a flat tax, and he replied:

[quote_center]“My aspiration for the country and I believe we can achieve it, is four percent growth as far as the eye can see. Which means we have to be a lot more productive, workforce participation has to rise from its all-time modern lows. It means that people need to work longer hours and, through their productivity, gain more income for their families. That’s the only way we’re going to get out of this rut that we’re in.”[/quote_center]

When asking Bush about his plans for tax reform, the Union Leader inquired about a possible flat tax, which has already been proposed by Bush’s rival, GOP presidential candidate Sen. Rand Paul (R-Ky.), who announced his plan to make more than $2 trillion in tax cuts by replacing the IRS tax code with a flat tax of 14.5 percent on individuals and businesses in June.

ABC News reported that the Democratic National Committee was quick to release a statement, calling Bush’s comment “easily one of the most out-of-touch comments we’ve heard so far this cycle,” and saying that Bush would not support the middle class as president.

Bush responded by releasing a statement claiming that his comment was not about full-time workers, and was instead directed towards the under underemployed and part-time workers.

“Under President Obama, we have the lowest workforce participation rate since 1977, and too many Americans are falling behind,” Bush said. “Only Washington Democrats could be out-of-touch enough to criticize giving more Americans the ability to work, earn a paycheck, and make ends meet.”

The Washington Post reported that Bush told reporters that he blames the Obama administration and congressional Democrats for “enacting a series of policies that have made it harder for businesses to create jobs and for Americans to work longer hours.”

“If we’re going to grow the economy people need to stop being part-time workers, they need to be having access to greater opportunities to work,” Bush said. “You can take it out of context all you want, but high-sustained growth means that people work 40 hours rather than 30 hours and that by our success, they have money, disposable income for their families to decide how they want to spend it rather than getting in line and being dependent on government.”

For more news related to the 2016 Presidential election, click here.

Peter Schiff: The Illusion of the Strong Jobs Report

Let’s get into the illusion of the strong jobs report.

Generally weaker than expected data was punctuated by yet another better-than-expected nonfarm payroll report. This comes despite the fact that earlier in the week the ADP private sector payroll report came in slightly below estimates at 201,000 jobs added in May. Also, 5,000 manufacturing jobs lost—the third consecutive monthly decline in manufacturing jobs. These are the important jobs. Not only are they higher paying, but they’re productive. And they also lead to exports, which improve our balance of payments.

But the official number, which came out Friday morning, the consensus estimate, was 220,000 jobs. And that followed the 223,000 jobs that was originally reported for April.

Well, the actual number, according to the government—280,000.

280,000 jobs created in May, far exceeding the 220,000 jobs that had been forecast. So it’s beat by 60,000 jobs. They had a slight downward revision to April—221,000—and they upwardly revised March somewhat. So overall, more jobs than had been anticipated.

Now, the unemployment rate did increase to 5.5 percent as a few hundred thousand more people reentered the labor force—which is bucking the trend. The labor force had been declining. Now some people have come back to the labor force. In fact, the labor force participation rate is back up to 62.9 percent from 62.8 percent. Remember, the lowest it’s been is 62.7 percent. So at 62.9 percent, we’re not far from the low. And certainly there is no indication that the trend has changed.

Of course, a lot of these people who have reentered the labor force don’t even want to be there.

Remember, when we’re talking about labor force participation, when you look at older people—workers in their 60s and 70s—participation is at record highs. It’s younger Americans—Americans in their teens, 20s and 30s—that’s where the participation is at all-time record lows. And a lot of the older guys—who are now in the workforce, who were not in the workforce before—don’t even want to be there. They’d rather be retired. But unfortunately they can’t afford that luxury anymore, so they need jobs.

And of course a lot of them don’t even want full-time jobs. They want part-time jobs. So a lot of these 200,000 jobs that were created are in fact part-time jobs. And they represent workers who would assume not even work in the first place. But, of course, a lot of these older Americans, they don’t want full-time jobs, so it works perfectly for them.

They don’t want full-time jobs for a couple of reasons. One, they want to be at least semi-retired. They don’t want to work 40-hour weeks. They’re just trying to work enough to make ends meet. They need to pay their bills. So if they can do that with a part-time job, that’s what they want to do.

But also, remember, if you’re over 65, you’re getting Social Security. But as you get a job, of course you still pay Social Security taxes, right—even though you’re collecting Social Security. But at some point, as you earn a certain amount of money, you start losing your Social Security benefits, which acts as an added marginal tax. So people on Social Security may want to work a little bit to make just enough money to make ends meet, but they don’t want to earn too much money where they end up paying a very high marginal tax (because they start losing some of their Social Security benefits).

That’s also too part of the illusion of the strong jobs report. I get into the data that came out in the podcast episode above. Tune in now and catch more of the Peter Schiff Show here at Truth In Media.

New labor statistics show many Americans still suffering in the job market

WASHINGTON D.C., – September 29, 2014 – New data complied by the Senate Budget Committee shows that nearly one in four of the 124.5 million Americans ages 25-54 are not working. Senator Jeff Sessions (R-Alabama) created the chart based on data from the Bureau of Labor Statistics.

Sessions’ office released a statement further explaining the chart stating, “There are 124.5 million Americans in their prime working years (ages 25–54). Nearly one-quarter of this group -28.9 million people, or 23.2 percent of the total- is not currently employed. They either became so discouraged that they left the labor force entirely, or they are in the labor force but unemployed. This group of non-employed individuals is more than 3.5 million larger than before the recession began in 2007.”

Those attempting to minimize the startling figures about America’s vanishing workforce—workplace participation overall is near a four-decade low—will say an aging population is to blame. But in fact, while the workforce overall has shrunk nearly 10 million since 2009, the cohort of workers in the labor force ages 55 to 64 has actually increased over that same period, with many delaying retirement due to poor economic conditions,” the statement continued. “In fact, over two-thirds of all labor force dropouts since that time have been under the age of 55. These statistics illustrate that the problems in the American economy are deep, profound, and pervasive, afflicting the sector of the labor force that should be among the most productive.”


Nearly 1 in 4 Americans ages 25-54 are not working
Nearly 1 in 4 Americans ages 25-54 are not working

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Immigrants ARE “American Exceptionalism”

Immigrants have become more, not less important as technology grows more complex. Immigrants in the 1800s built the nation’s railroads, but today’s immigrants have built the information economy. 60% of our 25 largest tech companies were founded by first- or second-generation immigrants. Apple, IBM, Google, Oracle, Amazon, Intel, Ebay, EMC, Texas Instruments, VMware, ADP, Yahoo!, are all children of the Statue of Liberty. Most of our best jobs are the result of immigrant brainstorms… even to look for a job we use LinkedIn, founded by an immigrant.

Scapegoating Immigrants: Good Politics, Bad Logic

So why are immigrants blamed for our economic problems? Because as politicians before and after Hitler have known, scapegoating “foreigners” is the easiest path to political success. Also, it’s the safest… it takes no bravery to attack working-class immigrants, rather than facing up to the wealthy corporate-welfare interests.
So, let’s go through the various economic fallacies used to blame working people for the collapse of the US economy…

“Immigrants Don’t Pay Taxes”

Immigrants, tragically, do pay taxes. Everyone knows that immigrants pay sales and gasoline taxes. They also pay property taxes (passed on in their rents) and corporate income taxes (passed on in the products they buy).

Less well publicized is the fact that two-thirds of illegal immigrants pay Social Security, Medicare, and income taxes. Starting in 1996, the IRS began issuing tax numbers to about 8 million illegals. Of course, being illegal, they can never collect Social Security or Medicare; the taxes paid by poor illegals go to support the improvident American middle class in their old age. This robbing of the poor to support the rich amounts to about 50 billion per year.

In fact, these immigrant SOBs pay too many taxes. How un-American! Haven’t they ever heard of the Boston Tea Party?

“Some Immigrants Are On Welfare”

As in any welfare state, this is a problem. The problem is the welfare, not the immigration, however.

In 1996, Clinton took time out from launching cruise missiles at medical factories in the Sudan and signed the welfare reform bill. The 1996 bill banned illegal immigrants from food stamps, housing assistance, Medicaid and Medicare-funded hospitalization. So welfare for the able-bodied poor is still a crisis… but primarily a crisis caused by native-born Americans who adapted to the ecological niche offered by ADC and other family-replacement programs.

Immigrants, like other Americans, do use government-provided emergency medical care and public schools. Both education and medical care are dysfunctional… in fact, it may be our terrible public schools (25th out of the 34 OECD countries) that cause our STEM worker shortage. Again, it’s not immigrants that decided to Sovietize US education and medicine.

The only solutions for government-created failures are markets. We have to privatize medical care and public schools. This has to be done anyway, unless we want to produce yet another generation of expensively uneducated Americans.

“Immigrants Hurt the Economy”

Every economic success story is based on free trade. Regardless of cultural or ethnic factors, it’s always economic freedom that drives success. Liechtenstein or Singapore, Hong Kong or Dubai, they’re all free trade zones. There are even the “controlled experiments” of East vs. West Germany, North vs. South Korea, Taiwan vs. Mao-era China, New Hampshire vs. Vermont… freedom always wins.

The laws of economics are impersonal. They don’t distinguish between trade in different factors of production. Human beings are a factor of production, and blockading immigration has the same economic effect as blockading steel or computer chips.

In the time of Adam Smith, people understood the good effects of free trade. In war, you blockade the enemy to prevent trade. This is how you destroy an economy. Today economic literacy is less common… so our politicians have convinced us to blockade ourselves.

Trade is not war. You can’t make yourself better off by hurting your trade partners; that just means they have less wealth to buy your products, and the prices of your goods suffer. Other people’s work, in the long run, makes you richer. Everyone specializes, the overall economy becomes more efficient, and instead of a nation of 99% peasants we have a nation with thousands of occupations.

Economists disagree on how much new immigrants help the economy, but the effect is clearly positive. If sealing borders made you rich, North Korea would be the world’s most thriving economy… instead of a dark blot on night-time satellite pictures.

“Immigrants Take Our Jobs”

Yes, all those tomato-picking jobs that Americans clamor for. Not to mention all those molecular biology postdoc jobs that require Ph.Ds. Most immigrants take jobs that Americans can’t or won’t do.

But even in those cases where an immigrant is “competing” with an American job seeker, it’s still a good thing. “Competition” in the job market just creates more niches, more new and different jobs. This shouldn’t be surprising… real wages rose in the US for most of the 19th and 20th centuries, even though the workforce was growing steadily.

“Comparative advantage” is a basic economic concept. Comparative advantage doesn’t mean that there is an economic “winner” who gets all the money. It means that in a free economy, everyone does what they are relatively better at, and everyone’s income is raised. Even if Bill Gates were twice as good at picking tomatoes as the average tomato-picker, he would still specialize in making annoying operating systems. (Which is a good thing, because tomatoes engineered to carry every possible virus would be very dangerous).

In the same way, even if you are a tomato-picker, if there is an influx of immigrant tomato-pickers, that doesn’t mean that you will be forever unemployed. You will just move on and get a better job, as did the 96% of Americans who no longer work on small homesteads plowing behind mules. Perhaps as a tomato-picker supervisor, or perhaps as a Wal-Mart manager who sells things to tomato-pickers. Somewhere, the new wealth created by the tomato-pickers is making new jobs for you.

“Immigrants Cause Crime”

We, the descendants of the drunken, violent Irishmen, Jewish gangsters (the feared Kosher Nostra), Ital… uh, other ethnic groups, accuse today’s immigrants of “causing crime”. Well, when you make it illegal for people to work, then by definition they commit crime by supporting themselves with honest labor. Amazingly, the vast majority of them manage to do so in spite of every obstacle that government puts in their way.

Of course people living with insecure property rights cannot be as stable as those whose natural rights are (somewhat) respected by the laws. Making immigration legal would instantly raise the stability, incentives, and productivity of all the currently illegal workers. Legal status would make it more profitable for the workers to invest in their own homes, education, retirement funds etc.

The high (though falling) crime rate in the US comes from two things that are not part of our traditional Irish-German-Italian-African-Japanese-Chinese-etc. culture (and therefore did not exist during the previous immigration waves): a permanent welfare class, and Drug Prohibition. Illegal immigrants did not cause either of these problems, Congress did.

 “Immigrants Threaten Homeland Security”

Terrorism, the all-purpose excuse for any program that doesn’t produce any tangible benefit. “We have to control our borders to keep out terrorists”. This certainly sounds nice; everyone would like to keep out terrorists. If we could deport the CIA officials who funded terrorist groups in many countries, that might actually help. But the fact that all the 9-11 terrorists were here legally (while millions of honest workers were here illegally) should make us very skeptical that North Korea’s security solutions are going to work for us. (Considering that Dennis Rodman got into North Korea, maybe their system isn’t working that well for them either).

Legalizing immigration (at least, if we also ended Drug Prohibition) would make security much better. Under the current system, we have millions of illegal crossings… there is so much nightly traffic that an armored division or two would barely be noticed. If workers were allowed to cross at freeway checkpoints in a civilized fashion, then anyone sneaking across the desert would really stand out on a drone’s IR sensor… and could be assumed to have bad intent.

And when push really comes to shove… in an isolated America we wouldn’t have to worry about minor terrorist attacks. Without Einstein, Fermi, and the other immigrants who built our defense technology and defeated the Nazis, we would already be part of the Thousand-Year Reich and/or Rising Sun Co-Prosperity Sphere. Do we really want to force the high-tech geniuses of the world to stay home and work for dictators?

The Real Threat to American Exceptionalism: Welfare for the Rich

Welfare for the rich costs trillions of dollars. Bailouts and routine subsidies for our new privileged class cost so much that they have rendered the dollar, our very means of economic calculation, unstable and untrustworthy.

When Obama took office in 2009, the national debt was $10.6 trillion. It’s now at $17.5 trillion. (This is only the “official” debt, which doesn’t count Social Security, Medicare, Medicaid, finance-industry guarantees, military obligations, etc. Estimates of the real debt vary, but are over $100 trillion). The US GDP was $16.8 trillion in 2013. If the US were a family we would be in credit counseling.

Since 2008, Federal Reserve “quantitative easing” has kept interest rates at artificially low levels. This has allowed the government to evade paying market rates on its debt. But an economy cannot function forever without real, market-driven interest rates. Interest rates, like all prices, are information. An economy without real information cannot function. Nor will the dollar hold its value if we keep printing like Zimbabwe.

Fed Chairman Paul Volcker is famed for “saving the dollar” under President Reagan. In order to do this, he had to reduce the rate of dollar creation, and allow interest rates to rise. By 1982, the prime rate was at 21.5%.

But in 1982, the Federal debt was only $1.1 trillion. If Ms. Yellen tried to “save the dollar” with Volcker’s interest rates, 21.5% of our current debt would be $3.76 trillion. The OMB estimates that total tax collections for 2014 will be $3 trillion dollars. So the entire US Federal budget would be absorbed by interest payments… and wouldn’t be enough.

It wasn’t Mexican construction workers or Indian computer programmers who bankrupted our country. It was bailouts for banks, crony deals for car companies, subsidies for the many faux-Green Solyndras, endless military interventions and nation-building. The US economy is broken because we turned away from free markets and put our faith in crony socialism.
To be Exceptional, We have to be Free

America can be exceptional again, if we choose to be. We can follow the recipe of economic success again. Our children can go on to cure cancer, colonize the Solar System, rebuild ecosystems; possibly even Detroit can be made habitable again. But we can’t do it with mindless ethnic-cleansing tribalism.

We are all immigrants or children of immigrants, whether our ancestors traveled by 747 or walked across the Bering Land Bridge. If we are going to fulfill the Founding Fathers’ dreams, we will do it as a nation of immigrants.
Bill Walker of Plainfield, New Hampshire is a member of the Sullivan County Republican Committee. His ancestors immigrated from Prussia in 1870. 

Why The Poor Stay Poor, Reaction to One Woman’s All Too Common Story

We hear many news stories that are negative regarding the poor in the U.S. From Medicaid fraud, to “welfare queens”, to the recent food stamp recipients basically stealing at Louisiana Wal-Mart’s, there’s no lack of stories that look at the poor as a homogenous group, and somewhat dehumanizes the individuals.

In a stunning story that is quickly going viral, blogger Linda Tirado explains the psychology of poverty. Her story is called “Why Poor People’s Bad Decisions Make Perfect Sense”

She eloquently lays out how she makes decisions. Many of these decisions self-perpetuate a cycle of poverty.

“Rest is a luxury for the rich. I get up at 6am, go to school (I have a full course load, but only two in person classes), then work, then I get my kids, then I pick up my husband, then I have 30 minutes to change and go to Job 2.”

This story of the working poor sounds familiar to those who lived in similar situations or those who are familiar with the plight of single moms, but what stands is out is this is a nuclear family. The American Dream is that two parents can raise two kids well as long as they work hard. The author clearly has to struggle to afford the cost of living, and states, “It doesn’t leave much room to think about what you are doing, only to attend the next thing.” “Planning isn’t in the mix.”

She doesn’t lay blame on systematic racism, or lack of opportunity. Mostly she describes how being forced to survive puts a human in a position to makes a series of short-sighted, and usually destructive, choices. Chronic stress, she contends, wears a person down to where they just don’t, or can’t, succeed.

Her discussion of being intimidated to cook broccoli leads one to the conclusion that poverty is generational, as though her parents didn’t know how to cook either and so she is afraid to screw up cooking something healthy.

“When I was pregnant the first time I was living in weekly motel for some time. I had a mini fridge with no freezer, and a microwave. I was on WIC. I ate peanut butter from a jar and frozen burritos because they were 12/$2.” “Cooking attracts roaches. Nobody realizes that.”

Tirado talks about lack of access to female health services:

“The closest Planned Parenthood to me is three hours. That’s a lot of gas money. Even if you live near one you probably don’t want to be seen coming in and out, in a lot of areas. We’re aware that we are not ‘having kids,’ we’re
breeding.’ Nobody likes poor people having kids, but they judge abortion even harder.”

Her story outlines the hard choices people face if they find themselves in poverty.

She also discusses difficulties in financial transactions:

“Especially since the Patriot Act passed, it’s hard to get a bank account. Without one, you spend a lot of time figuring out where to cash a check and get money orders to pay bills.” She mentions that most hotels today require a credit or debit card. “I wandered around SF for five hours in the rain once with nearly a thousand dollars on me and could not rent a room.”

There are other significant financial issues that poor Americans face when it comes to the financial industry that are not discussed in this article. Tirado, doesn’t mention the predatory financial practices used against the poor, such as high check cashing fees, bank accounts that charge hundreds of dollars of NSF fees per month, and certain bank accounts for those flagged on ChexSystems that charge the account owner per month and per every debit card transaction. These financial situations siphon away precious dollars from those who really have nothing to spare. Tirado also didn’t mention payday lenders, which charge over 100% in interest per year, and auto debit borrowers bank accounts at random times, putting them further into the negative at their bank. She also didn’t mention pawn shops, which many poor use, or car title loan shops. Both end up keeping the poor persons jewelry or car, because the poor person usually can’t keep up with the payments.

Tirado does however, get to the crux of the problem, which is why poor people stay poor in her eyes: “I make a lot of poor financial decisions. None of them matter. In the long term, I will never not-be-poor, so what does it matter if I don’t pay a thing-and-a-half this week instead of just one thing? It’s not like sacrifice will result in improved circumstances.”

The blows to self-esteem and loss of dignity created by poverty are palpable in her story.

Readers do you have any experience with poverty? Can you relate to Ms. Tirado’s story which you can read here: http://www.alternet.org/economy/why-poor-people-make-bad-decisions

Right-To-Work States Have More Job Growth & Higher Incomes

A new study by the Mackinac Center shows that right-to-work states saw higher improvements in employment, income, and population growth than non-right-to-work states over the past six decades.

Right-to-work laws prohibit employees from being forced to join a union or pay union fees.

As the Goldwater Institute points out, “For unions, right-to-work laws mean they have to actually fight to retain customers – no more guaranteed income. But with most unions, fighting for customer retention doesn’t mean lowering membership fees or increasing services. It means pressuring lawmakers and slighting members.”

The following 24 US states currently have right-to-work laws:


The Mackinac Center study looked at data ranging from 1947 through 2011, but divided that data into three time periods: 1947-1970, 1971-1990, and 1991-2011. The study’s authors chose to examine such a substantial period of time because right-to-work laws can take up to a decade to effect a state’s economy in an observable way.

Michael LaFaive, director of the Morey Fiscal Policy Initiative, is one of the study’s authors. He said, “As Michigan is the most recent state to adopt a right-to-work law, we thought it valuable to take a fresh look at the data. What we found generally comports with other scholarship on the subject. Adopting a right-to-work statute can increase the economic well-being of a state.”

The study found that right-to-work laws had virtually no impact on job growth or personal income during the first studied time period, 1947-1970. However, the following two time periods were positively impacted by the laws.

As reported by the Heartland Institute, “On average, over the entire 64-year period, the study finds that right-to-work laws increased annual real personal income growth in the average right-to-work state by 0.8 percentage points and population growth by 0.5 percentage points. Right-to-work laws boosted average annual employment growth in the average right-to-work state on the whole as well, registering an average bump of 0.8 percentage points, as measured from 1971-2011.”

Michael Hicks, Ph.D., was another co-author of the study. He pointed out that even though those percentages may seem low, they are indeed significant. Hicks said, “These results may appear modest, but the cumulative effect of right-to-work laws appears to have dramatically boosted the standard of living in the states which have adopted it.”

Evidence continues to appear supporting the claim that right-to-work laws positively impact citizens and their communities. In the face of such evidence, when will the remaining 26 states, which currently have no right-to-work laws, get on board?