Minimum Wage Jobs are allowing Teenagers to afford Smartphones and Tablets

Posted by PITHOCRATES - April 12th, 2014

Week in Review

There’s a lot of talk about raising the minimum wage on the left.  As they are running out of ways to buy votes.  And they feel they can buy a lot by paying unskilled and inexperienced workers closer to what people with a college education make.  But minimum wage jobs are entry level jobs.  They’re the first rung on the career ladder.  The left loves to point to grown adults trying to raise their families on a minimum wage. As sad as that is the minimum wage isn’t supposed to raise families.  It can supplement a family’s income by allowing a parent to work part-time while the kids are at school.  But this is extra money.  To help cover some other expenses.  Like these (see More than 60% of U.S. teens have their own iPhone and iPad, prefer Apple products to the competition: study by AFP RELAXNEWS posted 4/9/2014 on the Daily News).

Over 60 percent of teenagers already own an iPhone and excitement is growing over the much-rumored launch of an ‘iWatch…’

… teens with an average age of 16.4 years and reveals that gadgets and electronics currently account for just 8 percent of their spending, with games systems and games accounting for a further 7 percent.

And of that small percentage, Apple products appear to account for the largest outlay. Not only do 61 percent of teens say that they own an iPhone (up from 55% in Spring 2013), 67 percent say they’re planning to purchase an iPhone within the next six months. And it’s a similar story with tablets. Piper Jaffray says that 60 percent of US teens currently own a tablet and of that group, 66 percent are using an iPad. When asked, 66 percent of non-tablet-owning teens have earmarked an iPad as a future purchase…

Over recent years, branded headphones have exploded in popularity and 56 percent of teens are planning to purchase a set over the next six months.

According to the BLS, approximately 2.5% of all workers earn at or below the minimum wage (people who get tips can be paid less than the minimum wage as their tips plus their wages takes them over the minimum wage).  And about a third of these workers are teenagers.   Yet over half of these teenagers can afford costly smartphones and tablets.  And the very expensive monthly cellular charges that make them work.  Also, over half of all teenagers are going to buy an expensive set of headphones.  Which can only mean one of 3 things.  The minimum wage is sufficient to buy all of these things.  They have a parent working a second (and perhaps, a minimum wage) job to help their kids pay for these.  Or 60% of all teenagers have rich parents.  Is it worth raising the cost of small business owners (who will hire fewer people when people are more costly) so about a third of all minimum wage workers can more easily afford their toys?

As far as single parents struggling to raise their family on a minimum wage, is it right to diminish the value of a higher education by paying unskilled and inexperienced workers more?  Will people still put in the extra work to get an education or training and delay having fun (our young people, not those who find themselves by circumstances beyond their control working a minimum wage job due to a divorce, death in the family, etc.) to earn the skills necessary for a higher paying job when they can get nearly the same amount by taking the easy way?  People say they hate these jobs.  Will paying them more so they have no incentive ever to leave these jobs make them hate them any less?  Or will they be locked into these miserable jobs for the rest of their miserable lives?  A lot of people take pay cuts to leave jobs they hate.  So getting paid more for a job they hate isn’t going to make them hate that job any less.

Raising the minimum wage is not going to change anything.  Other than reduce the amount of jobs available for the unskilled and inexperienced.  No.  The best way to help people earn more is to create more jobs.  For when the economy is creating jobs there will be fewer people available to fill them.  Which will cause employers to bid up wages so workers choose their jobs out of the many that are available.  But when the economy is so bad that only minimum wage, entry level jobs are available there will be few people moving up the career ladder.

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The BLS Employment Situation Summary for January 2014

Posted by PITHOCRATES - February 17th, 2014

Economics 101

The Unemployment Rate is 13.6% when you count all Unemployed Workers

The economy is getting better and better.  There are more new jobs.  And the unemployment rate continues to fall.  According to the Bureau of Labor Statistics (BLS).  But this is little succor for the 10,948,000 who have lost their job since President Obama began trying to make the economy better.  No matter what the BLS says (see the Employment Situation Summary posted 2/7/2014 on the Bureau of Labor Statistics).

Total nonfarm payroll employment rose by 113,000 in January, and the unemployment rate was little changed at 6.6 percent, the U.S. Bureau of Labor Statistics reported today.  Employment grew in construction, manufacturing, wholesale trade, and mining…

Among the major worker groups, the unemployment rates for adult men (6.2 percent), adult women (5.9 percent), teenagers (20.7 percent), whites (5.7 percent), blacks (12.1 percent),and Hispanics (8.4 percent) showed little change in January. The jobless rate for Asians was 4.8 percent (not seasonally adjusted), down by 1.7 percentage points over the year. (See tables A-1, A-2, and A-3.).

The number of long-term unemployed (those jobless for 27 weeks or more), at 3.6 million, declined by 232,000 in January. These individuals accounted for 35.8 percent of the unemployed. The number of long-term unemployed has declined by 1.1 million over the year.  (See table A-12.)

Once again there are more new jobs and the unemployment rate fell.  Further proof the Obama administration says that their policies are working.  But the low unemployment rate is misleading.  As there are 91,455,000 people who are no longer in the labor force (see Table A-1. Employment status of the civilian population by sex and age).  An increase of 10,948,000 since President Obama entered office.  The BLS doesn’t count these unemployed people as unemployed in their calculation of the official unemployment rate.  If you did that would raise the unemployment rate to 13.6%.  Which is a lot higher than the official 6.6%.  And better reflects public sentiment on the economy.

Ironically, the people hurt most by the Obama economic policies—teenagers, blacks and Hispanics—are also the biggest supporters of the president.  Which tells us they obviously support him for reasons other than the economy.  And apparently put those reasons above having a job.  At least based their respective unemployment rates.

If we count all Unemployed and Underemployed the Current Economic Recovery would take more than 20 Years

Of the people they actually count as unemployed about a third of them have been unemployed for 27 weeks or more.  So a large percentage of the unemployed are not suffering from frictional unemployment.  That brief period of unemployment between jobs.  No.  These people have lost their jobs.  And can’t find new ones.  While others can find only part-time jobs.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) fell by 514,000 to 7.3 million in January. These individuals were working part time because their hours had been cut back or because they were unable to find full-time work. (See table A-8.)

In January, 2.6 million persons were marginally attached to the labor force, little changed from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. (See table A-16.)

If you add the people up who want a full-time job but can’t get one that’s 9,900,000 who can’t find a full-time job.  If we only add 113,000 jobs a month it will take over 87 months to get these people the full-time jobs they want.  Or more than 7 years.  If we count the last 5 years of the Obama presidency it will take the economic recovery out to 12 years.  If we add the people who have left the labor force to the underemployed (the part-time workers looking for a full-time job) that would extend the economic recovery to 244 months.  Or more than 20 years.  Which is longer than the length of the economic recovery following the Great Depression.

The Obama administration still blames George W. Bush for causing the Great Recession.  But one thing they do say over and over is that it was the worst economic disaster since the Great Depression.  So they are saying that the Great Depression was worse than the Great Recession.  Yet the current economic recovery is on track to last longer than the economic recovery following the Great Depression.

President Obama’s Economic Recovery is on Course to be the Worst Economic Recovery in U.S. History

The Great Depression and the Great Recession share something in common.  In both the government used Keynesian economics to try and pull the nation out of the economic crisis.  With huge government stimulus spending.  You can see evidence of the FDR spending today.  Such as the Hoover Dam.  But you can see little evidence from President Obama’s stimulus spending.  For there are no Hoover Dams anywhere.  Just a lot of empty buildings that housed failed green energy industries.  With no new jobs to show for it.  Such as those good-paying jobs in the green energy industry that President Obama promised his stimulus spending would produce.  But, alas, it did not.  In fact, that’s just one thing this administration is not good at.  Creating jobs.  Even the jobs they created appear suspect.

Employment in manufacturing increased in January (+21,000). Over the month, job gains occurred in machinery (+7,000), wood products (+5,000), and motor vehicles and parts (+5,000). Manufacturing added an average of 7,000 jobs per month in 2013.

In January, wholesale trade added 14,000 jobs, with most of the increase occurring in nondurable goods (+10,000).

Mining added 7,000 jobs in January, compared with an average monthly gain of 2,000 jobs in 2013…

Employment in other major industries, including transportation and warehousing, information, and financial activities, showed little or no change over the month.

These numbers don’t make sense.  Much like Keynesian economics.  The economy created jobs in manufacturing (machinery, wood products, motor vehicles and parts).  Wholesale trade added jobs.  Mining added jobs.  But this new economic activity required no new financing.  Which is odd.  For it takes money to make money.  Also, there were no new jobs in transportation and warehousing.  Which begs the question.  What did they do with all the stuff they made from all those new manufacturing jobs?  Did it ever leave these factories?  Or is there another explanation?  Did the people who entered the labor force just replace people who left it?  For no net change?  Perhaps.

The manufacturing workweek declined by 0.2 hour to 40.7 hours, and factory overtime edged down by 0.1 hour to 3.4 hours.

Or perhaps this explains how they could add jobs in an industry that required no additional financing, transportation or warehousing.  Hiring new workers while shortening the workweek and cutting back on overtime.  Or a combination of this and people leaving the labor force to net out any economic gain from these new jobs.  Whatever the explanation is one thing is certain.  The economy is not improving.  And President Obama’s economic recovery is on track to be the worst economic recovery in U.S. history.  Despite the glowing jobs reports showing new job creation month after month.  And a continuing falling unemployment.  Things they can only show by not counting the 10 million or so who are no longer employed.

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Minimum Wage, Obamacare and Unintended Consequences

Posted by PITHOCRATES - February 3rd, 2014

Economics 101

The Affordable Care Act greatly increased the Cost of Unskilled and Inexperienced Workers

The Affordable Care Act has changed the employment landscape.  In particular it changed a lot of people from full-time employees to part-time employees.  Especially at entry-level jobs.  Or minimum wage jobs.  Jobs that may be physically demanding but require minimum skill or experience.  Making them ideal for unskilled and inexperienced teenagers entering the workforce.

Not everyone, though, is a teenager in these minimum wage, entry-level jobs.  Some adults find themselves in them, too.  Older adults.  Single parents.  Widows.  Widowers.  People whose circumstances have changed.  And who don’t have the skills or experience for other employment.  So they find themselves struggling to get by on their entry-level, minimum wage job.

Then the Affordable Care Act (i.e., Obamacare) made their struggle more difficult.  For it required employers to offer health insurance to anyone working 30 hours or more per week.  Greatly increasing the cost of unskilled and inexperienced teenagers.  And their other entry-level, minimum wage workers.  So they did the only logical thing.  They cut their hours below 30 hours per week.  Shrinking the paychecks of both teenager.  And those who are struggling to live on their minimum wage paychecks.

The Unintended Consequences of Obamacare changed Full-Time Workers to Part-Time

We call it unintended consequences.  When a government program to solve one problem creates another problem.  In an attempt to give people with insufficient income to buy health insurance Obamacare forced their employers to provide health insurance for them.  This caused employers to cut hours for these employees.  To keep the cost of their entry-level, minimum wage workers from rising.  Thus reducing their insufficient income even further.

The rollout of Obamacare did not go well.  In the effort to give people affordable health insurance a lot of people actually lost the health insurance they liked and wanted to keep.  Another unintended consequence.  (Unless the Democrats designed the Affordable Care Act to destroy the private health insurance industry as many believe then things are going exactly as planned as people may soon start demanding that the government step in and provide national health care).  Causing a bit of a problem for the political party that gave us Obamacare.  The Democrats.  In the upcoming midterm elections.

It’s one thing causing people with individual insurance policies to lose their health insurance that may or may not have voted for you.  But to further impoverish the impoverished working those entry-level, minimum wage jobs was another.  For thanks to endless class warfare the Democrats put the impoverished into the Democrat camp.  So they needed to do something to replace the income they lost when Obamacare changed them from full-time to part-time employees.  And chose further class warfare.  By forcing those ‘rich’ employers to pay their entry-level, minimum wage workers a ‘living wage’.  By increasing the federal minimum wage.

Obama wants to Raise the Minimum Wage to replace Earnings lost when Obamacare made Full-Time Workers Part-Time

In the State of the Union address President Obama said he wanted to raise the federal minimum wage to $10.10.  But why $10.10?  The current federal minimum wage is $7.25.  And if you earned that working 40 hours each week for 50 weeks (assuming you take 2 weeks off over the year for personal reasons, holidays and vacations) that comes to $14,500 per year.  Raising the minimum wage to $10.10 brings those annual earnings to $20,200.  Or $5,700 more at the higher wage rate.  It’s a lot of money.  But probably not enough for someone to quit a second job.  For if someone is working 20 hours a week at a second job that would come to an additional $7,250 a year.  If they work 30 hours a week in a second job that would come to an additional $10,875 a year.  And some people have to work 70 hours or more a week to approach a ‘living wage’ when they don’t have the skills or experience for a job that pays more than an entry-level, minimum wage job.  So raising the minimum wage to $10.10 an hour probably won’t solve everyone’s financial woes.  But it will do something else.

If people who were working 40 hours a week went to working only 29 hours a week after Obamacare they would lose 11 hours of pay.  At the current minimum wage that comes to $79.75 less in their paycheck each week.  A significant amount for someone struggling to make it on something less than a ‘living wage’.  But look at what happens when we raise the minimum wage to $10.10 for those 29 hours.  If we multiply the additional $2.85 per hour to those 29 hours that comes to an additional $82.65 a week.  Which is a little more than the $79.75 they lost when Obamacare cut their hours.  So it would appear that the new push to raise the minimum wage to $10.10 is to put the money the Obama administration took out of these workers’ paychecks back into their paychecks before the fall midterm elections.  So they still won’t be angry and vote Republican because of what the Democrats and their Affordable Care Act did to their paychecks.

They want to sound compassionate to those with insufficient income by wanting to raise the minimum wage to replace what they took away from them with Obamacare.  To give these people a ‘living wage’.  For the current minimum wage is actually worth about 20% less than it was during the Reagan administration.  When it was $3.35.  Wait a minute, you say.  How can $7.25 be worth less than $3.35?  Because of the Democrats’ embrace of Keynesian economics.  The government wants to print money to spend.  To provide economic activity when the private sector is not.  And when President Nixon decoupled the dollar from gold in 1971 they ramped up those printing presses.  And have been depreciating the dollar ever since.  Because they made the dollar worth less and less over the years the purchasing power of the federal minimum wage fell.  Even when people were earning more dollars.  And raising the minimum wage won’t address this problem.  Only voting the Keynesians out of office will.

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October 2013 Employment Situation Summary

Posted by PITHOCRATES - November 11th, 2013

Economics 101

Although there were 204,000 New Jobs in October 720,000 Workers left the Labor Force

The worst economic recovery since that following the Great Depression continues (see Employment Situation Summary by the Bureau of Labor Statistics posted 11/8/2013).

Total nonfarm payroll employment rose by 204,000 in October, and the unemployment rate was little changed at 7.3 percent, the U.S. Bureau of Labor Statistics reported today…

Both the number of unemployed persons, at 11.3 million, and the unemployment rate, at 7.3 percent, changed little in October…

The civilian labor force was down by 720,000 in October.

If the Obama administration was an employment agency that found people jobs someone would have fired the management team by now with numbers like this.  204,000 new jobs for 11.3 million unemployed people is a success rate of 1.81%.  Worse, although there were 204,000 new jobs 720,000 workers left the labor force.  Which means that for every new job we lost 3.5 existing jobs.  So for one step forward in fixing the economy the administration takes 3.5 steps backwards.  Which means we’re moving in the wrong direction with the economy.

After a near-trillion dollar stimulus bill and quantitative easing up the wazoo what do we have to show for it?  Not a whole hell of a lot.  Other than more debt.  And inflationary pressures just waiting to be unleashed.  Taking us back to the stagflation and misery of the Seventies.  The heyday of Keynesian economics.

Solid Economic Growth starts at Raw Material Extraction

Before John Maynard Keynes gave us Keynesian economics the economy hummed along based on classical economic principles.  Including, but not limited to, thrift.  Savings.  Investment.  A sound banking system.  And a strong currency.  People saved their money.  Banks accumulated their savings into investment capital.  Banks made this capital available to investors.  And interest rates were determined by our savings rate.  The more we saved (i.e., the more thrifty we were) the lower interest rates were.  These are the economic principles that made the United States the number one economy in the world.

Another key concept of classical economics is the stages of production.  From the extraction of raw materials to manufacturing to wholesale goods to retail goods.  In a healthy economy there is growth at all stages.  And solid economic growth starts at raw material extraction.  For this feeds manufacturing.  Which feeds wholesale goods.  Which feeds retail goods.  Where consumers spend their money.  The fatal flaw of Keynesian economics is that it focuses only on consumer spending.  Not at these higher-order stages of production.  And when Keynesians try to end a recession while ignoring them they fail.  And get job numbers like these.

Employment in retail trade increased by 44,000 in October, compared with an average monthly gain of 31,000 over the prior 12 months…

Manufacturing added 19,000 jobs in October, with job growth occurring in motor vehicles and parts (+6,000), wood products (+3,000), and furniture and related products (+3,000). On net, manufacturing employment has changed little since February 2013…

In October, employment showed little or no change elsewhere in the private sector, including mining and logging, construction, wholesale trade, transportation and warehousing, information, and financial activities.

This is not the picture of an improving economy.  Consumers are spending money.  Thanks to low interest rates and a record amount of government benefits.  But the economic activity is greatest at the consumer level.  As evidenced by the largest increase in jobs at the retail level.  There are fewer job gains at manufacturing.  And even less at the whole sale level and raw material extraction.  Meaning the new economic activity is greatest at the consumer level.  Because of cheap (and free) money.  But there are no new jobs at the highest stage of production.  Raw material extraction.  Because they see no real economic recovery.  Only Keynesian ‘hot’ money that will cause a surge in consumer spending.  And a surge in inflation.  Leading to a continued sluggish economic recovery.  Or a fall back into recession.  And the last thing they want should that happen is higher costs.  Or more debt.  So they don’t spend more or invest during periods of Keynesian stimulus.

President Obama’s Greatest Supporters are suffering some of the Greatest Unemployment

The October 2013 Employment Situation Summary paints a grim economic picture.  People continue to leave the labor force.  And the government’s efforts to stimulate economic activity isn’t stimulating anything above the consumer level.  As the higher stages of production fear the coming inflation.  And possible recession.  This after 5 years of President Obama’s Keynesian economic policies.  Further proving the futility of Keynesian economics.  And the failure of the Obama administration.  Whose policies have stalled new hiring.  And pushed people from full-time to part-time.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was little changed at 8.1 million in October. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

Those individuals who had their hours cut or can’t find a full-time job are in large part due to the Affordable Care Act (Obamacare).  Which is not only destroying any economic recovery.  But the Affordable Care Act is also making health insurance unaffordable.  Which will make these economic numbers worse as the carnage spreads to employer-provided health insurance.  As people will have to both pay for health insurance AND pay for all of their health care out-of-pocket thanks to those high deductibles.  Which won’t help the unemployment numbers.  For as consumer spending falls so does hiring.

Among the major worker groups, the unemployment rates for adult men (7.0 percent), adult women (6.4 percent), teenagers (22.2 percent), whites (6.3 percent), blacks (13.1 percent), and Hispanics (9.1 percent) showed little or no change in October. The jobless rate for Asians was 5.2 percent.

It is interesting, or rather ironic, that the president’s greatest supporters are suffering some of the greatest unemployment.  Teenagers.  Blacks.  And Hispanics.  Who seem to never lose their faith.  No matter how much President Obama’s policies favor old white men and women.  And Asians.  It’s not for the lack of spending, either.  For the Obama administration has spent more domestically than any other president.  But it is only his rich Wall Street cronies who are doing well.  And other rich people.  Not the rank and file Obama supporters.  Yet they remain Obama supporters.  So far, at least.  These continual bad job numbers AND the unaffordable Affordable Care Act may change things.  Especially when these continue to fall disproportionally on teenagers, blacks and Hispanics. 

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The Unemployment Rate and the Labor Force Participation Rate tell Two Different Stories

Posted by PITHOCRATES - July 7th, 2013

Week in Review

The June jobs report is out.  And already they’re putting a positive spin on it.  Because of the new jobs reported in June.  But that’s about as far as anyone wants to dig into the report.  For the rest of it is rather dismal (see Employment Situation Summary posted 7/5/2013 on Bureau of Labor Statistics).

Total nonfarm payroll employment increased by 195,000 in June, and the unemployment rate was unchanged at 7.6 percent, the U.S. Bureau of Labor Statistics reported today. Employment rose in leisure and hospitality, professional and business services, retail trade, healthcare, and financial activities.

Yeah.  195,000 new jobs.  This was better than expected.  And the markets rallied.  While the Obama administration made the perfunctory statement that their economic policies are working.  Eternal optimists.  Never willing to admit that it is their economic policies that have given us the worst economic recovery since that following the Great Depression.  What with things like Obamacare causing a nationwide freeze on new hiring.  And their war on fossil fuels raising energy costs.  Further strangling business growth.  It’s all there in the Employment Situation Summary.  If you read further down the report.

Among the major worker groups, the unemployment rate for adult women (6.8 percent) edged up in June, while the rates for adult men (7.0 percent), teenagers (24.0 percent), whites (6.6 percent), blacks (13.7 percent), and Hispanics (9.1 percent) showed little or no change. The jobless rate for Asians was 5.0 percent (not seasonally adjusted), down  from 6.3 percent a year earlier. (See tables A-1, A-2, and A-3.)

Interestingly, strong supporters of President Obama in the last election (women, teenagers, blacks and Hispanics) either have rising unemployment rates (women) or unchanged unemployment rates that are well above the national average (teenagers, Hispanics and blacks).  The president may talk about being the guy for them.  But his actions sure would suggest otherwise

In June, the number of long-term unemployed (those jobless for 27 weeks  or more) was essentially unchanged at 4.3 million. These individuals  accounted for 36.7 percent of the unemployed. Over the past 12 months,  the number of long-term unemployed has declined by 1.0 million. (See table A-12.)

The civilian labor force participation rate, at 63.5 percent, and the employment-population ratio, at 58.7 percent, changed little in June. Over the year, the labor force participation rate is down by 0.3 percentage point. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) increased by 322,000 to 8.2 million in June. These individuals were working part time because their  hours had been cut back or because they were unable to find a full-time job. (See table A-8.)

In June, 2.6 million persons were marginally attached to the labor force, essentially unchanged from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. (See table A-16.)

Among the marginally attached, there were 1.0 million discouraged workers in June, an increase of 206,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.6 million persons marginally attached to the labor force in June had not searched for work for reasons such as school attendance or family responsibilities. (See table A-16.)

So there were 195,000 new jobs in June.  But there is still a net loss of jobs over the year as the labor force participation rate fell by 0.3 percentage points.  Meaning that there were fewer people in the labor force in June than there were in January.  Because the job market is so bad people are discouraged and give up trying to find a full-time job.  Work a couple of part-time jobs instead.  Live on their spouse’s income.  Or on their retirement nest egg.  The Obama administration and their economists and the mainstream media talk about positive signs with every jobs report.  That we’re turning the corner.  That the president’s economic policies are working.  But they’re not.  As you can see if you look at the official (U-3) unemployment rate and the labor force participation rate since he’s been president (the following numbers were pulled from the Bureau of Labor Statistics).

U-3 Unemployment Rate and Labor Force participation Rate 2009-2013 R1

The economic numbers show a decline in the official (U-3) unemployment rate starting sometime in 2010.  But it wasn’t because of an improving economy.  It was because people were just disappearing from the labor force.  For the fall in the labor force participation rate is GREATER than the fall in the unemployment rate.  That is, even though the official unemployment rate showed more people were entering the labor force (i.e., fewer people unemployed) the labor force participation rate showed an even greater number of people leaving the labor force.  (Note: If both graphs were plotted on the same vertical axis the graphs would have nearly the same slop.  Perhaps with the unemployment rate falling at a slightly greater rate.  However, because the actual number of people working far exceeds the number of people unemployed each percentage point move in the labor force participation rate represents a far greater number of people than each percentage point move in the unemployment rate.  So the above graph shows the trend in the number of people more accurately than it does in the percentage of the totals of each data set.  That is, there are more people who have lost a full-time job than have found a full-time job.)  Throughout the Obama presidency the economy has been getting worse.  Not better.  So there is nothing to cheer about in this jobs report.  Or in the many to come.

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British Doctors want more Alcohol Regulations to reduce the Cost of Alcohol Misuse

Posted by PITHOCRATES - March 3rd, 2013

Week in Review

Early Americans really had a drinking problem.  Some drank so heavily that they had to crawl home on their hands and knees after a night of drinking in the tavern.  Of course that was to be expected.  For we came from British stock.  Who apparently have a penchant for drinking to great excess (see Doctors: urgent action on alcohol needed by Denis Campbell posted 2/28/2013 on the guardian).

Doctors’ leaders want tough action to limit the sale and promotion of alcohol, including cigarette-style graphic warnings and an end to drinks firms sponsoring sport, to tackle the growing toll of drink-related problems.

A coalition of medical organisations, including those representing GPs, A&E doctors and surgeons, urges ministers in a new report to implement an array of radical measures to reduce the £55bn annual cost of alcohol misuse…

Sir Ian Gilmore, the AHA’s chair, said action was especially urgent given that UK teenagers drink much more than the European average…

But the Department of Health said: “Cigarette-style health warnings are not applicable to alcohol. All levels of smoking are bad for your health, but the same cannot be said for alcohol consumption.”

Yes, UK teenagers have a drinking problem.  Requiring them to spend £55bn ($82.72 billion US) annually due to alcohol misuse.  Which they want to reduce with higher minimum prices, more graphic labeling and lower legal blood-alcohol amounts while driving.  But it’s the labeling that I find most interesting.  For we label our cigarettes in the U.S. with dire warnings about what will happen to you if you smoke.  But teenagers don’t care.  Why?  Because smoking looks cool.  Their Hollywood icons smoke in their favorite movies.  As do their music icons.  And nothing looks cooler to a teenager than a guy playing a low-slung guitar with a cigarette hanging out of his mouth.  So teenagers want to smoke.  Because it makes them look cool.  And grown up.  Despite the horrific labeling on the packaging.

So is labeling on alcohol going to do any good?  When even teenagers know that all smoking is bad for you but not necessarily all drinking?  For their parents may have a drink after work.  A bottle of wine with their dinner.  And they seem to be just fine.  So teenagers aren’t going to worry that much about drinking.  And they may not worry that much about smoking anymore.  For even though we say all smoking is bad for you two states have decriminalized marijuana.  And you smoke that.  Something that many teenagers really enjoy.  And marijuana cigarettes don’t have filters.  All of that smoke goes right into your lungs.  Teenagers know this.  And if two states say that’s okay for you then maybe cigarette smoking isn’t really that bad for you.  After all smoking regular cigarettes isn’t as damaging as smoking marijuana.  Where a lot of smoke, soot and ash make it into your lungs.  Stuff that a filter in a regular cigarette filters out.

Sure, to a wise adult this doesn’t make any sense.  But to a teenager who wants to look cool and grown up it makes a lot of sense.  For teenagers can rationalize away any risky or harmful behavior if it’s something they enjoy.  Or makes them look cool and grown up.

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