Dale Franks’ QandO posts
As I expected, the official unemployment numbers showed little change from last month. The big spikes in private-sector unemployment came at the end of September. The government’s statistical collection period ends in the middle of the month, however, so all of that was missed by the official number. And today’s release is the last one prior to the election.
Still, it can’t be said that this is a good number, with the official rate hovering at 9.6%.
My personal calculation of the unemployment rate, using the historical average of labor force participation, shows the rate of unemployment also holding steady at 13.2%.
According to Gallup’s private read on unemployment, we currently stand with an unemployment rate of 10.1%. Gallup says:
Unemployment, as measured by Gallup without seasonal adjustment, increased to 10.1% in September — up sharply from 9.3% in August and 8.9% in July. Much of this increase came during the second half of the month — the unemployment rate was 9.4% in mid-September — and therefore is unlikely to be picked up in the government’s unemployment report on Friday.
The government’s final unemployment report before the midterm elections is based on job market conditions around mid-September. Gallup’s modeling of the unemployment rate is consistent with Tuesday’s ADP report of a decline of 39,000 private-sector jobs, and indicates that the government’s national unemployment rate in September will be in the 9.6% to 9.8% range. This is based on Gallup’s mid-September measurements and the continuing decline Gallup is seeing in the U.S. workforce during 2010.
So, when looking at the numbers we have from ADP, showing a 39,000 job loss for the month, plus the sharp spike upward in the last half of September, tomorrow’s unemployment figures from the BLS will miss most of the job losses, and will show a national unemployment rate that is smaller than it truly is.
U.S. District Court Judge George Steeh has ruled that the individual mandate to purchase health insurance is a constitutional exercise of Congress’ power under the commerce clause.
The plaintiffs have not opted out of the health care services market because, as living, breathing beings, who do not oppose medical services on religious grounds, they cannot opt out of this market…
As inseparable and integral members of the health care services market, plaintiffs have made a choice regarding the method of payment for the services they expect to receive. The government makes the apropos analogy of paying by credit card rather than by check. How participants in the health care services market pay for such services has a documented impact on interstate commerce…
Obviously, this market reality forms the rational basis for Congressional action designed to reduce the number of uninsureds.
The Supreme Court has consistently rejected claims that individuals who choose not to engage in commerce thereby place themselves beyond the reach of the Commerce Clause. See, e.g., Raich, 545 U.S. at 30 (rejecting the argument that plaintiffs’ home-grown marijuana was “entirely separated from the market”); Wickard, 317 U.S. at 127, 128 (home-grown wheat “competes with wheat in commerce” and “may forestall resort to the market”); Heart of Atlanta Motel v. United States, 379 U.S. 241 (1964) (Commerce Clause allows Congress to regulate decisions not to engage in transactions with persons with whom plaintiff did not wish to deal).
The logical extensions of this ruling, if it were to stand, are obvious. For instance, since everyone inevitably dies, Congress can require you to purchase life insurance, or a pre-paid funeral services. Similarly, we all eat, wear clothes, etc.
Essentially, this decision gives power the Congress to regulate practically any area of human necessity.
Here’s something I’ve been re-reading a lot, lately:
Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security.
If you use Google Chrome, you may have noticed a horrific security warning that the Blogrolling RPC script is running malware. As of today, you’ll notice that the warning no longer appears. We’ve used Blogrolling for years to generate the links for the Bear Flag League and Old Dominion Blog Alliance. Those Blogrolling links have now been removed.
Tucows, the owner of Blogrolling, has also noticed these problems. Sadly, they’ve decided that it would cost too much to fix the malware and security problems. As a result, Blogrolling will be shut down completely. This is sad, because Blogrolling was really the first useful link aggregator for managing blogrolls. Now, it seems the march of technology has passed it by. I don’t know how blog alliance links will be managed in its absence.
If you are a blogger, and you use Blogrolling, you should be formulating your plans for how you are going to replace it.
…for as long as your health care plan exists, anyway. Which, for retirees of the 3M corporation, it no longer will. It seems that the passage of Obamacare has prompted 3M to join the rush for the door in terms of providing health care coverage.
As we’ve noted repeatedly here, the claims that you could keep your health care plan and physician could not possibly be true, as the “reform” package set up perverse incentives. What we are seeing is precisely what we predicted. Corporations and insurers are responding to Obamacare’s incentives by getting out of the health insurance business. Because that’s what the law’s incentives urge them to do.
It really is one of the most basic principles of economics: people respond to incentives.
The Obama administration is considering requiring US car makers to meet a CAFE requirement of 62 MPG by 2025. That is, of course how progress usually works: A beneficent, wise, all-knowing, government authority makes a decree, and the world magically changes to accommodate the desires of our political overlords.
Of course, it’s perfectly possible to make 62 MPG cars now. They just have to have tiny engines, and be extremely small and light. Who wouldn’t want that?
On the other hand, maybe steam-powered vehicles will make a big comeback.
Pending sales of existing homes rose 4.5% last month. They’re still 18% lower than the same month last year, however.
Factory orders declined for the third time in for months. Orders decreased by 0.5% to $408.94 billion, the Commerce Department reported. The decline was led by a 1.5% decrease in durable goods orders.
However, capital good orders rose more than expected. Orders for non-military capital goods, excluding aircraft, rose by 5.1%.
In this podcast, Bruce, Michael, and Dale discuss the Meg Whitman controvery in California, public pensions, and Obamacare.
The direct link to the podcast can be found here.
As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2009, they can be accessed through the RSS Archive Feed.
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Gov. Schwarzenegger has signed marijuana decriminalization bill. Now, one ounce or less of pot is a ticket infraction only. No court date, no arrest record.
In 32 days, we’ll see if the voters want to legalize it completely.
Principal Financial exits the health insurance business due to Obamacare. “You can absolutely keep your health insurance plan!”
Right. For as long as it exists.