Initial jobless claims rose 68,000 to 368,000. The 4-week average rose 6,000 to 328,750, while continuing claims rose 40,000 to 2.791 million. It’s the holiday period, though, so a lot of this wild swing probably comes from wonky seasonal adjustments.
Retail sales rose 0.7% in November. Less autos, sales were up 0.4%, and up 0.6% less autos and gas.
Export prices rose 0.1% in November, while import prices fell -0.6%. On a year-over-year basis, export prices are down -1.6% and import prices have fallen -1.5%.
The Bloomberg Consumer Comfort Index rose to -30.9 in the latest week, having risen 7 points since November.
Business inventories rose 0.7% in October, while a 0.5% increase in B2B sales left the stock-to-sales ratio unchanged at 1.29.
Information services revenue rose 1.1% in the 3rd quarter, and is up 4.9% on a year-to-year basis.
The Producer Price Index fell -0.1% in November, and rose 0.1% less food and energy. On a year-over-year basis, the PPI is up 0.7%, and up 1.3% less food and energy.
The Fed’s balance sheet rose a sharp $61.3 billion last week, with total assets of $3.994trillion. Reserve Bank credit increased $21.1 billion.
The Fed reports that M2 money supply rose by $1.7 billion in the latest week.
It’s hard to describe this blinding stupidity as anything other than … well, blindingly stupid. I think this one sentence encapsulates the #Fail quite nicely:
This is a good moment to advocate greater executive branch power because we’ve just seen a monumental example of executive branch incompetence: the botched Obamacare rollout.
If you think Brooks is trying to get all counter-intuitive on you (a la Thomas Friedman’s wistful longing for Chinese authoritarianism), think again. It’s just full on stupidity.
Brooks’ argument is that Congress is too beholden to the “rentier groups” (i.e. moneyed interest groups and lobbyists) and that the judiciary is too involved in the process:
In the current issue of The American Interest, Francis Fukuyama analyzes this institutional decay. His point is that the original system of checks and balances has morphed into a “vetocracy,” an unworkable machine where many interests can veto reform.
First, there is the profusion of interest groups. In 1971, there were 175 registered lobbying firms. By 2009, there were 13,700 lobbyists spending more than $3.5 billion annually, and this doesn’t even count the much larger cloud of activist groups and ideological enforcers.
Then there is the judicial usurpation of power. Fukuyama writes, “conflicts that in Sweden or Japan would be solved through quiet consultations between interested parties through the bureaucracy are fought out through formal litigation in the American court system.” This leads to uncertainty, complexity and perverse behavior.
After a law is passed, there are always adjustments to be made. These could be done flexibly. But, instead, Congress throws implementation and enforcement into the court system by giving more groups the standing to sue. What could be a flexible process is turned into “adversarial legalism” that makes government more intrusive and more rigid.
In other words, because the power to form laws is relatively disbursed amongst constituents, elected officials and the court system, gridlock happens sometimes and that’s just totally unacceptable. Because, heaven knows that if Congress isn’t cranking out new laws at a fast enough pace, the world will end. (That seems to be the meme going around anyway.)
So what would be the benefits of more powerful Executive branch?
Here are the advantages. First, it is possible to mobilize the executive branch to come to policy conclusion on something like immigration reform. It’s nearly impossible for Congress to lead us to a conclusion about anything. Second, executive branch officials are more sheltered from the interest groups than Congressional officials. Third, executive branch officials usually have more specialized knowledge than staffers on Capitol Hill and longer historical memories. Fourth, Congressional deliberations, to the extent they exist at all, are rooted in rigid political frameworks. Some agencies, especially places like the Office of Management and Budget, are reasonably removed from excessive partisanship. Fifth, executive branch officials, if they were liberated from rigid Congressional strictures, would have more discretion to respond to their screw-ups, like the Obamacare implementation. Finally, the nation can take it out on a president’s party when a president’s laws don’t work. That doesn’t happen in Congressional elections, where most have safe seats.
Note the two “advantages” I’ve bolded. It’s as if things like Solyndra fiasco and the IRS targeting of conservatives never happened.
Lest there be any confusion about Brooks’ prescription, he sums it up as thus:
So how do you energize the executive? It’s a good idea to be tolerant of executive branch power grabs and to give agencies flexibility. We voters also need to change our voting criteria. It’s not enough to vote for somebody who agrees with your policy preferences. Presidential candidates need to answer two questions. How are you going to build a governing 60 percent majority that will enable you to drive the Washington policy process? What is your experience implementing policies through big organizations?
We don’t need bigger government. We need more unified authority. Take power away from the rentier groups who dominate the process. Allow people in those authorities to exercise discretion. Find a president who can both rally a majority, and execute a policy process.
At least he’s being honest about what the political and chattering classes truly want. As an added bonus, Brooks has inspired a better description of his cant than “blindingly stupid”: contemptible.
The MBA reports that mortgage applications rose 1.0% last week, with purchases up 1.0% and refinancings up 2.0%.
The Treasury reports that the government’s budget deficit was $-135 billion in November, compared to $-172 billion last November.
Barack Obama is a failed president:
Barack Obama is facing poll numbers that are now in the same territory as President George W. Bush’s following Hurricane Katrina.
The Quinnipiac University Polling Institute released numbers on Tuesday showing that just 38 per cent of registered voters approve of the job Obama is doing as president, with a whopping 56 per cent saying they disapprove.
The president has lost his landslide electoral edge among young voters, too, with a negative 41–49 per cent rating among 18- to 29-year-old voters. His once formidable support among Hispanics has also evaporated: They now support him by an historically small 50–43 per cent margin.
Worse for Obama’s fast-approaching legacy-building years, the public believes he is not ‘honest and trustworthy,’ by a 52–44 per cent score. A smaller majority, 51 per cent, said he lacks ‘strong leadership qualities.’
Respondents said by a 41–38 per cent gap that they would vote for a Republican over a Democrat for the U.S. House of Representatives, the first time this year Democrats have had a winning posture in the Quinnipiac poll.
And what is he engaged in doing? Embarrassing the US taking “selfie” photos at a funeral.
The amazing lightness of being clueless.
The NFIB Small Business Optimism Index rose a point to 92.5 in November.
In weekly retail sales, Redbook reports a weak 2.6% increase from the previous year. ICSC-Goldman shows weakness, as it reports a weekly sales drop of -1.6%, and a 1.5% increase on a year-over-year basis.
Wholesale inventories rose a very sharp 1.4% increase in October, but a 1.0% rise in sales kept the stock-to-sales ratio unchanged for a third month at 1.18.
That’s primarily what politicians seem to want to do despite protestations to the contrary by some. They’re always looking for a new “revenue stream”. And since tax payers are the only folks who actually pay taxes, they’re constantly dreaming up new ways to “access” your wallet.
Rep. Earl Blumenauer (D-Ore.) on Tuesday reintroduced legislation that would require the government to study the most practical ways of taxing drivers based on how far they drive, in order to help fund federal highway programs.
Blumenauer’s bill, H.R. 3638, would set up a Road Usage Fee Pilot Program, which he said would study mileage-based fee systems. He cast his bill as a long-term solution for funding highway programs, and proposed it along with a shorter-term plan to nearly double the gas tax, from 18.4 cents to 33.4 cents per gallon.
“As we extend the gas tax, we must also think about how to replace it with something more sustainable,” Blumenauer said Tuesday. “The best candidate would be the vehicle mile traveled fee being explored by pilot projects in Oregon and implemented there on a voluntary basis next year.”
Because, you know, taxpayers paid for the highways, taxpayers have funded the maintenance of the highways and now they should pay for the privilege of driving on them as well. So, many single moms, who can barely afford gas for the car, will likely be paying by the mile to go to work (as with most of these stupid schemes, the one’s who can afford it the least will get hit the hardest by it).
Brilliant! Aw, what the heck, they can take public transportation, huh?
And what about privacy? What business is it of government how far you drive. One assumes they’ll be able to verify your mileage somehow, no? Do you really think it will be up to you to voluntarily keep records and report to the government? Of course not. So somehow the system has to be able to track you and tally mileage.
In 2011, the Congressional Budget Office (CBO) released a study that explored how a VMT system might work. That report suggested devices could be fitted onto cars that log how far they have traveled, and these devices could be electronically read at gas stations to general tax bills for drivers.
That’s what I want … a government tracking device on my car.
Where’s Orwell when you need him?
First let me thank all the great QandO readers who sent their condolences upon my brother’s passing. They are greatly appreciated.
Now on to the nasty business of government and politics – in particular, the abominable law called ObamaCare:
An estimated seven out of every 10 physicians in deep-blue California are rebelling against the state’s Obamacare health insurance exchange and won’t participate, the head of the state’s largest medical association said.
“It doesn’t surprise me that there’s a high rate of nonparticipation,” said Dr. Richard Thorp, president of the California Medical Association.
Why? Because doctors refuse to work for a pittance. They provide something of value and believe they should be compensated accordingly. But with price fixing by the government, they’re just not going to get their just compensation. So they’re not going to play the game and join in.
California offers one of the lowest government reimbursement rates in the country — 30 percent lower than federalMedicare payments. And reimbursement rates for some procedures are even lower.
In other states, Medicare pays doctors $76 for return-office visits. But in California, Medi-Cal’s reimbursement is $24, according to Dr. Theodore M. Mazer, a San Diego ear, nose and throat doctor.
In other states, doctors receive between $500 to $700 to perform a tonsillectomy. In California, they get $160, Mazer added.
Only in September did insurance companies disclose that their rates would be pegged to California’s Medicaid plan, called Medi-Cal. That’s driven many doctors to just say no.
In fact, as pointed out above, only 30% of the state’s doctors have opted in.
Gee, let’s see the left take the doctor’s side here, okay? Aren’t they the ones always wanting the raise the “minimum wage”. Well, as is obvious here, the “wage” offered is below the “minimum” doctors believe they should be payed. The left ought to be out in the street in protest of this travesty.
Higher pay for doctors! After all, most of them are small business owners and … oh, wait, that makes them the bad guys. I forgot. The left isn’t going to protest this because these guys are privileged or something. Nevermind the fact they provide jobs for others and can’t pay them more than they receive.
I’m sure trying to think this through and come to an equitable solution will shred a few brains on the left.
This week, Michael and Dale talk about Nelson Mandela and police militarization.
The direct link to the podcast can be found here.
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This will be a catch-up entry, as I was unable to do yesterday’s statistics, due to my evening management class.
Only about 10 chain stores still post monthly results any more. Mostly, they report a weak November.
Layoff announcements continue to run at 2-year highs, at 45,314 in November vs 45,730 in October.
Gallup’s US Payroll to Population employment rate was steady at 43.7%.
The first revision of Q3 GDP came it at a 3.6% annualized rate. Sadly, this was almost all due to inventory accumulation. Final sales were actually revised downwards to 1.9%. The GDP price index came in at 2.0%.
Weekly initial jobless claims fell 23,000 to 298,000. The 4-week moving average fell 9,500 to 322,250. Continuing claims fell 21,000 to a recovery low of 2.744 million.
The Bloomberg Consumer Comfort Index rose 2 points to -31.3 this week.
Factory Orders fell -0.9% in October. Ex-transportation orders were unchanged.
The Fed’s balance sheet rose $6.8 billion last week, with total assets of $3.933 trillion. Reserve Bank credit increased $2.2 billion.
The Fed reports that M2 Money Supply increased by $15.4 billion last week.
The BLS reports that 203,000 net new jobs, while the unemployment rate fell to 7.0%. Average hourly earnings rose 0.2%, while the average workweek rose 0.1 hours to 34.5 hours. The labor force participation rate rose 0.2% to 63%, as an additional 818,000 persons entered the labor force. The number of unemployed fell by –365,000, while the number of persons not in the labor force fell by -268,000. Using the historical average labor force participation rate, the real rate of unemployment is 11.54%.
The University of Michigan’s Consumer Sentiment index for December rose a sharp 7.4 points to 82.5.
Consumer credit rose a sharp $18.2 billion in October.
There’s been much discussion amongst the punditry about the precipitous decline in Pres. Obama’s poll numbers. The fact that his RCP average has dropped below 40% for the first time, or that Hispanics and white women have seemingly soured on Obama and the Democrats, is causing much buzz. Most alarming, are the numbers on millenials:
Young Americans are turning against Barack Obama and Obamacare, according to a new survey of millennials, people between the ages of 18 and 29 who are vital to the fortunes of the president and his signature health care law.
The most startling finding of Harvard University’s Institute of Politics: A majority of Americans under age 25–the youngest millennials–would favor throwing Obama out of office.
Obama’s approval rating among young Americans is just 41 percent, down 11 points from a year ago, and now tracking with all adults. While 55 percent said they voted for Obama in 2012, only 46 percent said they would do so again.
When asked if they would want to recall various elected officials, 45 percent of millennials said they would oust their member of Congress; 52 percent replied “all members of Congress” should go; and 47 percent said they would recall Obama. The recall-Obama figure was even higher among the youngest millennials, ages 18 to 24, at 52 percent.
To be sure, these numbers don’t bode well for the survival of Obamacare, or for the Democrats chances in 2014. But I don’t think they necessarily mean that the GOP will reap the benefits.
For example, with respect to younger voters, Kristen Soltis Anderson makes some interesting points over at The Daily Beast:
The way young voters feel about Obama doesn’t just matter in 2014 or even 2016. Despite the conventional wisdom that young voters don’t matter in politics, the way a voter first looks at politics when they come of age resonates throughout their voting behavior through their lifetimes. Just last month, Pew Research Center released a study showing that if you came of age under Nixon, you’re more likely to vote Democratic, even to this day. Came of age during the Reagan years? You’re still more likely to lean Republican.
Harvard rolled out a chart of party identification by age, which showed that in November 2009, some 43 percent of those aged 18-24 called themselves Democrats. Four years later, that has fallen to 31 percent. A huge drop to be sure, but that doesn’t mean people were necessarily changing their minds; it mostly means last election cycle’s bright-eyed kiddo has had a few birthdays. Our gender and race don’t change much year to year, but each of us is constantly moving up in our age bracket. And sure enough, when you look at the Harvard survey’s 25-29 year olds, they’re as Democratic as ever.
That doesn’t mean that this block of voters won’t ever change their minds and views, but it does suggest that, however low their opinion of the Democrats and their leader is now, they are more likely to remain loyal to that party and change it from within.
Another way to look at this is, those who voted for Obama because they wanted to see the ACA enacted and implemented, among other changes he promised, are going to suddenly change their minds about state vs. market solutions just because of a failed implementation. If anything, they are likely to seek out more capable technocrats as their political leaders, and to express greater interest in single-payer health care.
Even so, Anderson makes another great point, i.e. that not all millenials are the same:
To better understand what’s happening with today’s “youth vote,” first consider this fact: someone who turned eighteen on election day last year would have been just six years old on September 11, 2001. They would have been eighth graders during Obama’s first election.
I’ll violate some rules of decorum here by revealing my age: I am 29 years old. I’m a few short months away from aging out of “the youth vote” entirely. And I have about as much in common with today’s high school seniors as I do with my own parents. We researchers and pundits lump 18-year-olds and 29-year-olds into the same bucket when we talk about the “youth vote,” but the truth is that the back end of the “Millennial” generation has little memory of “hope and change” at all.
In short, provided that the GOP can deliver a compelling alternative to the Democrats, it’s possible that they can pick up some of those young voters. Of course, they aren’t called the stupid party for nothing, so don’t expect much on this front.