If we are creating jobs, why is unemployment so high?
Workout note
Yoga, then an easy 1:07 run (I’ll call it 10K): the river course near the riverplex plus 3 goose loop laps and the out and back under the I-74 bridge. I tried to keep a reasonable turn over but my legs were a bit heavy. Cool and damp.
Economy
The jobs report shows that we are adding jobs.

(from here)
Still, unemployment is stuck at 9 percent or so. Why? Answer: the population is growing and we need enough new jobs to keep up for new work seekers.
For comparison, look at the jobs chart over a long period of time (starting at January 1990):
You can see the job loss periods and what healthy growth looks like. The fact is that we had a huge period of job losses that the stimulus stopped but…not enough of a rebound to make up for all of the jobs that we should have been adding.
The Bonddad blog presents this chart:
If this seems confusing to you: the first two charts show the jobs added or lost per month; the bars above the zero axis indicate jobs are being added; bars below the axis mean that they are being lost. In mathematical language: these are the graphs of the derivative of jobs at a given time.
The last chart is the total number of jobs. We see that the number of jobs drop (this is where the jobs created/lost graph shows a bar below the zero axis) then a jobs gain…but the job gain doesn’t get us to the previous peak (strike one). The next strike is that the number of job seekers have also gone up during this time (strike two). So, for a good employment situation, we need to be ABOVE where the previous peak was…and we are still pretty far below.
Theist FAIL
Yeah, right. Let’s see: “I can’t figure out what happened, so “goddidit”. Yep, that’s a “reasonable” answer!
Look:
1. It is more honest to say “I can’t answer this question and I’ve yet to see an answer that is satisfactory to me” than to just make something up or to ascribe some supernatural cause. Personally, I am glad that many others before me didn’t settle for “god/the devil did it” type answers.
2. Yes, some factual things (e. g., pair production in which a particle and an anti-particle pop into existence from nothing, or quantum phenomena) are counter-intuitive. You might not understand it…and frankly some things…well, nobody really understands..yet. But that doesn’t mean that they are wrong…in fact, quantum effects have been observed and have to be taken into account in some types of technology. And yes, non-directed evolution has been observed in the laboratory.
Woos, Republicans and other topics
Woos: This is why I don’t take you seriously
P. Z. Myers lets Deepak Chopra have it:
Shorter Deepak: “Richard Dawkins didn’t endorse my quantum bullshit, therefore The Magic of Reality sucks!”
Deepak Chopra actually sounds quite upset — his review of the book reads more like the indignant squawk of a charlatan furious that the presence of a skeptic might cut into his take. It’s largely an exercise in name-dropping and the profession of bleary, vacuous misinterpretations of science on his part, which he then turns around and uses to accuse Dawkins of error because he doesn’t share his inoculation of the ideas with pseudoscience. Like this:
What is obnoxious about Dawkins’ version is his tone of absolute authority about matters that he shows complete ignorance of. Respected physicists like John Archibald Wheeler, Sir Arthur Eddington, Freeman Dyson, Hans-Peter Dürr, Henry Stapp, Sir Roger Penrose, Eugene Wigner, Erwin Schrodinger, and Werner Heisenberg suggest a fundamental role for consciousness in quantum theory and a mental component at the level of biological organisms and the universe itself.
I notice that 56% of the people he names are dead, that none of them are biologists or psychologists, and that several of them, while authoritative in their fields, aren’t actually known for their views on consciousness. This is a common pseudo-scientific con, roping a few famous corpses into agreeing with wacky interpretations.
One bit of caution: if you write in to a right wing news program to complain about their coverage, they might selectively edit your letter…and be within their legal rights to do so!
Politics and Social Statement on Facebook
I read a few right wing sources just too see what they are “thinking” (or whatever mental process they have). Here is one example:
The NBA just canceled the first two weeks of its season because rich owners and …players can’t agree on a deal, ignoring fans who have to pay inflated ticket prices while suffering in a recession. “LIKE” if you think this sounds a little like the liberals’ failure to cut spending while taxpayers suffer in a jobless economy.
When I first read this, I thought that this was a “poe” statement designed to embarrass conservatives. It isn’t. Note: the photo is NOT designed to be flattering to President Obama, but I happen to like it!
Also from Facebook: this map is circulating. Note: this is NOT a left-right issue; whereas many liberals (who can afford it) travel, many members of the military have also traveled.
I certainly agree that liberals and conservatives have a different view of the world; liberals want us to be good global citizens whereas conservatives are content to be jingoistic bullies. No, it wasn’t always that way. But it appears to be true now.
Economy
I’ve been following some of the 99 percent movement. I see it as a blowback to this:
It sure appears to me that accountability is only for “little people”. When rich people screw up, we pay. When ordinary people screw up, we pay.
One example: you often hear about the so-called poor “lucky duckies” who end up owing no Federal Income tax. Oh, how the conservatives hate them! But, when it is the wealthy Republicans who pay no income tax, well, that is different! Yes, it happens:
UNFORTUNATELY…
Yes, Paul Krugman thinks that the financial elite are clueless (here and here)
Yes, I think that the conservative economists are dead wrong and delusional:
But the main thing wrong with Roberts’s piece is the assumption that people like me are just mirror images of people like him:
Krugman is a Keynesian because he wants bigger government. I’m an anti-Keynesian because I want smaller government. Both of us can find evidence for our worldviews.
This is wrong on multiple levels. First of all, while conservatives see smaller government as an end in itself, liberals don’t see bigger government the same way. Think about it: while you often see conservatives crow about, say, reducing discretionary spending as a good thing just because the number is down, do you ever see liberals crowing about a rise in spending, never mind what on? Liberals want government to do certain things, like provide essential health care; the size of government per se isn’t the objective.
Second, Keynesianism is not and never has been about promoting bigger government. Outside the US, this is obvious: there have been Tory Keynesians in Britain, the Germans favor both a big welfare state with heavy regulation and balanced budgets. Even in the US, when the political heat isn’t so intense, you find conservative economists promoting quite Keynesian views of stabilization policy — Greg Mankiw is the editor of two volumes on New Keynesian Economics, and the Bushies were quite happy to argue for tax cuts as a way to boost spending.
What is true is that some conservatives in America have always opposed Keynesian thought because they believe it legitimizes an active role for government — but that’s not what Keynesianism is about, and not the reason I or others support it.
Which brings me to the final point. Russ Roberts may choose his economic views because they support his political prejudices. I try not to. Maybe I sometimes fall short — but I try to analyze the economy as best I can, never mind what’s politically convenient, and indeed to bend over backward to avoid believing things that make me comfortable, to avoid turning everything into a morality play that confirms my political values.
Krugman is dead on there. What we should remember about conservatives is that at times they appear to be morally and emotionally warped. They have this huge fear that if we “enable the slackers” that our society will deteriorate and they have a fetish for “punishing the slackers”; this clouds out all else including mountains of statistical evidence. Their principles are really religious dogma; they are unfalsifiable. Think of their steadfast belief in the “magic of the market” as a religious belief.
And yes, they are dead wrong about us too. I am not in favor of “big government” per-se, but rather in favor of “effective government”. I am not hostile to inequities; some will be more successful and some will be luckier than others. Example: If someone wants to use their own money to prolong life until the very end and die on silk sheets, fine. But I also want a society in which everyone has access to a reasonable level of care. But the “free market” won’t ensure that; after all it is highly unprofitable to insure someone with a pre-existing condition. So, I see that government has a role to play here.
Unfortunately, I think that Krugman is wrong about what the rest of the country wants. Read some of the utterly stupid stuff written by some “53 percent” people. As to these idiots who are bragging that they are not complaining even though they don’t have health insurance: what will happen if you get sick? What if it is your kid who gets sick? This disgusts me. And yes, the number of people like this are legion. I know some….these are people on disability who think that Obama is a socialist.
More on economic issues
This Salon article traces the rise of the income gap.
Krugman shows why he believes that the Keynesian models are valid. He then gives us a Venn diagram of the various economists and where they stand on the current economic situation (not a Venn diagram that he came up with).
Surf to the link to the article to read what he has to say.
GOP Debate Round up.
Dick Morris:
(Michelle Bachmann “knows her stuff”??? OMG…)
This “blow by blow” take is hilarious…and pretty much on point. A sample:
3 minutes. Texas Governor Rick Perry, whose own supporter called him a sleepy puppy at the last debate, tries really hard to show he is awake. He immediately launches into a riff about Texas and his plan to create 1.2 million energy jobs, though he doesn’t bother to explain the plan. He does say, “It’s time for another American Declaration of Independence. It’s time for energy independence.” It’s a nice line that doesn’t mean anything.
4 minutes. Next question about dysfunction goes to former Massachusetts Governor Mitt Romney. While Romney is answering, the camera shows Perry, who is leaning back and blinking, as if he is again trying to stay awake. That last answer seemed to take a lot out of him. Romney, of course, looks great and keeps saying variations of the word “leader” five times in about as many sentences. He’s totally relaxed and on point.
5 minutes. Perry is already falling asleep. On a question about why he has no economic plan, he keeps says, “ah” and “um” between every word. “Clearly, opening up a lot of the areas of our, um, domestic energy areas, ah, that’s the real key,” Perry says. Then he says he needs more time to come up with a plan. “Mitt has had six years,” Perry says. “I’ve been in it about eight weeks.” Nap time!
[...]65 minutes. About eight minutes later, we’re back. Now it’s time for the candidates to ask questions of each other. The candidates will go in alphabetical order, [...]
76 minutes. Perry, who is once again coherent, asks Romney why his own economic adviser says RomneyCare is like ObamaCare. Romney responds with an eloquent defense of RomneyCare. When Perry tries to interrupt, Romney shuts him down. “I’m talking,” says Romney. “I’m speaking.” Total Romney domination. Perry relents.78 minutes. Rose asks Santorum to go next, but Santorum points out that it’s Romney’s turn, since R comes before S. “You’d think someone from PBS would know that,” jokes Romney at Rose’s expense. Then Romney asks Michele Bachmann to basically tell the world how wonderful she is, because if Bachmann improves her standing in Iowa it will hurt Perry.
[...]
Romney’s stock on Intrade shot up to 68.4 as we speak; Perry’s dropped to 9.6!!!
Nate Silver (as of this morning anyway) thinks that bettors are overreacting a bit, at least with respect to Mr. Cain dropping a bit.
Walking, Swimming and Swim suits….
Walk: 14:36, 12:46, 12:02, 11:28
Mile one: warm up; some drill; mile 2: steady. mile 3: 2-1-2-1-2, mile 4: 1-3-1-3. The “1′s” represent walking at a relaxed pace.
I was a bit tired from yesterday’s run.
Swim: 5 x 100 (alt 25 fist, 25 free) on the 2:15, 2:15, 2:10, 2:05, 2:05 (rests)
10 x (25 free, 25 back) two on the 1:15, 1:10, then 1:05′s.
10 x (25 kick, 25 free) fins
5 x 100 pull (10 count rest)
100 side
100 free.
This was a “just enjoy” effort.
This is Fernanda Keller; I love the cut of the swim suit.
Rachel Maddow: Bill Maher on Republican infighting; Reich on 7 lies about economics
Republican FAIL FEST (aka debate)
First question: Cain: “what would you do to deal with the government dysfunction”.
Answer: didn’t answer the question; he went on “bold, 9-9-9, spending cuts, balanced budget”, etc.
Perry: promises an energy plan (drill, etc.)
Romney: government dysfunction: blames Obama for dividing the country (what a jerk), says he can find common ground, no taxes, etc. Says that he is a leader, Obama is not.
Perry: where is the plan? Perry goes back to energy production, says Obama over regulated, etc. Obamacare, “tax burden”, Dodd-Franks….said that Mitt has had 6 years to work on his plan. Perry is failing INHO.
Bachmann: noted that Banks and Wall Street has done well…should some Wall Street executives go to jail? Answer: it is the government’s fault; pushed the banks to meet rules to lend to poor…Freddie, Fannie, etc. Blames Freddie and Fanny; (this woman is an idiot).
Gingrich: says that the protesters are a consequence of Obama’s “class warfare”: left wing agitators and sincere middle class people, talks about liter….(dirty Hippies): he would fire Bernake and Geitner. The Fix was from the government. Frank and Dodd should go to jail? Blame the government, applause from the idiots.
Paul: said we made some inroads to talking about the Fed. Blames the booms and bubbles.
Santorum: he was asked about jobs. Can manufacturing jobs come back? Said that American companies would hire in the US if they eliminated the corporate taxes, repeal all of the regulations. He claims that his plan will pass Congress.
Huntsman: innovative jobs, makes a joke, market place freedom, we are the most innovative, need the marketplace (taxes, regulation, market place magic).
Gingrich: Medicare is going broke. Money is used in the last two years? Claims that the prostate PSA testing recommendation is bad…says that Sarah Palin was unfairly attacked for her “death panels claim”
Bachmann: says that Obama didn’t have a plan to save Medicare. Says that he plans for Medicare to collapse. Says that “fifteen political appointees will make all decisions” (idiot)
Huntsman: says that his father would be the type of person that he would rely on for economic advice. Flat tax…
Complains about background checks to get into government. Said that 9-9-9 was the “price of a pizza” and a catchy phrase; he claims that his plan is doable (Simpson-Boles).
Cain: responds: “it was well developed and will pass”. (wrong). Says that it WILL pass.
So who does he turn to for advice? Rich Lowery.
Romney: what would he do differently than Bush and company did: says that because HE was in the economy, he wouldn’t need Timothy Geitner. Says that the Bush did what he had to do, if imperfectly.
He mentions some economists (didn’t catch the names). Says that he would ask economists. Says that he has done it.
Cain: “wall street bail out”: complains about how they way the bail out was implemented.
Gingrich: Bernake and Geitner “didn’t have a clue”. Says we are not any better prepared now than they were then.
Paul: no need to get the government involved in housing at all. Bitches about Keynesian economists (lies about these not predicting the housing bubble…they did).
Round one is over…
Now a large photo of Reagan and notes that Regan would trade tax increases for reductions.
Perry: says that these are different times. Says we need a “balanced budget amendment to the constitution” (yeah, right).
Compromise: says that government is consuming too much. Says the answer is to cut federal spending (austerity). Get Americans back to work (wow? I never thought of that). The ACTUAL choice: he waffles. (more money from the American people) he is speaking empty gibberish.
Gingrich butts in: blames Obama for lack of leaderships. Says “stupid”.
Bachmann: she was a LEADING voice (don’t increase the debt ceiling…calls it a blank check (it isn’t). She looks like she is running for student body president. What an idiot. Says that cutting spending will do it…
They put Cains “NINE-NINE-NINE” plan on the big screen. Bloomburg says their analysis says that this will lead to a shortfall. Cain says that their analysis is wrong.
Bachmann: her opinion was asked. Says that Congress will get their hands on a sales tax. Devil’s in the details (six-six-six)
Romney: will go after China for currency manipulation and intellectual property theft. (from a clip)
Huntsman is asked about this: Huntsman: says that he doesn’t subscribe to the Trump-Romney school of trade that leads to a trade war.
Romney: why should he be taken seriously with regards to China: he says that he won’t get played by the Chinese.
Perry looks perplexed.
Romney says that “on day one”, he’ll bring them up as a currency manipulator.
Perry: we need to be focused on how to make America working again; snarks about 9-9-9 and all of these plans, and returns to energy. He is one note. Period. He is toast.
Clip: American competitiveness agenda. Asks for specifics.
Santorum: agenda won’t pass. Sales tax won’t pass. Takes it to the audience. Whines (no one cares what I think!) Repeal Obamacare, not by waivers. Complains about liberal …this guy in unhinged.
Cain: politicians are constrained by what will pass (no duh).
Romney: waiver will not repeal with Obama care, Claims that it was passed by reconciliation (wrong…some fixes were).
Hunstman: whines about the mandate, ….lots of a lack of knowledge here.
Break (thank goodness!)
Misleading stat: debt increased by 4 trillion under President Obama…due to…right, Bush obligations.
Bachmann asks Perry about his campaigning for Gore…says that he overspent like Obama did. Claims that his per capita debt is less.
Cain: asks Romney: can you name all 59 points? Simple, transparent, fair and neutral? Simple answers are often inadequate. Takes a swipe at “energy policy” (Perry); lays out some principle but dodges the question. 7 pillars…and no, it isn’t simple.
Gingrich asks Romeny: Obama “in his class warfare approach” and talks about the capital gains tax cuts for those under 200K.
Romney: middle income Americans have been hurt. Romney; “I’m not worried about rich people”.
Huntsman: “this won’t be about religion” (sorry Rick…jab). You were number 47 in job creation (and we were number 1). Romeny claims how well he did in business.
Paul: for Mr. Cain: says that you were critical of those who wanted to audit the fed. Now what you say now: claims that he was misquoted…not his top priority.
The real audio:
Perry: Romney: Glen Hubbard said that Romney care was Obama care was Obamacare. How do you respond to that criticism. Says Massachusetts has few uninsured kids; Perry’s state has the most.
Romney: asks Bachmann a question: what do you to help people make ends meet? Expand?
She gets it, solutions are offering aren’t just “silver bullets”: regulatory codes, (whole life in the private sector?) Says that the number 1 reason people aren’t hiring is Obamacare (false).
Santorum: Why can we trust Cain to keep to keep Congress from abusing the sales tax. “2/3 majority vote” before the tax can be raised. Says the people will deter raising the 9-9-9 and he would veto such an increase.
Break:
Romney asked the only non-attack question; I wonder if he is thinking of putting Bachmann on the ticket?
Back to the debate
Getting people back to work is the biggest way to get people healthcare; returns to energy…AGAIN. Whines about Medicaid; lapses into gibberish briefly; claims Medicaid is hurting but the moderator gave Texas 16 waivers. “Trust the states”.
Cain: asked which Fed reserve chair he would look to (over the past 40 years): Alan Greenspan.
Paul: says that Cain spoke “like a true insider” and calls Greenspan a “true disaster”. Named Paul Volker. (Carter appointed him, by the way, and he endorsed Obama).
Question: bank lending to small business: how do we make this more accessible. Claims that Obama is “over his head”. Blames the regulations for hurting the small banks that loan to small businesses. Bachmann adds…she talked to bankers and claims that compliance is costing one banker 20,000,000 dollars. This woman is crazy. Blames Dodd-Frank for 5 dollar swipe fees and mentions Durbin?
Cain: get rid of the capital gains tax.
Paul: the problems were NOT just the result of the last 2 years?
Perry: asked about the green jobs (the company that went bankrupt). Asked Perry about the committee that gives money to some business? Claims: these created jobs. Said: congress (state level) has oversight. He won’t admit that his donors didn’t influence who got what.
Bush is now shown and he says that home ownership is good…
Gingrich is asked about the video: he takes a swipe about Carter and Obama (what a nasty man). Dodges the question.
Cain: “blame yourself” if you are unemployed. Hey says that his statement was directed at the wall street protesters.
Romney: says that the payroll tax increase is ok. Romney is lying about the stimulus (which DID save jobs and decrease job loss). Dodges the question.
Disparity in America: Perry is asked about how the incomes of the wealthy has grown and poverty is up. Perry blames Obama (gee, what a surprised); claims that businesses are OVERTAXED. What a lying asshole.
Santorum: poverty is caused by the breakdown of the family (chicken, egg, sir). He is mentally unstable. Encourages marriage.
Ok, each candidate: what is it about YOU (some idiot is yelling in the background).
Running: it is getting better.
Well, it is getting better for me at the moment. I did my 8 mile East Peoria bike path course
I ran with my department chair; we ran the first 2.5 miles together and he went to about the 4.25 mile mark and turned around; I turned at the 4 mile mark. He caught up to me with 1.5 miles to go and we finished together.
Upshot: out 41:05. back: 37:00, including 8:18 for the final mile. Yes, the course climbs about 350 feet in the “out” direction and so the negative split was due mostly to the elevation, but some to effort. But while my final time of 1:18:05 is a far cry from the 1:04-1:06 that I used to routinely run 10-12 years ago, it is my best over the past 2-3 years.
The thing that made me the happiest is that my knee felt ok; only very slight twinges that would be unremarkable had I not been trying to notice. I need to be intentional in bending my knees and lifting my heels.


Wrong sign for the derivatve vs. Teabonics
Of course, Dr. Krugman points out that given the current economic conditions (large debt overhang), the AD curve should be increasing (have a positive derivative).
So both sets of protesters have made mistakes…..(snicker
)
And now we have someone on their way to college:

(from here)
That has to be a Republican…probably a tea-party member in waiting.
Now for some awesomeness: yes, it is ok to take people’s beliefs into account.
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