Posts filed under ‘economy’

Missouri GOP Thinks It is Good Idea to Pay 13 Weeks of Unemployment

The AP reports

“JEFFERSON CITY, Mo. (AP) — Missouri’s Republican-led Senate appears to have enough support to override Democratic Gov. Jay Nixon’s veto of a bill that would enact one of the nation’s strictest limits for unemployment benefits.

Although the legality of the veto override remains in doubt, sponsoring Sen. Mike Kehoe confirmed this past week that he plans to press ahead with the effort, and several senators who were absent when the bill originally passed told The Associated Press that they would support the legislation.

If every senator who originally voted for the bill does so again, the additional votes from the previously absent senators would provide the two-thirds majority needed to successfully override a veto.

The measure would cut the weeks of benefits available for laid-off workers from the current 20, which already ranks as one of the shortest in the nation, to as few as 13, if the statewide unemployment rate remains below 6 percent. Missouri’s jobless rate was 5.8 percent in July.

An unemployment rate of over 9 percent would be needed to receive 20 weeks of benefits under the vetoed bill that links the duration of benefits to the jobless rate.

The bill also would increase the amount that must be in the state’s unemployment fund before the fees are lowered for businesses that contribute to the fund and would add severance pay or termination packages as wages for unemployment aid eligibility purposes”

This is completely heartless bill that does not understand it takes people time to find a job. Even if a person is diligently networking and doing everything right, it still takes time for people to find the right job. Also, people today are economically squeezed to the core and do not have the vast personal savings to save for one to two years employment.

Not everybody lives in house with where they share a room with somebody and has rock bottom rental prices. Not everybody has the ability to obtain special pricing for public transit or qualify for Medicaid benefits because the stupid state government is opposed on conservative.

Even for employers, it creates a more desperate labor market which does help employers weed out bad candidates and let people get time to increase their interview skills and job preparation.

Job hunting take times. I know from my experience that it took me two years to find the right job that barely pays me enough to live on but it is good fit where I am at in my career. Yet, I live in shared housing with ten other people and pay rock bottom prices for the bus because I qualify for disablity pricing.

Other people have rents and kids to feed. They do not have the luxury of bus system that runs frequently in a major metropolitian area or have 700 jobs in Craigslist posting each week. Where I lives, jobs are plenty to be found even though it is very expensive to live there. But there are jobs where I live and lots of jobs.

Most people in Missouri live in small towns where one to three employers make up the major part of the workforce. Due to competitve advantages of free trade, jobs have migrated from small-town factories to overseas factories just because that is how global free trade works. And these towns will have very few openings if that.

In my opinion, given the current nature of labor market, people need to have 52 weeks of unemployment pay and up to 99 weeks during the worst of time. In places like Missouri, people need 52 weeks to find a job and not 13 weeks like the GOP producing. The manfacturing jobs that once drove the state are now gone and it just takes longer to find a lower-paying service sector job. Also, people cannot flee to North Dakota to work in the energy sector because those jobs are disappearing.

The idea of “pull your bootstrap” economy does not exist and not everybody to dig ditches at the local Labor Ready for $7.25 an hour. You cannot also migrate to some other part of the country where the economy is booming because the commodity markets are crashing.

The real way is entirely restructing of the economy and blowing up the giantatic trans-national companies for smaller companies and worker-owned companies. However, until that happens, people are going to need to longer-term unemployment insurance and not this cheap 13 weeks unemployment because being unemployed is considered to be character defect. The reality that the GOP does not admit their part in destroying the manfacturing sector and then denies the people the method to collect on long-term unemployment benefits while they retrain at a community college in some other lower-paying service sector position.

August 24, 2015 at 4:17 am Leave a comment

Insane Rental Prices in SF

Can you believe how expensive it is to live in SF. A lot according to this article in the AP

“U.S. home rental prices continued to climb at a modest pace in December, but rapidly escalating costs in cities such as San Francisco and Denver suggest that apartment dwellers are facing more financial pressure.

Prices rose 3.3 percent in December compared with 12 months earlier, real estate data firm Zillow said Friday. Although that increase is less than the recent appreciation in home values, a surge in apartment costs in several of the hottest markets indicates that renters who aspire to buy homes face mounting financial challenges.
Read MoreChicago luxury towers raise the roof on rentals
The share of Americans who own their homes has slipped to 64.4 percent from a peak of 69.2 percent in 2004, the result of the housing market crash that triggered the Great Recession in late 2007 from which the U.S. economy is still recovering more than seven years later. Because fewer Americans can afford to buy a home, demand for apartments and rental houses has pushed up prices at a time when newly graduated millennials are starting to leave their parents’ homes.”

Damn! That is a lot of money.

January 25, 2015 at 1:44 am Leave a comment

Drill, Baby Drill

Michelle Steele be full of glee when

From Marketwatch,

“At the Tiber prospect in deepwater Gulf of Mexico, BP (BP)(UK:BP) said it drilled to a total depth of approximately 35,055 feet and found oil.
Transocean (RIG), which leased the rig to BP, said it was the deepest-ever well drilled in the Gulf.
The prospect is 250 miles southeast of Houston under 4,132 feet of water.
Appraisals will be needed to determine the size and commercial potential of the discovery, BP said.
But a spokeswoman for BP likened the discovery to Kaskida, an earlier discovery in the deepwater Gulf of Mexico which had 3 billion barrels of oil equivalent and was drilled to a depth of 32,500 feet.
BP then needs to extract that oil, and usually the firm is able to get 25% to 40% of the oil in place.
At the low end of that estimate, BP’s find could represent 6% of its 12.56 billion barrels of proved reserves at the end of 2008.
BP said it was its second major discovery in the emerging Lower Tertiary play in the Gulf of Mexico, where it currently produces over 400,000 barrels of oil equivalent a day.”

I guess it is time for Drill! Baby! Drill

September 2, 2009 at 8:17 pm Leave a comment

Drill, Baby Drill

Michelle Steele be full of glee when

From Marketwatch,

“At the Tiber prospect in deepwater Gulf of Mexico, BP (BP)(UK:BP) said it drilled to a total depth of approximately 35,055 feet and found oil.
Transocean (RIG), which leased the rig to BP, said it was the deepest-ever well drilled in the Gulf.
The prospect is 250 miles southeast of Houston under 4,132 feet of water.
Appraisals will be needed to determine the size and commercial potential of the discovery, BP said.
But a spokeswoman for BP likened the discovery to Kaskida, an earlier discovery in the deepwater Gulf of Mexico which had 3 billion barrels of oil equivalent and was drilled to a depth of 32,500 feet.
BP then needs to extract that oil, and usually the firm is able to get 25% to 40% of the oil in place.
At the low end of that estimate, BP’s find could represent 6% of its 12.56 billion barrels of proved reserves at the end of 2008.
BP said it was its second major discovery in the emerging Lower Tertiary play in the Gulf of Mexico, where it currently produces over 400,000 barrels of oil equivalent a day.”

I guess it is time for Drill! Baby! Drill

September 2, 2009 at 8:17 pm Leave a comment

More Unemployment

I guess things are getting rough on the job front right now. From the AP

“HARRISBURG, Pa. — Thousands of jobless Pennsylvanians are joining the growing ranks of people around the country who are exhausting unemployment benefits, as some experts worry about another blow to a stumbling economy.

Gov. Ed Rendell said 17,800 Pennsylvanians exhausted their jobless benefits in the week that ended Saturday, the first big wave of Pennsylvanians to do so. He urged legislators to pass a bill to extend the benefits.

Around the country, the number of people exhausting their benefits is piling up. By the end of September, more than 500,000 people will exhaust their benefits checks, with the biggest groups in Pennsylvania, California and Texas, according to estimates by the National Employment Law Project, an advocacy group for low-wage workers based in New York City’

How we are going to deal with the crises of unemployment? Is the best solution to this problem is to do nothing and pray to the “invisible hand” of the free market to get things better? Is this sign that our nation is serious decline?

Personally, I do not have answers. The best way to deal with this problem is not to think about tommorow and only for live today. At least that is how I see it.

July 18, 2009 at 9:46 pm Leave a comment

Air Obama

From WSJ


Yet the Obama Justice Department has come out of the blocks trying to scuttle a promising experiment to stabilize the chronically unprofitable U.S. airline sector. The new administration seemingly won’t let companies fail, and won’t let them succeed either.
The airline industry’s self-help solution has been an evolving trio of international alliances, partly blessed with “antitrust immunity” by the U.S. Department of Transportation. One, the Star Alliance led by United and Lufthansa, is currently poaching Continental from a rival alliance, SkyTeam. DOT was set to approve their application last week when Justice belatedly intervened with a 58-page complaint about why the pact should be restructured.
Getty Images
To anyone drilled in the antitrust mindset, Justice’s argument won’t seem outlandish. It frets about reduced competition on this or that international route, and sees little chance of competitive entry by new carriers despite fat profits that presumably would be on offer. It argues, in a fashion typical of antitrust these days, that nonstop flights are a market unto themselves, so connecting flights on the same routes don’t count.
But the real fulcrum is Justice’s insistence, or plea, that DOT should set a high bar for antitrust immunity, because antitrust enforcement has been such a gosh-darn boon to consumers”

Great, does the next thing we need is a government-owned airlines. There are a lot of services that the government performs more effectively than the private sector including healthcare insurance.

However, it is my opinion that the government needs to stay out of the airline industry. We already two airlines that a publically owned airline would never match the efficency which is Jetblue and Southwest.

In my opinion, the government needs to stay out of the airline industry

July 8, 2009 at 4:42 pm Leave a comment

Results of the Stress Test

The AP reports

“WASHINGTON (AP) — Government exams of the nation’s biggest banks have helped lift a cloud of uncertainty that has hung over the economy.

The so-called stress tests — a key Obama administration effort to boost confidence in the financial system — showed nine of the 19 biggest banks have enough capital to withstand a deeper recession. Ten must raise a total of $75 billion in new capital to withstand possible future losses.

“The publication of the stress tests simply cleared the air of uncertainty,” said Allen Sinai, chief global economist at Decision Economics. “The results were not scary at all.”

He said it will take a long time for the banks to resume normal lending. But the test results didn’t alter his prediction that economy is headed for a recovery in October or November.

A key indicator of economic health will be released Friday morning, when the government announces how many more jobs were lost in April and how high the unemployment rate rose.

The stress tests have been criticized as a confidence-building exercise whose relatively rosy outcome was inevitable. But the information, which leaked out all week, was enough to cheer investors. They pushed bank stocks higher Wednesday, and rallied again in after-hours trading late Thursday once the results had been released”

If you want a more detailed account of the stress test, please click on this link that will take you to federal reserve website.

May 8, 2009 at 4:23 pm Leave a comment

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