California's "Real" Calexit Problem

Taking its cue from Britain voting to secede (Brexit) from the European Union, some in California want to do the same by seceding from the United States; or, "Calexit" as it is known.  In fact, in the latest polling, 32% want to exit. At the heart of the issue is that the rest of the United States doesn't share California's values.  Of course, the election of Trump reinforced that belief since Hillary Clinton received more than 10 million of the State's nearly 15 million votes cast.  In any event, California's Secretary of State has authorized the collection of nearly 600,000 signatures to put Calexit to the vote on the next ballot.

For all this talk about "values",  California seems to be ignoring the fact that there already is a kind of Calexit  taking place.  From 2004 to 2013, 5 million people left the State; mostly over high taxes (including property taxes) and high costs of living.  In another study, California lost 9,000 businesses in a 7-year span.  Most citing a "hostile business" environment of high taxes and regulation.

California also has some serious structural problems that may accelerate the number of those wanting to do business elsewhere.  The State has the highest poverty rate in the nation at 20.6%.  Contributing to the poverty problem is the fact that the unemployment rate is almost a full percentage point above the national average. Further, thanks to the voter initiative passed into law that essentially emptied the State's prisons of supposed low-level criminals, there has been an "explosion" of property crimes across the state.  In addition, cities like Los Angeles have seen an increase of violent crime after decades of decline.

Exacerbating the exodus is the fact that California's lawmakers just keep piling up regulations.  In 2016, 800 new laws went into effect which the LA Times said "touch on broad aspects of California residents’ everyday lives, or address major issues such as voter participation, and life and death."  And, for 2017, hundreds of new laws also went into effect including a $15 minimum wage by 2020 which is sure to accelerate the business exodus.  In addition, employers are banned from asking any prospective employee if they have an arrest record or court detention prior to being 18.

The bottom line is that Californians, themselves, are making it less hospitable for people to live and work in the state; and they just can't see it.

A final note: While many of the laws on the books are beneficial to some or all of California's residents, many are very burdensome to businesses and contribute to what many already are calling a "hostile" business environment.

References:

Supporters for 'Calexit' initiative start collecting signatures: http://www.foxla.com/news/local-news/232714964-story

California's ballots have all been counted — more than 14.6 million: http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-california-s-ballots-have-all-been-1481163154-htmlstory.html

An explosion of California property crimes — due to Prop. 47: http://www.sfchronicle.com/opinion/openforum/article/An-explosion-of-California-property-crimes-6922062.php

'Calexit' would be a disaster for progressive values: http://www.latimes.com/opinion/op-ed/la-oe-friedersdorf-calexit-unprogressive-20170129-story.html

5 Million People Left California Over the Past Decade. Many Went to Texas: http://dailysignal.com/2015/09/04/5-million-people-left-california-over-the-past-decade-many-went-to-texas/

California lost 9,000 business HQs and expansions, mostly to Texas, 7-year study says: http://www.bizjournals.com/dallas/blog/morning_call/2015/11/california-lost-9-000-business-hqs-and-expansions.html

Why Does California Have The Nation's Highest Poverty Rate? http://www.forbes.com/sites/chuckdevore/2016/09/28/why-does-california-have-the-nations-highest-poverty-rate/#79027b623e89

Violent crime in L.A. jumps for third straight year as police deal with gang, homeless issues: http://www.latimes.com/local/lanow/la-me-crime-stats-20161227-story.html

California Unemployment Rate: https://www.google.com/search?q=california+unemployment+rate&ie=utf-8&oe=utf-8

California's new laws for 2016: See how you are affected: http://www.latimes.com/politics/la-pol-ca-g-california-new-laws-2016-htmlstory.html

How will California's 2017 Laws Affect You: http://www.latimes.com/projects/la-pol-ca-new-2017-laws/#jobs


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Trump's Impossible Dream for Detroit

By any measure, the city of Detroit is a perfect example of the failure of Democratic rule in many of our major cities.  Run by Democrats for decades, the Motor City has the highest black population of any city in America. 81.6% of Detroit is African American.  Unfortunately, it is also the most violent. At its peak, it had 1.8 million residents.  By 2013, only 689,000 could claim residency.  Worse yet, 47% of Detroit's residents are functionally illiterate and can only read at a fourth grade level or below.  It is the poorest big city in the country with 40.1% living below the poverty line.

Illiteracy and crime will not bring good jobs and businesses back to this town. It will take decades of reform to improve the educational system sufficiently enough to attract hiring by well-paying businesses, and, the high crime rate will just continue to cause people to leave the city in fear.

In light of all these problems, it may seem that there is no way that anyone can put this town back together.

However, in the short term, Trump could attract new businesses to the Motor City by declaring Detroit an enterprise zone.  In other words, give tax breaks for every new job a business creates.  He can also provide substantial tax breaks for any company who relocates to, or starts a  new business there.

Another way to help rebuild the city would be to start a revitalization program.  Using federal funds from the Department of Education, they can take unskilled and unemployed men and women, and train them to rehab properties while learning trades such as painting, carpeting, dry walling, etc.  A program like this would help gentrify entire neighborhoods and attract people back to the city; while preparing many  for new careers.

Sadly, because Hillary will be elected, Detroit will never see any movement towards the rebuilding of a once vibrant city.  There are only so many "green" jobs Hillary can create to get Detroit and America back on its feet.  Sorry for the sarcasm (Not really!).  At least, Trump's trip to Detroit has focused a bright light on the condition of many black lives in America.

References:

Detroit mayor slams Trump's visit to black church: http://thehill.com/blogs/ballot-box/presidential-races/294420-detroit-mayor-slams-trumps-visit-to-black-church

At Least A Few Black Churchgoers Liked Trump's Detroit Speech: http://www.huffingtonpost.com/entry/trump-detroit-black-voters_us_57cb60c6e4b078581f13559f

Blackest Cities in America: https://www.google.com/search?q=detroit+blackest+city+in+america&ie=utf-8&oe=utf-8

Census bureau: Detroit is poorest big city in U.S. - Detroit News: http://www.detroitnews.com/story/news/local/michigan/2015/09/16/census-us-uninsured-drops-income-stagnates/32499231/

Detroit Population 2013: https://www.google.com/search?q=detroit+population&ie=utf-8&oe=utf-8

US Cities With The Highest Violent Crime Rates: https://www.google.com/search?q=most+dangerous+city+in+u.s.&ie=utf-8&oe=utf-8

Nearly Half Of Detroit's Adults Are Functionally Illiterate, Report Finds: https://www.google.com/search?q=detroit+literacy+rate&ie=utf-8&oe=utf-8

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Hillary's Claim: "America Never Stopped Being Great"

In contrast the  Trump campaign slogan to "Make America Great Again", Hillary Clinton keeps telling her crowds: that "America Never Stopped Being Great". Of course, her supporters all cheer wildly.

But, most Americans understand that our country's greatness has been declining since the 1970's. This is why Trump is doing as well as he is. Here are some of the facts that support Trump's claim:

• In 1970, 61% of Americans were in the middle class. Today, only 43% can make that claim.
• In the 1970's, America was the best educated country in the world. Since then, we are now ranked 27th in the all-important category of mathematics.  We rank 17th in reading with an astounding 19% of our high school graduates unable to read. Additionally, we now rank 20th in science.
• The poverty rate in the 70's ranged between 11.7% to 12.6% of the population.  As of 2014, it stood at 15%; up from 14.5% in 2013. Obviously going in the wrong direction. Also understand, that beyond the percentages, the U.S. now has a record number of people living in poverty -- 47 million --  since President Lyndon Johnson declared his War on Poverty more than 50 years ago.
• Our Federal debt in 1970 was just $398 billion.  Sadly, it is now near $19.5 trillion.  48 times higher and setting a new record everyday.
• Today, our national infrastructure needs between 3 and 4 trillion dollars worth of  repairs, while, in 1970, it was fairly maintained.
• Dozens of cities and municipalities are facing bankruptcy.  Others, such as Detroit, have already gone bankrupt.
• A record 95 million are not in the labor force. 
• In 1980, nearly 20 million workers were in the manufacturing sector.  By 2014, that number fell to just 12.3 million. 

Now, I could go on an on with things like Medicare and Social Security facing insolvency, and how parts of our military are smaller now than before World War II, but I think you get the point.

References:

Hillary Clinton: 'America never stopped being great': http://www.cnn.com/videos/politics/2016/03/06/hillary-clinton-america-never-stopped-being-great-sot.cnn

The American Middle Class Is Losing Ground. No longer the majority and falling behind financially: http://www.pewsocialtrends.org/2015/12/09/the-american-middle-class-is-losing-ground/

Boomers Once Led the World in Education. What Happened?: 

United States: Program For International Student Assessment: https://www.oecd.org/unitedstates/PISA-2012-results-US.pdf

Illiteracy Statistics: http://www.statisticbrain.com/number-of-american-adults-who-cant-read/

Is the poverty rate higher now than in the 1970s as Jeb Bush says?: http://www.politifact.com/florida/statements/2015/may/07/jeb-bush/poverty-rate-higher-now-1970s/

2014: Poverty Facts | Poverty Rate, Poverty Thresholds & Census Information: http://www.povertyusa.org/the-state-of-poverty/poverty-facts/

1970 Debt: https://www.google.com/search?q=u.s+debt+in+1970&ie=utf-8&oe=utf-8

National Debt Clock: http://www.usdebtclock.org/

Don't Expect Hillary's Infrastructure Plan to Boost the Economy: http://cuttingthroughthefog.blogspot.com/2016/06/dont-expect-hillarys-infrastructure.html

Bankrupt Cities, Municipalities List and Map: http://www.governing.com/gov-data/municipal-cities-counties-bankruptcies-and-defaults.html

A Record 95 million not in the Labor Force: http://cnsnews.com/news/article/susan-jones/record-94708000-americans-not-labor-force-participation-rate-drops

Army shrinks to smallest level since before World War II - Army Times: http://www.armytimes.com/story/military/careers/army/2016/05/07/army-shrinks-smallest-level-since-before-world-war-ii/83875962/

The Navy's Hidden Crisis: It's Too Small - and Getting Smaller: https://www.pacificcouncil.org/newsroom/navys-hidden-crisis-its-too-small-and-getting-smaller

Social Security, Medicare Face Insolvency Over 20 Years, Trustees Report: https://www.google.com/search?q=Social+Security%2C+Medicare+Face+Insolvency+Over+20+Years%2C+Trustees+...&ie=utf-8&oe=utf-8

Manufacturing Job Loss: http://www.epi.org/publication/manufacturing-job-loss-trade-not-productivity-is-the-culprit/

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Why Sanders is Doing so Well

Many wonder how a 74-year-old socialist candidate can be doing so well in our capitalist society.  The answer is simple.  Socialism rises out of discontent regarding the economy and jobs.  When people think that they are not getting a fair shake and the rich are getting richer while they keep getting poorer, socialism seems an attractive solution.  Even as flawed as that assumption is, after 7+ years of Obama, those aren't just perceptions...they're realities.

Currently, we have a record 47 million Americans in poverty; and that number rose again in the latest reporting.  Pre-recession the number was 10 million less, at about $37 million.

Then, there is this chart:

As this shows, the bottom 99% saw their incomes rise by less than 1% per year over the first five years of the Obama Administration. To put this into perspective, in 2006 and 2007, wages grew at an average of 4% per year. In the 1970's and 1980's, it was not uncommon for salaries to grow by 8% or 9% or more.

In addition to all of that, the middle class keeps shrinking.  Today, only 45.8% of Americans find themselves in that segment of the population.  Well below the normal target of 50% or more, and certainly below the 53% that were in the middle class in the 1960's.   In fact, the median household's income and buying power is where it was in 1996.  This is also why the greatest contributors to Sanders' campaign are the unemployed.  Nearly 29% of donations are coming from this class of worker.

Simply, the conditions are ripe for the false promises of socialism to take hold and Bernie is the beneficiary.  The American dream is dissolving before our eyes.  What worries me is that, if Hillary Clinton becomes President, we will have another 4 years of Obama's policies and a further decline in wages and the middle class.  Poverty and income inequality will likely continue to rise. If so, America is sure to become a socialist nation in the future.  Mark my words.

References:

Source of Chart: Obama's Economy in 7 Charts: The Good, The Bad, and The Ugly: http://fortune.com/2016/01/12/obama-economy-charts/

Poverty in the United States, 2007: http://www.infoplease.com/ipa/A0104520.html

Record 46.7 Million Americans Live In Poverty: http://www.zerohedge.com/news/2015-09-16/record-467-million-americans-live-poverty-median-houshold-income-back-1989-levels

5 Charts That Show How the Middle Class Is Disappearing: http://billmoyers.com/2015/01/26/middle-class/

The Shrinking American Middle Class: http://www.nytimes.com/interactive/2015/01/25/upshot/shrinking-middle-class.html?version=meter+at+1&module=meter-Links&pgtype=article&contentId=&mediaId=&referrer=https%3A%2F%2Fwww.google.com&priority=true&action=click&contentCollection=meter-links-click

Our analysis of nearly 7 million donations offers unprecedented detail about the army that's funded his insurgent campaign: http://www.latimes.com/projects/la-na-pol-sanders-donors/

Elkhart, Indiana: Obama Touts His Economic Success

Last week, while giving a speech on the economy in Elkhart, Indiana, President Obama said this:

“By almost every economic measure, America is better off than when I came here at the beginning of my presidency. That’s the truth.”

The problem with that statement is that it isn't "the truth".  The folks at Zero Hedge, a business, stock market, and economics site, presented this series of 9 graphs to refute it:

Pink Shading Obama's Term in Office...Click on image to enlarge

This is a President who has increasingly presided over one negative economic record after another.  And, there is another not included in the above records: The highest number of Americans in poverty --  nearly one in seven -- since Lyndon Johnson declared a "War on Poverty" more than 50 years ago.  Also, Obama is slated to have the 4th worst economic record in the history of the country.  Only Herbert Hoover, Andrew Johnson, and Teddy Roosevelt were worse.

This President not only thinks, but knows, that most people will believe his lies because they don't understand all the facets and facts that make up the economy, and aren't interested in researching what he says.  And, for sure, the liberal media isn't going to do their job and expose his lies.

References:

Obama visits Elkhart to discuss economy: http://www.idsnews.com/article/2016/06/obama-in-elkhart

Chart Source: These Are The 9 Zero Hedge Charts Showing "Obama's Recovery" That Angered The Washington Post: http://www.zerohedge.com/news/2016-06-03/these-are-9-zero-hedge-charts-showing-obamas-recovery-angered-washington-post

Record 46.7 Million Americans Live In Poverty; Household Income Back to 1989 Levels: http://www.zerohedge.com/news/2015-09-16/record-467-million-americans-live-poverty-median-houshold-income-back-1989-levels

Barack Obama's Sad Record on Economic Growth | RealClearMarkets:  http://www.realclearmarkets.com/articles/2016/02/01/barack_obamas_sad_record_on_economic_growth_101987.html

A $15 Minimum Wage? Try $4.25 a Day in Mexico!

I think a lot of people in this country take for granted how fortunate we are to live in this country.

While entry level workers in this country are marching in the streets for a near doubling of the federal minimum wage to $15 an hour,  workers in Mexico just got a 4.2% raise in their minimum wage to 73.04 pesos a day as of January 1st.  On that day, that was the equivalent of just $4.25 a day in U.S. dollars.

Mexico is a poor country with the World Bank estimating that 53.2% of the country living in poverty.  Worse yet, the World Bank estimated that, in 2012, 10.3% of that country's population lived on $3.10 a day or less.  Think about that when you're spending $5 at Starbucks for your daily venti frappucino.

The point here being is twofold.

First, these numbers explain why most of those coming across our southern border are Mexicans.   They aren't so much wanting to come here but, instead, more interested in escaping severe poverty in their own country.

Secondly, I hate it when a company like Ford or Nabisco or Carrier is forced to move manufacturing to Mexico in order to be more competitive on costs with products made in other countries.  But, when they do, it is really a kind of humanitarian aid.  Today, nearly 1 million Mexicans are building U.S. and European cars in that country with the average hourly wage of 90 pesos.  About $5.64 an hour in U.S. dollars. And for those workers, the need to come to this country is abated.

So, the bottom line is that we could do ourselves a favor by, somehow, instituting something akin to the post-World War II Marshall Plan to build that country's economy, reduce poverty, and help Mexicans earn a fair wage.  In doing so, we could slow illegal immigration into this country.

References:

Mexico Approves an Increase to the Daily Minimum Wage for 2016: https://www.littler.com/publication-press/publication/mexico-approves-increase-daily-minimum-wage-2016

Mexico Data: http://data.worldbank.org/country/mexico

Poverty Headcount by Country: http://data.worldbank.org/indicator/SI.POV.2DAY

US, Mexican and Canadian autoworkers face common fight: https://www.wsws.org/en/articles/2015/08/12/mexi-a12.html

New York & California Just Killed Entrepreneurship

In just 16 years, the minimum wage in the State of California will see a rise of 222% from $6.75 in 2006 to $15 in 2022.  That is an average annual increase of nearly 14%.  In New York, the increase to $15 from, again, $6.75 in 2006 is more complicated as follows:

• For workers in New York City employed by large businesses (those with at least 11 employees), the minimum wage would rise to $11 at the end of 2016, then another $2 each year, reaching $15 on 12/31/2018.
• For workers in New York City employed by small businesses (those with 10 employees or fewer), the minimum wage would rise to $10.50 by the end of 2016, then another $1.50 each year, reaching $15 on 12/31/2019.
• For workers in Nassau, Suffolk and Westchester Counties, the minimum wage would increase to $10 at the end of 2016, then $1 each year, reaching $15 on 12/31/2021.
• For workers in the rest of the state, the minimum wage would increase to $9.70 at the end of 2016, then another .70 each year, until reaching $12.50 on 12/31/2020 – then  continue to increase to $15 on an indexed schedule to be set by the Director of the Division of Budget in consultation with the Department of Labor.

The reality is that no other class of workers has seen that kind of increase.  In fact, assuming a 2% raise a year, it would take the middle class worker an average of 111 years to have a 222% rise in their salaries.

The point is that many people will find themselves less able to afford products and services that are heavily dependent on low wage workers; such as fast food businesses, retail, hospitality, and leisure.  The same goes for this nation's 55 million seniors, who, at best have seen increases of just 1% a year in their Social Security checks.  Additionally, millions more, such as waiters and waitresses, won't be eligible for minimum wage because they earn tips.  And, so too, for the three quarters of 47 million Americans in poverty who aren't even working.

More importantly, the $15 wage will accelerate the death of entrepreneurship and its ability to create jobs.  It will be much more expensive to start new businesses that generally depend heavily on entry level employees.  Entrepreneurship has already been in decline for decades, but now it will become a much higher risk proposition.  Even before instituting this excessive wage, 1-in-4 startup businesses failed in the first year.  50% will be kicked to the curb in just 4 years, and operational costs are one of the 4 main reasons for failure.

I hope I'm wrong, but I think the $15 minimum wage will be a real job creation killer.  And, in fact, a job killer for businesses who must raise prices, and in turn, lose customers who can't afford those price hikes. Also, the $15 minimum wage will bring in automation to replace the humans making that wage.  Already, you can rent a robo-security guard that can hear, smell, and has 360 degree night vision for just $6.25 an hour.  So, if you can already automate a security guard, it only seems logical that other lesser tasks, such as flipping burgers, will follow suit.

References:

Governor Cuomo Signs $15 Minimum Wage Plan and 12 Week Paid Family Leave Policy into Law: https://www.governor.ny.gov/news/governor-cuomo-signs-15-minimum-wage-plan-and-12-week-paid-family-leave-policy-law

California, New York enact $15 minimum wages: http://www.foxnews.com/politics/2016/04/05/california-new-york-enact-15-minimum-wages.html

California Minimum Wage 2006: https://www.google.com/search?q=california+minimum+wage+in+2007&ie=utf-8&oe=utf-8

New York Minimum Wage 2006: https://www.google.com/search?q=minimum+wage+in+new+york+in+2006&ie=utf-8&oe=utf-8

Minimum Wage - United States Department of Labor: Questions and Answers About the Minimum Wage: http://www.dol.gov/whd/minwage/q-a.htm

The Mysterious Death of Entrepreneurship in America: http://www.theatlantic.com/business/archive/2014/05/entrepreneurship-in-america-is-dying-wait-what-does-that-actually-mean/362097/

The Slow Death of American Entrepreneurship: http://fivethirtyeight.com/features/the-slow-death-of-american-entrepreneurship/

Startup Business Failure Rate By Industry: http://www.statisticbrain.com/startup-failure-by-industry/

The Four Major Reasons for New Business Failure: http://smallbusiness.chron.com/four-major-reasons-new-business-failure-51924.html

Rent A Robot Security Guard for $6.25 an Hour: http://www.psfk.com/2014/12/rent-a-silicon-valley-security-bot-for-6-25-per-hour.html

To CNN: It's the Economy, Stupid!

In 1992, Bill Clinton was able to shorten George H. W. Bush's Presidency to just one term  by coining the slogan: "It's the economy stupid!".  I think today, its still appropriate, because the liberal political class and the liberal media just don't get it.

In a discussion following Bernie Sander's unexpected win over Hillary Clinton in Michigan, the host of a CNN news and opinion show -- whose name I don't know because I was just listening to the audio - expressed her amazement that the number one issue in exit polling was the economy and jobs.  Then, she went on to state that the economy is good.  Unemployment is the lowest its been in 8 years.  The stock market is still doing well, and that gasoline prices are 68 cents lower than last year.  So, I guess in her mind all is well, and there is nothing to complain about economically.


What she apparently doesn't understand is that people outside of her own gilded life are hurting.  If the economy is so good, why do we have a record number of people living in poverty?  Why is the real median household income sitting at a level that hasn't been seen since 1986?  Why did the average weekly wage fall by $6 in February for America's more than 157 million workers?  Why more than 6000 stores for major retailers closed last year, and why another 2500 stores are set to close this year?  Apparently, CNN's hosts don't read CNN's own Money news division's commentaries about how bad things really are. (see links below).

I think show producers should get their facts straight before airing falsehoods to a national audience.  Just one of the reasons that I rarely watch CNN.


References:

Exit poll: Both parties’ voters worry about economy, disdain federal government: http://www.star-telegram.com/news/politics-government/article64901532.html

It's the economy stupid!: https://en.wikipedia.org/wiki/It's_the_economy,_stupid

Record 46.7 Million Americans Live In Poverty; Household Income Back To 1989 Levels: http://www.zerohedge.com/news/2015-09-16/record-467-million-americans-live-poverty-median-houshold-income-back-1989-levels

Major U.S. Retailers Are Closing More Than 6,000 Stores: http://theeconomiccollapseblog.com/archives/major-u-s-retailers-are-closing-more-than-6000-stores

2016 Store Closures: http://retailindustry.about.com/od/USRetailStoreClosingInfoFAQs/fl/US-2016-Store-Closings-All-Retail-Chain-Store-Locations-To-Be-Closed.htm

The cracks in America's economy are growing - CNN Money: http://money.cnn.com/2016/01/28/news/economy/cracks-in-the-us-economy/

U.S. economy grinds to near halt at end of 2015 - CNN Money: https://www.google.com/search?q=cnn+economy+doing+well&ie=utf-8&oe=utf-8

Sears announces it's closing at least 50 stores - Feb. 9, 2016: http://money.cnn.com/2016/02/09/news/companies/sears-kmart-stores-closing/

Walmart will close 269 stores this year, affecting 16,000 Jobs: http://money.cnn.com/2016/01/15/news/companies/walmart-store-closings/

Sports Authority is bankrupt and closing 140 stores - CNN Money: http://money.cnn.com/2016/03/02/news/companies/sports-authority-bankruptcy/

Macy's closings could leave a trail of dead malls - CNN Money: http://money.cnn.com/2016/01/11/news/companies/macys-dead-malls/

Obama's Alternate Universe on the Economy

Last Friday, when the Bureau of Labor Statistics announced that the unemployment rate had fallen to 4.9% -- the lowest since the recession -- and President Obama could hardly contain himself celebrating this feat and taking credit for it.  Then, he went on to claim that, contrary to the GOP predictions of gloom, the economy is "durable".

Putting the 4.9% unemployment rate aside as a mere quantitative number, the issue that bothers most Americans is the "qualitative" status of our economy.  In that area, Obama appears to be living in an alternate universe where his reality is much different than ours.  A reality that seems to forget that he promised that we would see a 5% unemployment rate by July of 2013 if we passed the stimulus package. Not the more than two years later when, in October of 2015, 5% unemployment was finally achieved.

While he was quick to jump in front of the microphones to take credit for the 4.9% unemployment, I have never seen this President come out and lay claim to the following:

• A record 47 million people in poverty and 45 million needing food stamps to survive.  
• The fact that real median household incomes are back to where they were in 1989.  
• That the real unemployment rate is actually 9.9% when you include people, who (1) in frustration, have stopped looking for work; or, (2) are forced to work part time for for a lack of full time work; or, (3) are underemployed and working at jobs they are overqualified for.

In addition, Obama seems to ignore that realityh that the economy had grown by just seven tenths of a percent in the fourth quarter of last year, and overall, under his presidency, has only grown at a rate of 1.78%. Well below the average economic growth in this country since World War II, and before he too office, of 3.24%.

There are many more statistics I could quote, but these are the ones that really impact the average American.  They are the ones Americans feel and that are mostly in direct contradiction to Obama's "good economy" claims.

References:

Obama Celebrates 'Durable Economy' As Unemployment Drops Below 5 Percent: http://www.npr.org/sections/thetwo-way/2016/02/05/465686010/u-s-added-151-000-jobs-in-january-unemployment-dropped-to-4-9-percent

Record 46.7 Million Americans Live In Poverty; Household Income Back To 1989 Levels: http://www.zerohedge.com/news/2015-09-16/record-467-million-americans-live-poverty-median-houshold-income-back-1989-levels

Food Stamp Beneficiaries Exceed 46,000,000 for 38 Straight Months: http://www.cnsnews.com/news/article/ali-meyer/food-stamp-beneficiaries-exceed-46000000-38-straight-months

Record-breaking 11M receive Social Security disability benefits: http://nypost.com/2014/05/21/record-breaking-11m-receive-social-security-disability-benefits/

2013: Where’s that 5% unemployment rate Obama promised by now?: https://www.aei.org/publication/wheres-that-5-unemployment-rate-obama-promised-by-now/

Real Economic Growth: https://research.stlouisfed.org/fred2/series/A191RL1Q225SBEA

United States GDP Growth Rate - Trading Economics: http://www.tradingeconomics.com/united-states/gdp-growth

Which Presidents Have Been Best for the Economy?: http://www.usnews.com/news/blogs/data-mine/2015/10/28/which-presidents-have-been-best-for-the-economy

The Big Minimum Wage Lie: Raising It Will Reduce Poverty

Most on the political left, believe that raising the minimum wage will lift millions out of poverty, and that by doing so, government spending on welfare, food stamps, and other poverty related paid-benefits will also decline.  One liberal estimated that low wages are costing tax payers $153 billion a year.

Until 2014, it had been impossible to prove or disprove that assertion. The last time the minimum wage was raised in the years 2007-2009, we were in the midst of the so-called Great Recession where thousands lost their jobs causing the poverty rate to rise.

However, in 2014, there was no recession.  In fact, the unemployment rate fell from 6.7% in December of 2013 to 5.6% in December of 2014; the lowest rate since before the Great Recession.  The economy grew at the fastest rate ever (2.4%) in the last 8 years.  On top of that, 13 states entered the new year with minimum wages that were higher than the current federal wage of $7.25 an hour.  Washington, Oregon, and California led the pack with wages over $9 an hour. So, with all that, it would only be logical to believe that poverty would be reduced.

Unfortunately, the number of people in poverty actually rose by a half million in 2014 to 46.7 million. This after having fallen in 2013 from a high of 48.8 million in 2012.  But, more importantly, California, which has the highest poverty rate in the nation of nearly 24% and which has 20% of all those in poverty in the United States, saw their poverty rate also rise; despite a $9 minimum wage.

While I could name several reasons why this happened, the facts speak for themselves.  13 States raising the minimum wage didn't reduce poverty one iota.  In fact, poverty increased in what was supposedly a good year for the economy and jobs.

In 2015, the number of states with higher-than-federal minimum wage rose to 29.  It will be interesting to see if poverty rises again when the info becomes available in the fall of next year.

References:

Raising The Minimum Wage To $10.10 Could Lift Nearly 5 Million Out Of Poverty: http://thinkprogress.org/economy/2014/01/03/3115831/minimum-wage-poverty/

2014:  13 states raising pay for minimum-wage workers: http://www.usatoday.com/story/money/business/2013/12/29/states-raising-minimum-wage/4221773/

Americans are spending $153 billion a year to subsidize McDonald’s and Wal-Mart’s low wage workers: https://www.washingtonpost.com/posteverything/wp/2015/04/15/we-are-spending-153-billion-a-year-to-subsidize-mcdonalds-and-walmarts-low-wage-workers/

Unemployment Rates by Month: http://data.bls.gov/timeseries/LNS14000000

 California’s Housing Costs Hurt Economy, Increase Poverty, Report Finds: http://www.wsj.com/articles/californias-housing-costs-hurt-economy-increase-poverty-report-finds-1426623141

U.S. 2.4% Economic Growth In 2014 Strongest Since Recession: http://www.forbes.com/sites/samanthasharf/2015/01/30/u-s-economy-grew-2-6-in-fourth-quarter-2-4-in-2014/

Poverty: 2000 to 2012: https://www.census.gov/prod/2013pubs/acsbr12-01.pdf

2104: Typical American family earned $53,657 last year: Poverty Remains High: http://money.cnn.com/2015/09/16/news/economy/census-poverty-income/

Census Bureau: California still has highest U.S. poverty rate: http://www.sacbee.com/news/politics-government/capitol-alert/article2916749.html

State Minimum Wages | 2015 Minimum Wage by State: http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx

 

The Pain Has Started For The Coal Miners

A mostly overlooked statement in last month's employment report was on page 3:

"Employment in mining continued to decline in September ( -10,000), with losses concentrated in support  activities for mining ( -7,000). Mining employment has declined by 102,000 since reaching a peak in  December 2014."

President Obama's regulation of the coal-fired power industry is finally starting to damage the livelihood of thousands of miners and other workers in related industries.  But, the pain for the coal miner will be especially acute when compared to other people in other professions who will also lose their jobs.

First of all, most coal miners live in towns that expressly exist because of the mine.  Stores, gasoline stations, churches, schools, police and fire departments, are all at risk if it has to shut down.  Homeowners are potentially destined to live in ghost towns. The complete loss of home values is inevitable.  With the average age of a coal miner being 44, the thought of starting over someplace else, with no money to buy another home has to be overwhelming.  Business owners will also see the value of their businesses and buildings fall to zero.

The average coal miner is well-paid at roughly $83,700.  Pretty good money when you consider that 75% only have a high school diploma. However, having to restart in a different profession with only a high school education will be difficult since the average wage at that level is half what they are getting now.  Too, having no experience in a new endeavor certainly insures a lower wage, short of the average high school graduate.

So, what is Obama's solution to the economic strife that he has caused these workers? Go on welfare.  But, what about all the others who will also lose their jobs. Those in the lumber industry that provide the support beams used in the mines?  Those in the rail and trucking industries whose jobs depend on coal transportation to the power plants?  There will be a massive ripple effect as a result of this one industry being shutdown by the President and his EPA.

I personally believe that all unions in the country should join the coal miners in an effort to stop Obama from proceeding any further with his "no more coal" mentality.

References:

THE  EMPLOYMENT  SITUATION — SEPTEMBER  2015:  http://www.bls.gov/news.release/pdf/empsit.pdf

Profile of the U.S. Coal Miner 2014: http://www.nma.org/pdf/c_profile.pdf

Earnings and Unemployment Rates by Education Level: http://www.bls.gov/emp/ep_chart_001.htm

Coal Miners Struggle to Survive in an Industry Battered by Layoffs and Bankruptcy: http://www.nytimes.com/2015/07/18/business/energy-environment/coal-miners-struggle-to-survive-in-an-industry-battered-by-layoffs-and-bankruptcy.html

A Colorado Coal Mining Town Struggles to Define Its Future:  Tighter regulations, environmental lawsuits and a pivot toward cleaner-burning natural gas have knocked communities like Somerset, Colo., on their heels: http://www.nytimes.com/2015/07/09/us/coal-mine-closed-colorado-town-struggles-to-define-future.html

Obama Costs Miners Their Job — Tells Them Take Welfare:  http://www.libertynewsnow.com/obama-costs-miners-their-job-tells-them-take-welfare/article1446

Coal miners union to sue over Obama power plant rules: http://thehill.com/policy/energy-environment/243947-coal-miners-union-to-sue-over-obama-power-plant-rules

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Americans Living on Less Than $2 a Day?

Every once in awhile, I will run across a news or opinion piece that is so over-the-top and intellectually dishonest that I can't believe a major news outlet would dare to print it.

One such case was a recent CBS News article titled: "The Surging Ranks of America's Ultrapoor" written by freelancer Aimee Picchi, who has a history of writing about income inequality in the U.S.

In her opening sentence to this article, she states:

By one dismal measure, America is joining the likes of Third World countries.

Then, goes on to say:

The number of U.S. residents who are struggling to survive on just $2 a day has more than doubled since 1996, placing 1.5 million households and 3 million children in this desperate economic situation.

Then, there was this:

While it may be the norm to see families in developing countries such as Bangladesh and Ethiopia struggle to survive on such meager income, the growing ranks of America's ultrapoor may be shocking, given that the U.S. is considered one of the most developed capitalist countries in the world.

So, in just three statements, the reader is led to believe that the ultrapoor is such a big problem in this country that we have joined the ranks of Bangladesh and Ethiopia.  This is why, along with other facts, that this article is so intellectually dishonest and so over-the-top.  While it may be true that we do have 4-1/2 million adults and children who are living on under $2 a day, it is only 1.3% of our 324 million population.  According to the World Bank, 76.5% of the people of Bangladesh live under $2 a day.  For Ethiopia, it's 72.2%.

But, understand this.  The whole point of the article is to blame this under $2 condition in America on the 1996 reform of welfare and the creation of something called the Temporary Assistance to Needy Families, otherwise known as TANF.  That is why, up front, she claims the under $2 population has doubled since 1996; directly because of TANF giving such meager income to the ultrapoor.  To that point, she makes this statement:

Once a family qualifies for TANF, they can receive benefits ranging from about $300 a month for a family of three in Texas to as much as $780 per month in New York. That's hardly living in the lap of luxury, but it would lift those families out of dire need.

However, to simply focus on TANF is both dishonest and totally ignores reality.  Besides TANF, the poor in this country are also eligible for dozens of other assistance programs such as Medicaid, food stamps, housing, child care, and  energy and utility. They also get a free telephone or at least a free cellphone.  All of which add up to a helluva lot more than $2 a day.  Just the free cellphone, alone, cost more than that.

She even takes aim at Wal-Mart for the "under $2" growth in this country.  So, we are supposed to believe that Wal-Mart is hiring and uniforming bunches of people to work less 2 hours a week. That's what you get when you divide the Federal minimum wage of $7.25 into the $14 dollars a week that would qualify someone to be living on less than $2 a day.

What this author, and the study that she outlines in her article fail to inform the reader is that the primary reason for the ultrapoor is homelessness.  For example, she claims 3 million children are ultrapoor.  That's very close to the latest study that found that 2.5 million children are homeless.  The problem with homelessness and TANF and other welfare programs is that they can't be served by those programs.  Without an address, they can't even request that a welfare check be sent to them.

The bottom line is that this author is throwing out a bunch of real, but deceptive, facts in order to convince the uniformed reader that we have a broken welfare system.  The reality is that we don't.  The problem is that we have no good way of rectifying the homeless situation in this country.  Money is available to do so, but the system can't accommodate the homeless other than with food banks and other charitable activities.

References:

The surging ranks of America's ultrapoor: http://www.cbsnews.com/news/the-surging-ranks-of-americas-ultrapoor/

World Bank:  Poverty headcount ratio at $2 a day (PPP) (% of population): http://data.worldbank.org/indicator/SI.POV.2DAY

Info: U.S. Welfare Programs: http://www.welfareinfo.org/programs/

Number Of Homeless Children In America Surges To All Time High: http://www.huffingtonpost.com/2014/11/17/child-homelessless-us_n_6169994.html

America in 2014: Poorer with More Poverty

Just recently, the U.S. Census Bureau released its annual data on the median household incomes and poverty rates for 2014.

The saddest news from the data is that the average American family (household) lost $800 in income in 2014 as compared to 2013; dropping 1.5% from $54,462/year to just $53,657. The fact that this wasn't widely reported is amazing.  And, its even more amazing when you think that the average American paid 1.6% more for the things they bought in 2014 -- as measured by the Consumer Price Index. This means that with the combination of inflation and a falling wage, the typical American family lost 3.1% or roughly $1690 in buying power in 2014.

Falling wages and higher costs hardly justify the claim that our economy somehow grew by 2.4% in 2014; the supposedly fastest growth since the recession ended in 2009.  Yet, this is what the Obama Administration told us at the beginning of the year.  If you're going to tell a lie, at least be consistent.

The other bad news was that the rate of poverty rose from 14.5% to 14.8% of our population; meaning that 46.7 million people are struggling to make ends meet. Even worse than that, 26.2% of blacks and 23.6% of Hispanics were in poverty in 2014 while whites had a rate of just 10.1%.

It's numbers like these that make the so-called low unemployment numbers and stronger economic growth claims meaningless to the average American.

References:

Typical American Family Earned $53,657 Last Year: http://money.cnn.com/2015/09/16/news/economy/census-poverty-income/

Historical Inflation Rates: http://www.usinflationcalculator.com/inflation/historical-inflation-rates/

U.S. 2.4% Economic Growth In 2014 Strongest Since Recession:  http://www.forbes.com/sites/samanthasharf/2015/01/30/u-s-economy-grew-2-6-in-fourth-quarter-2-4-in-2014/

The Lives of Living Blacks Matter More

In the U.S., blacks disproportionately live shorter lives.  They are more likely to be killed; not by whites, but by other blacks.  Their babies are more likely to be aborted.   Hispanics aside, they are generally less educated and more often illiterate.  They have higher drug addiction rates, commit crimes, and are imprisoned more often. There are higher rates of unemployment. Poverty is common and home ownership is not.  Lastly, most black babies are born to single mothers.

This is a national disgrace. It is an issue that is much greater than those chanting "Black Lives Matter" over a very small number of unarmed blacks that are killed by white cops.

For decades, the Democrats have pandered to black citizens for their votes.  Billions of government spending to better black lives hasn't worked, and most of the things noted in the first paragraph are things that blacks, themselves, can control; starting with the lack of a strong family unit.

72% of black babies are born to unwed mothers. A primary reason that black women are 3 times more likely to be in poverty as compared to white single women with the black poverty rate of 28.6%.  Of all the abortions in this country, more than 35% are of black fetuses.  Essentially, the concept of "family" is missing in the black community.  It is this lack of a complete family unit that leads to higher levels of crime, gang membership, and lower education levels.

In order to improve black lives, we need high-profile activism that preaches the importance of a strong family and a good education.  A good education starts with, somehow, tamping down the education-interrupting violence in inner city schools.  Contrary to what seems to be in some minds, being well educated and having a strong family is not being an "Uncle Tom".  Not everything is the white man's fault, and someone needs to tell that truth and stop perpetuating that opposing and eternal lie.


References:

CNN's Don Lemon says more than 72 percent of African-American births are out of wedlock: http://www.politifact.com/truth-o-meter/statements/2013/jul/29/don-lemon/cnns-don-lemon-says-more-72-percent-african-americ/

Fact Sheet: The State of African American Women in the United States: https://www.americanprogress.org/issues/race/report/2013/11/07/79165/fact-sheet-the-state-of-african-american-women-in-the-united-states/

Black Americans Have Fewer Years to Live – Here's Why: http://www.usnews.com/news/blogs/data-mine/2015/01/05/black-americans-have-fewer-years-to-live-heres-why

FBI: Murder Victims and Offenders by Race:   https://www.fbi.gov/about-us/cjis/ucr/crime-in-the-u.s/2013/crime-in-the-u.s.-2013/offenses-known-to-law-enforcement/expanded-homicide/expanded_homicide_data_table_6_murder_race_and_sex_of_vicitm_by_race_and_sex_of_offender_2013.xls

Blacks Abortions: https://www.google.com/search?q=number+of+blacks+abortions&ie=utf-8&oe=utf-8

Statistics of incarcerated African-American males - Wikipedia: https://en.wikipedia.org/wiki/Statistics_of_incarcerated_African-American_males

Illiteracy Statistics: http://www.statisticbrain.com/number-of-american-adults-who-cant-read/

Walter E. Williams: Why are inner-city schools more violent today than in the past?: http://www.deseretnews.com/article/765550887/Why-are-inner-city-schools-more-violent-today-than-in-the-past.html?pg=all

Poverty Under Obama

Prior to the Great Recession, poverty in America was decreasing.

From 2006 to 2007, the number in poverty fell from 38.8 million by almost another 800,000.  Then, in 2008, at the height of the recession, it was back up to 39.4 million.  By the time Barack Obama took office in 2009, 42.9 million were in poverty.  By 2012, after three years under Obama, a record 48.5 million of our citizens were poor.  Then, in 2013, 4 years past the end of the recession, the number finally started to fall; down to 45.3 or, roughly 14.5% of the total population.

While the 2014 numbers won't be out until the fall, it is highly likely that the number of people in poverty will still be 1-1/2 to 2 million higher than when President Obama took office.

The ugly fact is that we are 6 years past the end of the recession and we still have 45 million poor in this country (assuming a fall to 14% in the 2014 population of 320 million); and, millions more that are close to that level but aren't officially counted as such.  Even though that's 3.5 million less than the high of 48.5 million in 2012, it is still 2.1 million higher than when Obama took office, and still almost 6 million higher than before the recession started.

When President Obama held his recent 3-day summit on poverty, I'm certain that record was never discussed, nor were his policies that have continued to keep the rate so high.  Obviously, his much touted creation of 18 million jobs hasn't significantly helped the poor that much.  Especially, when most of those new jobs are low paying.

References:

Page 21: Census Bureau Report: 2006 and 2007 Poverty: https://www.census.gov/prod/2008pubs/acs-09.pdf

Page 2: Census Bureau Report: 2008 and 2009 Poverty: http://www.census.gov/prod/2010pubs/acsbr09-1.pdf

Page 1: Census Bureau Report: 2010 and 2011 Poverty: https://www.census.gov/prod/2012pubs/acsbr11-01.pdf

Page 1: Census Bureau Report: from 2000 to 2012 Poverty: https://www.census.gov/prod/2013pubs/acsbr12-01.pdf

Census Bureau: Income and Poverty in the United States: 2013: http://www.census.gov/library/publications/2014/demo/p60-249.html


FUN FACT: More net jobs have been created under Obama than both Bushes combined: http://www.eclectablog.com/2014/10/fun-fact-more-net-jobs-have-been-created-under-obama-than-both-bushes-combined.html

Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones: http://www.nytimes.com/2014/04/28/business/economy/recovery-has-created-far-more-low-wage-jobs-than-better-paid-ones.html

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The Rapidly Evolving Living (Minimum) Wage

In 2007, Congress incrementally raised the $5.15 an hour minimum wage by 40% making it $7.25, effective July of 2009. At that time we were told that $7.25 an hour was a "fair" wage; or, in other words: a "living wage".  In fact, the law responsible for the increase was called the "Fair Minimum Wage Act of 2007". Now, if that $7.25 wage was truly a "fair wage" in 2009 and, if it had been automatically adjusted for inflation each year, then the "fair wage" of today should be about $8.

Instead, in 2013, President Obama kicked off a national debate on what is a "fair wage" by campaigning around the country promoting a 24% increase to $9 an hour.  A year later, he  was pushing a 40% increase to $10.10; or, more than $2 above a supposed fair wage if that $7.25 had been inflation-adjusted all these years.  Meanwhile, unions, who don't have a single minimum wage earner as part of their membership, have decided $15 is a living wage and picketed company stores like those of McDonald's and Walmart to give their cause public attention.

As a result of all this, the public is left with the impression that millions of Americans earn the minimum wage and are, literally, living in poverty.  Believing all this, 63% of those surveyed in a recent Hart Research poll support a $15 minimum by the year 2020.

The truth about the $15 minimum wage was exposed when the unions in Los Angeles asked the city council to provide an exception to the law for unionized operations in the City.  This, after those very same unions had pushed hard by picketing and lobbying to pass the $15 wage in that city.

Suddenly, they realized that a bunch of inexperienced 16-year olds, working part time at cash registers at fast food restaurants, would earn as much or more than their supposed experienced union members.  This is because 71% of the 1.25 million workers earning the minimum wage in this country are part-timers.  In Los Angeles,  union members can make as little as $12/hour.  That apparently was a good enough "living wage" for their union members.  Let's hear it for the brash hypocrisy of the union living wage argument.


References:

Fair Minimum Wage Act of 2007: http://en.wikipedia.org/wiki/Fair_Minimum_Wage_Act_of_2007

Feb 12, 2013 · President Obama wants to raise the minimum wage to $9 an hour, the first increase since 2009: http://money.cnn.com/2013/02/12/news/economy/obama-minimum-wage/index.html

March 5, 2014: Obama pushes for $10.10 minimum wage: http://wtnh.com/2014/03/05/obamas-minimum-wage-campaign-comes-conn/

Unions and the $15 Minimum Wage: http://www.nationalreview.com/corner/418936/unions-and-15-minimum-wage-kevin-d-williamson

Hart Research Poll on Minimum Wage: http://www.nelp.org/content/uploads/2015/03/PR-Federal-Minimum-Wage-Poll-Jan-2015.pdf

Bureau of Labor Statistics: Characteristics of a Minimum Wage Worker for 2014: http://www.bls.gov/opub/reports/cps/characteristics-of-minimum-wage-workers-2014.pdf

Hypocrisy Thy Name Is Union; Unions Demand Exemption From LA's $15 Minimum Wage: http://www.forbes.com/sites/timworstall/2015/05/27/hypocrisy-they-name-is-union-unions-demand-exemption-from-las-15-minimum-wage/

Obama's Waste-of-Time 3-Day Summit on Poverty

President Obama -- apparently following Pope Francis' lead -- held a 3-day summit at Georgetown University which included various Christian groups in order to address poverty in the U.S.  In my opinion, if the President wants to understand why we experienced  a 50-year record high poverty level last year, he need only put his Big-D (Democrat) hat on and look in the mirror.

Over the last 50 years since President Lyndon Johnson declared a war on poverty, this country has spent $22 trillion on the problem in largely Democrat-led welfare programs.  Yet, poverty is more widespread today than ever. 45 million (14.5%) of our citizens are living in poverty.  Obviously throwing money at the problem isn't working.

You don't need a 3-day summit to understand its root cause.  Poverty is a direct result of a failed education system.  According to statistics released by the U.S. Department of Education, 19% of high school graduates cannot read at a 4th grade level.   If you can't read, you can't write.  And, if you can't read or write, the only jobs available to you are low level, low paying, unskilled jobs such as janitorial work.

The fact that we have 19% of our high school graduates unable to read or write points to the fact that we have too many teachers and too many schools who just hustle people out the door not caring that they are illiterate and what that means to our society.  Statistically, two thirds of those who can't read proficiently at the end of the 4th grade are destined for either prison or welfare; two major problems in this country.

But, Democrats like Obama would never go after teachers as a means of reducing poverty.  After all, the teacher's unions have a very close and symbiotic relationship with Democrats.  In fact, the President, in his first year in office, shut down the Washington D.C. voucher system which gave 1,700 low income students access to non-public and non-union schools.He did this in order to demonstrate his appreciation to the teacher's unions for their efforts in getting him elected.  This, even though the voucher system had demonstrated improvements in the test scores of those who participated.

Simply, the key to fixing our poverty and crime problems is to better educate our citizens and help people to understand why education is important.  Of course, this will have to be done at the state and local levels with strong direction and support from the President of the United States.  But, not this President.  Quite frankly, Obama and a lot Democrats would prefer the poor to stay poor. This ultimately insures that they remain a positive voting block because of their dependency on all types of social programs promoted by the Democrat Party.

References:

Pope Francis’ Poverty Agenda Draws President Obama: http://time.com/3854208/pope-francis-barack-obama-poverty/

That's rich: Poverty level under Obama breaks 50-year record: http://www.washingtontimes.com/news/2014/jan/7/obamas-rhetoric-on-fighting-poverty-doesnt-match-h/?page=all

U.S. Department of Education Illiteracy Statistics: http://www.statisticbrain.com/number-of-american-adults-who-cant-read/

Literacy Project: http://literacyprojectfoundation.org/community/statistics/

Literacy Statistics: http://www.begintoread.com/research/literacystatistics.html

Obama's Education Outrage - WSJ: https://www.google.com/search?q=Obama%27s+Education+Outrage+-+WSJ&ie=utf-8&oe=utf-8

Obama's War on Black Education: http://www.americanthinker.com/articles/2013/08/obamas_war_on_black_education.html

Really? The Baltimore Cops are the Problem?

When it comes to crime, the Baltimore police have their hands full.  Baltimore is a city of just 623,000 people.  Yet, every year, they have more than 40,000 crimes. That's one crime for every 15-1/2 residents. Theoretically, that means that each resident will experience one crime every 15 years.  That 1-in-15-1/2 also creates  a helluva lot of suspects within that population; and may be why so many residents think they're being harassed by the cops. 

Based on the murder rate per 1,000 people, Baltimore's is 9-1/4 times higher than the national average.  The rape rate is twice that of the nation as a whole.  The robbery rate stands at 6 times higher, and assault is almost 3 times the norm. All together, the violent crime rate per 1000 residents is nearly 4 times higher than the U.S. average. 

According to the U.S. Attorney General and the Baltimore Mayor, the city has a civil rights problem within its police force.

To that, I say that the city -- which is 63% black and has a police force that is nearly half black -- has a civility problem.  Not a civil rights problem.  Police don't cause crime. They enforce the law and protect against it.  When you have 438 crimes per square mile each year, something is seriously wrong and it isn't the police.  They are simply being scapegoated for other more politically relevant problems; such as a 24% poverty rate and very high unemployment. Just 42% of the working-age adults in Freddie Gray's neighborhood have a job. Overall, young black men have a 37% unemployment rate in that city.  Also, 36% of Baltimore's adult population are functionally illiterate and can't read at even a basic level. High poverty, unemployment, and illiteracy have all been linked to higher crime rates. Baltimore has them all.

References:

After Freddie Gray death, U.S. starts civil rights probe of Baltimore police: http://www.baltimoresun.com/news/maryland/baltimore-city/bs-md-justice-announce-20150508-story.html#page=2

Baltimore Quick Facts: http://quickfacts.census.gov/qfd/states/24/24510.html

Baltimore Police Department: http://en.wikipedia.org/wiki/Baltimore_Police_Department

Just 42 percent of the residents in Freddie Gray’s neighborhood are employed: http://fusion.net/story/127163/just-42-percent-of-the-residents-in-freddie-grays-neighborhood-are-employed/

Baltimore's economy in black and white: http://money.cnn.com/2015/04/29/news/economy/baltimore-economy/

The Relationship between Crime and Unemployment: http://digitalcommons.iwu.edu/cgi/viewcontent.cgi?article=1069&context=parkplace

Poverty and Crime | National Dialogue Network: http://www.nationaldialoguenetwork.org/poverty-and-crime/

Baltimore Literacy Rate: http://articles.baltimoresun.com/1999-04-19/news/9904170418_1_adult-literacy-literacy-rates-welfare-recipients

Two-Thirds of Students Who Can't Read by the Fourth Grade Will Either Wind Up in Jail or on Welfare: http://www.begintoread.com/research/literacystatistics.html

What J.F.K. Knew About Economics And What Most Democrats Today Don't

In 1963, President John F. Kennedy -- a Democrat -- was entering his second year in office and was enjoying robust economic growth.  Faster than that of either of his two predecessors.  Even so, he declared that "the absence of recession is not tantamount to economic growth."  What he was referring to was the fact that, despite good GDP numbers, nearly 1-in-5 Americans (+38 million) were in poverty and the unemployment rate was still high at 6%; although down from 7% before he took office.

Thus, to fix the poverty and unemployment problems, Kennedy proposed across the board cuts in income taxes and a reduction of the corporate tax rate; including reducing taxes on the rich from a rate of 91% to just 65%.  In doing so, he offered no offsetting spending cuts to pay for the reductions.  His argument for not cutting spending was simply his belief that"a rising tide lifts all boats".  Or, in other words,  lowering taxes would create jobs for those who were unemployed and in poverty and, as such, revenues would increase so much so that his proposed tax cuts would naturally be offset.  That is as long as spending was controlled. Sadly, Kennedy was assassinated before he could see his tax reductions passed into law.

Then, in 1964 and just three months after Kennedy's death, President Lyndon Johnson signed into law the Kennedy tax cuts in what is now known as the Revenue Act of 1964.  All of Kennedy's assumptions were proven correct.  As such, Johnson had the lowest average unemployment rate of any President since World War II.  Revenues grew 68% from when Kennedy took office.  The most astonishing fact was that, in just four years, the number of Americans in poverty fell from more than 38 million in 1964 to just over 25 million by the end of 1968.  A 34% reduction.

Today, Democrats like President Obama want to punish the rich and corporations with higher taxes.  In wanting to do so, they always point to President Clinton who, despite raising taxes, enjoyed strong economic growth.  However, what those same Democrats fail to recognize is that during Clinton's time, it was mostly due to the dot-com business and wealth boom of the 1990's.

Kennedy's economic prowess -- with economic growth faster for both him and Johnson than Clinton -- is anathema to most Democrats because, if they were to praise Kennedy for cutting taxes on the rich and corporations, this would be to deny themselves of their victimization strategy in order to get votes.  After all, corporations and the rich are supposedly at the heart of everything that is evil and wrong in this country and the rest of the world.  Kennedy was rich and he never tried to hide it; unlike Hillary Clinton who is also rich.  She would prefer that you think that she and Bill were dead broke when they left the White House; and, would like you to think they still are.   Of course, it's really hard to bash the rich when you're one of them.

References:

Kennedy Presidential Library: JFK on the Economy and Taxes:  http://www.jfklibrary.org/JFK/JFK-in-History/JFK-on-the-Economy-and-Taxes.aspx

Economic Growth By President: http://www.msnbc.com/rachel-maddow-show/chart-economic-growth-president

The Revenue Act of 1964: http://en.wikipedia.org/wiki/Revenue_Act_of_1964

U.S. Unemployment Statistics by President:  http://historyinpieces.com/research/us-unemployment-rates-president

Historical Lesson of Lowered Tax Rates: http://www.heritage.org/research/reports/2003/08/the-historical-lessons-of-lower-tax-rates

Census Bureau: Poverty from 1959 to 1968: http://www2.census.gov/prod2/popscan/p60-068a.pdf

Seattle's $15 Minimum Wage and the Liberal Spin

On April 1st, Seattle, Washington's $15 Minimum wage law technically went into effect.  Already, the liberals have attacked Republicans who had claimed that raising it that high would cost jobs and shutter businesses. The argument is that none of that has happened.   In fact, on April 10th, the far left think tank, "Think Progress", wrote an online article titled: "Seattle Restaurant Data Demolishes Conservative Argument Against $15 Minimum Wage."

The problem with the "Think Progress" article is that it leads people to believe that a $15 minimum wage completely went into effect April 1st.  It didn't.

If you are a small business of less than 500 employees, you have seven years to gradually raise it to $15.  That's about an 81 cent per hour raise per year from the previous $9.32 in Washington state.  All other businesses have just three years to increase it, and since most small business like restaurants and retail operations employ minimum wage workers, overall impact will be minimal; at least this year.

There's another reason that Seattle can handle the $15 minimum wage over time without a lot of impact on jobs. Seattle is wealthy.  The average per capita income is $43,237 (in 2013).  That's much higher then our nation as a whole at just $28,155 (again, in 2013). Because of its wealth, and the city's ability to keep people working, the unemployment rate was just 3.9% in December of 2014.

So, I guess from the 'Think Progress" article, we're supposed to conclude that raising the national minimum wage to $15 won't do any harm.  That reminds me of that old adage: "But, will it play in Peoria."  In Peoria, Illinois the average per capita salary is only $28,438 (in 2013); or, about $13.67 an hour (based on a 40-hour work week).  In terms of the unemployment rate, Peoria is already hurting at  6.9% as of December 2014.  Compared to Seattle's poverty rate of 13.6%, Peoria sits at 17.2%; meaning that 1-in-6 wouldn't see their salaries increased anyway.

Let's not have a national minimum wage of $15.  If Seattle, with its high standard of living, does it...then, fine.  But not every community can afford the price hikes that will result from it.

References:

Seattle approves $15 minimum wage: http://money.cnn.com/2014/06/02/news/economy/seattle-minimum-wage/

Seattle Restaurant Data Demolishes Conservative Argument Against $15 Minimum Wage: http://thinkprogress.org/economy/2015/04/10/3645268/new-evidence-buries-lie-about-seattle-minimum-wage/

We Are Seeing The Effects Of Seattle's $15 An Hour Minimum Wage: http://www.forbes.com/sites/timworstall/2015/03/16/we-are-seeing-the-effects-of-seattles-15-an-hour-minimum-wage/

USA Quick Facts: http://quickfacts.census.gov/qfd/states/00000.html

Seattle Quick Facts: http://quickfacts.census.gov/qfd/states/53/5363000.html

Seattle Unemployment Rate: https://www.google.com/search?q=seattle+unemployment+rate&ie=utf-8&oe=utf-8

Peoria Quick Facts: http://quickfacts.census.gov/qfd/states/17/17143.html

Peoria Unemployment Rate: https://www.google.com/search?q=peoria+unemployment+rate&ie=utf-8&oe=utf-8

Will it Play in Peoria: http://en.wikipedia.org/wiki/Will_it_play_in_Peoria%3F