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Archive for July 13th, 2011

Unemployed Americans Victimized By Underrepresentation In The Senate

Posted in Main Blog (All Posts) on July 13th, 2011 4:36 am by HL

Unemployed Americans Victimized By Underrepresentation In The Senate
By Matthew Cameron In response to Catherine Rampell’s article in the Sunday New York Times about the stunning lack of political attention devoted to the modern unemployed, David Leonhardt posited that a reason for this phenomenon may be the concentrated nature of the jobs crisis. Specifically, he noted: In 1982, the unemployment rate averaged between […]

By Matthew Cameron

In response to Catherine Rampell’s article in the Sunday New York Times about the stunning lack of political attention devoted to the modern unemployed, David Leonhardt posited that a reason for this phenomenon may be the concentrated nature of the jobs crisis. Specifically, he noted:

In 1982, the unemployment rate averaged between 9 and 10 percent — and fully 22 percent of the labor force experienced unemployment at some point during the year. In 2009 (the most recent year of data), the unemployment rate also averaged between 9 and 10 percent, but only (or maybe “only”) 16.4 percent of the labor force experienced unemployment at some point during the year.

Just as surprising, the share of the labor force that experienced unemployment in 2009 was lower than in the early 1960s, when the unemployment rate was generally below 7 percent.

As it turns out, the unemployed aren’t merely a narrower slice of the American electorate than in previous downturns. They also are concentrated in highly populous states that are severely underrepresented in the Senate.

In 2010, there were 17 states with working age populations that exceeded the per-state average. Among these states, which accounted for 70 percent of the U.S. working age population, the average unemployment rate was 9.9 percent. The other 33 states with below average working age populations, however, had an average unemployment rate of 8.2 percent.

The situation is even starker when looking at the extremes. The average unemployment rate among the 10 most populous states was a whopping 10.3 percent in 2010. Among the 10 least populous states, however, average unemployment was only 7 percent. Despite the fact that the former group comprises 54 percent of the U.S. working age population and the latter group only 3 percent, the nation’s system of political representation grants each an equal-sized voting bloc in the Senate. Thus, the unemployed possess even less clout than one would expect since they tend to reside in states that afford them very little political power per capita.

Overall, this bolsters Rampell’s thesis that there are a variety of historical and institutional factors conspiring to make the modern unemployed invisible. Yet it also casts doubt upon her suggestion that the unemployed could attract the attention of politicians by simply turning out to vote. After all, no matter how much mobilizing took place among the 2.3 million people who made up the 12.4 percent of California’s workforce that was unemployed at the time of the 2010 elections, they still would’ve only had the opportunity to vote for as many senators — one — as did the 96.1 percent of North Dakota’s labor force (roughly 356,000 people) that was happily employed.

The Consumer Surplus Of The Internet
Tyler Cowen has a couple of posts up questioning the idea that the Internet results in some giant unmeasured consumer surplus. The main thing I have to add to this is from what I know of blog traffic statistics. In short Traffic is highest during the 12 hours between 9 a.m. and 9 p.m. Eastern […]

Tyler Cowen has a couple of posts up questioning the idea that the Internet results in some giant unmeasured consumer surplus.

The main thing I have to add to this is from what I know of blog traffic statistics. In short Traffic is highest during the 12 hours between 9 a.m. and 9 p.m. Eastern Time that reflect when people are at work. Traffic tends to peak during the time when people are at the office in all four American time zones. Traffic is much higher on weekdays than on weekends. Traffic is much lower on holiday Mondays than on regular Mondays. Traffic is much lower during the Monday, Tuesday, and Wednesday before Thanksgiving than on normal Mondays, Tuesdays, and Wednesdays. Traffic is unusually low during the whole week between Christmas and New Year’s Day.

This is a long-winded way of saying that people read things on the Internet primarily when they’re supposed to be working. One interpretation of that is that the consumer surplus is pretty small. People don’t want to spend their leisure time reading my blog. But there are other interpretation. Maybe “ability to surf the web at work” is enormously valuable to people, but people also spend enough time at work that this leaves them basically sated.


GOP indecision on 2012 may give Rick Perry a ‘huge opening’

Posted in Main Blog (All Posts) on July 13th, 2011 4:35 am by HL

GOP indecision on 2012 may give Rick Perry a ‘huge opening’

As he weighs whether to jump in to the 2012 Republican presidential race, Texas Gov. Rick Perry has been dialing GOP establishment bigwigs across the country. In phone calls that sometimes stretch more than a half-hour, Perry asks the same questions:

Is the door open for a new candidate? And how wide is it open?

The answers: most definitely, and plenty wide.

Read full article >>

House GOP fails to turn off new standards for light bulbs that some see as issue of freedom

WASHINGTON — House Republicans on Tuesday failed to stop the enactment of new energy-saving standards for light bulbs they portrayed as yet another example of big government interfering in people’s lives.

The GOP bill to overturn the standards set to go into effect next year fell short of the two-thirds majority needed for passage. The vote was 233-193.

For many Republicans, those newfangled curly fluorescent light bulbs were the last straw, pushed by an overreaching government that’s forcing people to buy health insurance, prodding them to get more fuel-efficient cars and sticking its nose into too many places.

Read full article >>

Pawlenty, Bachmann, Romney and the Iowa marriage pledge

Last week, the Family Leader, a conservative pro-family group in Iowa, asked Republican presidential candidates to sign a pledge endorsing traditional marriage and other social issues. Michele Bachmann was the first to say she would sign it. Mitt Romney has decided not to. Tim Pawlenty hasn’t announced his decision.

That tells you something important about the battle for the Republican presidential nomination and the box in which Pawlenty now finds himself. Two months ago, he believed he was in a strong position to break out and become the principal alternative to front-runner Romney. Today he is trying to figure out how to prevent Bachmann from blocking his path.

Read full article >>

Fed divided over more stimulus, meeting minutes show

Federal Reserve officials lack a strong consensus over what they should do next in setting the nation’s monetary policy, according to minutes of their last policy meeting, showing a mix of views as to why the U.S. economy remains weak and what, if anything, they should do about it.

At a June 21-22 meeting, some leaders of the central bank argued that if there were no progress reducing unemployment, the Fed should consider further expanding the money supply — which in practice would mean a third round of “quantitative easing,” or buying hundreds of billions of dollars in Treasury bonds.

Read full article >>


Why Aren’t Small Businesses Hiring?

Posted in Main Blog (All Posts) on July 13th, 2011 4:31 am by HL

Why Aren’t Small Businesses Hiring?

Does Obama Want to Be a One-Term President?

Don’t Let House Gut EPA Clean Water Rules

Obama is Right: Give Peas a Chance