Those Stubborn Facts: Immigration Excuse-Making for California

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Associated Press, Barack Obama, California, Donald Trump, green card holders, green cards, immigrants, Immigration, legal immigration, Mainstream Media, MSM, Those Stubborn Facts

California’s “immigration decline has been particularly fast in the past half decade as President Donald Trump’s administration sharply reduced the number of people legally entering the United States.”

– Associated Press, April 24, 2021

 

Average annual grants of legal permanent U.S. resident status to

immigrants, Trump years: 1,085,181

 

Average annual grants of legal permanent U.S. resident status to

immigrants, second Obama term: 1,060,402

 

(Sources: “Awaiting census count, California ponders slow growth future,” by Kathleen Ronayne, Associated Press, April 24, 2021, Awaiting census count, California ponders slow growth future (apnews.com) & “Table 1. Persons Obtaining Lawful Permanent Resident Status: Fiscal Years 1820 to 2019,” Yearbook 2019, Yearbook of Immigration Statistics, Immigration Data and Statistics, Department of Homeland Security, Table 1. Persons Obtaining Lawful Permanent Resident Status: Fiscal Years 1820 to 2019 | Homeland Security (dhs.gov))

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(What’s Left of) Our Economy: The Latest on the Virus, Lockdowns, and Jobs

Tags

California, CCP Virus, coronavirus, COVID 19, Jobs, Labor Department, lockdowns, New York, public health, states, stay-at-home, Wallethub.com, Wuhan virus, {What's Left of) Our Economy

With the release last week of the Labor Department’s U.S. state-level employment data for December, we have a great new handle on the relationship between the various lockdown and stay-at-home policies mandated throughout the country, and the still horrific toll on job losses during the CCP Virus era.

And as with recent statistics on state-level economic growth (and contraction) rates (see here and here), the numbers seem to point to the economic curbs themselves as the biggest influence on employment levels and changes, as opposed to other factors, like individuals’ virus-induced fear of using various types of in-person services (like travel) and the resulting knock-on effects throughout the entire economy.

One major indication of the mandates’ impact comes, as with the growth figures, from the outsized job losses experienced in New York and California, two states with some of the most severe lockdown regimes imposed over the past year.

In December, 2019, just before the virus began spreading to the United States, New York and California accounted for 18.37 percent of all the nation’s non-farm jobs (the Labor Department’s U.S. jobs universe.) But one year later, their employment losses came to 27.91 percent of the U.S. total.

Additional reasons for blaming the mandates for the employment damage come from comparing the performances the best and worst jobs performers, and the least and most restrictive states. As with the previous post on growth levels, the ranking of mandate strictness comes from the Wallethub.com website. (And sharp-eyed readers will note that the rankings have changed over the last few months, which makes perfect sense since the lockdown regimes’ extent has fluctuated, too.)

First let’s see the Wallethub ranks of the states with the best employment records between December, 2019 and December, 2020. (The lower the rank, the more “open” the state.)

Top 10 job performers (by % change)       Wallethub.com rank

1. Idaho: +0.6                                                          14

1. Utah: +0.6                                                             6

2. Mississippi: -1.4                                                  21

3. Alabama: -1.7                                                      12

3. Georgia: -1.7                                                       18

4. Nebraska: -2.3                                                     17

5. South Carolina: -2.4                                            10

6. Arizona: -2.8                                                       30

6. Arkansas: -2.8                                                       4

6. Indiana: -2.8                                                       20

7. Montana: -2.9                                                     13

7. South Dakota: -2.9                                               2

8. Missouri: -3.1                                                       7

9. Tennessee: -3.2                                                  19

10. Texas: -3.3                                                        28

Right off the bat you’ll see that because of ties, the Top 10 is really a Top 15 – which actually serves our purposes even better. And the big takeaway here is that with one exception (Arizona) and one near-exception (Texas), all of these states rank in the top half on the open/closed scale (26 and lower for the 50 states plus the District of Columbia).

And of these 15 states, four were among the ten most open, and twelve were among the twenty most open.

Does the reverse proposition hold? Have the most closed states generally compiled the worst employment records? Here’s what the numbers say:

Bottom 10 job performers (by % change)     Wallethub.com rank

1. Hawaii: -13.8                                                          43

2. Michigan: -10.9                                                      29

3. New York: -10.4                                                     39

4. Massachusetts: -9.1                                                49

5. Vermont: 9.0                                                           45

6. New Hampshire: -8.8                                             23

7. Rhode Island: -8.7                                                  36

8. Minnesota: -8.3                                                      32

9. California: -8.0                                                       51

9. New Jersey: -8.0                                                     34

10. Delaware: -7.8                                                      33

10. Pennsylvania: -7.8                                                35

10. Oregon: -7.8                                                         37

Because of the “tie effect,” this Bottom 10 set is really a Bottom 13. Four of them fall in the category of ten most restrictive states (ranked between 51 and 41 on the Wallethub scale), and seven more are among the next ten most restrictive states. Moreover, only one state (New Hampshire) has been in the top half of most open states. So the relationship between lockdowns and employment performance looks strong from this perspective as well.

The issue can be examined the other way around, too – by examining the employment performance of the most open and least open states. Here are the results for the ten most open states. (As with the list of ten most closed states below, the Top Ten here really is a Top Ten.) They’re presented in descending order of openness.) 

Ten least restrictive on lockdowns         Job creation rank (out of 37)

Oklahoma:                                                                15

South Dakota:                                                            6

Iowa:                                                                         11

Arkansas:                                                                   5                  

Florida:                                                                    14

Utah:                                                                          1

Missouri:                                                                   7

Wisconsin:                                                               25

Alaska:                                                                    24

South Carolina:                                                         4

Revealingly, fully half of these states were among the ten states with the best employment records, three more were in the next ten. Consequently, eight of the ten ranked in the top half on the openness scale. (Because of the “tie effect,” the top half here starts at number 19 – of 37 differing state rankings).

And although Oklahoma looks like something of an exception here (the most consistently open state being only the 15^th best jobs performer), there’s a pretty simple explanation: Oklahoma’s economy is energy-heavy, and that sector has been absolutely slammed the deep recession experienced during the CCP Virus period.

Florida, which relies so heavily on tourism, has an “excuse” as well. (By the same token, though, it’s no coincidence that the worst employment performer, Hawaii, is tourism-dependent as well, along with fellow job laggards California and, to a lesser extent, New York.)

Finally, the table below shows how the most closed states fared in terms of job loss.  These are presented in descending order of “closed-ness.”

Ten most restrictive on lockdowns          Job creation rank (out of 37)

California:                                                                  31

Virginia:                                                                     12

Masschusetts:                                                             34

District of Columbia:                                                 21

New Mexico:                                                             26

Washington:                                                               18

Vermont:                                                                    33

North Carolina:                                                          10

Hawaii:                                                                      37

Illinois:                                                                      24

Fully four of these ten have been among the five worst employment states during the virus period (including tourism-reliant Hawaii and California). Three more (Illinois, New Mexico, and the District of Columbia) joined them in the bottom half. Of the two exceptions, Virginia’s solid employment record surely stems from its status not only as a state with a strongly growing information technology sector and an army of federal workers (many of whose jobs in turn owe to federal contracting).

One last point should be remembered as well: As extensively documented, the lockdowns and stay-at-home orders have generated their own serious healthcare damage . So the states with the relatively limited mandates surely have curbed both these CCP Virus costs as well as economic damage. Meaning that the already compelling case for anti-virus measures targeting the most vulnerable rather than indiscriminately putting the clamps on businesses and other forms of activity has just grown that much stronger.

(What’s Left of) Our Economy: The CCP Virus Lockdowns’ State-Level US Effects I

Tags

California, CCP Virus, Commerce Department, coronavirus, COVID 19, GDP, gross domestic product, inflation-adjusted growth, lockdowns, New York, real GDP, shutdows, states, stay-at-home, Utah, Washington, Wuhan virus, {What's Left of) Our Economy

One of my coolest holiday gifts came courtesy of Uncle Sam. Not a tax refund or stimulus check, but the Commerce Department’s release last week on “Gross Domestic Product by State, 3^rd Quarter, 2020.”

Seriously.

I always look forward to these data because they enable gauging how developments in the national economy are affecting individual states as well as regions, and vice versa, and this latest report is especially interesting because of all that it says about the economic impact of the highly diverse set of lockdowns and shutdowns and stay-at-home orders and the like that the states have imposed during the CCP Virus era.

This will be the first of two posts on the subject, and I’ll focus on some simple descriptive findings – many of which came as surprises to me. Beforehand, though, it’s important to lay out some warnings against drawing overly tight conclusions between a state’s economic performance and the virus curbs it’s put I effect.

Among the most important:

>The pandemic hit different states at different times, so differences in their growth rates (what these gross domestic product, or GDP, figures are particularly valuable for), in many instances have relatively little to do with their lockdown etc regimes.

>The states have highly diverse demographic profiles (e.g., average age of the population, population density) that can also produce highly diverse economic performances for reasons largely unrelated to economic curbs.

>Different state economies are also dominated by different industries, and as has become obvious, some industries’ health has been decimated by the virus (especially in-person services of all kinds like dining and travel and hospitality, but also energy) while some have held up fairly well (like manufacturing). It’s become just as obvious that many jobs that can be performed at home, and therefore the income and spending they generate have been much less affected by the pandemic than jobs requiring a worker’s presence (e.g., in those in-person service sectors).

>Finally (for now), state economies don’t exist in isolation from each other. Commuters and shoppers often cross state lines when traveling to work or stores, and their businesses often sell their products and offer their services to customers nation-wide – inevitably weakening or strengthening the impact of state-specific curbs.

Still, the new GDP-by-state numbers (which include the District of Columbia) reveal any number of important results since they take the story past the deep second quarter virus- and shutdown-induced downturn suffered by the entire national economy, as well as the strong third quarter rebound.

One big surprise: The entire U.S. economy saw output drop by 2.17 percent in inflation-adjusted terms (the gauge most closely watched) between the first quarter of the year (the last mainly pre-pandemic quarter) and the third. But two states actually managed to grow in inflation-adjusted terms (the gauge most closely watched by students of the economy): Utah (whose economy expanded by 1.04 percent in real terms) and Washington (0.44 percent).

The Washington result was unexpected, at least for me, because its West Coast location placed it closer to the CCP Virus’ origins in China, because the first virus case was recorded there in January (at least as far as is known to date), and because one of its economic crown jewels is aerospace giant Boeing, which has been hit so hard both by recent travel restriction and the safety woes troubling its jetliners.

The worst performing states, in relative (percentage terms) were less surprising. The leader here far and away was Hawaii, whose constant dollar GDP shrank by 6.67 percent) followed by Wyoming (down 5.24 percent by the same measure) and New York (4.56 percent). The Aloha State has of course been victimized by the depression in the travel and tourism industries, Wyoming is energy dependent, and New York collectively caught the CCP Virus early, when so little was known about its virulence and deadliness, and about which Americans were least and most vulnerable.

Oddly, however, the number of states that appear to have been especially hard hit economically between the first and third quarters was pretty limited. Only nine overall experienced price-adjusted contractions of more than three percent. In addition to the three biggest losers above, they were Oklahoma, Tennessee, Alaska, Nevada, New Jersey, and Vermont. And bonus points for you if you see major energy (Oklahoma, Alaska) and tourism (Nevada and Vermont) effects at work here.

Other than that, the economies of eighteen states shrank between two and three percent in constant dollar terms between the first and the third quarters – meaning that, generally, they weren’t far from the national total of 2.17 percent. The rest contracted by less than two percent or (as with Utah and Washington) eaked out some growth.

But this isn’t to say that the economic impact of the virus and related economic curbs haven’t been highly concentrated in at least one respect: A way outsized share of this production destruction has taken place as of the third quarter in just two states: New York and California.  

New York’s the champ here. During the first quarter, its economy represented 7.74 percent of the U.S. total in inflation-adjusted terms. By the third quarter, though, its $67.80 billion contraction represented 16.36 percent of the entire country’s $414.33 billion. In other words, measured by lost output, it punched more than twice above its economic weight.

During this period, California’s real GDP fell by more than New York’s in absolute terms ($74.30 billion). But its economy has long been bigger than New York’s – accounting for 14.81 percent of constant dollar US GDP during the first quarter, or nearly twice New York’s share. So its 17.93 percent shrinkage was smaller relative to the size of its economy than New York’s.

Their combined impact, however, is genuinely astonishing. Accounting for a combined 22.55 percent of the U.S. economy adjusted for inflation in the first quarter, they generated 34.29 percent of the nation’s economic shrinkage – more than a third.

And this is where the lockdown angle comes in: By one gauge of virus-era state economic regimes, (which themselves have almost all been on and off at least to some extent, thereby creating yet another complication) New York’s and California’s were among the strictest. And the next RealityChek post will examine in more detail the relationship these curbs and state economic growth.

(What’s Left of) Our Economy: Why Biden’s Immigration-Enabling Goals Couldn’t be Worse Timed

Tags

asylum seekers, California, CCP Virus, coronavirus, COVID 19, Department of Labor, Eduardo Porter, illegal aliens, illegal immigration, Immigration, Jobs, Joe Biden, NAFTA, North American Free Frade Agreement, Open Borders, path to citizenship, Pew Research Center, recession, refugees, services, The New York Times, The Race to the Bottom, wages, Wuhan virus, {What's Left of) Our Economy

Apparent President-elect Joe Biden emphatically and repeatedly told the nation that he’s determined to increase the flow of immigrants to America – whether we’re talking about his promises that will greatly strengthen the immigration magnet (like creating a “roadmap to citizenship” for America’s illegal alien population, tightly curbing immigation law enforcement activities, and offering free government-funded healthcare to anyone who can manage to cross the border lawfully or not), or his promises to boost admissions of refugees, speed systems for processing applications for asylum and (legal) green card applications, and generally “to ensure that the U.S. remains open and welcoming to people from every part of the world….”

During normal recent times such pledges – and the fallout of pre-Trump efforts to keep them – had proven troublesome enough for the U.S. economy and for working class Americans in particular. Inevitably, they pumped up the supply of labor available to U.S.-based businesses, and created surpluses that enabled companies to cut wages with the greatest of ease – exactly as the laws of supply and demand predict.

During the CCP Virus pandemic and its likely economic aftermath, however, this quasi-Open Borders strategy looks positively demented, as emerging trends most recently described by New York Times economics writer Eduardo Porter should make painfully obvious.

According to Porter in a December 1 piece, “The [U.S.] labor market has recovered 12 million of the 22 million jobs lost from February to April. But many positions may not return any time soon, even when a vaccine is deployed.

“This is likely to prove especially problematic for millions of low-paid workers in service industries like retailing, hospitality, building maintenance and transportation, which may be permanently impaired or fundamentally transformed. What will janitors do if fewer people work in offices? What will waiters do if the urban restaurant ecosystem never recovers its density?”

What’s the connection with immigration policy? As it happens, the service industries the author rightly identifies as sectors apparently vulnerable to major employment downsizing are industries that historically have employed outsized shares of immigrant workers (including illegals). And along with other personal service industries, they’re kinds of sectors whose modest skill requirements would continue to offer newcomers overall their best bets for employment.

The charts below, from the Pew Research Center, show just how thoroughly dominated by both kinds of immigrants these sectors, and present similar data broken down by occupation. (The U.S. Department of Labor tracks employment according to both kinds of categories.)

Twenty years ago, in my book The Race to the Bottom, I wrote about news reports making clear that

“immigrants were flooding into California in hopes of landing jobs in labor-intensive industries such a apparel and electronics assembly that NAFTA [the North American Free Trade Agreement] had steadily been sending to Mexico — where most of the immigrants come from! In other words, the state was importing people while exporting their likeliest jobs.” 

And not surprisingly, wages throughout the southern California in particular stagnated.  

If a Biden administration proceeds with its stated immigration plans as quickly as it’s promised (with many actions scheduled for the former Vice President’s first hundred days in office), this epic blunder will wind up being repeated — but this time on a national scale.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Im-Politic: The Surprising Politics of Mask-Wearing

Tags

California, CCP Virus, conservatives, coronavirus, COVID 19, Democrats, Eric Garcetti, facemasks, Florida, Gavin Newsome, Im-Politic, liberals, lockdowns, Los Angeles County, masks, Miami-Dade County, Orange County, Republicans, Ron DeSantis, San Diego County, shutdowns, Trump, Wuhan virus

Republicans and conservatives are recklessly or stupidly or (INSERT YOUR FAVORITE DEROGTORY ADVERB) resisted orders issued by many state and local governments mandating facemask wearing in various circumstances to fight the CCP Virus more effectively. No less than Paul Krugman, one of The New York Times‘ uber-liberal uber pundits, says so. So do a number of Republicans – especially those from the nearly extinct Bush wing of the GOP. And special ire is reserved for Prsident Trump, who until July 11 refused to wear a mask in public, and who still hasn’t issued a blanket endorsement of the practice, and remains opposed to a federal mandate.

In the interests of full disclosure, I wear masks (as required by law) when I patronize indor businesses in Maryland (where I live), and would don them in crowded outdoor areas, too (not required). And I’d abide by any mask regulations elsewhere. Evidently scientific evidence on mask effectiveness has been mixed enough to prevent the World Health Organization (WHO) from encouraging their use until June 5. But these coverings make intuitive sense to me, and although I find tem sort of uncomfortable, they’re anything but unbearable.       

What I do find irksome is how the Mainstream Media and most of the rest of America’s chattering classes have decided that it’s only one half of the political spectrum that’s to blame for shortfalls in America’s mask-wearing record. Because evidence abounds that there’s lots of opposition, or at least indifference, to masks among Democrats and liberals, too. And the experiences of Florida and California – two big states whose governor have taken dramatically differing approaches to handling the CCP Virus – make the point nicely.

In case you’re ignoring national news completely, Florida deserves special attention because of the “ha-ha factor.” As in “Ha ha – Republican Governor Ron DeSantis had been bragging about how the Sunshine State had suppressed the virus with a light regulatory touch, but lately it’s become a major hot spot.”

Specifically, the indictment against DeSantis began with his refusal to close the state’s beaches for spring breakers and Florida natives who relish the shore, continued with his decision to reopen the beaches and the rest of the state after a shelter-in-place order had been in place fairly briefly, and has been reinforced by his own opposition to order mask-wearing state-wide, which is blamed at least in part for Floridians’ continually casual attitude about face coverings and related practices like social distancing, and the state’s recent spike in cases and deaths. (See here and here for examples.)

But if you look at the pattern of infection in Florida, it quickly becomes clear that Democrats as well as Republicans must be ignoring mask-wearing and distancing en masse. After all, the five Florida counties with the biggest numbers of registered Democratic voters are (in descending order) Miami-Dade, Hillsborough, Broward, Palm Beach, and Orange. Indeed, together, they account for nearly 45 percent of the Florida Democratic total. They also happen to be the state’s five most populous counties, adding up to just under 42 percent of its population.

Yet this Big Five has contained more than 54 percent of the 80,236 new CCP Virus cases recorded in Florida during the week ending yesterday. In other words, these Democratic strongholds punched significantly above their new cases weight. And Democratic voter champ Miami-Dade all by itself, whose population represents 12.65 percent of Florida’s total, is home to more than 24 percent of those new Florida virus cases. And with the exception of one tiny black majority panhandle county, it’s also Florida’s most lopsidedly Democratic county. So its even greater “out-perform” is all the more noteworthy.

One possible counter-argument is that these five populous Democratic counties are also more densely peopled than state counties with much smaller populations, where the virus’ impact has been slighter. But that sounds like an excuse to me. If Democrats are less selfish and/or stupid and/or reckless than Republicans, and therefore more committed to mask-wearing and social distancing and the like, then they should be making much greater efforts to tone down their recreational or social lives to slow the spread, and save the lives of their fellow Floridians.

Obviously, not every resident of these counties, or every registered Democrat, is ignoring the need to fight the pandemic. But the prevalence of Democrats in these counties is just as obviously signaling that many are.

California’s a somewhat different story – and an even stronger challenge to the narrative. Unlike Florida, where the Democratic-Republican ratio overall is only 1.06:1, in California, it’s Democrats outnumber Republicans by a 1.90:1 margin. Not surprisingly, the Golden State is governed by a Democrat – Gavin Newsom – and its lockdowns came much earlier, and were much more pervasive, than Florida’s. So Californians were by no means receiving the kinds of mixed messages about responsible behavior from their statehouse than DeSantis has been accused of sending.

But many of the state’s residents evidently decided to ignore them – and pretty quickly. For example, as early as late April, so many Californians were crowding the state’s beaches in violation of social distancing protocols that Newsom decided to close them. A little over a month ago, after major increases in the state’s CCP Virus case numbers, deaths, and deaths followed Newsom’s cautious reopening program, Newsom charged that the problem wasn’t a too hasty lifting of economic restrictions, but Californians’ irresponsible behavior:

“Simply put, we are seeing too many people with faces uncovered — putting at risk the real progress we have made in fighting the disease. California’s strategy to restart the economy and get people back to work will only be successful if people act safely and follow health recommendations. That means wearing a face covering, washing your hands and practicing physical distancing.”

Much of this incautious beach-going is surely going on in Orange and San Diego Counties, where the Democratic-Republican split is smaller than in the state as a whole. So even though both counties combined boast nearly 1.3 million Democratic voters, maybe all of theirDemocrats were well-behaved.

But no such case can reasonably be made for Los Angeles County, the state’s most populous by far, and a jurisdiction where registered Democrats outnumber registered Republicans by more than three-to-one – much higher than the state average. Here, the virus’ comeback has been strong enough that Los Angeles City Mayor Eric Garcetti is warning that he is “on the brink” of imposing another stay-at-home order. And for good measure, he laid much of the blame at the feet of the public:

“It’s not just what’s opened and closed. It’s also about what we do individually. It’s about the people who are getting together outside of their households with people they might know. It might be their extended family, it might be friends. They might think because they got a test two weeks ago that it’s OK, but it’s not… We have to be as vigilant right now as we were the first day…bring 100 percent of our strength the way we did the first or second month.”

Even before the debut of the the Trump face covering, Republican and conservative resistance to mask-wearing had been crumbling, and despite my continued uncertainty that the results will be game-changing it’s a trend I applaud.  And I suspect it would be accelerated if America’s Democratic and liberal leaders admitted that their supporters have considerable work to do on this front, too.   

Im-Politic: The Case for Shutdowns Remains Far from Open and Shut

Tags

Arizona, California, CCP Virus, coronavirus, COVID 19, Doug Ducey, Gavin Newsome, hospitalizations, Im-Politic, infections, reopening, shutdown, Wuhan virus

OK, enough with the History Wars/Cancel Culture stuff (for now)! Let’s turn to something relatively uncontroversial (!) – like the resurgence of CCP Virus cases in the United States. And in particular, let’s focus on the common argument that these increases, along with higher hospitalization rates, show conclusively that the states that closed late or reopened early or never closed or never closed much (you get the picture), were tragically and even recklessly mistaken, and that the states that closed early or stayed closed for the longest and have reopened only very gradually were the truly responsible actors.

There’s one set of actions that certainly seems to clinch the case for the “closers” – the decisions of many of the late closing/early opening states to pause or slow their reopenings, or even roll back many. According to this report, the number of states and cities taking such steps now totals 15.

But this loudly nagging question remains: What’s the actual evidence that supposedly irresponsible reopening measures have caused either the growing case or even hospitalization numbers? Pretty flimsy, as it turns out.

Let’s begin with Arizona – widely described as a quintessential reopening disaster. It’s true that confirmed virus cases have shot up since very late May, with new daily cases per hundred thousand residents soaring from 248.5 on May 27 to 1,063.9 on June 28. That’s about a four-fold increase. (All such infection figures and change come from the Washington Post‘s continually updated virus tracker feature.) 

But figuring out the impact of shutdown-type policies involves not only identifying how many new cases and other indicators have worsened recently. It much more importantly involves comparing rates of worsening during the shutdown periods and afterwards.

In Arizona’s case, Republican Governor Doug Ducey began imposing limits in mid-March, and canceled school for the remainder of the current academic year and issued a stay-at-home order on the 30^th. (My Arizona dates come from this timeline.) On that day, new case numbers stood at 16.7 per hundred thousand. On May 11, he decided to reopen restaurants. On that day, new cases hit 163.8 per hundred thousand – meaning that they.rose a little less than ten-fold during the shutdown.

As described above, the latest Arizona numbers show 1,063.9 new daily cases. So during reopening phase, the state’s new daily case numbers rose about 6.5-fold. In other words, cases rose much more slowly during the reopening phase (which Ducey paused as of yesterday) as it did during the shutdown phase. So that’s supposed to be evidence that its shutdown policies have been reckless?

Even taking into account the laws of large and small numbers (which teach that the lower the absolute number baseline you begin with, the easier it is to produce big percentage gains), I’m glad I don’t have to use them to strengthen the case for stricter reopenings – if only because the virus seems to spread so rapidly. As a result, independent of improving testing rates (which themselves should be revealing more cases), the rate of infections should be speeding up the more infections are recorded, not slowing down.

Even harder to explain from the standpoint of shutdown enthusiasts: On March 30, when the state’s major shutdown phase began, Arizona CCP Virus-related daily hospitalizations stood at 51 (total). By May 11, when major reopening began, it had fallen to 41. Since hospitalization rates are often called the most important measure of progress or backsliding against the virus, that’s a big sign that shutdowns work, right?

Not exactly. For yesterday’s new hospitalization number (the latest available) was only two. In all fairness, between the start of major reopening and June 8, this number doubled – from 41 to 82. But since then, the daily hospitalization rate has sunk like a stone. Even granted the reality of lags between new case identifications and hospitalizations, these figures make clear that the state of Arizona’s economy and the regulations governing activity have had no discernible impact on its new case numbers or its hospitalization numbers.

Of course, Arizona’s only one state. So let’s look at another – and the biggest in terms of population. That’s of course, California. Even better, California was a state praised for shutting down early and aggressively, and has reopened cautiously – till very recently, when it mandated some rollbacks. And its experience strengthens the case for sweeping shutdowns not one iota.

California’s new case numbers have been rising, too – though without the recent spike seen in Arizona. Even so, they’re now at an all-time daily high as well: with 553.1 new cases per hundred thousand residents. This total is only a little over half of Arizona’s latest, which would seem to reenforce the case for stricter shutdown policies. But again, that’s not the new case statistic that deserves the most attention. It’s imperative to look at California’s new daily cases and how they’ve changed during both the state’s shutdown phase and its reopening phase.

The Golden State’s Democratic Governor, Gavin Newsom, issued a state-wide stay-at-home order on that went into effect March 19 — actually, not so very different from when Arizona’s shutdowns began in earnest, though they were narrower. That day, the state’s reported cases per 100,000 residents stood at 2.6.  

On May 8, California began a gradual reopening. That day, its reported cases per 100,000 residents was 159.7, meaning that during the shutdown, they skyrocketed by 61 times. Because the latest such figure is 553.1 per thousand, the rate of increase during the reopening was 2.46 times. Again, not results that speak well for the spread-inhibiting record of shutdowns.

The California hospitalization story is more complicated than Arizona’s – but anything but a slam dunk for shutdown supporters. The state tracks hospitalization differently from that of its neighbor, recording daily changes in net hospitalizations (i.e., admissions minus discharges). What the numbers show, according to this chart, is that is that shortly after the stay-at-home order went into effect (March 20), they fell pretty steadily through very early June,stayed roughly level until the middle of the month, and soared thereafter.

What’s especially interesting about these figures is that they seem completely unrelated to the shutdown phase and the reopening. After all, net hospitalizations kept falling for nearly a full month after the gradual reopening began (though at a somewhat slower rate). And the big increase in net hospitalization that began in mid-June didn’t start until some five weeks after the reopening. As a result, I don’t see much of a shutdown/reopening connection there, either.

It’s certainly possible that reopening decisions helped increase infection rates by encouraging Americans in those states to believe that all was clear, and that life could go back to normal, without any mask-wearing or social distancing and the like. But which state governors have made those claims? It’s more likely that many residents of those states decided to throw caution to the wind regardless of what officials said – which doesn’t speak well for them, although it also doesn’t say much about the enforceability of shutdowns. What’s the alternative, however? Handing state and local officials China-like powers? Raise your hand if you’d be happy with that outcome.

Moreover, these shutdown/reopening figures tell us nothing about another, and too often neglected, crucial dimension of the virus policy debate – what are the public health costs of prolonged continuation of shutdowns? Heart Disease Patients’ and Victims of Depression’s Lives Matter, too, after all.

So far, it seems clear that, like crises and other difficult situations in general, the keys to dealing with the CCP Virus pandemic won’t be hyping clearcut formulas,  false either-or-choices, and declarations of certainty as ringing as they are unjustified and blame-casting. There’s still no substitute for good judgment, common sense (and yes, that includes mask-wearing when in crowded indoor spaces, steering clear of them and outdoor crowds as much as possible, and washing your hands fanatically), and an ability to learn.  What a shame that the national stockpiles of those qualities seem so meager.  

Im-Politic: Fakeonomics on Illegal Immigration From CNN

Tags

California, CNN, illegal immigrants, illegal immigration, Im-Politic, Immigration, Octavio Blanco, Sanctuary State, taxes, welfare

When I was learning the journalistic ropes, one of the first lessons taught was never to present a piece of information totally devoid of context. So, for example, if you were writing about how much a national economy grew during a given time period, you’d also include something about how that growth compared with that country’s past performance, or with the performance of other countries. How else could the reader take anything useful away from such a report?

Apparently, however, CNN doesn’t always follow this practice. Or maybe more accurately, it doesn’t follow this practice when it covers immigration issues, and especially when even minimal context would cast doubt on widespread claims that America’s illegal immigrants are so valuable that Trump-like restrictionist policies are tantamount to economic suicide. How else could one interpret the May 18 post by Octavio Blanco on new legislation aimed at establishing California as a sanctuary state?

Blanco, for example, properly reported the claim of the bill’s sponsor that the illegal workforce “contributes some $180 billion to the state’s GDP.” I’d have liked some verification of this figure, or even a source, but at least Blanco associated the contention with a figure who’s clearly taken one side of the issue.

Other omissions are less justifiable. Is this a net figure? That is, does it include any costs resulting from the state’s illegal workforce, or families of these workers? The author doesn’t say. And what about some perspective about that $180 billion figure? Obviously the legislator who fed it to Blanco hoped to convey the impression that it’s a staggering sum. Yet it begs the question of how big that state GDP actually is. According to the U.S. Commerce Department, last year, it was a little over $2.6 trillion (unadjusted for inflation – and that took me four seconds to look up.) So if the $180 billion is unadjusted for inflation as well (something else the author doesn’t tell us), the illegal immigrant share is about 8.2 percent.

That still sounds like a lot. Except as the author also notes, another source pegs illegals as nearly 10 percent of the California workforce. So even if the $180 billion figure is accurate, that would mean that the state’s illegal workers are punching below their weight in terms of productivity.

That, however, wouldn’t be the last word, either. The $180 billion figure would be more impressive if it was a growing share of state output, and less impressive if it was shrinking or stagnant. But Blanco’s article gives readers no way to know.

Another statistic cited by Blanco sheds a little light on these questions, but not nearly enough, because it suffers the same shortcomings. The author reports that a “Washington, D.C.-based research group,” the Institute on Taxation and Economic Policy (ITEP), has determined that “In 2014, almost $3.2 billion of California’s state and local taxes came from undocumented immigrants….”

Again, that “billion” word sounds like a major sum – but sharp-eyed readers might notice something that’s apparently eluded Blanco. If both ITEP and the lawmaker who introduced the Sanctuary State bill are right, then the tax revenue generated by California’s illegal workers amounts to about 1.78 percent of their contribution to the state economy. That looks distinctly unimpressive.

Just as unimpressive: the share of the state’s total annual tax haul represented by illegal immigrants, if ITEP is right. For according to the state government, the $3.2 billion claimed by ITEP for 2014 would come to 4.83 percent of personal income tax revenue. Remember – this is from nearly 10 percent of the state’s workforce, so that’s disproportionately low.

A least as important, when talking about illegal immigrants – the $3.2 billion figure is clearly not a net figure, in terms of the impact of this population on the state’s resources. Specifically, it omits illegal the use of state services by illegal immigrants and any family members who are legal (e.g., anchor children). This issue will keep looming larger and larger as the state pushes to extend eligibility for welfare and other state resources to illegals – which has already happened with in-state tuition to and financial aid for California public universities.

It’s true that income tax revenue isn’t the sum total of state tax revenue. The state government says the share was 65 percent in 2014. The remainder comes from corporate income taxes, sales taxes, and an “other” category. Illegal workers (and their families) are probably paying some of those types of taxes, too, but the article doesn’t provide any information on that score, either.

Give Blanco some credit: He reports that “not everyone agrees on the sanctuary state bill.” If only his article focusing on the legislation’s economic impact gave readers any sense that not every fact portrays it as an economic winner, either.

Im-Politic: Sadly Poetic Justice for California Open Borders Enthusiasts

Tags

ACA, Affordable Care Act, border security, California, Disney, H1B, illegal immigrants, illegal immigration, Im-Politic, Immigration, Norman Matloff, Obamacare, Open Borders, San Francisco, Sanctuary Cities, tech workers, University of California

As I’ve mentioned previously, computer scientist Norman Matloff is a great source of information and analysis on immigration issues – and especially on the visa system that lets businesses replace high paid domestic tech workers with low-paid foreigners. Late last week, the University of California-Davis professor once again showed his chops. Thanks to him, I learned about a stunning instance of poetic justice for a leading national center of Open Borders policies and enthusiasm.

Surely everyone knows by now that, as a municipality, San Francisco is proud to be one of America’s most ardent cheerleaders and enablers of dangerously permissive immigration policies. Its sanctuary city status directly resulted in the murder of a young woman by an illegal immigrant criminal that it released from custody rather than comply with an extradition request from the federal government. And of course the entire Bay Area’s zeitgeist is strongly influenced by the Silicon Valley tech companies whose profits depend heavily on continually driving down labor costs by hiring relatively young and extremely cheap immigrant programmers and the like and getting rid of older, more expensive native-born employees.

In addition, these descriptions also apply to the entire state of California – which has been charged with moving ever closer to become a full-fledged sanctuary jurisdiction.

So although it’s always unfortunate when someone loses a job, some smirking is surely understandable in response to the news – summarized in this September 8 post by Matloff – that the University of California’s San Francisco branch is pink-slipping 80 of its tech workers and some of the vacant positions will be filled with H1Bs supplied by an Indian outsourcing company. Worse, at least some of the cashiered employees at this public university believe they will need to train their imported replacements – as with a widely publicized case involving the Disney Corporation two years ago.

As made clear in this comprehensive account, the university’s decision could well spread throughout its numerous branches and potentially affect thousands of tech workers. And as Matloff explains, these government tech workers

“are highly sophisticated, aggressive people who know how to pull strings. It becomes especially important in light of UC’s generous defined-benefit pension plan. If someone has worked, say 10 years, at UCSF and had planned to work 25, they are having enormous future pension sums snatched away from them. So it’s real money” they’ll be losing.

A final point worth considering. According to the executive in charge of information technology services at the University of California-San Francisco:

“the campus is facing ‘difficult circumstances’ because of declining reimbursement and the impact of the Affordable Healthcare Act, which has increased the volume of patients but limits reimbursement to around 55 cents on the dollar….”

California, of course, is a major Democratic Party stronghold, in part because its (immigrant happy) public employee unions are so enormous and so powerful. I wonder how many more state university workers will be replaced by immigrants – and how long it will take the broader state government to adopt these practices – before the Golden State’s politics begin to change.

(What’s Left of) Our Economy: How Not to Rate the States’ Economies – & Their Prospects

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California, demographics, domestic migrants, entitlement programs, Florida, Forbes, government workers, immigrants, inflation-adjusted growth, innovation, Medicare, Missouri, New York, New York City, Pennsylvania, population, private sector, productivity, retirees, seniors, Social Security, taxes, William Baldwin, {What's Left of) Our Economy

Thanks to Forbes magazine, it’s possible today to teach a useful lesson about the limits of statistics and the studies they’re based on – especially if those studies seem to be intended to prove a point rather than seek the truth.

The post in question, by former Forbes editor William Baldwin, looks like it makes a claim that’s not only important but irrefutable: U.S. states whose numbers of “takers” (government workers plus recipients of government transfer – welfare – and entitlements payments) greatly exceed the “makers” (private sector workers) are in “death spirals.” But states in the opposite situation have promising economic futures. In particular, employers are much likelier to create the private sector jobs crucial to continued healthy growth in the “maker” states.

It’s easy to understand Baldwin’s reasoning. The private sector undeniably is more innovative and productive than the public sector – two of the main ingredients of that healthy growth. And states with big populations of entitlements recipients (e.g., Medicare and Social Security) are almost by definition states with older populations – raising the question of who’s going to pay for all those benefits for non-working or even only semi-retired seniors. Case closed? Not exactly.

Interestingly, doubts start arising as soon as you eyeball the author’s chart. For example, he places California in the “death spiral” category. Since the Golden State represented 13.40 percent of the entire national economy as of 2014, it’s clearly a crucial example. But U.S. government figures also make clear that California enjoyed inflation-adjusted growth last year (2.80 percent) that was considerably faster than the national average (2.20 percent). That doesn’t sound like much of a death spiral to me. And in case you’re wondering whether 2014 was an outlier, California also out-grew the nation as a whole from 2011 to 2014 – by 7.81 percent to 6.26 percent.

Demographics don’t support Baldwin’s portrait of California, either. According to the U.S. Census Bureau (click here for the various relevant spreadsheets), between mid-2010 and mid-2015, the United States population as a whole as a whole grew by 12.661 million. Nearly 58 percent of the increase came from more babies being born than legal residents passing away, and the rest came from net migration from abroad.

California was responsible for nearly 15 percent of this increase – which means that the state punched above its weight demographically. In 2010, its share of the national population was only 12.07 percent. So it looks like there will be plenty of new Californians to pay for public services and retirement costs. And although many of the nearly 835,000 immigrants to come to the state during this period were illegals, many obviously were not.

The situation in another one of Baldwin’s death spiral states – New York – doesn’t look nearly so dire, either, on closer inspection. New York’s after-inflation economic growth between 2011 and 2014 wasn’t as fast as California’s. But at 6.79 percent, it still beat the national average.

New York also lost a little population from 2010 to 2015 (22,308 residents moved away). But births outnumbered deaths by 1.59 to 1, which is a bit better than the national average. And although just over 653,000 New Yorkers moved out of the state during that period, nearly 631,000 immigrants arrived. Of course, many have been illegal and low-wage. But many others have been foreign oligarchs who have rocketed the New York City real estate market into the stratosphere. In fact, the city’s property and income tax receipts for the fiscal year ending June 30 are so immense that its budget surplus is likely to approach $1 billion. So there’s no revenue shortage there.

Now let’s move to one of Baldwin’s more promising states: Florida. The Sunshine State has handily beaten the national average on 2011-2014 growth (7.07 percent) – although its performance has been affected by the depth of its housing-bust-fueled recession. On the surface, its population trends look good, too – as has historically been the case. In 2010, Floridians represented 6.09 percent of all Americans, but over the next give years, the state’s increase came to 11.58 percent of the national total.

Less good, however, were the internals – especially for Baldwin’s “death spiral” thesis. Florida’s population growth has been powered by immigrants and Americans from other states to a roughly equal extent. Surely wealthy foreigners have been well represented in immigrant ranks along with poorly paid illegals. But anyone who knows Florida knows that many of the domestic migrants have been retirees. That can’t bode well for the tax base.

Florida’s neighbor, Georgia, is another odd Baldwin success story. Its 2011-2014 growth trailed the U.S. average (at 5.32 percent). Yet its population growth (4.16 percent of the nation’s total) was greater than its 2010 share of the overall population (3.14 percent). It’s true that Georgia’s subpar population increase may eventually translate into stronger-than-average growth. But should that be considered a solid bet? Stranger still is the author’s positive assessments of Missouri and Pennsylvania, which have been under-performing both in terms of economic and population growth.

Of course, Baldwin has pegged many states right. But misses that are this big, especially for places like New York and California, make clear that the sources of healthy growth and bright economic futures are much more varied than entitlement spending, government workforce sizes, and even generational demographics. Lifestyle clearly plays a major role – what else explains California consistently defying predictions of economic doom triggered by alarm over high taxes, burdensome regulations, and the like? Along with New York and Washington state (another one of Baldwin’s losers, despite the attractions of Seattle), it’s long likely to remain a magnet for talent, as well as wealth (whether ill-gotten or not).

Although I’ve never met Baldwin, I do know that Forbes has long been one of the media world’s strongest champions of Darwinian free market thinking – and of course an equally ardent opponent to Big Government. So it looks reasonable to me that this ideology overwhelmed a more holistic view of economics and business – which his successors at Forbes might have realized just by looking out the windows of their Manhattan offices.

(What’s Left of) Our Economy: Why Obama-nomics Looks Like Importing the Workers and Exporting the Jobs

Tags

2016 elections, Africa, apparel, California, Congress, Democrats, garments, Immigration, imports, income inequality, Los Angeles, manufacturing, minimum wage, Obama, offshoring, Republicans, TPP, Trade, Trans-Pacific Partnership, Vietnam, Wall Street Journal, {What's Left of) Our Economy

This one is so easy that it feels like piling on to write it. But if you need any further evidence that President Obama’s approach to economic policy has dissolved into complete incoherence, look no further than the Wall Street Journal‘s new article on Los Angeles’ garment industry. And it offers some vital lessons for many of his fellow Democrats, too.

As the Journal has reported, Los Angeles will be raising its minimum wage to $15 per hour in phases over five years. In response, the city’s still considerable garment manufacturing industry, which employs huge numbers of the working poor, including many legal and illegal immigrants, is threatening to leave.

It’s certainly reasonable to counter that business owners will always squawk about any cost increases, and that Los Angeles’ proximity to a fashion market that requires lots of very quick order filling will remain a big competitive advantage for a sector that needs to keep up with rapidly changing fads. It’s also reasonable to challenge Los Angeles garment makers to preserve their profitability by increasing productivity – though if they achieve this goal with more automation, employment levels could suffer at least in the short run.

But let’s look at how Obama-nomics is affecting the situation. The president has been a leading champion for those minimum wage hikes. (Most other Democrats agree.) At the same time, he’s seeking a Trans-Pacific Partnership (TPP) trade agreement that will open the American apparel market even wider to exports from Vietnam in particular, where average hourly wages in the industry as of 2013 reportedly were 53 cents per hour, and where employers – including the government – don’t have to worry about workers’ rights. Mr. Obama also favors trade deals that will boost apparel imports from other very low-wage, regulation-free regions like sub-Saharan Africa. And even though most Congressional Democrats oppose the TPP, they’ve strongly supported the Africa deal.

From the broader standpoint of Los Angeles’ entire economy and its prospects, virtually the entire Democratic party favors enormously increased immigration (and eventual citizenship for most of the current illegal population). So the city faces the prospect of a big new influx of new low-wage, low-skill foreign arrivals on top of the influx it’s already experienced, and a big exodus of the best kinds of jobs such newcomers can reasonably hope to hold.  Further, given the president’s support for this import-the-workers-export-the-jobs combination, plus the strong possibility that Democrats will retain the White House in 2016, the same fate appears in store for much of the rest of the country, too.   

And here’s the icing on this cake – as Democrats seek to focus America’s attention on wide and rising income inequality, Los Angeles already stands as one of the most unequal cities in the country, and California as the most unequal state (indicating that it’s more than a Los Angeles issue).

Not that Republicans are significantly better on trade and immigration issues – especially their Washington and Congressional leaders. But at least they’re not also peddling the false hope of big minimum wage hikes on top of their offshoring-and cheap labor-friendly immigration stances.  BTW, back in the late-1990s, I put out a short item on this very problem emerging in California (but can’t find it anywhere on line).  Plus ca change, as they say.