(What’s Left of) Our Economy: The Big Missing Reason for the Big Jobs Miss

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Anthony S. Fauci, automation, Biden, Build Back Better, CCP Virus, CDC, Centers for Disease Control and Prevention, child care, children, coronavirus, COVID 19, FDR, Franklin D. Roosevelt, immunity, Jobs, jobs report, lockdowns, New Deal, parents, productivity, reopening, school closings, skills, skills gap, teachers, unemployment, unemployment benefits, vaccinations, Wuhan virus, {What's Left of) Our Economy

As reported widely, the big miss marking last Friday’s official monthly U.S. jobs report (for April) ignited a heated debate among politicians, economists, and many others over why the U.S. economy created so much less new employment that month (266,000 net new positions overall) than generally estimated (in the million neighborhood). At the heart of this debate: Do the many positions employers consistently say they’re struggling to fill amid a continuingly high jobless rate mean that the enhanced unemployment benefits offered throughout the pandemic are discouraging Americans from returning to the workplace?

What I’m not seeing, however, is anyone asking whether this is the right debate. It’s increasingly obvious to me that it’s not.

It’s easy to see why those who answer yes are viewing the issue far too narrowly. Surely some unemployed workers are content to stay at home because they’re currently making more from jobless payments than they were making from their previous employer. That should be clear from the number of businesses raising wages to fill the shortages they’re experiencing. (I’m not saying that these raises are or aren’t long overdue or otherwise deserved; simply that the higher pay and other incentives employers are offering can only be interpreted as companies recognizing that the enhanced benefits have, to a degree, increased the relative attraction of remaining on the employment sidelines versus reentering the job market.)

At the same time, is it reasonable to ignore all the other major reasons for this big labor market anomaly? Like ongoing fears of catching the CCP Virus at the workplace, or the need to stay home with school-age children forced to learn remotely? And don’t forget all the uncertainties created by the sudden stop-start nature of the virus-era lockdowns on the economy.

Yes, a rapid U.S. reopening is taking place now. But all over the world, infection surges are producing new economic curbs. Can you blame workers for wondering whether shortly after they leave the unemployment and benefits rolls, their new workplace will need to close, or cut back on its operations, leaving them in the lurch while they either seek other jobs or file for new benefits?

It’s easy to see that all of these developments and circumstances and uncertainties and outright fears are keeping U.S. labor seemingly scarce. You can also add to the list the likelihood of growing skills mismatches in the American economy – that is, the numbers of jobs requiring more or different skills outgrowing the number of workers possessing these skills, and the numbers of companies replacing low-skill jobs with automation of some kind. Not that the resulting mismatches inevitably will be with the nation forever, or even long term. But they’re unmistakably present now.

So maybe the problem is simply too complicated for government to address? Or we’ll simply need to wait until a stable post-CCP Virus normality returns and labor markets start clearing as usual? It seems reasonable that the purely skills-based mismatches will defy ready solutions – unless America’s education system suddenly gets a lot better at preparing students for the economy they’ll be facing, and businesses get more serious about training and retraining workers, and turn  away from needlessly insisting on lofty credentials for jobs that don’t require anything close.

It’s also possible – though that’s the most I’m willing to say – that spreading automation will eventually help businesses become so much more productive that they’ll be able to turn out more products and services, and that this very success will generate all sorts of new jobs whose appearance can’t be predicted with any precision now. (My reservations stem from concerns that the newest forms of automation, especially artificial intelligence and super-sophisticated robotics, are qualitatively more capable of displacing many more kinds of labor than previous technological breakthroughs.)

As long as the federal government and the states remain willing to provide generous unemployment benefits (and other supports), the resulting situation would at least keep most of the jobless adequately fed, clothed, and housed. That’s a big “if,” though, for reasons economic (e.g., maybe Washington can’t keep borrowing and spending massively much longer?) and social and cultural (e.g., maybe ever longer term unemployment will start to produce more in the way of pathological behavior like drug abuse, violent crime, and worse classroom performance from students from families on the dole?).

Consequently, the more progress can be made returning the unemployed to work, the better, and however difficult the challenge of eliminating the purely or largely skills-based mismatches, Americans and their leaders shouldn’t overlook where policy can make a big difference. And the above analysis indicates that one big difference can be made by the U.S. government, and especially its public health authorities.

Specifically, they need finally to stop their CCP Virus alarmism and energetically spread the word that due to a combination of high and mounting degrees of various kinds of immunity, mass vaccinations, and the highly varying nature of the virus’ infectiousness and lethality, normality is unquestionably returning. Further, and crucially, although certain groups of Americans – like the elderly, and those with certain underlying medical conditions – are still too vulnerable and must be protected with special measures, the Biden administration and its health experts should acknowledge that nearly all others can safely return to normal activities because the already low odds of even getting the disease, much less suffering significantly from it, have now plunged to rock bottom.

In other words, Washington should announce that work places are safe to return to, bricks and mortars businesses are now safe to patronize, in-person schooling is just fine for both students and teachers and administrative staff alike, (thus solving the childcare dilemma), and that lockdowns have become a thing of the past.

Instead, of course, you’ve got a Centers for Disease Control and Prevention (CDC) that seems stuck in hyper- (and increasingly unscientific) caution territory, not to mention decimating its own message about vaccines’ effectivness by admitting almost no behavior payoff whatever; and a President and leading figures of his own party continuing to wear facemasks even in settings that “the science” had made crystal clear are as safe as they can be for the fully vaccinated.

To top if off, the President’s chief medical adviser, Dr. Anthony S. Fauci, has just taken pains to speculate that Americans may start wearing facemasks to guard against all sorts of respiratory diseases on a seasonal basis. Given this administration’s record so far, it doesn’t seem all that far-fetched to worry that new CDC guidelines along these lines, plus recommendations to resume some forms of social distancing, and even new business curbs, could quickly follow if this kind of Chicken Little-ism isn’t stopped. For now, though, no wonder so many Americans are still scared stiff of the virus.

It’s becoming more and more common to compare President Biden and his ambitious plans for “Building the U.S. Economy Back Better” with Franklin D. Roosevelt and his New Deal programs.  (See, e.g., here and here.) But it’s hard to imagine Mr. Biden succeeding to any lasting degree if his CCP Virus policy doesn’t start reflecting one of FDR’s most and most deservedly famous insights: “[T]he only thing we have to fear is fear itself.”

Im-Politic: A Trifecta (& Not in a Good Way) for the Washington Post

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alliances, allies, benefits, contract workers, education, foreign policy, geopolitics, globalism, globalization, Jobs, Mainstream Media, manufacturing, media bias, MSM, national security, NATO, North Atlantic Treat Organization, remote learning, reopening, schools, teachers, teachers unions, temporary jobs, Trade, wages, Washington Post, Zoom

At 11:30 yesterday morning, when I sat down for my typical Sunday brunch at home (where else these days?), I had no idea what I’d blog about today. At 11:35, after perusing the Washington Post Outlook section, I had no fewer than three ideas, each of which focused on an article simultaneously whacko and emblematic of key Mainstream Media and broader establishment biases. Ultimately, I decided that they were all so inane and representative that a single post briefly examining each would suffice to get the message across.

First catching my eye was a proposal by Seton Hall University political scientist Sara Bjerg Moller that the North Atlantic Treaty Organization (NATO) “reorienting” its focus to add countering the rise of China to its list of missions, and even designating it the top priority. One obvious retort is that the European members of this alliance binding America’s own national security to that of the continent is that during the Cold War, when they readily acknowledged the threat posed by the old Soviet Union, these European members collectively never even mustered the will to provide adequately for their own defense even when they became wealthy enough to create such militaries.

They preferred to free ride on the United States instead – which perversely enabled this behavior by sticking hundreds of thousands of its own troops – and their dependents – in harm’s way, smack in the middle of the likeliest Soviet invasion roots. The idea was that since these units couldn’t possibly match the conventional armes of their Soviets and their East European satellite states, once the shooting started, their vulnerability and indeed impending destruction would leave a U.S. President no real choice but to use nuclear weapons to save them. The odds that the conflict would escalate to the all-out nuclear exchange level that would endanger the Soviet homeland itself was suppsed to keep Moscow at bay to begin with. (And if you think this sounds exactly like the U.S. “tripwire” strategy for defending South Korea that I just wrote about here, you’re absolutely right.)

As with the Korea approach, Washington’s NATO Europe strategy needlessly exposes the continental United States to the risk of nuclear attack because wealthy allies skimp on their own defense spending, but that’s not the main problem with Moller’s article. After all, if the Europeans never mobilized enough resources to prevail over a Soviet threat located right on their doorstep – and a Russian threat that presumably still exists today, since the alliance didn’t disband once Communism fell – why would they answer a call to arms against a danger that’s half a world away from them. And even if they agreed with the United States on the imperative of containing Beijing, why wouldn’t they simply repeat their free-riding strategy, which arguably would allow them once more to reap all the benefits of America’s efforts without incurring any of the costs or risks?

But weirdest of all, the author herself admits that Europe remains far from a new anti-China European mindset. In her own words:

“Regrettably, as with Russia [today], Europe is divided over how to deal with China. Many European allies are wary of picking sides in the struggle for influence between the United States and its Asian rival. Some, like Germany, even appear outright resentful at the suggestion that they must choose. German Chancellor Angela Merkel rushed last year to conclude the E.U.-China Comprehensive Agreement on Investment — even though the incoming U.S. national security adviser, Jake Sullivan, had strongly signaled that Europe should wait till Biden’s inauguration.”

Don’t get me wrong: It would be great if the Europeans were ready and willing to stand shoulder to shoulder with the United States against China. But they’re not today, and a heavy burden of proof rests with those arguing that this common front is even remotely possible for the foreseeable future, much less that the United States should spend much time trying to create one. So I’ve got to think that this article was run simply because the relentlessly globalist and therefore alliance-fetishizing Washington Post believes that wishing for (and hyping the prospects of) something can make it so.

The second item is actually a pair of Outlook articles this morning. Their theme – and I could scarcely believe my eyes: Everyone’s overlooking all the advantages that remote learning can create! In other words, for months, national dismay has been growing that conducting classes by Zoom etc at all educational levels has been at best completely inadequate and at worst could permanently scar both the educational attainment and the psyches of the a generation of American students. As warned by none other than President Biden:

“Today, an entire generation of young people is on the brink of being set back up to a year or more in their learning. We are already seeing rising mental health concerns due in part to isolation. Educational disparities that have always existed grow wider each day that our schools remain closed and remote learning isn’t the same for every student.” 

But it’s also clear that the President is loathe to antagonize politically powerful teachers’ unions, which have acted determined to keep schools closed unless a wildly ambitious – not to mention medically unnecessary – set of demands have been met. Largely as a result, all the evidence indicates that a large share of American students still aren’t back in class in person full time (although the hesitation of many parents is partly responsible, too).

It’s just as clear, though, that the Post as an institution, like the rest of the Mainstream Media, is wildly enthusiastic about Mr. Biden. So even though the editorial board has upbraided the unions for their foot-dragging, the Outlook section is run by a different staff and, call me paranoid, I can’t help but suspect that yeserday’s two pieces – by an “author and educator in Boston” and a college professor – aren’t part of an effort to pave the ground for a school re-closing if the CCP Virus shows signs of a comeback.

After all, the articles were dominated by claims to the effect that one author’s Zooming this semester is “light-years better than the last;” that his teaching is “radically improved” since then;  that “if remote learning has been good for one thing, it has closed that gap between authoritative teacher and abiding student”; and presumably best of all, “I used to invest a lot of importance in arbitrary deadlines and make-or-break exams to establish high academic standards. These days, I’ve let go of many of my old notions about penalties for late or missing work.”

It would be one thing – and indeed noteworthy – if these alleged developments were broadly, or increasingly, representative of the American educational scene today.  But the Outlook editors provided no such insights, and if these reported experiences have been exceptions to the rule – as the evidence overwhelmingly concludes – what else could they been trying to accomplish by airing them but soft-pedaling the harm resulting from mass remote teaching?   

The third Outlook item that set me off today was an article by a Washington University (St. Louis) sociologist that included a challenge to the claim that “Manufacturing jobs are the ‘good’ jobs.” The reason? “Unlike in the past, typical pay for these workers is now below the national average” and “the rise of temporary and contract work is a factor….” Moreover, “Not all [such jobs] were offshored or automated, it turns out. Many were just reclassified — downgraded into worse jobs.”

Sure, author Jake Rosenfeld didn’t devote a lot of space to the subject. But he definitely should have devoted more, because what he omitted was critical. For example, it’s true that overall private sector average hourly wages now exceed those for manufacturing, whether you’re talking about the total workforce or just the production/non-supervisory workforce.

But the changeover is pretty recent. According to the U.S. Bureau of Labor Statistics, for the former, it came in 2019; for the latter, in 2006. Moreover, a 2018 Economic Policy Institute study found that although manufacturing’s wage premium (its edge over the rest of the private sector) indeed eroded between the mid-1980s and 2017, the benefits premium actually increased. That’s a finding hard to square with the idea that temporary workers are increasingly dominating manufacturing payrolls.

Further, the idea that offshoring in particular has nothing to do with what growing popularity temps have had with manufacturers can’t withstand serious scrutiny. Or does Rosenfeld believe that super-low-wage pressure from countries like China is unrelated to U.S. workers’ declining bargaining power even when production and jobs aren’t actually sent overseas?

At the same time, efforts to downplay U.S. trade policy’s effects on manufacturing are incredibly convenient for a news organization that, like so many of its peers, enthusiastically backed the pre-Trump administration trade decisions that decimated U.S.-based manufacturing and its employees for decades – and still does.

Despite the expression, “Three strikes, you’re out,” I’m not going to stop reading the Post Outlook section or the rest of the paper. Both are just too influential. But no one should assume that the number of whiffs in yesterday’s paper was limited to three, or that other editions in recent years have been much better. And I do find myself wondering just how many strikes per day I’m going to give this once venerable publication.

Im-Politic: The Surprisingly Muddled Politics of School Reopening

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Bill De Blasio, CCP Virus, Chicago, coronavirus, COVID 19, education, Im-Politic, Jim Kenney, Larry Hogan, Lori Lightfoot, Maryland, Montgomery County, New York City, Philadelphia, reopening, schools, teachers, teachers unions, Wuhan virus

Mid-summer sure is shaping up as a bad period for The Narrative being pushed by many politicians in this pandemic and election year, and that seems predominant in those Mainstream Media news organizations still retaining enormous influence over how Americans perceive, think, and even act.

Just a few days ago, as reported on RealityChek, a Gallup poll cast doubt on whether even African Americans regard America’s police forces are systemically racist. More recently, considerable evidence has appeared – and in real life, not polls – challenging the belief that the nation’s school reopening debate pits the Trump administration and other Republicans and conservatives and their insistence that in-classroom instruction resume this fall with no regard whatever for the health of students, administrators, versus Democrats, liberals, and teachers themselves who refuse to expose anyone involved in education to a deadly disease.

Think what you will of the substance of this reopening debate and what types of school year starts strike the best balance between providing students with urgently needed education and other benefits of physical schooling on the one hand, and safeguarding their health on the other. It’s still pretty stunning to learn that in numerous American cities and other jurisdictions, the teachers and their unions – long a key Democratic Party constituency and funder – have been up in arms against the reopening plans of Never Trumper leaders that feature various mixes of virtual and in-school instruction.

Let’s start with my beloved native New York City, whose mayor, Bill de Blasio, is one of America’s most far-Left politicians (albeit one with a unique ability to antagonize folks on the Left). At the end of last month, de Blasio unveiled a reopening plan incorporating a weekly “blended approach” of in-class and virtual learning for “a vast majority of kids.” De Blasio also said that implementing the plan required that the city’s daily positive CCP Virus test rate stayed below three percent – and justified his approach by noting that it had lately been steady at one percent

The reaction of the city’s educators? Protests that included teachers (and some parents) carrying coffins and a guillotine.

Chicago is another big city with a high-profile progressive Democratic mayor – Lori Lightfoot. Unlike de Blasio, she hasn’t alienated many of her fellow progressives. But in the view of her city’s teachers, she has also committed the sin of proposing a school reopening plan entailing “a hybrid schedule combining two days of in-person instruction and three days or remote learning for kindergarten through sophomore year students….” Moreover, Chicago parents with kids in the public schools can opt for full virtual learning under the plan, which isn’t yet official policy. The school system says that it’s prepared for the return of physical classes with “large PPE investments, [a] pod system that should help with contact tracing and that it will have temperature checks at school.” Yet Chicago teachers are marching in protest, too, with the union pushing for an all virtual reopening.

Philadelphia Mayor Jim Kenney has a lower national profile than de Blasio or Lightfoot, and lately a more mixed claim as a progressive champion, including among progressives. (See here and here for evidence.) But he’s clearly a liberal Democrat.

His city’s school Superintendent also proposed a blended-type plan that “would have sent most children back to school in person two days a week and contained a 100% virtual option for families who wanted it.” The response of Philadelphia teachers (and also some parents)? “Don’t force one teacher or student into classrooms until you can guarantee our safety.” And the backlash was strong enough to force the school system into revision mode.

You say you aren’t confused enough? Maryland’s Governor Larry Hogan has recently muddied the narrative still further.  I know – he’s a Republican. But he’s worked hard to position himself as an anti-Trump Republican and possibility for the party’s presidential nomination in 2024. So it would be logical to expect Hogan to fall in with the hard core opponents of in-class reopenings. Yet yesterday, Hogan slapped down as “overly broad” a (liberal Democratic) Maryland county’s order to bar, at least through October 1, not only public schools from offering any in-person education, but private schools as well.

It’s entirely possible that the confused politics of school reopenings may complicate efforts to arrive at a reasonable working consensus on this vital issue.  But in these hyperpartisan times, a better outcome might be in store.  The willingness of various politicians to depart from the battle lines widely supposed to exist might become a badly needed force for pragmatism – and especially for the flexible, case-by-case solutions that will undoubtedly often be needed.      

Im-Politic: A Chinese Cure-All for America’s Schools?

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college, education, foreign students, high schools, Im-Politic. China, Leonora Chu, parents, schools, students, teachers, The Wall Street Journal, universities

Nothing would be easier to look at the headline of Leonora Chu’s Wall Street Journal column on lessons that American schools could learn from their Chinese counterparts and conclude that it’s a naive whitewashing – at best – of education in totalitarian countries. And nothing would be more off-base. For the headline is utterly misleading, and the author acknowledges that propagandizing even very young children with communist dogma is only one of the numerous major failures and shortcomings of Chinese schools.

Still, Chu comes off as an unmistakable admirer of many crucial features of the Chinese system, and especially its insistence that parents as well as students respect the authority of teachers, along with the academic results that this attitude produces.

I agree with Chu that too often, “Western teachers spend lots of time managing classroom behavior and crushing mini-revolts by students and parents alike”; that “Americans have arguably gone too far in the other direction, elevating the needs of individual students to the detriment of the group”; and that, “Educational progress in the U.S. is hobbled by parental entitlement and by attitudes that detract from learning: We demand privileges for our children that have little to do with education and ask for report-card mercy when they can’t make the grade.”

Not that even these reasonable propositions are bullet-proof. Principally, how many American teachers today truly deserve this absolute respect? How many are flat-out incompetent? How many are determined to push their own political beliefs on students, at all levels of education, and in public and private schools alike? It’s true that the nation collectively has caused much of this problem by underpaying teachers and thus preventing many individuals of real talent (and integrity) from choosing this profession. But we don’t solve the problem by indiscriminately entrusting our children’s future to the present teacher cohort.

Yet oddly, Chu seems to overlook what seems like potentially the most damning indictment of the Chinese educational system of all. And so have her Wall Street Journal editors: Chinese parents appear to abandon Chinese schools whenever they can. How do I know this? In part because I read The Wall Street Journal.

Indeed, the very same day that Chu’s article ran, the Journal ran a report titled “U.S. High Schools Picking Up More International Flavor.” In this case, the headline was completely accurate. And guess where the plurality of the foreign students streaming into American high schools are coming from? Pat yourself on the back if you answered “China.”

Indeed, correspondent Tawnell D. Hobbs cites a federally funded study finding that the foreign student population in American high schools more than doubled between 2004 and 2016, to just under 82,000. And fully 42 percent are Chinese. Just as intriguing: Three of the other top student-sending countries are known for hewing to Chinese-style, Confucianism-based educational values, too – Japan, South Korea, and Vietnam.

Moreover, why are so many students from these countries with China-like schools coming to America for secondary education? According to one of the study’s researchers, “For most of these students, the goal is to graduate with a high-school diploma. They’re really looking at seeing themselves as being more competitive to get into a U.S. university.”

On the one hand, the decision to try gaining entry into the (still world-class) U.S. higher education system may have nothing to do with any supposed advantage of American high schools. After all, foreign parents may assume that their children will benefit in terms of college admission simply from getting exposed to U.S. schools and their approaches, and to the broader society (including English speakers).

On the other hand, it’s surely no secret to foreign parents that American colleges and universities are turning cartwheels to attract foreign students – mainly for financial reasons. For both public or private institutions have taken to relieving cash crunches by welcoming students from overseas – who pay full freight. So especially if the family has the bucks, there’s no reason to think that junior can’t sail into an American institute of higher education without attending a U.S. high school. And still American secondary education is considered appealing.  

So it seems like the real takeaway here is that although there’s ample room and urgent need for improvement in American schools, and that although some foreign practices and attitudes no doubt can be imported, there’s no reason to think that some magic formula for success lies overseas. The main solutions for what ails U.S. education, as Shakespeare might have said, are “in ourselves.”