“Watch the jobs disappear”

So observes Obi’s Sister over at the Potluck  as she points to this fascinating graphic which represents the nation’s employment gains and losses through last October. 

First thought: the folks who chose the colors will kick themselves come November as the map shows the blue nation shifting rather rapidly into a red one.  I guess socialism-lite has that effect on people.

Rush talked about unemployment extensively yesterday.  He highlighted Alan Reynolds on CNBC’s Kudlow Report, who said:

[Unemployment] was 18 months until November, and what we’re dealing with here is an extra 13 weeks, which takes it out to almost two years. So we would be rolling back, and only in a couple dozen states, because this only applies to states that have very high unemployment. In a couple dozen states you would have to go back to only 79 weeks of unemployment benefits. My data may be slightly out of date, but Canada had a maximum of nine months last time I looked in a 2007 OECD report, Sweden was 14 months, Britain was 6, Japan was something like 10. I mean this is an unusually long period, and it basically, it gets people to not leave Michigan, to not leave California and go to Utah. Utah only pays 46 weeks, they have an unemployment rate of 6.7.

Can you believe our unemployment benefits now last significantly longer than those in “socializied” economies?

When government subsidizes behavior, said ensues.  If government taxes behavior, it ceases.  Kudlow asked:

You’re saying that the stimulus is raising unemployment, and I think you’re saying longer we have unemployment, the compensation benefits, the worse the unemployment rate gets.  Is that right?

Reynolds said yes.  More here from Reynolds on the Porkulus raising unemployment rates.  Nice to know our ever-compassionate government chose to extend benefits again yesterday.

An observation from Carol on Obi’s Sister’s post:

In Florida we have no state income tax which is wonderful except the state relies heavily on property taxes for revenue. Florida is second in the nation is foreclosures and our values have dropped unbelievably. My value dropped over $50K this year and I am on the water. As a result, the state’s revenue from property taxes has fallen. We currently have 11.9% unemployment. Our unemployment fund is broke and therefore the tax for employers is being increased, sit down for this, 1000 percent. Yes, you read that right. So, employers can’t hire more workers because of the increased unemployment taxes and will in all likelihood layoff more. The more people who are laid off or can’t find employment the higher the foreclosure rate. Chicken/egg. Egg/chicken. It is heart wrenching scary.



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