“Eberstadt’s work shows that the decline in work force participation of American men has been steady and ongoing since the 1960s. It has continued steadily during periods when immigration has been high, and when it has been low.
Other economic factors also fail to explain this steady decline, as Eberstadt wrote in an essay for National Affairs in 2020: “The tempo of workforce withdrawal appears to be almost completely unaffected by the tempo of national economic growth, which varied appreciably over this period. Even recessions—including the Great Recession—appear to have scarcely any impact on the trend. Likewise, the NAFTA agreement, China’s entry into the World Trade Organization, and other ‘disruptive’ trade events with major implications for the demand for labor in America do not stand out,” Eberstadt wrote in 2020.
In other words, it’s not the natcon boogeymen of free trade and immigration that are driving this outcome. Eberstadt has argued that a lack of educational options for low-income men is the primary cause, though a number of cultural changes have also played a role, including “family structure, government-benefit dependence, and mass incarceration.””
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“Contrary to Vance’s claim, it does not seem like most of those men have been forced out of the work force by employers who are eager to “import somebody from Central America who’s going to work under the table for poverty wages.” Rather, they’ve left the work force for a variety of reasons. Some are in jail, some are disabled, some are caring for family members or otherwise unable to commit to a full-time job. The notion that America has 7 million able-bodied men who would be working if only they could find a job is misguided.
Vance’s argument also ignores other relevant details, like the fact that men’s participation in the labor force has increased over the past four years. It’s not what you’d expect to see if the Biden administration’s immigration policies were forcing working-age American men out of jobs.”
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“”Inability to find a job has played a minimal role in men’s declining labor supply,” concluded Eberstadt’s colleague Scott Winship, a senior fellow at the American Enterprise Institute, in an essay published last month by Fusion. After reviewing decades of data about why nonworking men are still without a job, Winship concluded that “only about a quarter of the increase in prime-age men who were jobless for a full year was explained by men who wanted a job.””
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“”The decline in work force participation among working-age men hasn’t been due to any deterioration in the labor market or economy,” Winship wrote in an email on Wednesday. “It mostly reflects rising school enrollment, increased responsibilities at home, earlier retirement, and especially increased receipt of disability benefits. The latter is primarily a problem with our disability policy rather than with our economy.””
“”Every set of extractive institutions is extractive in its own way, while all sets of inclusive institutions are inclusive in pretty much the same way. For example, ancient Rome ran on slavery; Russia on serfdom, Imperial China strictly limited domestic and foreign commerce; India depended upon hereditary castes; the Ottoman Empire relied on tax farming; Spanish colonies on indigenous labor levies; sub-Saharan Africa on slavery; the American South on slavery and later a form of racial apartheid not all that unlike South Africa’s; and the Soviet Union on collectivized labor and capital. The details of extraction differ but the institutions are organized to chiefly benefit elites.
So why don’t extractive elites encourage economic growth? After all, growth would mean more wealth for them to loot. Acemoglu and Robinson show that the institutions that produce economic growth are inevitable threats to the power of reigning elites. The “key idea” of their theory: “The fear of creative destruction is the main reason why there was no sustained increase in living standards between the Neolithic and Industrial revolutions. Technological innovation makes human societies prosperous, but also involves the replacement of the old with the new, and the destruction of the economic privileges and political power of certain people.” Thus throughout history reactionary elites naturally resisted innovation because of their accurate fear that it would produce rivals for their power.””
“The short-lived pandemic-era child tax credit expansion cut child poverty by more than a third. And the bolstered social safety net from Covid relief bills nearly halved child poverty in a single year — the sharpest drop on record. Once those programs expired, however, the child poverty rate bounced right back.”
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“Homeowners are told that their homes are the key to building wealth, so they reasonably want their property values to keep rising. For renters, on the other hand, any increase in housing costs is a loss. So while renters might want lawmakers to make room for more housing, homeowners often resist any change that could make their home prices stagnate.”
“Take Trump’s record on the H-1B program, the largest U.S. temporary work visa program for high-skilled workers. Jorge Loweree, managing director of programs at the American Immigration Council (AIC), described the program to Reason as a “critical tool for us to attract talent from abroad” and to continue “our leadership role in the tech sector around the world.” Every year, it provides 65,000 visas for “highly educated foreign professionals,” with an additional 20,000 reserved for “foreign professionals who graduate with a master’s degree or doctorate from a U.S. institution,” according to an H-1B visa factsheet by AIC.
“During his prior term in office. His administration implemented a series of policy changes that made obtaining and maintaining [H-1B] status significantly more challenging,” Loweree stated.
Trump increased regulation on the program, starting with the Buy American and Hire American Executive Order which instructed agencies to “propose new rules and issue new guidance…to protect the interests of United States workers in the administration of our immigration system.”
This increased denial rates for H-1B applicants and made the process of applying costlier, according to Forbes. In FY 2015 denial rates for H-1B visas were six percent. By FY 2018 they rose to a high of 24 percent, according to AIC. Attorney fees for filing an H-1B visa increased between $2,000 and $4,500 per applicant. Wait times for spouses of H-1B applicants also increased, taking up to two years, in some instances, for them to receive their H-4 dependent, which allows them to live in the U.S.
Prior deference, which allowed current H-1B recipients to avoid going through the time-consuming interview process and paperwork to extend their H-1B visa, was also eliminated by Trump, according to Loweree. It was later reinstated by President Joe Biden.”
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“H-1B workers impact the U.S. economy in many ways. Highly skilled immigrants who use the H-1B visa “directly increase the production of knowledge through patents, innovation, and entrepreneurship,” according to the Cato Institute. And, because they primarily specialize in STEM fields, foreign-born workers increase productivity, employment, and wages for native-born workers.
While Trump’s promise on the All-In podcast is encouraging, his record shows that it will unlikely be kept. A calculated attack on H-1B visas by a second Trump administration would hurt U.S. innovation and the native-born workers who benefit from the skills that legal immigrants bring.”
“Mostly, the economy spins ever onward because individuals show up for work and produce something that other people—their employers, customers, clients, donors, etc.—value and are willing to pay for, and then they do it again the next day.”
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“If nothing changed, Springfield would simply experience an ongoing slide into oblivion. The city has been losing population since the 1960s and more than a fifth of those who remain are below the poverty line. Translation: Anyone who had better economic prospects somewhere else was already gone, or on their way out.
“The real story is that for 80 years we were a shrinking city, and now we’re growing,” a local pastor told NBC News.
In other words, immigration isn’t the cause of Springfield’s problems. Stagnation is.
Is the influx of thousands of foreign-born workers going to be smooth? Of course not. Some culture clash is inevitable. More workers willing to pay market rates for housing and a more competitive local economy might make life marginally more difficult for, as Williamson writes, “a reliable Trump-voting constituency: marginally employed white people on the dole.”
Vance and former President Donald Trump have rushed to amplify those culture clashes—and knowingly exaggerate them too, as Reason’s Jacob Sullum explained yesterday. In doing so, they’ve demonstrated how little they understand about what make an economy work and what makes a place successful. Thriving cities, even small ones, are home to a constant churn of cooperation and competition between newcomers and natives. Places that don’t grow are doomed to die.”
Sanctions against Russia made their ability to wage war weaker than it otherwise would have been, but only had limited effectiveness due to poor execution and other powers not going along.
Surely, Trump won’t dishonestly take credit for this.
“The oil market could see a major supply glut in 2025 thanks to booming production from non-OPEC states like the US and sagging demand in China, according to the International Energy Agency.
The IEA said in its November Oil Market Report that the world’s oil market is on track for a one-million barrel-a-day surplus next year.
The excess is largely being driven by a weakening economy in China. Demand for oil in the world’s second-largest economy contracted for six straight months in a row as of September, IEA data shows. This accounted for the “main drag” on demand this year, the report said.
Meanwhile, the agency is predicting strong oil production among non-OPEC producers led by countries like US, Guyana, Argentina, and Brazil.
Altogether, non-OPEC producers are on track to expand oil production by 1.5 million barrels a day, it estimated. That amount is more than the agency’s forecast for world oil consumption to grow by 990,000 barrels a day next year.”
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“The US has become the largest oil producer in the world, pumping out more crude than any other country in history for the last six years in a row, according to the US Energy Information Administration. Domestic production hit a record 13.4 million barrels a day in August, according to data from the Energy Information Administration.”
His plans increase the deficit, which is inflationary.
Large and broad tariffs are inflationary.
A massive crackdown on illegal immigration will also be inflationary as without cheap labor, making products will be more expensive or won’t happen here at all–particularly agricultural goods and housing.
Trump wants to end the independence of the Federal Reserve. Trump has been in favor of lower interest rates, which will increase inflation.
“Capitalists create new wealth. They don’t take a big slice of the pie and leave us a sliver. If they get rich, it’s because they find ways to bake lots of new pies.
That’s what’s happened in America. Its why today, even poor Americans have access to things European kings only dreamed about.
Capitalists can get rich only by making all of us better off.
Actual economist Dan Mitchell explains, “Billionaires only kept 2.2 percent of the additional wealth they generated….The rest of us captured almost 98 percent of the benefits.””