Professor
Richard Vedder of Ohio University is an idiot; well he’s an economist,
which is basically the same thing. Vedder has an article in the Wall Street
Journal where he argues that Americans are working less. The time frame for his
assertion is from the mid-17th century to the late 20th
century. I have a variety of questions for his flawed pseudo research such
as: Who are being included in the study?
Women, people of color or slaves as they would have been called at least
through part of this time period, are only wages laborers included? How does he
control for that? Where his data is coming from? Etc.
He claims that economic growth was
about 3.5% per year, but this has dropped to about 1.81% in the last twelve
years. Vedder, being a genius has this all figured out, people work less. He
claims there has been a decline in proportion of working-age Americans who are
employed (he also notes nothing about outsourcing or how that could play a role
or the rise of part-time employers) because people are lazy. Vedder, and I don’t
doubt this, asserts that the increase in the employment-to-population ratio is
because more women are being included as working-age Americans. Sure. I’m sold
on that. We now have more people who “count” in the employable group. But the
rise in the number of people looking for employment doesn’t have a negative
impact on the number of jobs available resulting in an increase in the
unemployed? The number of people of workable-age minus employment opportunities
yields the unemployed. Not for Vedder.
Vedder argues that there are more
working-age people not working. This is his argument:
“The decline [employment-to-population
ratio] matters more than you may suppose. If today the country had the same
proportion of persons of working age employed as it did in 2000, the U.S. would
have almost 14 million more people contributing to the economy. Even assuming that
these additional workers would be 25 % [no idea where he gets this number] less
productive on average than the existing labor force, U.S. gross domestic
product would still be more than 5% higher (800 billion, or about $2,600 more
per person) than it actually is. The annual growth rate of GDP would be 2.2%,
not 1.91%. The retreat from working in short has had a real impact.”
See this is where I’m confused by
economists. They seem to believe everything exists in a vacuum. Where are the
jobs people are refusing to take? One cannot really be unemployed unless there
is employment out there to have. [Wow, I think I’m dangerously close to
understanding philosophy.] For Vedder public policies are to blame. [I don’t
think he knows his welfare history.]
- Food Stamps: Vedder claims that people work to eat. If the government provides food stamps then the lazy awful people will not work. Vedder argues that food stamps have increased over time, yes this is true. We let more people qualify for it by getting rid of racial (and clever) restrictions. But then he asserts that because the economy is recovering fewer people should be on them now. Except the poor are usually hurt first and feel the recovery last. Sorry Vedder, pick a new program because your logic demonstrates a gross misunderstanding at best and at worst an inability to do basic research [UMD’s Welfare Research and Training Group has lots of information on the subject].
- Social Security Insurance (Disability): Vedder once again, knowing nothing of the human condition because he’s never met one apparently, argues that American health has improved and thus these payments should be less. But now because health has improved we identify and know about more diseases, people are also living longer because of advancements in health care. That doesn’t mean everyone is perfectly healthy. He doesn’t take this into account at all. You can read about Nicholas Kristof’s idiocy here, if you want to talk about SSI more. Vedder’s argument only works if everyone is healthy, he ignores that working people tend to suffer from more illnesses (including work related ones) than their academic counterparts.
- Pell grants: Wait, why is this on this list? Oh, he’s making the “we’re over educating the poor argument.” According to Vedder, people should know their place and work low wage jobs without aspiring to anything higher (he did a study on it with Christopher Denhart and Jonathan Robe for the Center for College Affordability and Productivity). He is right people with an undergraduate degree are having a harder time finding employment. He says nothing about the race to the bottom by corporates that results in lower wages or how that could affect this. He also, like so many others doesn’t even acknowledge who Pell Grants help. Just say it Vedder, you don’t want poor people who don’t look like you in your classes.
- Extended unemployment benefits: Nothing motivates you like abject poverty I guess. He argues this is paying people to stay at home. He also seems to lack any understanding of how unemployment or any of these benefits work. He talks about them as if they are free money. Clearly, Vedder has no experience with any of these programs, and they only exist in some abstract terms.
I can’t help but notice Vedder
left TANF off the list. Afraid of who will come at you bro?
People pay into these programs through
taxes with the expectation that these programs will be available for them if
they ever need it. Cutting benefits will push people even further under the
poverty line, and as another article by Michael
Fletcher of the Washington Post points out, “Nearly a third of the nation’s
working families earn salaries so low that they struggle to pay for their necessities,
according to a new report [put out by the Working Poor Families Project]. The
ranks of the so-called working poor have grown even as the nation has created
new jobs for 27 consecutive months and is showing other signs of shaking off
the worst effects of the recession.”
The Working Poor Families Project
report also includes data from the 2011 American Community Survey that states
32% of working families earn incomes that put them at the poverty level. I can
also tell you from my research, the people who have join welfare and food
stamps during the recession stay on for shorter periods than those with a
history of welfare receipt (we do an annual report on this). Only children receive
TANF benefits without the work requirement. Everyone else works or has to prove
a disability, which is really difficult. Now, they work low-wage jobs without
benefits which can encourage people to turn back to the system if they face
illness or pregnancy.
Weird,
who to trust, who to trust? People who work with and study this population or
some tenured dude who has a very limited understand of the programs has criticizing?
Well, you can make that decision for yourselves.
Vedder
concludes challenging people to rise up and insist on saving the nation by
cutting benefits to the poor. He gives a head nod to worker-based immigration
policy (which according to him is also to blame) and taxes because you can’t
tax the rich. Then there is this gem: “If more people have less incentive to
stay out of the work force, they might seek jobs and help spur economic growth.”
Fuck you buddy. This guy doesn’t seem to have a twitter account or I’d be
trolling him challenging him to live off the benefits he mentioned here. I’d
like to see him eat off of $2 a day.