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NC Budget and Tax Center

More than 1 million jobless workers were deserted by lawmakers who failed to extend the federal unemployment benefits program that expired in late December. This came three weeks after the Congressional Budget Office concluded that extending emergency unemployment compensation through the end of 2014 would positively impact economic growth and job creation in the short term. Despite this report, conservative members of the US Senate blocked efforts yesterday to extend unemployment insurance at a time when long-term unemployment is at record high-levels.

To no surprise, conservatives are insisting that the extension of benefits be paid for by cuts in other programs, including those that offer support to low-income and jobless families. In exchange for their vote, some conservative Senators want to bar immigrant families from claiming the Child Tax Credit—a measure known as the Ayotte Amendment. This tactic is misguided and counterproductive. Read More

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mccrory1106Not that there was really any doubt that Gov. Pat McCrory’s up-is-down, day-is-night claim that people were moving to North Carolina to take advantage of supposedly generous unemployment insurance benefits was complete baloney on multiple levels, but the reporters at WRAL.com “NC Capitol Fact Check” have confirmed that this is the case.

“North Carolina’s own rules prohibit people who have not worked in the state from tapping the state’s unemployment insurance system, and economists say there’s scant evidence for people moving across state lines for any work-related reason, much less because they’re comparison shopping for unemployment insurance.

Given that McCrory can offer scant evidence for his claim, it would be hard not to rate his statement as false.”

As for what happens next in the aftermath of a high public official uttering such a blatant and malicious untruth, don’t hold your breath waiting for any kind of apology from the Guv. A more likely outcome: some kind of convoluted claim that it’s all Bev Perdue’s fault. Stay tuned.

NC Budget and Tax Center

In remarks at Monday’s economic forecast forum, a number of speakers sought to take credit for enacting policies in 2013 that they believe have contributed to big drops in the unemployment rate since last January, an idea that has been repeated in recent business news reports. Unfortunately, as much as we all want to make progress reducing North Carolina’s persistent joblessness, we’re still waiting for a jobs recovery to actually happen.

The unfortunate reality is that the unemployment rate may have fallen due to mathematical quirk in how it’s calculated, but unemployment itself still remains high due to anemic job creation and a contracting labor force.

Perhaps the most problematic claim involves the mistaken notion that the General Assembly’s deep cuts to unemployment benefits that took effect in June somehow spurred an impressive reduction in unemployment in the following months. According to this view, the “employment effect” associated with cutting unemployment benefits forces workers to find jobs that they otherwise would not have accepted because the wages of those new jobs pay less than what their old jobs paid. And since the unemployment rate has gone down, proponents of these cuts have argued that the employment effect must have worked in just this way.

There is a serious problem with this idea—it assumes that unemployed workers who lost their benefits in June went out and found jobs in August through November, a claim that just doesn’t bear up under serious scrutiny.

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Traditionally, official press releases issued from the offices of high public officials carry some imprimatur of solemnity and seriousness. While one realizes at some level that they’re ultimately just a way of the official in question to communicate with the media and the public, the releases still typically come with (and convey) an air of officialdom — i.e. that they are public documents issued by the public official in his or her official government capacity.

With this as background, check out a couple of recent “press releases” from Gov. Pat McCrory that sound and look more like dashed-off blog posts.

On Tuesday of this week, the Governor of North Carolina issued an official press release that was simply a reprinted Wall Street Journal editorial about the evils of extended unemployment benefits. It even included the social media abbreviation “ICYMI” in the headline – as in “ICYMI: Wall Street Journal: How to Keep Workers Unemployed.”

Then, just yesterday, the Governor issued another “official” press release. It said the following: Read More

NC Budget and Tax Center

In recent months, we’ve been hearing a lot from legislative leaders about how much the state’s economy has “improved” over the past couple years. Unsurprisingly, it turns out that much of this improvement never happened.

As seen in the latest issue of Prosperity Watch, North Carolina still has higher unemployment and lower shares of employed people than the national average–a trend that has remained consistent since 2011 and has actually gotten worse in 2013.  See the latest Prosperity Watch for details.