27 February, 2014

The Original Sin of Global Warming


It might seem strange to say it, but I am a global warming skeptic because of Carl Sagan.
This might seem strange because Sagan was an early promoter of the theory that man-made emissions of carbon dioxide are going to fry the globe. But it’s not so strange when you consider the larger message that made Sagan famous.
As with many people my age, Sagan’s 1980 series “Cosmos,” which aired on public television when I was eleven years old, was my introduction to science, and it changed my life. “Cosmos” shared the latest developments in the sciences of evolution, astronomy, and astrophysics, but its real heart was Sagan’s overview of the history of science and the distinctive ethos behind the scientific method. Sagan returned again and again to one central theme: that the first rule of science is to follow the evidence wherever it leads, regardless of one’s wishes or preconceptions. He spoke eloquently about the Ancient Greek Pythagoreans and their attempt to suppress the facts about “irrational numbers” that didn’t fit their theory. And he spoke admiringly about the 17th-century astronomer Johannes Kepler, who started out pursuing a theory in which the planets move in circular orbits reflecting the ratios of the perfect Pythagorean solids—and ended up being driven by the evidence to reject this theory and discover completely new laws of planetary motion.
I didn’t end up becoming a scientist, but I absorbed Sagan’s basic lesson and have tried my best to adhere to it in my own field: follow the evidence wherever it leads.
But this can be a difficult rule to follow. It is easy to spot the unexamined assumptions of others, but harder to root out your own prejudices. A few years ago, while watching “Cosmos” again for the first time in 25 years, I was reminded that Sagan did not always practice what he preached, and his error sheds light on the global warming theory’s original sin against science. It is a sin that has only gotten worse and which explains the scandalous state of today’s debate over global warming.
In the third episode of “Cosmos,” Sagan presents our nearest planetary neighbors, Venus and Mars, as cautionary tales of what happens when a potentially Earth-like planet goes wrong and become inhospitable to life. In his telling, Venus is a warning about how a runaway greenhouse effect can turn a planet’s surface into an acidic furnace, while Mars is a cautionary tale about how an inadequate greenhouse affect can leave a planet cold, dry, and barren. He proceeds to apply these lessons to Earth, predicting two possible doomsday scenarios: one in which deforestation causes the Earth to cool, and one in which fossil fuels cause it to warm. (You can hear some of the audio here, but without Sagan’s original visuals.)
Human activities brighten our landscape and our atmosphere. Might this ultimately make an ice age here? At the same time we are releasing vast quantities of carbon dioxide, increasing the greenhouse effect…. It may not take much to destabilize the Earth’s climate, to convert this heaven, our only home in the Cosmos, into a kind of hell.
This is a bit of a cultural time capsule, preserving the precise moment at which scientific alarmists were switching from warning about a new ice age, in the 1970s, to warning about runaway warming.
Much of the planetary science behind these claims, by the way, turned out to be speculative and premature. In the 1990s, detailed satellite maps of Venus revealed the remains of enormous volcanoes and vast rivers of lava, implying that the planet had been entirely resurfaced by a volcanic apocalypse as recently as 100 million years ago—which strikes me as a much more reasonable explanation for why Venus has a surface temperature of 900 degrees and an atmosphere full of sulfuric acid. As for Mars, its much smaller size and lack of a planetary magnetic field, which allows its atmosphere to be stripped off by the solar wind, are adequate explanations for its cold, thin air and the absence of surface water. So Venusian SUVs and overenthusiastic Martian loggers are probably off the hook.
To his credit, Sagan admits that the science on this subject is still in its early stages—but then he makes a disastrous error.
And yet we ravage the Earth at an accelerated pace, as if it belonged to this one generation, as if it were ours to do with as we please…. Our generation must choose. Which do we value more: short-term profits or the long-term habitability of our planetary home?…

The study of the global climate, the sun’s influence, the comparison of the Earth with other worlds, these are subjects in their earliest stages of development. They are funded poorly and grudgingly, and meanwhile we continue to load the Earth’s atmosphere with materials about whose long-term influence we are almost entirely ignorant.
Can you see the error? Sagan enters this topic with a clear animus against the profit motive and a pre-established belief that industrial civilization is “ravaging the earth.” These are the obvious cultural biases of a late-20th-century modern liberal. So he considers two alternative theories—that we are destroying the planet by cooling it down, or we are destroying the planet by heating it up—and calls for more government funding to figure out which is correct. But his bias prevents him from seriously considering the obvious third option: that our effect on the Earth’s climate is negligible, any heating or cooling is within the normal range of natural variation, and the benefits of industrial civilization far outweigh any negative effects. But if we don’t treat this as an option, much less as an equally likely option, no government funding is likely to be devoted to pursuing that theory.
This is the original sin of the global warming theory: that it was founded in a presumption of guilt against industrial civilization. All of the billions of dollars in government research funding and the entire cultural establishment that has been built up around global warming were founded on the presumption that we already knew the conclusion—we’re “ravaging the planet”—and we’re only interested in evidence that supports that conclusion.
That brings us to where we are today. The establishment’s approach to the scientific debate over global warming is to declare that no such debate exists—and to ruthlessly stamp it out if anyone tries to start one.
That’s how we get the Los Angeles Times loftily declaring that it won’t even publish letters to the editor that question global warming. That’s how we get Michael Mann’slawsuit attempting to make it a legally punishable offense to “question his intellect and reasoning.”
That’s how we get the appalling petition to spike Charles Krauthammer’s Washington Post‘s column for expressing mere agnosticism about global warming.
It’s how we get the New York Times casually suggesting that global warming “deniers”should be stabbed.
And then there is this doozy, from my own backyard: at the University of Virginia, Thomas Forman II declares in the student newspaper that global warming skeptics shouldn’t even be allowed to speak on campus, because “we should keep our debates out of our science classes.”
This, at the university founded by Thomas Jefferson, who said, “here we are not afraid to follow truth wherever it may lead, nor to tolerate any error so long as reason is left free to combat it.” He also said, “It is error alone which needs the support of government. Truth can stand by itself.”
Forman is the president of the UVA Environmental Sciences Organization, which “provides a link between the Environmental Sciences Department and the students of the University,” “mainly geared toward undergraduate majors and minors in the department.” So the guy who believes in keeping debate out of our science classes has appointed himself as a guide for every undergraduate who wants to enter the field of climate science.
This puts a whole new light on the claim that a “consensus” of climate scientists backs global warming. It’s easy to manufacture such a consensus when you decree ahead of time that no contrary opinion may be heard. When I saw the recent claim that 97% of climate scientists endorse the theory of catastrophic man-made global warming, it struck me that this is the same margin by which dictators typically claim they have won re-election—and for the same reason. These are both systems in which voting for the “wrong” result is not tolerated.
To see how fanatical this atmosphere of intolerance has become, consider the case of Bjorn Lomborg, who does not even question whether man-made global warming is occurring, but merely argues that it would cost the world far more to stop carbon dioxide emissions than it would to ameliorate the effects of global warming. For this heresy, he had his funding specifically cut off by the Danish government and has had to move into a kind of voluntary exile in Prague. A long profile of Lomborg describes how he has been ostracized merely for questioning the economic and political policies for dealing with global warming. Which is revealing in itself, because it implies that it is the political end result, the campaign to impose massive taxes and restrictions on fossil fuels, that is the fixed assumption to which science must bend.
This is why I treat scientific claims about global warming with such skepticism: I would give them a lot more credence if I thought anyone was allowed to come up with a different answer. As I observed in the Mann vs. Steyn case, if it is a sin to doubt, then there is no science.
That’s a lesson I learned from Carl Sagan, and while he had some role in launching the current global warming orthodoxy, I suspect he would be appalled at the unscientific fanaticism with which it is now enforced. Consider Sagan’s treatment of Immanuel Velikovsky, whose crackpot theories about the development of the solar system enjoyed a brief vogue in the middle of the 20th century. After dissecting the various absurdities of Velikovsky’s theory, Sagan offered this conclusion:
The worst aspect of the Velikovsky affair is not that many of his idea were wrong or silly or in gross contradiction to the facts. Rather, the worst aspect is that some scientistsattempted to suppress Velikovsky’s ideas. The suppression of uncomfortable ideas may be common in religion or in politics, but it is not the path to knowledge, and there is no place for it in the endeavor of science.
Let this serve as an answer—and a rebuke—to today’s global warming establishment.

George Will - The Liberal Agenda

George F. Will
George F. Will
Opinion Writer

The liberal agenda: Being good to liberals

By Published: February 26 

The many jaundiced assessments of the American Recovery and Reinvestment Act on the fifth anniversary of its enactment were understandable, given that the sluggish recovery, now drowsing through the second half of its fifth year, is historically anemic. Still, bleak judgments about the stimulus spending miss the main point of it, which was to funnel a substantial share of its money to unionized, dues-paying, Democratic-voting government employees. Hence the stimulus succeeded. So there.
This illustrates why it is so sublime to be a liberal nowadays. Viewed through the proper prism, most liberal policies succeed because they can hardly fail. Each achieves one or both of two objectives — making liberals feel good about themselves and being good to liberal candidates.
Consider Barack Obama's renewed anxiety about Global Warming, increasingly called "Climate Change" during the approximately 15 years warming has become annoyingly difficult to detect.  Secretary of State John Kerry, our Knight of Mournful Countenance, was especially apocalyptic recently when warning that climate change is a "weapon of mass destruction" Like Iraq's?
Blogger Steven Hayward noted that Kerry, he of the multiple mansions and luxury yacht, issued this warning in Indonesia, where the average annual income ($3,420)suggests little latitude for people to reduce their carbon footprints. Never mind. Obama says “the debate is settled. Climate change is a fact.”
When a politician says, concerning an issue involving science, that the debate is over, you may be sure the debate is rolling on and not going swimmingly for his side. Obama is, howeverhttp://, quite right that climate change is a fact. The climate is alwayschanging: It is not what it was during theMedieval Warm Period (ninth to 13th centuries) or the Little Ice Age (about 1500-1850).
In Indonesia, Kerry embraced Obama’s “Shut up, he explained” approach to climate discussion: “The science of climate change is leaping out at us like a scene from a 3-D movie.” Leaping scenes? The “absolutely certain” science is “something that we understand with absolute assurance of the veracity of that science.” And “kids at the earliest age can understand.” No wonder “97 percent” — who did the poll? — of climate scientists agree. When a Nazi publishing company produced “100 Authors Against Einstein,” the target of this argument-by-cumulation replied: “Were I wrong, one professor would have been quite enough.”
Climate alarmism validates the progressive impulse to micromanage others’ lives — their light bulbs, shower heads, toilets, appliances, automobiles, etc. Although this is a nuisance, it distracts liberals from more serious mischief. And conservatives incensed about Obama’s proposed $1 billion “climate resilience fund” — enough for nearly two Solyndra-scale crony-capitalism debacles — should welcome an Obama brainstorm that costs only a single billion.
Besides, the “resilience” fund will succeed. It will enhance liberals’ self-esteem — planet-saving heroism is not chopped liver — and will energize the climate-alarmist portion of the Democratic base for November’s elections.
Concerning that portion, there will now be a somewhat awkward pause in the chorus of liberal lamentations about there being “too much money” in politics because of wealthy conservatives. During this intermission, the chorus will segue into hosannas of praise for liberal billionaire Tom Steyer. The New York Times says he plans to solicit $50 million from similarly situated liberals, and to match this with $50 million of his own, and to spend the pile to “pressure federal and state officials to enact climate change measures through a hard-edge campaign of attack ads against governors and lawmakers.” The Times says Steyer’s organization, NextGen Climate Action, is “among the largest outside groups in the country, similar in scale to the conservative political network overseen by Charles and David Koch.”
Conservatives should be serene about people exercising their constitutional right to spend their own money to disseminate political speech, including the speech of people who associate in corporate forms for political advocacy. The Supreme Court’s excellent 2010Citizens United ruling, the mention of which sends liberals to their fainting couches, affirmed this right.
Still, there is a semantic puzzle: What are such “outside groups” outside of? Not the political process — unless the process is the private preserve of the political parties. Liberal campaign finance scolds seem to think so. Applying their mantra that “money is not speech,” they have written laws restricting contributions to parties, with the predicted effect of driving money into “outside groups.” This is redundant evidence of why the Law of Unintended Consequences might better be called the Law of Unending Liberal Regrets.

20 February, 2014

NEW OBAMA PROMISE: IF YOU LIKE YOUR LIFE, YOU CAN KEEP IT

Not a huge fan of Ann Coulter, but she makes some good points here.  One miss on her part, though.  She makes the claim that Obamacare is unfair because it taxes middle class and rich people at the same level.  That's actually a good thing - we shouldn't be taking from one group to pay for another group (see previous post on the rich paying their "fair share").  The real problem is that Obamacare charges sick people the same price as healthy people - that's as illogical as it is unsustainable, unless you expect a whole bunch of healthy people to essentially pay a lot of money for nothing (which is exactly what the law tries to do, except they are likely to find the required price under such a system is unacceptably high).  Insurance by definition should price discriminate (expensive, high-risk people should pay more than inexpensive, lower-risk people).  Without that key pricing mechanism (and with mandated enrollment), "insurance" essentially becomes a transfer system in which one group of citizens pays the bills for another group.  In this case, I suspect Coulter's desire to criticize the president (she can't pass up the chance to call him a hypocrite) skews her analysis of the policy - the lack of regressivity is not her problem with the law, but it is a convenient tool with which to attack President Obama.  

NEW OBAMA PROMISE: IF YOU LIKE YOUR LIFE, YOU CAN KEEP IT

 

Liberals are winning wild praise for their candor in admitting problems with Obamacare. It shows you the level of honesty people have come to expect of our liberal friends. Now, liberals are applauded for not lying through their teeth about something.
What are they supposed to say? This Obamacare website is fantastic! And really, haven't you already read all the magazines in your current doctor's office anyway?
The New York Times has described Obama's repeated claim that you could keep your insurance plan and keep your doctor under Obamacare as a mere slip of the tongue: "Mr. Obama clearly misspoke when he said that."
Misspoke? How exactly does one misspeak, word for word, dozens of times, over and over again?
That wasn't misspeaking -- it was a deliberate, necessary lie. Even Democrats couldn't have voted for Obamacare if Americans had known the truth. It was absolutely vital for Obama to lie about people being able to keep their insurance and their doctors.
Of course, it was difficult for voters to know the truth because every time Republicans would try to tell them, the White House and the media would rush in and call the critics liars.
The White House posted a specific refutation of the "disinformation" about not being able to keep your doctor or insurance plan. That claim, the website said, was being disseminated by Republicans "to scare people."
Their proof consisted of a video of Obama clearly stating, "If you have insurance that you like, then you will be able to keep that insurance. If you've got a doctor that you like, you will be able to keep your doctor."
A video of someone asserting the very fact in dispute does not rise to the level of "evidence," but it was more than enough for MSNBC.
Even when pretending to be critical of Obamacare, liberals lie about the real problems. They tell us they're worried about the percentage of young people signing up for Obamacare. The mix of young and old people in Obamacare is completely irrelevant. It won't help if a lot of young people sign up because their premiums are negligible.
To keep the system afloat, what Obamacare really needs is lots of healthy people, preferably healthy older people. Their premiums are astronomical -- and they won't need much medical treatment.
Premiums are set by your age, not your health. It doesn't matter if you never go to the doctor. Obamacare punishes you for having a healthy lifestyle. The Obamacare tax is a massively regressive poll tax on the middle-aged and the middle class.
Apart from those who are subsidized, everyone pays the exact same amount in penalties or insurance premiums for his age group. It doesn't matter if you don't make as much money as Bill Gates. Any 58-year-old male who doesn't qualify for a subsidy will pay the same Obamacare tax as Gates.
When Margaret Thatcher tried to impose the same tax per person, as a "community charge," there were riots in the street.
Our extremely progressive tax system, where nearly half the country pays no income tax at all, and the other half pays about 40 percent of their income, may not be fair. But most people also don't think it's fair to tax a guy making $80,000 a year the identical amount as one making $80 million a year. That's exactly what Obamacare does.
With Obamacare, the Democratic Party has foisted the most regressive tax possible on America. This ruthless assault on the middle class is all so we can have a health care system more like every other country has.
Until now, the United States has had the highest survival rates in the world for heart disease, cancer and diabetes. Cancer comparisons are the most useful because all Western countries keep careful records for this disease.
For all types of cancers, European men have only a 47.3 percent five-year survival rate, compared to a 66.3 percent survival rate for American men.
European women have only a 55.8 percent chance of being alive five years after being diagnosed with any type of cancer, compared to 62.9 percent of American women.
American survival rates for breast, prostate, thyroid and skin cancer are higher than 90 percent. Europeans do not have a 90 percent survival rate for one of those cancers.
The European rates are even worse than they sound because many cancers are not discovered until the victim's death -- twice as many as in the U.S. All those cancers were excluded from the study.
Canadian cancer survival rates aren't much better than the European rates -- and they've been able to sneak into to the U.S. for treatment! Women in the U.S. have a 61 percent survival rate for all cancers, compared to a 58 percent survival rate in Canada. Men in the U.S. have a 57 percent survival rate compared to 53 percent in Canada.
That's why your insurance premiums have to go through the roof and your Obamacare tax is the same as Bill Gates'. So across the world, we'll all be equal, dying of cancer, heart disease and diabetes as often as everyone else.
It's not that Obama doesn't believe in American exceptionalism; it's that he wants to end it.

18 February, 2014

The Rich & Their "Fair Share"

So, the rich aren't paying their "fair share", you say?  Consider the following:

Percentage of 2010 total income received by top 1%: 15%
Percentage of 2010 total income tax paid by the top 1%: 39%

But the rich are pay much less than they use to, right?  In 1980, the tax rate was 70% - now its under 40%.  They're getting off easy now...

Percentage of total income tax paid by 1% in 1980: 17%
Percentage of total income tax paid by 1% in 2010: 39%

Yes, but you must be cherry picking dates to match the story you want to tell - this can't be true over the last 30 years...

Source: AEI

So what if their taxes have been increasing - we need that money to keep us from spending more than we take in. 
  
Total amount in income tax collected from 1% in 2010: $350 Billion
Total budget deficit in 2010: $1.3 Trillion

So we'd have to take nearly 3x more in taxes from the rich just to cover the deficit?  Whatever, they can afford it to pay more.  What if we took all their money...

Total income of top 1% in 2010: $1.69 Trillion
Total income of top 5% in 2010: $2.9 Trillion
Total income of top 10% in 2010: $3.86 Trillion
Total Federal Government Spending in 2010: $3.46 Trillion
Source: Link

So we'd need to confiscate the entire earnings of the top 10% of people (everyone who makes more than $113K/year) just to pay for our federal government spending?

Maybe I was looking at this wrong - is it possible we spend too much?  (Admittedly, this is an idealized final response, but one that is nearly unavoidable when confronted with the facts)

11 February, 2014

The Mythology And Reality Of Unemployment Benefits

The Mythology And Reality Of Unemployment Benefits

Wake up to the reality of data.
Scott Lincicome
By 

At the State of the Union address, several members of Congress wore blue ribbons to signify their support for the extension of emergency unemployment insurance (UI) for American workers – a policy which expired in December after 6.5 years, billions of taxpayer dollars and, it must be added, stubbornly high unemployment.  In his big speech, President Obama also voiced support for this policy, and the Senate just last week held its third cloture vote on the issue, once again failing to get enough ayes to move the bill forward but providing yet another opportunity to show just how heartless and cruel the Republican Party can be (or something).
You see, supporters of extending emergency UI relentlessly argue that doing so is the right thing to do in this tepid economy with oodles of long-term unemployed Americans.  There just aren’t enough jobs out there, they aver, and eliminating jobless benefits will therefore do nothing other than push Americans out of the job market entirely – further marginalized from society and adding new strains to our welfare and disability rolls.  Such arguments have some foundation in the economics literature, so supporters of extending jobless benefits haven’t been entirely off base in pushing this line of argument.
However, as we get more and more data from my home state of North Carolina, which eliminated unemployment benefits in July and thus has served as a sort of “experiment” for what might happen to the nation in 2014, it’s probably time for these supporters to open their eyes and, at the very least, revisit their assumptions.  Because if North Carolina’s experience tells us anything, it’s that the elimination of unemployment benefits not only won’t spell disaster for the American economy, but just might give our stagnant labor market a little boost.  And, of course, save taxpayers billions of dollars (about $25 billion per year, to be exact) in the process.
It’s time for UI supporters to acknowledge these facts, but – if recent history holds – I seriously doubt that they will.
But before I get into all that, two quick lawyerly disclaimers.  (Sure, pretty much everyone in politics and the punditocracy has ignored these issues, but any serious analysis demands they’re stated them up front.)  First, as I’ve mentioned previously, it’s dangerous to draw broad and definitive conclusions from the experiences of a single state over a relatively short time period.  States are diverse, and isolating the effects of a single policy change and applying that to the nation as a whole is an extremely difficult task.  Nevertheless, North Carolina’s experience is unique and has become a hot-button issue given the national debate, so it’s appropriate to take a look here.  Second, the data themselves are less-than-ideal: the survey sizes are in some cases quite small and the results are subject to pretty large revisions.
But if we are, as so many have, going to use these data to draw broader conclusions, the least we can do is draw the right conclusions.  This, it seems, is far more difficult to do than it really should be: the last several months have, as I’ve already noted twice on these pages, been replete with half-baked, cherry-picked assertions as to what North Carolina’s little “experiment,” like, totally and definitely means for America.
One such asserter has been the New York Times’ resident Nobel Laureate and mean girl economist, Paul Krugman.  In fact, Krugman didn’t even wait for any data, regardless of its quality, before confidently reporting that North Carolina had declared “war on the unemployed” because it chose to cut unemployment benefits to a draconian 19 weeks (aka, about a month longer than the average duration of UI benefits before the Great Recession began in 2008) and to truly evil levels (aka, at or above most other states in the region).  Krugman’s reasoning, however, was based not on actual evidence in the Tarheel state or elsewhere, but on economic theory.  He nevertheless concluded, in typically-angry fashion, that “[t]he move to slash unemployment benefits, then, is counterproductive as well as cruel; it will swell the ranks of the unemployed even as it makes their lives ever more miserable.”
Well, ok then.
Since that time, however, we actually have real evidence of what happened in North Carolina after the state trimmed UI – six months of jobs data from the Department of Labor’s Bureau of Labor Statistics (BLS) establishment and population surveys.  And, unsurprisingly, countless politicians and pundits have butchered that data in order to confirm their pre-existing views about the effects of unemployment insurance on state and national labor markets.  One such butcher was none other than Paul Krugman, who in January took a quick look at a sliver of the data and confidently proclaimed that, naturally, he was right:
[I]f there were anything to the theory that cutting unemployment benefits encourages job search and somehow translates into higher employment even in a slump, harsh policies should work better at the state than at the national level. But there is no sign at all that North Carolina’s harshness has done anything except make the lives of the unemployed even more miserable.
I’ve already documented where Krugman’s analysis went awry, as well as the many experts who have in fact found “signs” that North Carolina’s jobless benefit cuts have actually helped heal the state’s wounded labor market.  Since then, several economistsbolstered these findings in a much-publicized study, which concluded from the available data in North Carolina that (i) unemployment benefits’ negative effect on the labor market “dominate any potential stimulative effect that some ascribe to such policies”; (ii) after the benefit cuts, “employment has risen according to all available sources of data”; and (iii) based on the data on hours, employment and wages, the new jobs were in no way inferior to others in the state.  These same economists, it should be noted, looked at another dataset last October and found that, because unemployment benefits deter job creation, “most of the persistent increase in unemployment during the Great Recession can be accounted for by the unprecedented extensions of unemployment benefit eligibility.”
So much for all that theory, eh?
Now, we have another month of data, and the evidence supporting these conclusions appears even stronger.  Immediately following BLS’ latest release of state-level employment figures, David Freddoso summarized the basic – and increasingly optimistic – facts about North Carolina’s job market:
The new payroll data show that North Carolina created another 11,100 jobs in December, which is 15 percent of what the nation as a whole added last month….

The data from BLS’s household survey of North Carolina (a different measurement, so note the different numbers) also looks at labor force and unemployment. It shows that about 19,000 of the 21,000 who left the ranks of the unemployed last month found new jobs. Only about 1,900 people dropped out of the labor force for whatever reason. This is better than in the past several months, but it’s consistent with the trend since benefits were cut — since July, fewer people have been dropping out of the labor force each month than were doing so before, and more people have been finding jobs. Together, these two phenomena have brought the state’s unemployment rate down rapidly….
The following charts, based on the new BLS data, show what Freddoso was talking about: after a tough start to the year, the Tarheel state over the summer began to experience improvements in both employment and labor force attrition:
Here you can plainly see that, in the first half of the year (i.e., before any 2013 GOP tax or labor policies had taken effect), North Carolina’s labor force collapsed and employment struggled.  Things only began to improve significantly in the latter half of the year – coincidentally (perhaps) after UI was cut.
This comparison – December to June versus June to December – gives us a look at what actually happened in North Carolina before and after the UI changes, and Freddoso deserves credit for adding that important perspective.  Indeed, too few “experts” – on the left and right – have taken the time to make the right comparisons.  Instead, we’ve been treated to 12-month (or “year-on-year”) comparisons (like Krugman’s) that hide the early year trauma and obfuscate any positive job or labor force moves that began in July (i.e., after the benefit cuts occurred).  Or we’ve been given only data from June to November or December – an analysis which targets any post-cut effects but ignores where the state was heading before those cuts took place.  Only the aforementioned study and has, to my knowledge, made this comparison in any rigorous way and, as noted, came to cautiously optimistic conclusions.
What these data still don’t tell us, however, is how North Carolina stacked up in 2013 versus its neighbors and the nation as a whole – an additional comparison that can tell us even more about whether the Tarheel state’s improvements really were unique and consequential or just par for the national/regional course (or even subpar).  The following charts (full dataset available here, if you’d like to check my work) undertake such a comparison using BLS data, and, as you’ll see, they provide even more reason for optimism: North Carolina’s labor market improvements stand alone in the 2013 periods before and after the state trimmed unemployment benefits.
First, data from the establishment survey show that, as a share of state/national population (used to compare apples to apples across the states and nation), North Carolina had the largest improvement in its employment situation from the first to the second half of 2013 (i.e., before and after the July change to unemployment benefits).
Between December and June, the Tarheel state gained only 13,100 jobs (0.13% of its population) – basically all of them in January, after which jobs stagnated.  By contrast, the state gained 51,400 jobs (0.53% of population) after UI benefits were cut – the second-best expansion over the period and, as already noted, the biggest improvement between the first and second-half of 2013.  In short, North Carolina’s job creation was stuck in neutral before the UI cuts and then shifted into drive thereafter.
The best second-half job growth was in South Carolina (25,400 new jobs or 0.54% of population) – a state which actually cut unemployment benefits a couple years ago – but that growth was a more modest improvement from the first part of the year (11,400 new jobs or 0.24% of the state’s population).  Virginia, on the other hand, saw its job growth decelerate between periods, as did the nation as a whole.  Thus, the reduction of UI benefits doesn’t appear to have hurt job creation in North Carolina and may have just helped it.  This is particularly apparent when you consider the difference between the job gains in the UI-cutting Carolinas and the job stagnation in Virginia, which maintained more ample UI benefits.
The population survey data show an even more radical job improvement in North Carolina, again not mirrored by neighboring states or the country as a whole and again showing much better employment growth for the “UI-cutters”.
In reality, North Carolina was the only one to actually lose jobs in the first half of 2013 and then gain jobs from July to December.  And the state didn’t just gain a few jobs after unemployment benefits were cut – it experienced the best job growth of the group (0.42% of its population or 41,364 jobs).  Only South Carolina can (again) touch this second-half performance, but – unlike its UI-cutting neighbor to the North – the state was already doing pretty well job-wise from December to June.  And (also again) Virginia and the nation actually saw 2013 job growth decelerate between the two periods.
In sum, both the population survey and the establishment survey show that North Carolina saw a significant improvement in jobs during the periods immediately preceding and following the state’s cuts to unemployment benefits – changes that are not only unique to North Carolina among its neighbors and the country as a whole, but also – and more importantly – much better.  Thus, although it’s impossible to be totally sure that North Carolina’s jobless benefit changes led to more jobs being created in the state (aka “employment effects”), these data do support that view.
Are any such employment effects sufficient to fix the nation’s labor market woes?  Of course not.  But, if true, they might help a little and save taxpayers and businesses billions of dollars in the process – an important point seemingly lost in this never-ending debate.
Moreover, the downside to scaling back UI in North Carolina – people dropping out of the labor force – appears to be much smaller than originally predicted or maybe even non-existent.  Krugman’s and his pessimistic colleagues’ chief (only?) criticism of the state’s cuts to UI and subsequent labor market performance is that the cuts caused a horrible drop in labor force participation.  Leaving aside for the moment the fact that the White House now considers labor force attrition to be a good and “liberating” choice or something, and the fact that some of this attrition might be due to the “Constanza effect” (i.e., people pretending to search for work in order to receive benefits), the BLS data argue against Krugmanian pessimism: all three states, and the nation as a whole, saw their residents drop out of the labor force in 2013, but only North Carolina saw the rate of attrition improve between the first and second half of 2013.
As you can see, the state’s labor force lost 0.6% of its population between December and June, and then 0.54% between June to December – a small improvement that’s made even better when you consider that, as shown in the earlier charts, North Carolina’s labor force attrition consistently decelerated since the summer and almost came to a halt in December.  More importantly, however, was the fact that this small improvement was again unique: South Carolina, Virginia and the nation actually had a larger share of their respective populations drop out of the labor force between June and December than in the earlier December to June period.  North Carolina’s went the other way (albeit mildly).
While these data don’t resolve whether cuts to unemployment benefits have caused some North Carolinians to drop out of the state’s labor force in 2013, the numbers doobliterate the notion – advanced by Krugman and others – that the UI changes caused a major spike in such activity.  In fact, the data thus far indicate the opposite effect, especially when compared to South Carolina, Virginia and the nation as a whole.  Put simply, if the participation effects resulting from North Carolina’s cuts to UI really were so prominent and forceful, the state’s labor force attrition would’ve accelerated like its neighbors and the nation, not decelerated as it did.  (I guess you could try to argue that the state’s labor force declines would’ve decelerated even faster, but (a) no one’s doing that; and (b) it’s a pretty tough sell considering what happened elsewhere.)
Maybe these conclusions will change in the coming months as we get more data or things are revised, but it’s pretty darn difficult right now to confidently claim what Krugman and others are claiming.  That probably won’t stop them from doing so, of course, but it should.
Indeed, the latest BLS data have been out for a couple weeks now (the aforementioned economic studies even longer), yet the tune from most UI extension supporters has remained the same.  For example, after Friday’s new national jobs data, AEI’s Michael Strain stated, without even a shred of equivocation:
If you think the economy is slowing due to weak jobs numbers in December and January, then that is all the more reason to extend unemployment benefits. If you think the labor market is still stuck in neutral, then that is all the more reason to extend unemployment benefits. If you want the long-term unemployed to stay attached to the labor force until the economy picks back up and they can find jobs, then that’s all the more reason to extend unemployment benefits.
Never once did Strain stop to consider whether these conclusions really are so clear-cut.  Then there’s Krugman, who just took another cursory look at the latest data (totally ignoring the December-June swoon or the divergent results in neighboring states, of course) and again came to the conclusion that supported his original prediction:
There has been a sharp drop in the NC labor force, probably in large part because workers who could no longer get unemployment benefits — which require that you search actively for work — gave up on what they knew was a hopeless quest.

The point is that to the extent that there has been a distinctive drop in North Carolina’s measured unemployment rate, it has to do with reduced job search rather than increased employment.
Maybe Krugman’s use of “probably” is as close as he’ll ever get to actually admitting that his earlier confidence was a bit premature or misguided.  (His unwillingness to admit fault – even after disparaging his opponents’ intentions – is now pretty much a given.)  Krugman’s ultimate conclusions, however, belie such optimism.  He, like many others, remains convinced that North Carolina’s unemployment “experiment” is a disaster (and, of course, that the state’s cruel Republican government really does hate the unemployed), regardless of what the data actually say.
We can only hope that Congress is a little more open-minded.
The views expressed herein are Scott Lincicome’s alone and do not necessarily represent the views of his employer, White & Case, LLP.