Mitt Romney, presidential candidate, said in now-infamous comments that 47% of the American electorate is dependent on the federal government, that he will never be able to teach them to take personal responsibility for their lives, and that they are certain to vote for Barack Obama in November. He continues a tradition in his party that goes back at least three decades: building political campaigns around the proposition that folks in the heartland exhibit the American virtues of self sufficiency and personal responsibility and the implication that other, more urban, regions display decadent social values and dependency on government.
Category Archives: 2012 presidential campaign
The Unemployment Rate and Private Job Growth
Once again this morning, the BLS employment release tells conflicting stories depending on whether one looks at the unemployment rate or job growth. The U.S. unemployment rate fell from 8.3% in July to 8.1% in August, continuing the gradual three-year downward trend (from its 2009 peak at 10 %). Political economy equations often say that the direction of movement of the unemployment rate in the period preceding a presidential election is the main economic determinant of whether the incumbent is re-elected.
More Black Swans?
I have argued that the best way to think of “black swan” events is as developments that, even though low-probability, can in fact be contemplated ahead of time. Even if they are the sort of thing that has never happened before within an analyst’s memory, similar things may have happened before in the distant past or in other countries.
What current possible shocks have probabilities that, even if fairly low, are high enough to warrant thinking about now? Some have been discussed ad infinitum, others hardly at all.