The POR (Pelosi-Obama-Reid) Economy: Now a 50-state Phenomenon
Regional and state unemployment rates were universally higher in December. All 50 states and the District of Columbia recorded both over-the-month and over-the-year unemployment rate increases, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.
Sadly, in July, I called it and said that they were probably driving an economic downturn. Now it’s spread almost everywhere.
We’ll learn just how bad the POR-inflicted damage was in last year’s fourth quarter in Friday’s GDP report.
Added Jan. 28: Another forgotten marker — April 2008’s alltime high federal tax receipts prove that first- and second-quarter 2008 economic growth wasn’t artifically juiced by the tax rebate-driven stimulus package passed earlier in the year. Not only did those receipts reflect record tax liabilities from 2007, but they also included first-quarter estimates for 2008. Obviously at that point, corporations and especially non-withheld individuals, whose payments were a whopping 16% higher in April 2008 than April 2007, were reasonably optimistic about how the economy was doing, or they wouldn’t have made such large first-quarter payments.
Pelosi, Obama, and Reid fixed that two months later.
Marker Number Two: At first glance, the June 2008 Treasury Statement would lead you to believe that the optimism I just referred to was gone by the June 15 due date of second-quarter estimated payments.
You would be partially correct.
Starting with this post from July of last year — If you add back the stimulus payments sent to individuals (which really should have been treated as federal spending and not negative receipts), you see that tax collections were 4% higher than the previous year.
So far so good. But looking at detail not referenced here, most of that was due to June 2008 having five high-collection Mondays vs. four in June 2007. The facts are that corporate receipts were down $6.2 billion (-9.3%), while individual non-withhelds were up by $0.9 billion (+1.4%).
This makes sense, as the hard-core Democratic Party opposition to any kind of energy exploration and drilling started to appear a week or so before the June 16 due date for second-quarter estimated payments (see this NixGuy post from June 9, and this June 11 Weapons of Mass Discussion post about a Jean Schmidt pro-drilling House floor speech). Corporate payments declined in reaction to all of this, while individuals, who largely wouldn’t have caught on until later in the month, generally paid the same amounts as they did in April.










