Venango County Tea Party Patriots

A non-partisan, non-profit, non-member, association dedicated to educating the public and promoting the principles of fiscal responsibility, constitutionally limited government and free market economics, and all other lawful activities.

recession

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Tax Increases in 2013 Will Cause a Recession

Congressional Budget Office (CBO) predicts that if tax rates rise in 2013 as scheduled, the economy will fall back into recession, shrinking by 0.5 percent in 2013.

CBO made the prediction in its annual summer budget update Wednesday.

“But the sharp increases in federal taxes and reductions in federal spending that are scheduled under current law to begin in calendar year 2013 are likely to interrupt the recent economic progress,” CBO said.

“By CBO’s estimate, that fiscal tightening will probably lead to a recession in 2013 and to an unemployment rate that remains above 8 percent through 2014.”

While CBO included mandatory spending cuts from the federal budget sequester (the “fiscal cliff”) in its analysis, the vast majority of the impact to the economy will come from the tax increases – the expiration of the Bush tax cuts — due to their sheer size.

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High Fuel Prices, Catch Limits Hurt NJ Anglers

This is about the big one that got away.

Not a fish, but fishing, a sport and an economic engine in decline.

In recent years, the sport of saltwater fishing in New Jersey has lost more than one of every 10 jobs lost industry-wide, nearly $200 million in sales and $109 million in contributions to the state’s gross domestic product, according to the most recent economic data from the National Marine Fisheries Service. And since 2007, the industry has continued to lose ground here, according to a Star-Ledger analysis of federal data tracking anglers and the trips they take off of New Jersey’s shores.

For a morning fishing excursion a few weeks ago, the Sea Hunter out of Atlantic Highlands was less than half full, with 32 anglers on board at $42 a head. Capt. Rob Semkewyc said that was a good day for him. Factoring expenses, such as bait, marine fuel, dock fees and two deck hands, he estimates he made about $10 an hour for the 4.5-hour cruise.

“It’s tough living on the water,” Semkewyc said. “Every year it gets tougher.”

Experts point to the recession and an increase in gas prices for curbing the number of fishermen chartering boats and pleasure craft. Anglers also say restrictive catch limits make the sport less appealing for many.

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4.4 Million Permanent Job Losers in July

In a sign that the employment picture remains weak, 4.4 million people reported being permanently out of work in July, according to government figures. That number has remained abnormally high since the recession ended three years ago.

While the total number of unemployed persons increased by 45,000 in July to 12.8 million, that figure masks the true causes of unemployment, which can range from retirement to temporary layoffs to being fired.

This is because the government calculates unemployment by asking people if they have jobs and, if not, if they have looked for work in the past month. If they don’t have jobs but have looked for work, the government classifies them as unemployed – and only then does it ask why they are unemployed.

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