![\"The](\"https:\/\/i0.wp.com\/www.dougsbriefcase.com\/blog\/wp-content\/uploads\/2015\/03\/credit-studenti.it_.jpeg\")
<\/a>The mam\u00admone \u2014 a job\u00adless man in his 20s, 30s or 40s who lives with mam\u00adma \u2014 is an Ital\u00adian tra\u00addi\u00adtion. Under Pres\u00adi\u00addent Oba\u00adma, labor force par\u00adtic\u00adi\u00adpa\u00adtion rates of young Amer\u00adi\u00adcan men have plunged to Ital\u00adian lev\u00adels. [Cred\u00adit: studenti.it]<\/p><\/div>In Italy, they call him a mam\u00admone<\/em>: an unem\u00adployed man in his 20s, 30s or 40s who still lives with mamma.\n The preva\u00adlence of the mam\u00admone<\/em> has long been thought to be a pre\u00addom\u00adi\u00adnant\u00adly Ital\u00adian phe\u00adnom\u00ade\u00adnon<\/a>,<\/span> with deep cul\u00adtur\u00adal roots. It has grown more pro\u00adnounced with the country\u2019s recent eco\u00adnom\u00adic dis\u00adtress. Since 2008, a grow\u00ading per\u00adcent\u00adage of Ital\u00adian men aged 25\u201354 have aban\u00addoned the labor force, no longer both\u00ader\u00ading even to look for work.<\/p>\n Italy\u2019s work\u00adforce par\u00adtic\u00adi\u00adpa\u00adtion rate among men of prime work\u00ading age is by far Europe\u2019s low\u00adest. But it is not the low\u00adest in the devel\u00adoped world. Italy now shares that dubi\u00adous dis\u00adtinc\u00adtion with the U.S.<\/p>\n That wouldn\u2019t hap\u00adpen if Oba\u00adma were President.<\/p>\n At least that\u2019s the con\u00adclu\u00adsion you\u2019d draw from read\u00ading the Eco\u00adnom\u00adic Report of the Pres\u00adi\u00addent<\/a>,<\/span> released last month by the White House Coun\u00adcil of Eco\u00adnom\u00adic Advis\u00aders (CEA<\/span>). The report holds the Pres\u00adi\u00addent blame\u00adless for a tepid recov\u00adery and symp\u00adtoms of a dodgy econ\u00ado\u00admy that have wors\u00adened on his watch. Judg\u00ading from the report, the world\u2019s most pow\u00ader\u00adful man is pow\u00ader\u00adless to stand against shift\u00ading eco\u00adnom\u00adic tides.<\/p>\n The CEA<\/span> breaks the news about the Oba\u00adma-era plunge in male work\u00adforce par\u00adtic\u00adi\u00adpa\u00adtion rates on page 36 of its annu\u00adal report, not\u00ading that the U.S. is, in this respect, \u201csome\u00adthing of an out\u00adlier.\u201d That is some\u00adthing of an under\u00adstate\u00adment. The down\u00adward drift in male work\u00adforce par\u00adtic\u00adi\u00adpa\u00adtion that began dur\u00ading the 1990s has more recent\u00adly become a pre\u00adcip\u00adi\u00adtous drop, leav\u00ading the U.S. and Italy as the two devel\u00adoped coun\u00adtries with the high\u00adest per\u00adcent\u00adage of males aged 25\u201354 nei\u00adther work\u00ading nor seek\u00ading work, accord\u00ading to OECD<\/span> sta\u00adtis\u00adtics cit\u00aded by the President\u2019s economists.<\/p>\n This trend can\u00adnot be explained away as the baby boom becom\u00ading a \u201cretire\u00adment boom,\u201d as the report at one point sug\u00adgests [p. 36]. Work\u00adforce par\u00adtic\u00adi\u00adpa\u00adtion rates among peo\u00adple 55 and old\u00ader actu\u00adal\u00adly have risen<\/a> since Pres\u00adi\u00addent Oba\u00adma took office, the only age group to show improve\u00adment. The labor force decline hasn\u2019t occurred pri\u00admar\u00adi\u00adly among old\u00ader work\u00aders, but among men of prime work\u00ading age.<\/p>\n And women as well. The U.S. is the only OECD<\/span> coun\u00adtry that has seen work\u00adforce par\u00adtic\u00adi\u00adpa\u00adtion rates fall for both men and women aged 25\u201354 [p. 38]. Female par\u00adtic\u00adi\u00adpa\u00adtion rates would improve, the CEA<\/span> argues, if gov\u00adern\u00adment were to require com\u00adpa\u00adnies to offer paid mater\u00adni\u00adty leave (pp. 169ff).<\/p>\n Man\u00addat\u00ading paid leave is among the clutch of pol\u00adi\u00adcy pro\u00adpos\u00adals that the Pres\u00adi\u00addent has brand\u00aded \u201cmid\u00addle class eco\u00adnom\u00adics,\u201d a fuzzy for\u00admu\u00adla\u00adtion born of fuzzy think\u00ading. The Pres\u00adi\u00addent and his advis\u00aders believe that we can cure many of our eco\u00adnom\u00adic ills by mak\u00ading the mid\u00addle class more depen\u00addent on gov\u00adern\u00adment for things their wages used to buy.<\/p>\n And yet the economy\u2019s biggest suc\u00adcess of 2014 came only after Con\u00adgress abrupt\u00adly cut gov\u00adern\u00adment ben\u00ade\u00adfits to the mid\u00addle class. In his intro\u00adduc\u00adtion to the CEA<\/span> report, the Pres\u00adi\u00addent called 2014 a \u201cbreak\u00adthrough year\u201d because \u201cthe econ\u00ado\u00admy added more jobs at the fastest pace since the 1990s\u201d [p. 3]. Employ\u00adment increased as work\u00adforce par\u00adtic\u00adi\u00adpa\u00adtion rates at least tem\u00adporar\u00adi\u00adly sta\u00adbi\u00adlized so \u201cthe unem\u00adploy\u00adment rate plunged to its low\u00adest point in over six years, far faster than econ\u00ado\u00admists pre\u00addict\u00aded.\u201d [p.3]<\/p>\n Faster than the President\u2019s econ\u00ado\u00admists had pre\u00addict\u00aded any\u00adway. Last year, the CEA<\/span> said that mid\u00addle class eco\u00adnom\u00adics required that gov\u00adern\u00adment extend an expir\u00ading pro\u00adgram that paid unem\u00adploy\u00adment ben\u00ade\u00adfits for longer than the cus\u00adtom\u00adary 26 weeks. They issued a joint report<\/a> with the Labor Depart\u00adment in Decem\u00adber 2013, warn\u00ading that let\u00adting the pro\u00adgram of extend\u00aded job\u00adless ben\u00ade\u00adfits expire would result in a loss of 240,000 jobs. Con\u00adgress let the pro\u00adgram expire. The econ\u00ado\u00admy added<\/a> a month\u00adly aver\u00adage of 260,000 jobs.<\/p>\n A study<\/a> pub\u00adlished by the Nation\u00adal Bureau of Eco\u00adnom\u00adic Research attrib\u00aduted the employ\u00adment boom large\u00adly to the cut\u00adoff of extend\u00aded unem\u00adploy\u00adment ben\u00ade\u00adfits. While last year\u2019s<\/a> Eco\u00adnom\u00adic Report of the Pres\u00adi\u00addent obsessed on the need to extend unem\u00adploy\u00adment ben\u00ade\u00adfits (the UI<\/span> pro\u00adgram was ref\u00ader\u00adenced 46 times), this year\u2019s report doesn\u2019t both\u00ader to men\u00adtion that Con\u00adgress allowed the pro\u00adgram to lapse, though its expi\u00adra\u00adtion was arguably the year\u2019s most sig\u00adnif\u00adi\u00adcant eco\u00adnom\u00adic pol\u00adi\u00adcy development.<\/p>\n The CEA<\/span> offers no expla\u00adna\u00adtion for how last year\u2019s report got things so wrong, makes no men\u00adtion of how cut\u00adting ben\u00ade\u00adfits may have got\u00adten more peo\u00adple back to work, and includes no assess\u00adment of what that might mean for the President\u2019s belief that pros\u00adper\u00adi\u00adty is achieved by enlarg\u00ading gov\u00adern\u00adment-man\u00addat\u00aded benefits.<\/p>\n Such learned igno\u00adrance is con\u00adsis\u00adtent with the report\u2019s habit\u00adu\u00adal denial of the eco\u00adnom\u00adic effects of the President\u2019s poli\u00adcies. This is, after all, the annu\u00adal eco\u00adnom\u00adic report of the man who has been Pres\u00adi\u00addent for more than six years. His biggest accom\u00adplish\u00adments are behind him. Their imple\u00admen\u00adta\u00adtion has tak\u00aden root.<\/p>\n He has large\u00adly got\u00adten his way on fis\u00adcal pol\u00adi\u00adcy: enti\u00adtle\u00adment spend\u00ading is up, tax\u00ades on suc\u00adcess\u00adful indi\u00advid\u00adu\u00adals are high\u00ader, the fed\u00ader\u00adal gov\u00adern\u00adment has enlarged its con\u00adtrol over health care, banks are reg\u00adu\u00adlat\u00aded more heav\u00adi\u00adly and large\u00adly in accor\u00addance with his pre\u00adscrip\u00adtions, only a tem\u00adpo\u00adrary restrain\u00ading order<\/a> pre\u00advents his Admin\u00adis\u00adtra\u00adtion from con\u00adfer\u00adring legal sta\u00adtus on mil\u00adlions of peo\u00adple who are liv\u00ading here unlaw\u00adful\u00adly, the inter\u00adnet is now a pub\u00adlic util\u00adi\u00adty sub\u00adject to polit\u00adi\u00adcal\u00adly appoint\u00aded com\u00admis\u00adsion\u00aders, envi\u00adron\u00admen\u00adtal reg\u00adu\u00adla\u00adtions have pro\u00adlif\u00ader\u00adat\u00aded, and fed\u00ader\u00adal debt has mushroomed.<\/p>\n These pro\u00adfound changes have large\u00adly been abet\u00adted by fed\u00ader\u00adal courts stacked<\/a> with judges favor\u00adably dis\u00adposed to Admin\u00adis\u00adtra\u00adtion poli\u00adcies and by \u201cuncon\u00adven\u00adtion\u00adal\u201d mon\u00ade\u00adtary pol\u00adi\u00adcy insti\u00adtut\u00aded by a Fed\u00ader\u00adal Reserve whose inter\u00adven\u00adtions have coin\u00adcid\u00aded almost per\u00adfect\u00adly with the President\u2019s expressed desires.<\/p>\n This is Obama\u2019s world. He and his advis\u00aders are loathe to admit that, since it is not the cheery place he\u2019d promised. The econ\u00ado\u00admy is under\u00adper\u00adform\u00ading, inequal\u00adi\u00adty is increas\u00ading, mil\u00adlions of peo\u00adple of prime work\u00ading age no longer seek work. Such is the judg\u00adment, not of the President\u2019s crit\u00adics, but of his eco\u00adnom\u00adic counselors.<\/p>\n But instead of hon\u00adest\u00adly assess\u00ading the caus\u00ades of these short\u00adcom\u00adings, the CEA<\/span> devotes its ener\u00adgies to assert\u00ading that they are not the Pres\u00adi\u00adden\u00adt\u2019s fault. Our eco\u00adnom\u00adic prob\u00adlems began around 1973, they argue. For the quar\u00adter cen\u00adtu\u00adry pri\u00ador to that, eco\u00adnom\u00adic growth was robust, labor force par\u00adtic\u00adi\u00adpa\u00adtion expand\u00aded, wages and pro\u00adduc\u00adtiv\u00adi\u00adty grew. [pp. 29\u201331]. The econ\u00ado\u00admy hasn\u2019t hit on all cylin\u00adders since, accord\u00ading to the CEA<\/span>. From 1973\u20131995, pro\u00adduc\u00adtiv\u00adi\u00adty growth stalled. From 1995\u20132013 (note how the report lumps the Oba\u00adma econ\u00ado\u00admy with that of his oft-maligned pre\u00adde\u00adces\u00adsor), pro\u00adduc\u00adtiv\u00adi\u00adty growth has returned, but labor force par\u00adtic\u00adi\u00adpa\u00adtion has declined and wages have lagged.<\/p>\n Those obser\u00adva\u00adtions, while infor\u00adma\u00adtive, raise more ques\u00adtions. In 1973, one would like\u00adly have fore\u00adcast blue skies for the econ\u00ado\u00admy. The lead\u00ading edge of the baby boom gen\u00ader\u00ada\u00adtion was enter\u00ading its prime work\u00ading years, new oppor\u00adtu\u00adni\u00adties were open\u00ading for women and minori\u00adties, the Great Soci\u00adety pro\u00adgrams were just gain\u00ading trac\u00adtion, the Viet\u00adnam War was wind\u00ading down and \u2013 though no one could have known it at the time \u2013 near\u00adly three decades would pass before the U.S. would be embroiled in anoth\u00ader pro\u00adtract\u00aded war.<\/p>\n And yet, the econ\u00ado\u00admy has dis\u00adap\u00adpoint\u00aded, accord\u00ading to White House econ\u00ado\u00admists. That might have led them to reflect on how changes in gov\u00adern\u00adment pol\u00adi\u00adcy over the past four decades may have con\u00adtributed to its underperformance.<\/p>\n The CEA<\/span> lacks such curios\u00adi\u00adty. It does note that the col\u00adlapse of the Bret\u00adton Woods regime in 1973 con\u00adsti\u00adtut\u00aded a deci\u00adsive break in mon\u00ade\u00adtary pol\u00adi\u00adcy [p. 31]. But the report doesn\u2019t point out that intro\u00adduc\u00adtion of the new mon\u00ade\u00adtary sys\u00adtem was fol\u00adlowed almost imme\u00addi\u00adate\u00adly by one of the coun\u00adtry\u2019s worst bouts of infla\u00adtion or that the era has been marked by bub\u00adbles, busts and six reces\u00adsions<\/a>,<\/span> includ\u00ading the worst since the Great Depression.<\/p>\n The report doesn\u2019t stop to pon\u00adder the pos\u00adsi\u00adbil\u00adi\u00adty that some\u00adthing could be fun\u00adda\u00admen\u00adtal\u00adly wrong with mon\u00ade\u00adtary pol\u00adi\u00adcy. Nor does it con\u00adsid\u00ader the effect of equal\u00adly dra\u00admat\u00adic changes in fis\u00adcal and social pol\u00adi\u00adcy that have occurred since 1973. In that year, fed\u00ader\u00adal trans\u00adfer pay\u00adments<\/a> amount\u00aded to 6 per\u00adcent of GDP<\/span>; by 2014, they had reached 11 per\u00adcent. Mil\u00adi\u00adtary spend\u00ading<\/a> fell in real terms from 7 per\u00adcent of GDP<\/span> to 4.4 per\u00adcent. Gross fed\u00ader\u00adal debt<\/a> amount\u00aded to 31.5 per\u00adcent of GDP<\/span> in 1973; last year it exceed\u00aded 100 per\u00adcent. Fed\u00ader\u00adal enti\u00adtle\u00adment pro\u00adgrams<\/a> con\u00adsumed near\u00adly 70 per\u00adcent of tax rev\u00adenue in 2014, com\u00adpared with just under 50 per\u00adcent in 1973. Pover\u00adty has with\u00adstood this onslaught of social spend\u00ading. The pover\u00adty rate stood at 11.1 per\u00adcent<\/a> in 1973; it has not been that low in any year since. It remained at 15 per\u00adcent or high\u00ader<\/a> in three suc\u00adces\u00adsive years (2010\u201312) for the first time since the War on Poverty\u2019s open\u00ading salvo.<\/p>\n Cul\u00adtur\u00adal change accom\u00adpa\u00adnied fis\u00adcal change. Pop\u00adu\u00adla\u00adtion growth was the pre\u00adoc\u00adcu\u00adpa\u00adtion of the cognoscen\u00adti in 1973, just as cli\u00admate change is today. They got what they want\u00aded. Abor\u00adtions are com\u00admon\u00adplace and birth con\u00adtrol is \u201cfree.\u201d The fer\u00adtil\u00adi\u00adty rate<\/a> has dropped to 12.6 per\u00adcent, low\u00ader than in 1973 (14.8 per\u00adcent) and just more than half the 1960 rate (23.7 per\u00adcent). This cul\u00adtur\u00adal change has pro\u00adduced an aging pop\u00adu\u00adla\u00adtion with all of the social and eco\u00adnom\u00adic dis\u00adplace\u00adments that portends.<\/p>\n Cul\u00adtur\u00adal mores favor the appetites of adults over the needs of chil\u00addren, lead\u00ading to high\u00ader rates of divorce, an ele\u00advat\u00aded inci\u00addence of births to unmar\u00adried women, and an evolv\u00ading rede\u00adf\u00adi\u00adn\u00adi\u00adtion of mar\u00adriage and family.<\/p>\n In short, the Left has got\u00adten vir\u00adtu\u00adal\u00adly every\u00adthing it want\u00aded since 1973, just as the Pres\u00adi\u00addent has got\u00adten vir\u00adtu\u00adal\u00adly every\u00adthing he want\u00aded since 2009. That\u2019s not a judg\u00adment on whether those changes were good or bad. Each had some\u00adthing to com\u00admend it. It is only to say that those who suc\u00adcess\u00adful\u00adly advo\u00adcat\u00aded those changes should face up to their con\u00adse\u00adquences, both good and bad.<\/p>\n The economy\u2019s struc\u00adtur\u00adal prob\u00adlems are at least to some extent attrib\u00adut\u00adable to the cumu\u00adla\u00adtive weight of the mon\u00ade\u00adtary, fis\u00adcal and social changes that have occurred over the past four decades. The CEA<\/span> report does not come to grips with that possibility.<\/p>\n Our future depends in part on our will\u00ading\u00adness to rethink the received eco\u00adnom\u00adic wis\u00addom of our recent past.<\/p>\n That won\u2019t hap\u00adpen while Oba\u00adma is President.<\/p>\n","protected":false},"excerpt":{"rendered":" In Italy, they call him a mam\u00admone: an unem\u00adployed man in his 20s, 30s or 40s who still lives with mam\u00adma. The preva\u00adlence of the mam\u00admone has long been thought to be a pre\u00addom\u00adi\u00adnant\u00adly Ital\u00adian phe\u00adnom\u00ade\u00adnon, with deep cul\u00adtur\u00adal roots. It \u2026 Con\u00adtin\u00adue read\u00ading