The Census aims
to be every man’s hero. It promises an economic stimulus, a reduction
in unemployment, and greater funds for every community. Of course, the reality
is much closer to a game of musical chairs with your money. And guess who
will be left standing?
The most
immediate impact of the Census is that it distorts unemployment rates. With 1.2
million hired temporarily during the fall, the Census is already skewing the
unemployment numbers in the government’s favor. Specifically, the fall
data shows unemployment at 9.8% (Sept), 10.1% (Oct), and 10% (Nov).
Who can forget
the hoopla over the November reduction from 10.1 to 10? To government
officials, it was as if the clouds had parted after a relentless hurricane,
“proof” that the massive stimulus spending was working.
This
one-tenth-of-a-percent drop was exalted as the beginning of the end for the
recession. Of course, a closer look at the numbers revealed that the decrease
was largely explained by those leaving the workforce and dropping out
of the government’s statistics. Similarly, the January drop from 10
percent to 9.7 percent was praised as a sign from the heavens, a sign that
was subsequently tarnished by February’s slight increase in
unemployment.
In an attempt to
get a clearer picture of the effect from the Census on unemployment data, we
evenly subtracted the 1.2-million Census bump across fall’s
unemployment rates and found the new numbers ringing in at 10.1% (Sept),
10.4% (Oct), and 10.1% (Nov). If a one-tenth-of-a-percent drop in November
was a reason to celebrate, then a three-tenth-of-a-percent October upward revision
is a reason to cringe.
In the months
ahead, expect the same number games.
The Census
already hired 1.2 million workers in the fall, as mentioned earlier; now
they’re planning for another 1.2 million in the spring. February
began with an additional 15,000 Census workers; the hiring will peak in
April-May with 800,000 workers hired in just two months. The peak alone is
projected to temporarily push unemployment downward by half a percent.
Digging a bit
deeper, we find that this year, 723,000 door-to-door Census takers will be
needed in comparison to 2000’s 604,000, a 16.6 percent increase despite
the lack of an equivalent rise in the population.
The hiring
numbers are pushed upward by the low total working hours per employee. On
average, each temporary Census employee will work 19 hours a week for six
weeks. But “work” may not be the most appropriate word. The
Census estimates that only 47.8 million houses will require a Census worker
to visit. Divide this by 723,000 census takers to get 66 houses per worker.
Since each temp will be employed for six weeks, this translates into less
than two houses visited per workday.
The spending side
of the Census equation doesn’t make much sense either. According to a
Census Bureau press release, mailing back the form costs the government only
42 cents, while visiting a house costs 56 dollars.
Why does it cost
56 dollars to visit just one house! Even with repeat visits, this seems a
lot. Imagine that pizza delivery were this expensive.
This wasted money
will go toward boosting the GDP by 0.1% and 0.2% during Q1 and Q2, followed
by equivalent declines in Q3 and Q4. Some parts of the country will get more
than others, according to various pay rates. The Washington D.C. Census
office offers $20 per hour, San Francisco
$22, and Anchorage, Alaska,
pays the most at $25 per hour. On the lower end, Tupelo,
MS, pays $10.50; Beckley,
WV, $10.75; El
Paso, TX, $12.75 per
hour.
With some
exceptions, large metropolitan areas will receive higher pay rates.
And what about
money allocated through Census data? The Census marketing campaign has
claimed that filling out the Census will help your community. Certainly, in
2007, nearly $436 billion were redistributed through the aid of Census data.
But helping the community might be stretching it – unless one considers
welfare payments as “helping the community.” Examining the long
list of programs reveals that little will help net taxpayers, other than
road-building projects.
Government cannot
improve one individual’s situation without taking away from another.
Just as it does for any government program, this applies to money allocated
by the Census. This helps the community about as much as mugging somebody on
the street. Hey, someone in the community got the money, right?
Distortions in
unemployment rates aren’t the only things in store this year.
It’s time to tally up the dependents on the welfare state, redistribute
some income, and fudge the economic numbers. All in a day’s work at the
Census – or should I say, half a day’s work.
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