Posts Tagged ‘economy’
The last year has been full of discussion about the growing disparities in pay in the United States. But there is at least one sector where wealth is going up instead of down.
That sector?
Congress.
An article for the New York Times reports that members of Congress’ earnings have continued to go up during tough economic times, causing some to question their effectiveness.
The fact that rich people are in Congress isn’t usually that big a deal. But when Congress struggles mightily to take care of the economic business of the country — from the recent payroll tax extension fight to the debt limit fight — it starts to seem pretty evident to the average, everyday voter that members really don’t understand the economic problems their constituents face.”
Can rich members of Congress really represent the average American?
Photo courtesy of the New York Times.
President Obama can’t seem to get folks in Washington to listen to him. So he has decided to try his luck elsewhere…
For weeks he has been striving to get Congress to support his plan to create jobs in the US… with lukewarm reception.
Now he is exploring alternatives to the American Jobs Act, tacitly admitting the bill is unlikely to pass through Congress.
The President will be touring in Las Vegas and Denver, hoping to pressure Republicans in Congress into passing the bill, rallying citizens under the mantra “We can’t wait,” for lawmakers to act.
Polls have shown that the main goals of the bill are widely supported- 63% approve according to a recent Wall Street Journal poll.
The bill, which can be read in its entirety here, focuses on cutting payroll taxes, extending unemployment benefits, funding new road construction, and providing a tax credit to returning veterans.
Opponents of the bill have cited concerns ranging from the proposed level of spending ($447 billion) to the targeted industries losing tax benefits, which include the oil industry.
Opposition has not been limited to the Republican party. Some Democrats are queasy.
“I have been very unequivocal…No more tax cuts,”
said a Democratic Representative from Oregon, Peter A. DeFazio.
Clearly the President has a long road to travel before his Jobs Bill will be passed.
Image from MSNBC
Brace for impact: Hurricane Irene working its way up the coast.
Boring Ben Bernanke? The fed’s top man gives a less than thrilling talk on the economy.
Adding insult to injury: Slain Pakistani governor’s son abducted.
Thanks to Techland!
Who’s the new guy? New Apple CEO has big black turtlenecks to fill.
Some retirement! 51% blame Bush for economy.
Okay, now what? The world prepares for transition in Libya.
A betting man: Warren Buffett invests in struggling bank.
And, Justin Bieber gives the world the best Christmas present ever.
No, we’re not talking about salsa or hummus, we’re talking about the economy!
Over the past week, a number of factors have led to increased speculation of a “double dip” recession.
Anxiety over jobs, a slow growing GDP, and a first-time downgrade in the U.S.’s credit rating are all contributing to fears of the economy slipping back in to a recession.
On Friday, Standard & Poor’s lowering of the country’s top-level credit rating led Christina Romer, former Chair of Obama’s Council of Economic Advisers, to describe America’s future with some less than savory terms.
Pretty darn f#&%ed”
She may be pretty darn right..
Image from The Washington Post
Until a few weeks ago, you probably had never heard of the “debt ceiling,” let alone understood its dire implications for the U.S. economy.
Well, this “Debt Ceiling” debate might be better called “Clash of the Titans”.
As liberals push for one plan and conservatives push for another, President Obama and Congress have found themselves locked in a back-and-forth battle. Hopes for either to ultimately prevail in raising the debt ceiling ( and thus avoid potential economic chaos) seem dim.
On Tuesday evening, the Republican-controlled House passed a “cut, cap, and balance” plan championed by Tea Party supporters.
Earlier in the day, Obama praised an opposing bipartisan deal proposed in the Senate. The problem is: neither plan is expected to make it any further in time for the impending August 2 deadline.
Obama called the plan by the Gang of Six senators “broadly consistent” with his own approach to the current debt ceiling crisis because it mixes tax changes, entitlement reforms and spending reductions.
However, the top two Democrats in the Senate said they don’t think there is enough time before the government needs to borrow more money on August 2nd to pass the comprehensive Gang of Six plan.
A majority of Americans are hoping politics is pushed to the side in order for the two parties to compromise.
Strong majorities of Democrats and independents prefer that Democratic congressional leaders make compromises in this budget debate, while almost 70 percent of independents want Republican leaders to do the same.
Majorities, too embrace a large comprehensive solution to the crisis rather than a temporary band-aid fix:
…nearly six in 10 favor President Barack Obama’s proposal to lower the federal deficit by $4 trillion over 10 years by cutting federal spending, raising tax revenue from the wealthy and reducing some Medicare spending.
Welcome to the club! South Sudan becomes the newest nation.
Bigger isn’t always better. New unemployment numbers are out…and not looking good.
What do porn, “quickie divorces,” and Islamic law have in common? Michele Bachmann has the answer.
A Washington Post columnist asks, if Caylee Anthony was black, would we have heard about her case?
And remember OctoMom? Well, after this interview, we’re sure Ann Curry always will.
Remember the celebrations surrounding the vanquishing of Osama Bin Laden?
President Obama does… he enjoyed a sudden bump in popularity in the US.
But how fast things can change. Any political advantage President Obama received after the killing of Osama bin Laden has vanished in the most recent polls. As focus returns to the economy, the president’s approval ratings have taken a serious hit.
Today, just 47 percent of Americans approve of Obama, while 49 percent disapprove. A majority of independents, 53 percent, disapproves of his job performance.”
Image from The Washington Post
The poll brings good news to Republican presidential candidate Mitt Romney, whose campaign got off to a bit of a rough start last week. He ranks number one among the preferred GOP options, tying President Obama in a hypothetical election.
Meanwhile, Romney emerges in the new survey as the strongest current or prospective Republican candidate in the 2012 presidential field. Although he is by no means in a secure spot, on virtually every measure, the former governor appears better positioned than any of his rivals.”
If the economy stays in such distress, terrorist leaders may want to start reconsidering their living arrangements.
Thanks to Zimbio
Don’t add “diplomat” to Justin Bieber’s repertoire. Pop star might be ruining relations in Israel.
Long road ahead; President Obama lays out 12 year plan to cut spending and borrowing.
Environment or economy? China weighs their options.
Republican governors will be Republican governors: Labor supporters angered by Florida’s GOP governor.
Thanks to Economix
Bought gas lately? Not a pleasant experiece for the wallet.
Gas and other energy aren’t as cheap as they used to be.
As power prices go up, our spending power goes down.
Check out the chart above… Motoko Rich of Economix noted that
with real incomes falling and the prices of basic goods rising, this might not bode well for consumer spending and in turn, the fragile recovery.
What’s so bad about people buying less TVs, toys, and food? Well, if nothing else this stuff fuels our economy which is now expected to grow at a slower rate.
To make matters worse wages are hitting record lows, ZERO to be exact.
Katherine Reynolds Lewis notes that working for free, although not ideal, gives the worker valuable experience and a chance to prove themselves. With a hat tip to R.A. at Free Exhange who explains the trend by noting that
If it’s worth taking on someone to do a job, it’s probably worth paying them something. The problem is that there’s a discontinuity in the wage spectrum. Pay above the minimum wage is legal, and no wage at all is (probably) legal, but a positive wage less than the minimum is not. Market clearing job matches at wages between zero and the legal minimum can’t take place.
Unpaid labor is a sad truth for bloggers (hint hint) but would you our readers take a wage-less position over joblessness? Also, even if you are being paid is the price of things pinching your pocket?
Thanks to Calculated Risk
Quick question: What’s your job?
It’s a quick question… and a Big question.
Your job takes up a massive portion of your waking hours and supplies you the income to survive.
So… if you don’t have a job… you’ve got a serious problem (and a lot of time) on your hands.
Right now there are millions of Americans without jobs and recent reports suggest this will not change soon.
The blog Calculated Risk notes the average number unemployed has been at
above 400,000 all year after falling sharply during the last few months of 2010.
What comes up must come down, right? Maybe not, some economists fear.
Recently Justin Weidner and John Williams, of the Federal Reserve Bank of San Francisco suggested that the natural unemployment rate (i.e. long term level) may have increased from the past rate of 5.0% and that
with a 6.7% natural rate, current and fore-casted levels of unemployment imply that significant labor market slack will persist for several years.
Over at Free Exchange, R.A. things that this study is by no means conclusive but it does
suggest that there has been some rise in the long-term structural rate of unemployment. …the warning in these papers that labour market weakness will persist for some time is not encouraging; the longer workers go without jobs, the less employable they become.
Hey, at least employers don’t discriminate against the unemployed. Wait they do? Well, it can’t get any worse right?
If you have ever played the game MONOPOLY you know the phrase GO TO JAIL!!!
Seems pretty harmless part of the popular game.
But in the real world, jail is anything but harmless. In fact, jail-time is causing billions of dollars of damages to the country!
It works like this…The United States has the highest prison population in the world (see chart below).
1 in every 31 adults facing probation (in prison or outside of prison) or on parole.
Courtesty Wikipedia
The problem is… prisons aren’t working well. These “correctional” institutions are not correcting the inmates as many return to crime upon release.
Writer Adam Serwer found the large prison population is costing the economy big time.
“US economy los[t] the equivalent of 1.5 to 1.7 million workers…but there was also a national $57 billion to $65 billion loss in productivity and output”
Clearly, the answer isn’t to just “let criminals go,” but there is some validity to rethinking our prison system as a whole.
Non-violent offenders, including “financial fraudsters” (as Andrew Sullivan puts it), could serve an alternative sentence of sorts, giving up their assets, doing community service, and operating under a curfew. This way, these non-violent criminals would not need to be a burden on the state.
Maybe this is something we should stop to think about. What do you think? Are there better alternatives for these non-violent offenders or the prison system as a whole?
Courtesty Good.is
Moan! Moan! Moan!
It seems everyone is in bad mood about everything these days.
People seem to be especially grumpy about the state of the economy. Just mention President Obama’s $700 million economic stimulus package to “Tea Party” supporters and you will get an earful.
But is the stimulus working?
Infographic-centric and well-designed blog Good says: IT IS TOO EARLY TO TELL!
Politicians up for election have been quick to complain about the ill effects of Obama’s stimulus plan, arguing that jobs haven’t been created .
However, Good makes an important point – “the jury (and by “jury” I mean $278 billion in tax cuts and spending) is still out.”
Obviously, complaining about the economy (especially as it relates to the perception of Obama’s mishaps) is popular before an election cycle, especially by the minority party.
But is it really fair to bash the stimulus package before 35% of it has not yet been spent? It is a “package” for a reason. Or does it not matter at all? After all, shouldn’t the stimulus have shown some indication of it working with roughly 65% of it already out there?
Or maybe it has shown some signs of working. One publication in South Carolina looks at the new stimulus-funded advanced battery plant in Michigan that is now open as one indication of a success. What are your thoughts? Leave us a comment!
What do our economy and a really fat man have in common? Quite a lot according to Michael Pento (with a hat tip to Zero Hedge).
Even if that is just a bunch of Austrian assumptions (for a better explanation check out the video above) our economy is definitely not in the pink just yet.
With that comes pain and sacrifice for consumers (unless your Snooki who is the center of an insane reverse advertising war).
Economists see more than just sacrifice they see a Petri dish to be studied. One aspect that is being analyzed is what things are considered “necessities”.
Thanks to Free exchange
As pointed out by the Economist’s Free exchange:
I would not have imagined that the downturn would lead to decline of 20 percentage points in the share of those labeling a clothes dryer a necessity. It suggests that the psychological impact of recession extends well beyond those who remain unemployed.
It also seems that houses may be becoming a luxury:
Thanks to Yglesias
Houses may become a luxury but an economic downturn doesn’t have to stop you from living in a mansion for free.
Speaking from experience an abandoned mansion is a great place to blog from. Don’t take our word on it: find a mansion, fire up you laptop and drop us a comment. Writing comments is a penny pinching way to have fun.
Thanks to Wikicommons.
We have some bad news for you. Brace yourself here it comes:
US payrolls GREW by 431,000 in May.
Bad news? that sounds like good news!?! Well it’s not good news… as economists expected 540,000 new jobs.
But wait, there is more. Free Exhange, a blog brought to you by The Economist, notes: …read more.
