Many employers have been posting ads for part-time job openings with a requirement to be 'currently employed'. This narrows the pool of applicants able to apply for these jobs and seems like it will only stretch out the wave of unemployment we are currently in. A bill has been proposed in New Jersey to make such ads illegal.
On the flip side, some employers believe it is in the best interest of the unemployed individual to not work a part-time job as such because it distracts them from their search of a full-time job. Also, the few benefits received from working a part-time job and the high unsatisfied needs to be fulfilled may tempt unemployed, part-time workers to steal.
With the high level of unemployment, part-time jobs may be the only way for many families to make their ends meet while searching for a full-time job. The race has only gotten tougher, which means there will only be survival of the fittest (those willing to work the part-time job and continue a rigorous search for a full-time job).
Sunday, October 24, 2010
Public Housing Repairs Can’t Keep Pace With Demand
Most of us have heard about the housing problem in New York City - the limited umber of apartments available and how everything is in disrepair - but now studies are showing that this is a problem all over the country .
The apartments rely on federal money to repair them and often there is just not enough so houses are simply torn down.
This article cites Newark, D.C., and Baltimore as having serious issues.
The Department of Housing and Urban Development has drafted legislation to allow housing agencies to borrow private and public funds using their buildings as equity. This should help with the backlog of repairs.
The apartments rely on federal money to repair them and often there is just not enough so houses are simply torn down.
This article cites Newark, D.C., and Baltimore as having serious issues.
The Department of Housing and Urban Development has drafted legislation to allow housing agencies to borrow private and public funds using their buildings as equity. This should help with the backlog of repairs.
Rising tide, not next governor, likely to lift Ohio economy
Bryan Jordan, chief economist for Nationwide Insurance, states that a big part of any state’s economy is mostly determined at the federal level not at the state level. For the most part, Ohio’s next governor will have little impact on Ohio's economy.
“Timing is everything,”said Greg Valliere, chief political strategist for the Potomac Research Group in Washington, D.C. “and I think the economy will improve in the next year. Whoever gets elected will get credit for that – whether he deserves it or not
Jordan believes the keys to boosting our economy are population growth, labor force participation and productivity increases. The first two are hard for Ohio since our population is aging and exiting the workforce. Rather than focusing on taxes, I think a better platform for Ohio’s governor candidates is how they will improve the labor force participation and job searching. These issues are much more in the governor’s control.
“Timing is everything,”said Greg Valliere, chief political strategist for the Potomac Research Group in Washington, D.C. “and I think the economy will improve in the next year. Whoever gets elected will get credit for that – whether he deserves it or not
Jordan believes the keys to boosting our economy are population growth, labor force participation and productivity increases. The first two are hard for Ohio since our population is aging and exiting the workforce. Rather than focusing on taxes, I think a better platform for Ohio’s governor candidates is how they will improve the labor force participation and job searching. These issues are much more in the governor’s control.
Bernanke weighs in on jobless
Federal Reserve Chairman, Ben Bernanke, has recently stated that the high rate of unemployment is more likely a result of weak economic activity. Others believe that this high rate can be attributed to mismatched job skills, which would lead us to assume that there are structural factors contributing to unemployment. Bernanke also says that if weak economic activity is indeed the source, then the problem can eventually be fixed with new policies; however, if structural problems exist then there's less that policy makers can do. While it is not clear yet what the main factor is causing the steady high-rate of unemployment; Bernanke, and others alike, are hoping that it is something policy makers can remedy.
Florida rivals debate taxes and economy
The senate race in Florida is getting heated as Gov. Charlie Crist, running as an independent, Rep. Kendrick Meek, the Democratic Senate candidate, and Republican candidate Marco Rubio battle for the Senate seat.
On CNN’S State of the Union, host Candy Crowley discussed Florida’s High unemployment rate (11.9 percent, the fourth highest in the country), the foreclosure rate (second highest in the country), and health insurance (only 21 percent of Floridians have it).
Meek is against extending Bush’s tax cuts for the wealthy while both Crist and Rubio believe tax cuts for everyone is the answer.
We know from class that tax cuts may get you votes but they aren’t going to improve the economy. Raising taxes and reducing government spending will increase national savings which will help our economy move closer to the Golden Rule steady state in the long run. While we may not want to hear it, American’s need to save more and the government needs to spend less. I think Meek is right in pushing for more taxes on the wealthy. However, the wealthy are a tough group to collect taxes from so he may have to get creative to meet this goal.
On CNN’S State of the Union, host Candy Crowley discussed Florida’s High unemployment rate (11.9 percent, the fourth highest in the country), the foreclosure rate (second highest in the country), and health insurance (only 21 percent of Floridians have it).
Meek is against extending Bush’s tax cuts for the wealthy while both Crist and Rubio believe tax cuts for everyone is the answer.
We know from class that tax cuts may get you votes but they aren’t going to improve the economy. Raising taxes and reducing government spending will increase national savings which will help our economy move closer to the Golden Rule steady state in the long run. While we may not want to hear it, American’s need to save more and the government needs to spend less. I think Meek is right in pushing for more taxes on the wealthy. However, the wealthy are a tough group to collect taxes from so he may have to get creative to meet this goal.
G-20 pledges to refrain from currency wars
The G-20 recently finished a two-day meeting in Korea. The topic of the discussion was the “currency war” that is happening between industrialized countries and developing ones. The United States has denounced for years now developing countries such as China that have “have allowed their currencies to trade at artificially low levels”. On Saturday the G-20 ministers however agreed that they will allow their currencies to move towards a market determined exchange rate system. The refraining from competitive devaluation of currencies is good news for the United States government considering the vast trade deficit that it has now. The G-20 also agreed to give emerging countries more seats in the board of IMF.
The case of more government spending
This article gives the perspective of parties on both sides of the debate involving more government spending in the U.S. It seems that many economists, including Solow and Friedman, believe that U.S. debt is not something that the country should worry about. These economists, who are pro fiscal expansion, believe that the best way to do so is through spending. Primarily, they encourage investment in infrastructure. On the contrary, Britain has a completely different stance on government spending. Recently, Britain has actually cut government spending in their nation in an attempt to reduce the national debt. The U.S. is confronted with an obstacle because in order to stimulate the economy through government spending, our national debt will increase. On the other hand, if we prioritize national debt then the desired stimulation of our economy may not be accomplished.
Number of the Week: Big Boost From Dollar Decline
0.5 percentage point: The potential boost in annual U.S. economic growth from the dollar’s decline since August 27.Consider the recent fall in the dollar.
Since August 27, when Federal Reserve Chairman Ben Bernanke signaled the central bank was likely to pump more dollars into the economy, the greenback’s value has fallen about 4.8% against the currencies of U.S. trading partners (data through October 15). Given the historical behavior of U.S. exports and imports, a sustained move of that magnitude should shrink the U.S. trade deficit by nearly $140 billion over the next two years. That’s the equivalent of an added 0.5 percentage point of economic growth in each year.
Since August 27, when Federal Reserve Chairman Ben Bernanke signaled the central bank was likely to pump more dollars into the economy, the greenback’s value has fallen about 4.8% against the currencies of U.S. trading partners (data through October 15). Given the historical behavior of U.S. exports and imports, a sustained move of that magnitude should shrink the U.S. trade deficit by nearly $140 billion over the next two years. That’s the equivalent of an added 0.5 percentage point of economic growth in each year.
The weapons and tactics of a currency war
The article outlines some of the reasons behind the economic tension in trading relations between China and the U.S.A. Instead of devaluating its currency, China strives to maintain it at a low a value with respect to the dollar by buying and selling American bonds. With a low currency rate, Chinese exports are cheaper and more attractive to countries with a higher currency value. Consequently, U.S producers find it hard to face the competition.
Unlike China, the U.S emphasizes the creation of jobs to stimulate its economy rather than increase its exports. Furthermore, the current budget deficit and seigniorage make it hard for the U.S to devaluate its currency.
One possible solution for the U.S is to sell off reserves of its own currency and lower its value, as Switzerland and Japan did in the past to increase exports and stimulate their respective economy. Another solution is to improve the quality of produce, such as in Germany, where exports levels are high despite the high value of the European currency. The U.S is currently considering the taxation of Chinese imports unless they increase their currency value. However, such kind of protectionist policy will only increase the real exchange rate and it will also be detrimental to free trade and the global economy.
Unlike China, the U.S emphasizes the creation of jobs to stimulate its economy rather than increase its exports. Furthermore, the current budget deficit and seigniorage make it hard for the U.S to devaluate its currency.
One possible solution for the U.S is to sell off reserves of its own currency and lower its value, as Switzerland and Japan did in the past to increase exports and stimulate their respective economy. Another solution is to improve the quality of produce, such as in Germany, where exports levels are high despite the high value of the European currency. The U.S is currently considering the taxation of Chinese imports unless they increase their currency value. However, such kind of protectionist policy will only increase the real exchange rate and it will also be detrimental to free trade and the global economy.
Legalizing Marijuana Would Cause Huge Savings On Law Enforcement
Top advocates for the legalization of marijuana in the state of California say that tax revenues from selling the drug wouldn’t solely fix the financial troubles. This isn’t recent news, but what is more interesting is while there would be some relief from legalizing pot, it is clear that a larger source of reprieve would come from cutting law enforcement officers and positions that would no longer be needed. It is estimated that there would be $960 million in savings from axing the unnecessary enforcement personnel plus $352 million in tax revenue in the state of California. This all stems from the legalization of marijuana known as Proposition 19, which would not legalize pot statewide. It would give local governments the option of legalizing the drug or not, which would affect the estimated amount of revenue from taxes. Adding to the complexity is the fact that the local governments who do legalize the drug would be able to impose their own tax rates. It is also important to consider that while there would be benefits from tax revenues, there would also be threats of federal lawsuits considering marijuana would still be illegal under federal law. Either way, if Prop 19 were to pass, it would take many years to take effect and for the state to see the benefits.
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