Recently in Economy Category

Source: Carl Van Horn, Presentation at Workforce Challenges Conference at Rutgers, The State University of New Jersey, February 18, 2010

From the speech:
Today, I will:

• Describe the struggles of American businesses and workers as they confront
the harsh realities of today's economy.

• Explain why the upheaval of the U.S. economy did not begin during the
Great Recession of 2008-2010 and why it will not disappear when the
economy recovers later this decade.

• Explain why millions of Americans have been working scared for more than
a decade and with good reason.

• Outline an agenda of common-sense actions to help employees, employers,
educators, and government policymakers respond to/manage current and
future labor markets.
See also:
- Presentation
- The Labor Market, Then and Now: Changing Realities in the 21st Century

Source: National Association of Public Hospitals and Health Systems, Policy Brief, February 2010

Since the beginning of the economic recession, safety net health systems have treated more patients overall, including 23 percent more uninsured patients. These health systems have also
provided 10 percent more uncompensated care to low-income populations.This research brief explores how safety net organizations remain critical to the nation's health care system.

Source: Thomas L. Hungerford and Jane G. Gravelle, Congressional Research Service, R41034, January 22, 2010

From the summary:
According to the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), the U.S. economy has been in recession since December 2007. Congress passed and the President signed an economic stimulus package, the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), in February 2009. The $787 billion package included $286 billion in tax cuts to help stimulate the economy. Among the tax reductions, many were tax incentives directed to business. The preliminary estimate of third quarter real gross domestic product (GDP) growth is 2.8%; the unemployment rate, a lagging indicator, averaged 9.6% in the third quarter and 10.0% in the fourth quarter of 2009. Federal Reserve Chairman Ben Bernanke expects the economy to continue growing at a modest pace, but predicts that bank lending will remain constrained and the job market will remain weak into at least 2010. To further assist unemployed workers, help business, and stimulate housing markets, Congress passed the Worker, Homeownership, and Business Assistance Act of 2009 (P.L. 111-92). The Obama Administration has advocated further business tax incentives to spur investment and employment, especially for small business.

The two most common measures to provide business tax incentives for new investment are investment tax credits and accelerated deductions for depreciation. The evidence, however, suggests that a business tax subsidy may not necessarily be the best choice for fiscal stimulus, largely because of the uncertainty of its success in stimulating aggregate demand. If such subsidies are used, however, the most effective short-run policy is probably a temporary investment subsidy. Permanent investment subsidies may distort the allocation of investment in the long run.

Source: Steven A. Sass, Courtney Monk, and Kelly Haverstick, Center for Retirement Research at Boston College, IB#10-3, February 2010

From the summary:
The stock market crash of 2008 significantly dimmed the retirement prospects of workers approaching retirement. These workers are heavily dependent on 401(k) plans, as opposed to traditional defined benefit pensions, as a source of retirement income. During the economic downturn, these plans lost about one-third of their value. Even before the crash, many older workers lacked the assets needed to enjoy a comfortable retirement.

Source: White House Press Office, Press release, February 17, 2010

One year in, the Recovery Act is at work across the country creating jobs and driving economic growth. From major highway projects to green retrofits of military facilities and manufacturing of advanced batteries, more than 55,000 projects across the country have now been funded through the Recovery Act. To get an up close look at some of those projects, click here. This is in addition to the nearly $120 billion in tax relief already provided to American families and businesses - with more to come this year - and the billions of dollars in relief provided to shore up state and local government programs like Medicaid and education facing severe budget shortfalls. To see a video of how the Recovery Act is helping cities across the country click here.

This is what it looks like, by the numbers....

Source: Dean Baker, Center for Economic and Policy Research, February 2010

From the summary:
The Great Recession has left tens of millions of families facing unemployment, underemployment and the threat of losing their home. However, concerns over the deficit threaten to derail efforts to turn around the economy and spur employment. This report attempts to correct many of the misperceptions about the deficit that have brought the issue to the center of national debate. In a time when cogent, effective policies are needed to address the suffering stemming from the economic downturn, the tactics of the deficit hawks distract the public and policy makers from the policies necessary to bring the economy back to full employment.
See also:
Press Release

Source: Vice President Joe Biden, February 2010

From the press release:
At tomorrow's Economic Daily Briefing, Vice President Joe Biden will deliver to President Barack Obama his "Annual Report to the President on Progress Implementing the American Recovery and Reinvestment Act of 2009." The report, which summarizes Recovery Act progress to-date and lays out projections for the program in the coming months. Key excerpts from the report are below.

Source: Daniel Mandel, New America Policy Papers, February 23, 2010

As the Senate takes up a greatly scaled down $15 billion jobs bill stripped of all infrastructure spending, the nation should consider the compelling case for public infrastructure investment offered by Governors Arnold Schwarzenegger (R-CA) and Ed Rendell (D-PA). Appearing on ABC's "This Week" on Sunday, the bipartisan Co-Chairs of Building America's Future explained why rebuilding America's infrastructure is the key to both job creation in the short and medium term and our prosperity in the longer term.

Rather than go from one negligible jobs bill to the next, the administration and Congress should, as the governors suggest, map out a multi-year plan of infrastructure investment and make it the centerpiece of an ongoing economic recovery program.

Source: Robert Farley, Louis Jacobson, Politifact.com, Published on February 17th, 2010

One year after the passage of the economic stimulus, we assess how many jobs have been created and how much money has gotten into the economy.

Source: Center for State and Local Government Excellence, January 2010

From the summary:
Hiring freezes, pay freezes, layoffs, and furloughs top the list of ways that local and state governments are cutting costs, according to a Center for Excellence online survey of government managers.

States and local governments also have made significant changes in their benefit offerings.