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Jobs and Austerity

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Putting People Directly to Work Is “Too Radical” For Congress. All summer Colorlines is exploring how and why Washington has been so unwilling to take real action in the face of such a dramatic, lingering jobs crisis. There are, in fact, solutions to this crisis; they just aren’t politically viable. Earlier this week, we dug up a few job-creation projects that are collecting dust while Washington prevaricates on the unemployment crisis.

Infrastructure spending—bridges and roads and high-speed rail—generates up to $1.60 in new economic activity per dollar spent, according to economists, and cities across the country have projects just waiting for funding to get started. But there’s an idea that’s even better than infrastructure, says Heather McGhee, director of the Washington office of Demos, a nonpartisan think tank. “Direct hiring is the most cost efficient,” McGhee says, referring to programs where the government hires people itself. This, she adds, is crucial if we’re going to start taking full employment as a serious goal. Republicans block Bring Jobs Home Act, protecting companies that outsource jobs. Made in the World. When Marxists are complaining that your party’s candidates are disconnected from today’s global realities, it’s generally not a good sign.

But they’re not alone. There is today an enormous gap between the way many C.E.O.’s in America — not Wall Street-types, but the people who lead premier companies that make things and create real jobs — look at the world and how the average congressmen, senator or president looks at the world. They are literally looking at two different worlds — and this applies to both parties.

Consider the meeting that this paper reported on from last February between President Obama and the Apple co-founder Steve Jobs, who died in October. Politicians see the world as blocs of voters living in specific geographies — and they see their job as maximizing the economic benefits for the voters in their geography. These C.E.O.’s rarely talk about “outsourcing” these days. This is the world we are living in. Majority of New Jobs Pay Low Wages, Study Finds. Brian Blanco for The New York Times A waitress at Arco Iris Restaurant in Tampa, Fla., last week. The food industry has added 300,000 low-paying jobs in the recovery. The disappearance of midwage, midskill jobs is part of a longer-term trend that some refer to as a hollowing out of the work force, though it has probably been accelerated by government layoffs. “The overarching message here is we don’t just have a jobs deficit; we have a ‘good jobs’ deficit,” said Annette Bernhardt, the report’s author and a policy co-director at the National Employment Law Project, a liberal research and advocacy group.

The report looked at 366 occupations tracked by the Labor Department and clumped them into three equal groups by wage, with each representing a third of American employment in 2008. The job market has turned around since then, but those fields have represented only 22 percent of total job growth. As Ms. This “polarization” of skills and wages has been documented meticulously by David H. By Request: Public and Private Sector Payroll Jobs: Carter, Reagan, Bush, Clinton, Bush, Obama. By Bill McBride on 4/18/2014 08:21:00 PM Following some comments from Senator Rand Paul, I've been requested to post this again with a couple of tables added. Senator Paul said last week: "When is the last time in our country we created millions of jobs? It was under Ronald Reagan ... " That is completely wrong. (I've corrected both Republicans and Democrats, but recently it is mostly prominent Republicans that make stuff up!).

Here is a table for private sector jobs. Reagan's 2nd term saw about the same job growth as during Carter's term. The first graph below shows the change in private sector payroll jobs from when each president took office until the end of their term(s). Mr. There was a recession towards the end of President G.H.W. Click on graph for larger image. The first graph is for private employment only. The employment recovery during Mr. Private sector employment increased slightly under President G.H.W. There were only 1,998,000 more private sector jobs at the end of Mr.

The Scary Economic Trend Making Americans More Job-Insecure Than Ever. Job applicants waiting to get interviewed at Yongsan Child Youth and School Services Job Fair, January 29, 2014. (Photo: Jung Young Ho / Flickr) They're stuck in pieced-together part-time gigs and often getting paid off-the-books. Too discouraged to look for regular jobs, these are the inhabitants of what trendwatchers are calling the "gray economy. " In California alone, their numbers, which include many freelance workers, are 6.2 million, or over 16 percent of residents.

Like a dismal cloud spreading over the sky to blot out the sun, the gray economy is trapping millions of Americans in a dark world of haphazard and insecure jobs, few or no benefits, nonexistent chances for advancement, and little recourse if they get screwed. As Tiffany Hsu explained in a recent LA Times report, measuring the extent of this economic netherworld is challenging: "It's hard to track the growth of the gray economy because so many employers hide workers for tax purposes. No More Industrial Revolutions? The American economy is running on empty. That’s the hypothesis put forward by Robert J. Gordon, an economist at Northwestern University. Let’s assume for a moment that he’s right. The political consequences would be enormous. In his widely discussed National Bureau of Economic Research paper, “Is U.S. Economic Growth Over?” Gordon predicts a dark future of “epochal decline in growth from the U.S. record of the last 150 years.”

IR #1 (steam, railroads) from 1750 to 1830; IR #2 (electricity, internal combustion engine, running water, indoor toilets, communications, entertainment, chemicals, petroleum) from 1870 to 1900; and IR #3 (computers, the web, mobile phones) from 1960 to present. Gordon argues that each of these revolutions was followed by a period of economic expansion, particularly industrial revolution number two, which saw “80 years of relatively rapid productivity growth between 1890 and 1972.” Created only a short-lived growth revival between 1996 and 2004. Thomas B. How the recession changed where the jobs are, in one chart. What Happened to the Craftsmanship Spirit? — Essay. THE scene inside the on Weyman Avenue here would give the old-time American craftsman pause.

In Aisle 34 is precut vinyl flooring, the glue already in place. In Aisle 26 are prefab windows. Stacked near the checkout counters, and as colorful as a Fisher-Price toy, is a not-so-serious-looking power tool: a battery-operated saw-and-drill combo. And if you don’t want to be your own handyman, head to Aisle 23 or Aisle 35, where a help desk will arrange for an installer. It’s all very handy stuff, I guess, a convenient way to be a do-it-yourselfer without being all that good with tools. This isn’t a lament — or not merely a lament — for bygone times. That should be a matter of concern in a presidential election year.

The Obama administration does worry publicly about manufacturing, a first cousin of craftsmanship. That self-image is deteriorating. Mass layoffs and plant closings have drawn plenty of headlines and public debate over the years, and they still occasionally do. Many American Workers Are Underemployed and Underpaid. She opened it occasionally to reread a favorite verse from Philippians: “And my God will meet all your needs according to the riches of his glory in Christ.” Ms. Woods’s current job has not been meeting her needs. When she began driving a passenger van last year, she earned $9 an hour and worked 40 hours a week. Then her wage was cut to $8 an hour, and her hours were drastically scaled back. Last month she earned just $233. So Ms. Woods, who said that she had been threatened with eviction for missing rent payments and had been postponing an appointment with the eye doctor because she lacks insurance, has been looking for another, better job.

“I’m looking for something else, anything else,” she said. These are anxious days for American workers. Now, with the economy shaping up as the central issue of the presidential election, both President Obama and Mitt Romney have been relentlessly trying to make the case that their policies would bring prosperity back. “Everything’s gone up. Up to 95 Million Low-Skill Workers in Danger of Being Left Behind - Real Time Economics. 1 in 2 new college grads are jobless or underemployed | National & World News. WASHINGTON (AP) - The college class of 2012 is in for a rude welcome to the world of work. A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don't fully use their skills and knowledge.

Young adults with bachelor's degrees are increasingly scraping by in lower-wage jobs - waiter or waitress, bartender, retail clerk or receptionist, for example - and that's confounding their hopes a degree would pay off despite higher tuition and mounting student loans. An analysis of government data conducted for The Associated Press lays bare the highly uneven prospects for holders of bachelor's degrees. Opportunities for college graduates vary widely. While there's strong demand in science, education and health fields, arts and humanities flounder. Taking underemployment into consideration, the job prospects for bachelor's degree holders fell last year to the lowest level in more than a decade.

The Rise of the Permanent Temp Economy. For Jobless Young People, New Advocacy Groups. THIS may be little consolation to recent graduates who have sent out dozens of résumés with nary a response; who have been turned down for unpaid internships; who have vast amounts of student debt to repay as they continue in jobs as baby sitters and waiters. But employers say they will hire 10.2 percent more college graduates from the class of 2012 than they did from the class of 2011, according to the National Association of Colleges and Employers. Nuggets of news like this are welcome as the economy fitfully recovers. Even so, joblessness among the young remains at crisis levels, economists say. In April, the unemployment rate for workers under age 25 was 16.4 percent, compared with 8.1 percent over all. Those with only some college, or with high school degrees or less, are the worst off.

No one wants to see millions of young people sitting idle. Those questions are entangled in certain truths about the political process. They are coming. Mr. Money Chart. America Is Europe. The U.S. does not have a significantly smaller welfare state than the European nations. We’re just better at hiding it. The Europeans provide welfare provisions through direct government payments. We do it through the back door via tax breaks. For example, in Europe, governments offer health care directly. In the U.S., we give employers a gigantic tax exemption to do the same thing. European governments offer public childcare. In the U.S., we have child tax credits. These tax expenditures are hidden but huge. The Organization for Economic Cooperation and Development recently calculated how much each affluent country spends on social programs. You might say that a tax break isn’t the same as a spending program.

The late David Bradford, a Princeton economist, had the best illustration of how the system works. This is essentially what’s been happening in sphere after sphere. The good news is that change might finally be coming. Moreover, it’s unimaginative. Bailout List: Banks, Auto Companies, and More | Eye on the Bailout. Tax Moochers: Banks.

Note: The Trade is not subject to our Creative Commons license. Thanks to a leaked video, we know that Mitt Romney divides the country into those who pay taxes and those who don't, the makers and the moochers. There is one perhaps surprising group you can put in the latter category: the nation's banks. Sure, banks pay taxes, but they pay a lot less thanks to a giant and underappreciated distortion in our nation's tax code. Moreover, this tax code distortion makes the financial system and the economy more fragile, prone to bankruptcies and runs. Banks profit, and the economy teeters. Great bargain, huh? It's the tax code's favoring of debt over equity.

For businesses, debt interest payments are tax deductible; equity payments, like when a company pays out a dividend, are not. "The worst thing the tax code can do," says Victor Fleischer, a tax specialist at the University of Colorado, "is to make it harder to use a sensible capital structure. " This distortion is well known [2]. Mr. Corporate Welfare vs. Social Welfare Statistics. Time Magazine, Vol. 152 No. 19 About $59 billion is spent on traditional social welfare programs. $92 billion is spent on corporate subsidies. So, the government spent 50% more on corporate welfare than it did on food stamps and housing assistance in 2006.

Before we look at the details, a heartfelt plea from the Save the CEO’s Charitable Trust: There’s so much suffering in the world. It can all get pretty overwhelming sometimes. “It felt like a slap in the face. It doesn’t have to be this way. For just $93 billion a year the federal government is able to provide a better life for these CEO’s and their families. Definition: social welfare n.

When one thinks about government welfare, the first thing that comes to mind is the proverbial welfare queen sitting atop her majestic throne of government cheese issuing a royal decree to her clamoring throngs of illegitimate babies that they may shut the hell up while she tries to watch Judge Judy. TANF (Temporary Aid to Needy Families) n. Wal-Mart. Revisiting the cost of the Bush tax cuts. ((Andrew Harrer/Bloomberg)) “After Democrats and Republicans committed to fiscal discipline during the 1990s, we lost our way in the decade that followed.

We increased spending dramatically for two wars and an expensive prescription drug program — but we didn’t pay for any of this new spending. Instead, we made the problem worse with trillions of dollars in unpaid-for tax cuts — tax cuts that went to every millionaire and billionaire in the country.” — President Obama, April 13, 2011 Obama, in a speech on budget policy last month, offered this summary of how he thought the nation lost its way fiscally during the presidency of George W. Bush. Tax cuts are estimated to have totaled $2.8 trillion, which we guess would count as “trillions,” as the president put it. (In case you are wondering, the cost of the Iraq and Afghanistan wars was $1.26 trillion through 2011 and the Medicare prescription drug program totaled $272 billion.) The Facts The Bottom Line. A person making $50,000 a year pays 10 cents a day in taxes for food stamps - Detroit liberal.

If you were to ask 100 people how much they believed a married person with one child would pay in taxes, you'd likely get 100 different answers. Following that, if you asked them to explain the breakdown of where that tax money went, specifically to SNAP (formerly the food stamp program), it would be fair to assume nearly all would be unable to muster a coherent response. Many people might be surprised to learn that the average contribution to the food stamp program is a little over 10 cents, or one thin dime, a day. Let's look at the numbers. A married person with one child making $50,000 a year will pay exactly $3,820 in federal taxes. The category needed for examination is "Job and Family Security", which comprises 19.1% of all of the $995 paid in. As is evidenced above, despite a person paying $191.05 for "Job and Family Security", only $36.82 of that is going towards "Food and nutrition assistance. " $36.82 divided by 365 days = 10 cents a day.

Consider the context. Growth of Welfare Entitlements: Principles of Reform and the Next Steps. The American Welfare State: How We Spend Nearly $1 Trillion a Year Fighting Poverty--And Fail | Michael D. Tanner | Cato Institute: Policy Analysis. Robert_rector_testimony.pdf (application/pdf Object) Contrary to "Entitlement Society" Rhetoric, Over Nine-Tenths of Entitlement Benefits Go to Elderly, Disabled, or Working Households.

Whites and Welfare: GOP and the Food Stamp Fallacy. Welfare myths. Is Government Spending On Entitlement Programs REALLY To Blame? The Geography of Government Benefits - Interactive Map. The U.S. Federal Budget: Infographic. U.S. National Debt Clock : Real Time. Mark Blyth on Austerity. Does High Public Debt Stifle Economic Growth? Nobody Understands Debt. Keynes Was Right. Death of a Fairy Tale. This Republican Economy. The Austerity Agenda. Money for Nothing. That Terrible Trillion. The Myth of Americans Living Beyond Their Means with Robert Reich. Sen. Bernie Sanders: The Soul of America. Portal:Fix the Debt. In Blind Poll, Republicans Choose Progressive Budget Solutions Over Their Own Party's.