This tag is associated with 7 posts

The Deathblow to Automatic Stabilizers

(Analysis) A true free-market revolution began with the Administration of President Ronald Reagan (R). The notion that the root of all problems in the US could be attributed to government became a rallying cry among a new breed of populists. This anti-government populism thrives today in the Tea-Party movement. It is very likely responsible for … Continue reading

Hysteresis and the Self-fulfilling Prophecy of Limiting Horizons

(Analysis) There is a danger that when markets cannot employ labor and capital fully, that these factors of production will deteriorate through disuse. Economists have studied this phenomenon as “hysteresis”, and it leads to a permanent limiting of potential for an economy that is positively related to the time factors of production lie fallow. Thinking … Continue reading

The “Hireless” Recovery

(Northeast) Officially released statistics show that seasonally-adjusted nonfarm hiring in the northeastern US is down 2.9% in Mar., falling to 695,000 (solid line in chart). This brings it back to level with its 12-month moving average (dotted line in chart), and demonstrates that there is no recovery yet in hiring since the onset of the … Continue reading

Public Works: It’s Long Past Time to Reinvest in America

(Editorial) We are now into a sixth year of high unemployment and poor economic performance. We have tried continuous monetary easing here in the US, and it failed to recover our economy (see chart below comparing US output in blue with its potential in red). In Europe, they are trying to increase economic competitiveness by … Continue reading

Sclerotic Growth of Nonfarm Payrolls in Upstate NY

(NYS) Statistics released by government agencies show growth of employees on nonfarm payrolls through Feb. 2013 in NYS lags reported growth for the country as a whole (see chart). Only 1 metro region in NYS is better than the nation’s average – Ithaca, and growth of nonfarm employment there is largely because of the Ivy … Continue reading

Europe’s Woes a Lesson for Budget Hawks

(Analysis) At the direct instigation of Germany, many eurozone countries are being forced to swallow a bitter pill: government budget cuts at a time of recession and high unemployment. The remedy of drastic cuts to government spending in order to balance a government’s budget during a recession is being forced again – this time on … Continue reading

Vagrancy and Panhandling Rising

(Buffalo, NY) As youth, the sick, and especially minorities confront unemployment through exclusion from the job market, the twin plagues of vagrancy and panhandling are widespread here in downtown Buffalo. It is nearly impossible to walk even a few city blocks without being “bummed” for cash or cigarettes. As extended unemployment benefits expire, this problem … Continue reading

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