Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
1:09 PM
economic recovery flat
Unknown
economy , fed , unemployment
A good article I came across has some good ammo on why the economic recovery isn't really happening. The recovery (if that is what you call it) is flat.
The Fed's efforts has injected money into the stock markets. Several analysts have stated since last summer that that's about all the Fed's QE policy has accomplished.
Here are a couple of items from list list of 37:
Why an Economy Grows and Why it Crashes
The Fed's efforts has injected money into the stock markets. Several analysts have stated since last summer that that's about all the Fed's QE policy has accomplished.
Here are a couple of items from list list of 37:
- The employment-population ratio has now been under 59 for 51 months in a row.
- Only about 47% of the adults in the U.S. have a full-time job.
Why an Economy Grows and Why it Crashes
8:49 PM
leave rates low
Unknown
fed , recession , unemployment
In August 2010 Narayana Kocherlakota, head of the Minneapolis Federal Reserve, said in a speech, "Since December 2000, the Bureau of Labor Statistics has been keeping data on the openings rate, which is defined as the number of job openings divided by the sum of openings and employment. Not surprisingly, when job openings rise, the unemployment rate typically falls. The inverse relationship between unemployment and job openings was extremely stable throughout the 2000-01 recession, the subsequent recovery, and on through the early part of this recession."
Kocherlakota went on to say that the stable relationship began to break down in June 2008. The job openings rate has risen by about 20 percent between July 2009 and June 2010. We would expect unemployment to go down. What's happened?
There is a mismatch. People want to work, but can't find the appropriate job and businesses have jobs but can't find the appropriate people to fill them.At the Jackson Hole meeting a strong case was made that structural unemployment is a myth. The notion that demand is the issue is still alive and well. Central bankers are concerned about inflation and don't like the easy-money policy. But Mr. Kocherlakota has since changed his stance on the structural argument. He now makes a case for the cyclical unemployment issue. Hence he has said to leave rate at zero, or nearly so until the unemployment rate hite 5.5 percent.
businessinsider.com was the source of this post
Recovery is needed to help the job market. Ben Bernanke announced QE3 mentioning more jobs are needed for a good, sustainable recovery to take place. Housing may be stabilized with QE3, but job creation remains to be seen.
Kocherlakota went on to say that the stable relationship began to break down in June 2008. The job openings rate has risen by about 20 percent between July 2009 and June 2010. We would expect unemployment to go down. What's happened?
There is a mismatch. People want to work, but can't find the appropriate job and businesses have jobs but can't find the appropriate people to fill them.At the Jackson Hole meeting a strong case was made that structural unemployment is a myth. The notion that demand is the issue is still alive and well. Central bankers are concerned about inflation and don't like the easy-money policy. But Mr. Kocherlakota has since changed his stance on the structural argument. He now makes a case for the cyclical unemployment issue. Hence he has said to leave rate at zero, or nearly so until the unemployment rate hite 5.5 percent.
businessinsider.com was the source of this post
Recovery is needed to help the job market. Ben Bernanke announced QE3 mentioning more jobs are needed for a good, sustainable recovery to take place. Housing may be stabilized with QE3, but job creation remains to be seen.
10:27 AM
a case against qe3?
Unknown
balance sheet , fed , qe3 , unemployment
Atlanta Fed President Dennis Lockhart appeared to be headed for a QE3 vote. A "yes" vote at first, but now he may have released the "no" vote initiative.
He feels the output gap ..... the amount of slack in the economy - is not as sizable as high-end estimates and is not zero either. Slowing growth has still been here and there has been no real progress toward unemployment.
Balance sheet expansion should be done with much caution, according to Lockhart. Such a step takes us into uncharted territory. Lockhart does not see QE as a miracle cure.
Is unemployment an economic disease or a symptom?
He feels the output gap ..... the amount of slack in the economy - is not as sizable as high-end estimates and is not zero either. Slowing growth has still been here and there has been no real progress toward unemployment.
Balance sheet expansion should be done with much caution, according to Lockhart. Such a step takes us into uncharted territory. Lockhart does not see QE as a miracle cure.
Is unemployment an economic disease or a symptom?
6:30 AM
oh oh
Unknown
The unemployment rate in Illinois rose for three months in a row. As of July, the rate is at 9.5 percent. Since the record tax increases were passed, the jobless numbers have rose in Illinois. Since January 2011 89,000 jobs have been lost in Illinois. This according to the Department of Labor.
This trend did not start overnight. This has been a trend in the works since 2001. Illinois government has not tried to end the trend in lost jobs. Instead Illinois governmental leadership did just about the opposite. Increased spending, which meant a wave of massive fund sweeping, put a tremendous strain on the state treasury. In response, tax increases were proposed and passed. Those increases couldn't keep up because the spending far outweighed the revenues. Nothing was done in 2002 or 2003 when the problems could have been headed off at the pass. In the meantime the very function of state government was put in jeopardy. Needed funding to school districts and local government was delayed putting more of a strain on those entities.
What has been proposed by Governor Quinn is more borrowing in the form of another bond issue. If this idea continues, the spending has to be capped. The backlog of unpaid bills has to be addressed and the pension problem needs leadership. We as Illinois citizens must be vigilant in the pursuit of better fiscal policy. This means no more new programs and cutting programs which have outlived their usefulness.
This trend did not start overnight. This has been a trend in the works since 2001. Illinois government has not tried to end the trend in lost jobs. Instead Illinois governmental leadership did just about the opposite. Increased spending, which meant a wave of massive fund sweeping, put a tremendous strain on the state treasury. In response, tax increases were proposed and passed. Those increases couldn't keep up because the spending far outweighed the revenues. Nothing was done in 2002 or 2003 when the problems could have been headed off at the pass. In the meantime the very function of state government was put in jeopardy. Needed funding to school districts and local government was delayed putting more of a strain on those entities.
What has been proposed by Governor Quinn is more borrowing in the form of another bond issue. If this idea continues, the spending has to be capped. The backlog of unpaid bills has to be addressed and the pension problem needs leadership. We as Illinois citizens must be vigilant in the pursuit of better fiscal policy. This means no more new programs and cutting programs which have outlived their usefulness.