http://www.politico.com/story/2014/01/unemployment-benefits-update-102165.html
This article was written after the article in my most recent post. Where the last article discussed the controversy of implementing such an idea, this article discusses Senate denying it. In two different votes to extend unemployment benefits, the bill was rejected 52-48 and 55-45, where a vote of at least 60 was necessary to pass it.
I believe it was a good thing that this bill was not passed, it would have increased the deficit and caused the United States to extend our "mandatory spending cuts" all the way until 2024. Although spending cuts are deemed necessary with the current state of our economy, the money could be used to fix other problems instead of possibly creating new ones.
Issues like this are always extremely difficult because there are many pros and cons of both sides, and someone will always end up dissatisfied with the final decision. Furthermore, it is difficult to get a majority vote to pass such a bill that has unexpected outcomes.
As we have recently learned about real GDP and the components of GDP, what component do you believe could best stimulate the economy and help it in the direction of substantial positive growth, consumer spending, government spending, investments, or exports and imports?
Wednesday, January 15, 2014
The Fight Over Unemployment Benefits Underscores the Right's Extremism: The Daily Beast
http://www.thedailybeast.com/articles/2014/01/13/the-fight-over-unemployment-benefits-underscores-the-right-s-extremism.html
Before reading this article, let me warn you that it is extremely biased and exaggerated. However, I thought that it would be a good article to post and discuss with all of you due to the difference in nature compared to my other articles. Generally, I responded to articles discussing the unemployment rate, while this article discusses the unemployment benefits offered by our government.
Especially after the socratic seminar today, I thought it would be interesting to hear all of your opinions.
Behind all of the bias and cynical filler information, the meat of the article stems from the idea that Congress is attempting to extend unemployment benefits, and statistically speaking, 58% of the population supports it also. However, the Republicans continue to vote against this idea, even though through past trends when a Republican President was attempting to pass such extensions, they voted for it.
While I don't necessarily believe that that is the only reason they are voting against this, it is definitely something to consider. Personally, I think that extending unemployment benefits could be hazardous for our nation's economic prosperity. Extending the benefits will only create a larger deficit, something I don't think that we, as a country, can afford at the present time. Also, continuing part of the topics discussed in the socratic seminar today, if the benefits are extended, there will certainly be less incentive to look for employment, at least in terms of the time period in which it is done.
Before reading this article, let me warn you that it is extremely biased and exaggerated. However, I thought that it would be a good article to post and discuss with all of you due to the difference in nature compared to my other articles. Generally, I responded to articles discussing the unemployment rate, while this article discusses the unemployment benefits offered by our government.
Especially after the socratic seminar today, I thought it would be interesting to hear all of your opinions.
Behind all of the bias and cynical filler information, the meat of the article stems from the idea that Congress is attempting to extend unemployment benefits, and statistically speaking, 58% of the population supports it also. However, the Republicans continue to vote against this idea, even though through past trends when a Republican President was attempting to pass such extensions, they voted for it.
While I don't necessarily believe that that is the only reason they are voting against this, it is definitely something to consider. Personally, I think that extending unemployment benefits could be hazardous for our nation's economic prosperity. Extending the benefits will only create a larger deficit, something I don't think that we, as a country, can afford at the present time. Also, continuing part of the topics discussed in the socratic seminar today, if the benefits are extended, there will certainly be less incentive to look for employment, at least in terms of the time period in which it is done.
Thursday, December 12, 2013
US jobless rate falls to five-year low in November; BBC News
http://www.bbc.co.uk/news/business-25264866
Easily recognizable from the title, this article discusses the unemployment rate and celebrates the fact that it is at the lowest point within the last five years.
Other things to celebrate include the Dow Jones Industrial Average reaching nearly 200 points, the 203,000 jobs that were created, and the non-farm payroll figures were even higher than expected. All through the economy it is evident that we have been seeing growth, and citizens and economists can only hope that it will continue.
Because of such growth, Ben Bernanke hopes to end the quantitive easing program supported by the US central bank. In addition to this, the Federal Reserve might begin to release their huge stimulus program. As Bernanke said in June during a press conference, he hopes that the growth will motivate and encourage further job gains with all of the other gains the economy is currently seeing.
In my opinion, I think that a lot of people are seeing these statistics about the unemployment decreasing and not realizing these statistics have a good chance of being skewed due to the government shutdown. Many statistics disregarded government personnel and payrolls, so therefore, can the statistics even legitimately represent accurate unemployment figures? Probably not.
However, if people see that the economy is growing and see the skewed statistics to prove it, that may encourage them to continue working towards growth even more, stimulating the economy even further as a result. While the inaccurate statistics can be seen as a negative thing, they may impact the economy in a positive way.
Easily recognizable from the title, this article discusses the unemployment rate and celebrates the fact that it is at the lowest point within the last five years.
Other things to celebrate include the Dow Jones Industrial Average reaching nearly 200 points, the 203,000 jobs that were created, and the non-farm payroll figures were even higher than expected. All through the economy it is evident that we have been seeing growth, and citizens and economists can only hope that it will continue.
Because of such growth, Ben Bernanke hopes to end the quantitive easing program supported by the US central bank. In addition to this, the Federal Reserve might begin to release their huge stimulus program. As Bernanke said in June during a press conference, he hopes that the growth will motivate and encourage further job gains with all of the other gains the economy is currently seeing.
In my opinion, I think that a lot of people are seeing these statistics about the unemployment decreasing and not realizing these statistics have a good chance of being skewed due to the government shutdown. Many statistics disregarded government personnel and payrolls, so therefore, can the statistics even legitimately represent accurate unemployment figures? Probably not.
However, if people see that the economy is growing and see the skewed statistics to prove it, that may encourage them to continue working towards growth even more, stimulating the economy even further as a result. While the inaccurate statistics can be seen as a negative thing, they may impact the economy in a positive way.
October Jobs Report: US Creates 204,000 jobs, Unemployment Rate rises to 7.3%; Huffington Post
http://www.huffingtonpost.com/2013/11/08/october-jobs-report-unemployment-rate_n_4235238.html
Due to the government shut down, the unemployment rate rose from 7.2% to 7.3% within one month. While 0.1% may not seem like much, that 0.1% represents 313,900 American people without jobs. However, a this number is skewed due to the shut down, and as portrayed through various other statistics mentioned in the article, the overall economic progression has been moving in a positive direction.
Hundreds of thousands of jobs were created, the number of people seeking unemployment benefits was decreasing, and employers began hiring more people. Economic growth rose to 2.8% from 2.5% in the previous quarter. Although we learned that nations should shoot for 4.0% in terms of economic growth, any step in the right direction should be recognized and a continued behavior. This economic growth could also just be a direct result of the seasonal change.. consumers and businesses spend more over the fall and winter months especially. It will be interesting to see if this growth will continue into the spring and summer months, or if the growth truly was just a reflection of the seasonal habits of consumers and producers.
While the majority of the statistics show that positive effects came about from the economic shut down, including many unemployment related statistics (despite the fact that this was not the reason for the shutdown), what is your opinion on the government shutdown as a whole and what was accomplished, if anything, during the shutdown?
Due to the government shut down, the unemployment rate rose from 7.2% to 7.3% within one month. While 0.1% may not seem like much, that 0.1% represents 313,900 American people without jobs. However, a this number is skewed due to the shut down, and as portrayed through various other statistics mentioned in the article, the overall economic progression has been moving in a positive direction.
Hundreds of thousands of jobs were created, the number of people seeking unemployment benefits was decreasing, and employers began hiring more people. Economic growth rose to 2.8% from 2.5% in the previous quarter. Although we learned that nations should shoot for 4.0% in terms of economic growth, any step in the right direction should be recognized and a continued behavior. This economic growth could also just be a direct result of the seasonal change.. consumers and businesses spend more over the fall and winter months especially. It will be interesting to see if this growth will continue into the spring and summer months, or if the growth truly was just a reflection of the seasonal habits of consumers and producers.
While the majority of the statistics show that positive effects came about from the economic shut down, including many unemployment related statistics (despite the fact that this was not the reason for the shutdown), what is your opinion on the government shutdown as a whole and what was accomplished, if anything, during the shutdown?
Thursday, November 21, 2013
Newest Conservative Hero: Spongebob ; TownHall.com
http://townhall.com/tipsheet/cortneyobrien/2013/11/08/newest-conservative-hero-spongebob-n1743161
For anyone familiar with the yellow, patty-flipping, underwater sea sponge known as Spongebob SquarePants, I recommend taking a look at this article. While O'Brien took somewhat of a comical approach while writing the article, the message that she conveys is extremely relevant to some of the economic issues facing the United States in the present day.
In a recently aired episode of Spongebob, the sponge is fired from his job at the Krusty Krab where he works as a fry cook. Instead of portraying him as a "lazy sponge" who is satisfied with accepting "Bikini Bottom welfare", Spongebob producers portray him as a working sponge who understands the importance of making a career and salary for himself, no matter what the job at hand may be.
Perhaps if all people unemployed in the United States searched for jobs with such ruthless perseverance the amount of people collecting unemployment and welfare from the government would decrease. Is the entirety of the problem the fact that there truly AREN'T enough jobs out there? Or does a large portion of the problem lie in the fact that there are many (too many) people who don't want to accept certain jobs/too many people that don't try hard enough to find jobs?
Even Spongebob would rather flip burgers at the Krusty Krab than collect money from the government. Would unemployment rates decrease if a larger amount of Americans had the same attitude? Most likely. Right now, there's an unacceptable surplus of people who don't live everyday with such a mentality.
For anyone familiar with the yellow, patty-flipping, underwater sea sponge known as Spongebob SquarePants, I recommend taking a look at this article. While O'Brien took somewhat of a comical approach while writing the article, the message that she conveys is extremely relevant to some of the economic issues facing the United States in the present day.
In a recently aired episode of Spongebob, the sponge is fired from his job at the Krusty Krab where he works as a fry cook. Instead of portraying him as a "lazy sponge" who is satisfied with accepting "Bikini Bottom welfare", Spongebob producers portray him as a working sponge who understands the importance of making a career and salary for himself, no matter what the job at hand may be.
Perhaps if all people unemployed in the United States searched for jobs with such ruthless perseverance the amount of people collecting unemployment and welfare from the government would decrease. Is the entirety of the problem the fact that there truly AREN'T enough jobs out there? Or does a large portion of the problem lie in the fact that there are many (too many) people who don't want to accept certain jobs/too many people that don't try hard enough to find jobs?
Even Spongebob would rather flip burgers at the Krusty Krab than collect money from the government. Would unemployment rates decrease if a larger amount of Americans had the same attitude? Most likely. Right now, there's an unacceptable surplus of people who don't live everyday with such a mentality.
US families affected by unemployment up by 33 percent: World Socialist Web Site
http://www.wsws.org/en/articles/2013/08/29/cens-a29.html
This article discusses how the number of families across the United States with at least one unemployed parent has been increasing for the last eight years. Statistics show that this number has increased by 33% on average. However, there were some states that had an increase of as much as 148%. What is causing some states to have such huge increases in unemployment?
Perhaps the reason behind such a trend lies within an uncommon idea, such as the ideas and trends of economic patterns discovered and described in Freakonomics. It would be hard to provide the answers to such complex problems with such minimal knowledge of economics. Other trends described in this article also include young adult children living with their parents for longer periods of time and the fact that many young adults are unable to find stable jobs. The second trend aforementioned most likely has a direct correlation to the preceding trend. If young adults are unable to find and keep stable jobs and have a steady income, they will not be able to afford their own houses and therefore, will continue to live with their parents for longer. If the unemployment problems continue to rise, we might even begin to see adults living with their parents for even longer amounts of time, eventually to the point where the parents, and their children are all trying to survive off of the parents' social security and savings. This would be an extreme case, but is it plausible to believe that if unemployment doesn't improve soon, something like that could begin happening?
This article discusses how the number of families across the United States with at least one unemployed parent has been increasing for the last eight years. Statistics show that this number has increased by 33% on average. However, there were some states that had an increase of as much as 148%. What is causing some states to have such huge increases in unemployment?
Perhaps the reason behind such a trend lies within an uncommon idea, such as the ideas and trends of economic patterns discovered and described in Freakonomics. It would be hard to provide the answers to such complex problems with such minimal knowledge of economics. Other trends described in this article also include young adult children living with their parents for longer periods of time and the fact that many young adults are unable to find stable jobs. The second trend aforementioned most likely has a direct correlation to the preceding trend. If young adults are unable to find and keep stable jobs and have a steady income, they will not be able to afford their own houses and therefore, will continue to live with their parents for longer. If the unemployment problems continue to rise, we might even begin to see adults living with their parents for even longer amounts of time, eventually to the point where the parents, and their children are all trying to survive off of the parents' social security and savings. This would be an extreme case, but is it plausible to believe that if unemployment doesn't improve soon, something like that could begin happening?
Monday, November 4, 2013
UK jobless total falls by 18,000 to 2.49 million: BBC News
http://www.bbc.co.uk/news/business-24547749
The article summarizes the fact that the number of people unemployed in the UK dropped by 18,000. The number of people claiming JobSeeker's Allowance (an unemployment benefit program in the UK) has also dropped by almost 42,000 people. Also, the number of people in work was at an all-time high. These numbers represent a positive jump in the unemployment problems, at least for the UK economy.
The article also reports that the standard of living has been improving and is predicted to continue increasing over the next few months to a year. As for why these numbers have been improving so much.. it cannot be due to any singular reason. Generally when trends like this occur, many economic aspects are working hand in hand to shift the economy one way or the other. Contrary to when the economy takes a significant negative hit where sometimes a singular reason can cause the economy to deteriorate rapidly. Reasons for this upward rise could be due to programs or principles instilled by the government; for example, stricter requirements to receive government assistance, economic growth, and creating incentive to work all are factors that could cause unemployment rates to go down and for the number of people claiming JobSeeker Allowance to also go down. Once people have an incentive to work for something, (or in some cases an incentive to want to stop collecting assistance from the government), then their efforts will tend to be greater, and in turn, the opportunity for positive economic trends like this is also greater.
The article summarizes the fact that the number of people unemployed in the UK dropped by 18,000. The number of people claiming JobSeeker's Allowance (an unemployment benefit program in the UK) has also dropped by almost 42,000 people. Also, the number of people in work was at an all-time high. These numbers represent a positive jump in the unemployment problems, at least for the UK economy.
The article also reports that the standard of living has been improving and is predicted to continue increasing over the next few months to a year. As for why these numbers have been improving so much.. it cannot be due to any singular reason. Generally when trends like this occur, many economic aspects are working hand in hand to shift the economy one way or the other. Contrary to when the economy takes a significant negative hit where sometimes a singular reason can cause the economy to deteriorate rapidly. Reasons for this upward rise could be due to programs or principles instilled by the government; for example, stricter requirements to receive government assistance, economic growth, and creating incentive to work all are factors that could cause unemployment rates to go down and for the number of people claiming JobSeeker Allowance to also go down. Once people have an incentive to work for something, (or in some cases an incentive to want to stop collecting assistance from the government), then their efforts will tend to be greater, and in turn, the opportunity for positive economic trends like this is also greater.
Friday, November 1, 2013
Shutdown Will Hinder True Gauge of U.S. Economy: NY Times
http://www.nytimes.com/2013/10/23/business/economy/shutdown-will-hinder-true-gauge-of-economy.html?_r=0
The article summarizes how government and economic statistics were skewed due to the government shut down. This is because many of the employment statistics and such could not be accounted for due to all of the government workers and employees. To fix this problem, economists needed to come up with new ways to quantitatively measure the economy's strength.
Also mentioned in the article was the fact that only 148,000 jobs were created compared to the 185,000 jobs expected to be created in the month of September. While this may seem like a negative thing for the economy, and it definitely is in some respect, other aspects of the overall economy must be analyzed as well.
Stocks rose due to the stimulus and purchase of $85 billion bonds per month. This is expected to continue well into 2014. Overall, I believe that these purchases greatly impact the economy and benefit it. With these purchases, the interest rates remain low and borrowing costs are decreased. Also, the 500 index was up by 23% just this year so far. If these purchases continue, it seems there will be little except positive effects on the economy. All of the influence that it has put on the economy so far has helped. Hopefully within the next few months we will continue seeing similar results, and perhaps even begin reaching the amount of jobs aspired to be created.
The article summarizes how government and economic statistics were skewed due to the government shut down. This is because many of the employment statistics and such could not be accounted for due to all of the government workers and employees. To fix this problem, economists needed to come up with new ways to quantitatively measure the economy's strength.
Also mentioned in the article was the fact that only 148,000 jobs were created compared to the 185,000 jobs expected to be created in the month of September. While this may seem like a negative thing for the economy, and it definitely is in some respect, other aspects of the overall economy must be analyzed as well.
Stocks rose due to the stimulus and purchase of $85 billion bonds per month. This is expected to continue well into 2014. Overall, I believe that these purchases greatly impact the economy and benefit it. With these purchases, the interest rates remain low and borrowing costs are decreased. Also, the 500 index was up by 23% just this year so far. If these purchases continue, it seems there will be little except positive effects on the economy. All of the influence that it has put on the economy so far has helped. Hopefully within the next few months we will continue seeing similar results, and perhaps even begin reaching the amount of jobs aspired to be created.
Tuesday, October 8, 2013
Unemployment rate slips to 7.3%; 169K new jobs USA Today
http://www.usatoday.com/story/money/business/2013/09/06/august-employment-report/2772875/
The article summarizes how the goal for jobs to be created was not met. However, it focuses on the positives that were accomplished through trying to achieve this goal. I think that although the goal was not met, it is still an accomplishment that 169,000 jobs were still created. That enables 169,000 people to go out and begin working (and potentially 169,000 people who will stop collecting government assistance), both of which are positives for the economy.
Many people may see the negative side of this article and the fact that the goal of number of jobs to be created was not met. But, I think it is important to see the positives that did come out of the situation. Even though the goal wasn't reached, there were still a good amount of jobs that were created as a result of attempting. That's the key: doing SOMETHING. If no problems are even attempted to be fixed then no problems will be fixed, it's as simple as that. So while many frown on the "failures" of the government's actions, keep in mind that they are at least attempting to solve the many issues presented in front of them.
The article summarizes how the goal for jobs to be created was not met. However, it focuses on the positives that were accomplished through trying to achieve this goal. I think that although the goal was not met, it is still an accomplishment that 169,000 jobs were still created. That enables 169,000 people to go out and begin working (and potentially 169,000 people who will stop collecting government assistance), both of which are positives for the economy.
Many people may see the negative side of this article and the fact that the goal of number of jobs to be created was not met. But, I think it is important to see the positives that did come out of the situation. Even though the goal wasn't reached, there were still a good amount of jobs that were created as a result of attempting. That's the key: doing SOMETHING. If no problems are even attempted to be fixed then no problems will be fixed, it's as simple as that. So while many frown on the "failures" of the government's actions, keep in mind that they are at least attempting to solve the many issues presented in front of them.
Monday, October 7, 2013
Viewpoints: How should long-term unemployment be tackled? BBC News
http://www.bbc.co.uk/news/uk-24330111
I thought this article was really interesting because it exemplified the opinions of multiple different people and how they view solutions to long-term unemployment issues. From the viewpoints of Democrats to the viewpoint of Republicans, solutions can be considerably different. However, no possible solution is better or worse than another; at least progress is being considered and looked into.
Through changes introduced by the Chancellor of the Exchequer, people who collect unemployment for more than two years have to choose between three different options to continue collecting unemployment. Their choices include community work placement, visiting a job center everyday, or taking part in training for work. The fact that people who collect unemployment and government assistance will have to provide for the economy in some way, shape, or form is extremely appealing to me and most likely many others. It provides a way for the economy to be stimulated even when the unemployment rate continues to be at the same level. Also, it is a good way to ensure that people who are unemployed are working towards getting a job. Perhaps this method is more effective than the United State's method of ensuring that Americans who collect unemployment are working or looking for work. Do you think a similar program in the United States would be effective?
I thought this article was really interesting because it exemplified the opinions of multiple different people and how they view solutions to long-term unemployment issues. From the viewpoints of Democrats to the viewpoint of Republicans, solutions can be considerably different. However, no possible solution is better or worse than another; at least progress is being considered and looked into.
Through changes introduced by the Chancellor of the Exchequer, people who collect unemployment for more than two years have to choose between three different options to continue collecting unemployment. Their choices include community work placement, visiting a job center everyday, or taking part in training for work. The fact that people who collect unemployment and government assistance will have to provide for the economy in some way, shape, or form is extremely appealing to me and most likely many others. It provides a way for the economy to be stimulated even when the unemployment rate continues to be at the same level. Also, it is a good way to ensure that people who are unemployed are working towards getting a job. Perhaps this method is more effective than the United State's method of ensuring that Americans who collect unemployment are working or looking for work. Do you think a similar program in the United States would be effective?
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