Articles 1 to 10 of 171
GDP Is Up … But Employment Recovery May Be Years Away
Economists, Wall Street, and the general public were pleased with the advance report on third quarter Gross Domestic Product (GDP) from the U.S Bureau of Economic Analysis. The consensus expectation as posted on Briefing.com was an annualized increase of 3.2 percent. The advance report from the BEA was higher, at 3.5 percent. This is the largest consumer spending increase since 3.7 percent growth was posted in the first quarter of 2007, well before the recession began. However, it is likely that unemployment and job losses will persist for some months to come.
Arizona Town Hall Calls for Bold Action to Solve the State's Fiscal Crisis
Last week about 140 of Arizona's leaders gathered at the Grand Canyon for the 95th Arizona Town Hall -- designed to bring Arizonans together for three days of discussion, culminating in a plenary session where participants adopt a final report of findings and recommendations. The topic was governmental revenue -- an urgent issue for many states in the wake of recession but especially in Arizona, where a crippling budget crisis casts a forbidding shadow over the next several years. The background report, sent to participants in advance of the Town Hall meeting, was prepared by the L. William Seidman Research Institute at the W. P. Carey School of Business.
Friend or Foe: Does the Minimum Wage Hurt the Workers It's Intended to Help?
William Boyes understands why his students feel the way they do about the federal minimum wage -- why they seem to universally believe that the minimum wage is a good thing. It's a good thing for them; a good thing for workers across the country; a good thing for the economy as a whole. There's just one problem, says Boyes, a professor of economics at the W. P. Carey School of Business. He thinks they're wrong. But convincing them, he admits, is no easy task.
Western Region Accounts for 5 of 10 Weakest State Labor Markets
For the first time in the recession, all 50 states lost jobs over the year in September, reports Lee McPheters, editor of Economy@W. P. Carey. Before the latest figures were released, North Dakota had continued to add jobs year over year, albeit at a slowing pace. But the September numbers show North Dakota non-farm jobs declining by 300 compared to a year ago. Nationally, the economy lost 5.8 million jobs over the year, a decrease of 4.2 percent.
2010 Economic Forecast: Don't Hold Your Breath
"The recession probably ended in June, if we had to pick a date," according to Jan Hatzius, Chief U.S. Economist at Goldman Sachs. But that doesn't mean it's time to break out the champagne. The return of up-trending charts may sound like good news for the economy, but it's going to be at least a couple of years before growth picks up in earnest. Hatzius is this year's recipient of the Lawrence R. Klein Award for Blue Chip Forecast Accuracy.
Eminent Domain: Drawing the Line on Property Rights
When the city of New London, Connecticut, moved to take homes in the modest Fort Trumball neighborhood by eminent domain, a group of residents resisted in court. Led by Susette Kelo, the residents eventually lost their case at the Supreme Court. The city had the green light to move ahead with plans to develop the area for offices, research facilities, high end condos and a hotel. The city's plans fell through, and the project was never built. The Kelo case touched off a nationwide backlash against eminent domain seizures that cut across ideological lines.
Self-ownership, Abortion, and a Brave New World
"The idea of ownership," said W. P. Carey Economics Professor William Boyes, "is that we can do anything we want with what we own as long as it does not harm anyone else or violate anyone else's property rights." By that definition, our common concept of ownership might often be called into question. When we go to the pet store and buy a dog or a cat, for example, we think of ourselves as pet owners. But the law regulates how we can treat our pets. That, Boyes said, means either we don’t own them or that they have private property rights as well. The law regulates how we treat ourselves, too. American history is rife with debate over the concept of property rights; the debate over abortion is a recent example.
How We Got Here: Bush Economic Advisor Analyzes the Financial Sector Meltdown
The deepest recession since World War II was caused by the collapse of the financial sector, but that disintegration is not proof that markets don't work, said Stanford economist Edward Lazear, who was chief economic advisor to former President George W. Bush. In fact, he said, the markets dealt swift and brutal punishment to those who made mistakes.
Consumer Spending and the 'New Normal' Economy
Economists, sociologists and other observers are divided in their view of consumer spending in the post-recession era that lies (somewhere) ahead. While there is little controversy about the short term outlook -- the dominant consensus is that consumers will spend less and save more -- the opinions of analysts diverge for the years after 2010, says Lee McPheters, editor of Economy@W. P. Carey. Some believe that consumer spending will show considerable strength as unemployment rates fall and consumers move to replace ageing durable goods such as autos and appliances. The alternative view is that the current contraction has been a "game changer" for consumers. High unemployment rates, foreclosures and tight credit markets have combined to bring a permanent new frugality to consumer behavior that will linger for years, bringing a "New Normal" economy with a reduced emphasis on the consumer.
Every Western State Expected to Lose Jobs This Year
Employment figures from the U.S. Bureau of Labor Statistics for the year through August show that every Western state lost jobs compared to the same eight-month period last year. Nationally, nonfarm employment through August was down by -3.7 percent. Several Western states (led by Wyoming) saw milder job losses. But California, Idaho, Oregon, Nevada and Arizona all have lost jobs at a faster pace than the nation, reports Lee McPheters, editor of Economy@W. P. Carey..
