The Economy
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44% of Congress are millionaires
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Long-term Unemployment Worst Since the Great Depression
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Poverty--'Prison Without Bars'
Going on Strike in a Recession
Published November 12, 2009 @ 06:00AM PT
After nearly a year of negotiations with the United Food and Commercial Workers Local 99 in Arizona, two of the state's largest grocery store chains -- Fry's Food Stores and Safeway -- are bracing for a strike amid an ongoing labor dispute.
Key factors in the dispute include discrepancies over pay increases and a proposal from the companies that would have workers pay a health care premium (up until now, the companies have covered the entire cost).
With no resolution in sight, and a work stoppage looming as early as Friday, the companies have started to place advertisements for temporary employees to take over for unionized workers when/if they go on strike.
In addition, Fry and Safeway have now entered into a collaborative agreement to take "defensive measures" if the union workers strike against one company and not the other. Although neither store has said it would lock out unionized workers at the company that is not affected, that is exactly what happened in a similar situation in California during 2003-04.
1 in 10 Americans Unemployed
Published November 06, 2009 @ 06:48AM PT
10% unemployment is here. The worst unemployment rate since 1983; for those of you who weren't in elementary school then - how does this recession match up in your mind to that one? Given the rising cost of living compared to the declining value of wages over the last two decades, how are households getting by in this bleak reality relative to 26 years ago? Will Obama and Congress get us out of this mess?
More than 7M Americans have lost their jobs in the last two years, and remember, official unemployment rates only count people actively looking for work. The # of people out of the workforce through no fault of their own is likely much higher - they've given up looking for work at this point.
Should we rejoice that layoffs are happening more slowly? Education and health services are actually adding jobs, and government employment is stable - stimulus funds are likely contributing to this. But even government programs can't prop up the construction industry, as our anemic real estate markets cancel out the need for construction work.
10% Unemployment Looming
Published November 05, 2009 @ 12:00PM PT
New unemployment #s come out tomorrow - economists predict 9.9% unemployment nationwide. Can I just round that up to 10% and call it a day?
First time jobless claims were less than expected in October, though only 20k fewer of over half a million. We are supposed to take this as good news that "job cuts are easing as the economy slowly heals." This is the lowest level since January. Still...2009 is almost over and we're still seeing half a million people per month file for unemployment for the first time? That is one horribly contracting economy.
Surviving workers are laboring more feverishly than ever - productivity is up even as our incomes are "squeezed". The stimulus is keeping a lot of jobs afloat; unemployment benefits are practically extended into perpetuity at this point. No wonder discount retailers are doing slightly better than specialty stores; it's amazing we've got anything left to leave behind at the mall!
Budget Crises, Development Woes Confront Mayors
Published November 04, 2009 @ 01:34PM PT
Looking around at the mayoral results from yesterday's elections, seems incumbents and historic new leaders face a shared set of urban challenges: budget gaps, development and housing costs, crime, and troubled educational systems. Gee, what's new?
Certainly not the leadership in Boston, where Mayor Tom Menino won an unprecedented 6th term to become the city's longest serving mayor. Menino's remarkable claim to fame in governing this city of 600k (or so) is that almost half of all Bostonians have personally met him - including yours truly (several times now). Voters re-elected him with fondness for the Christmas trees he provides for neighborhood squares, his handshakes in line at Dunkin Donuts, and his seemingly 24/7 appearance on local public television. His campaign promises include closing budget gaps, lowering the crime rate, and improving the Boston Public Schools - a big issue this time around.
In Detroit, arguably the most troubled city in America, Mayor Dave Bing must close a $300M budget gap and also tackle crime and a failing public school system. He promises to whittle Detroit's finances down to reflect the city's new reality as the 11th largest city in the US, through cuts and efficiencies. Beware the Mayors who promise to govern cities like they run their businesses. Sure, they can buy themselves term after term, but eventually voters (citizens? shareholders?), especially the lower-income ones who don't usually see the corporate profits trickle down their way, will tire of these CEOs.
Stimulus Bypasses Minority Businesses
Published November 03, 2009 @ 09:00AM PT
Criticism abounds of the unequal distribution of stimulus funds: high per capita allocations to low population, low unemployment states like Wyoming versus low per capita amounts to struggling states like CA; and the limited allocations reaching women- and minority-owned businesses compared to their proportion of the population.
The Kirwan Institute for the Study of Race & Ethnicity at The Ohio State University finds that "While approximately 14 percent of businesses are minority owned, the study shows that minority owned businesses received only 9.6 percent of federal contracts." Almost 3 in 10 businesses are owned by women, yet these firms received only 3% of stimulus funds. This disturbing inequity raises questions about the goals of the stimulus and the (surprising?) lack of focus on reducing economic inequality.
Your Recession in Charts
Published November 02, 2009 @ 01:52PM PT
Last week President Obama touted 640,000 jobs were created or saved via the stimulus. No doubt the stim, as we're apparently calling it now, has had some positive impact. (Though if it's behind the endless road improvements going on in the Greater Boston area that's driving me insane, pun intended, then I might have to rethink this whole public works investment concept!)
But eminent economist Joseph Stiglitz pronounces the recovery "nowhere near" over and the myriad charts our friends at Calculated Risk and the Wall Street Journal certainly suggest as much. WSJ has an interactive map of stimulus spending by state, including jobs saved and current unemployment rates. 15% unemployment in Michigan! It's almost 30% in Detroit.
Calculated Risk has the gruesome images, including the above graph demonstrating a national unemployment rate of 9.8% (as of September 30), the highest in 26 years.
Fresh Produce Still Unaffordable
Published October 31, 2009 @ 09:00AM PT
Where I live in Boston, farmers' markets abound in the summer and fall. I stopped by the Allston Farmers' Market yesterday, where there were free samples of apple cider, pumpkin painting for the kids*, live music, and t-shirts for sale. So nice!
This farmers' market is at a busy intersection, includes parking, is across the street from an affordable housing complex, and is on 2 bus lines. It runs on Friday afternoons until 7pm, so feasibly working people can stop by on their way home. So many conveniences. Also nice.
I then spent $12.50 on 5 carrots, a pint of grape tomatoes, and 6 apples. Not so nice. $12.50??? Does this seem high to anyone else or is it just me? (Granted, I did not buy the apples in bulk, which might have saved me some $$.)
I like supporting organic farms, local farms, local businesses, all that jazz. It's important to me. And I'm thrilled to see this farmers' market accepts EBT, WIC, etc. But with those prices, why would the average low-income shopper part with their dollars there? Can't I stretch my dollars a lot further at the grocery store, purchasing produce shipped in from CA and Mexico? Can't I get more bang for my buck from canned and frozen foods?
