South By North Strategies, Ltd.

The Failure of Nations

Economist Daron Acemoglu of MIT,  co-author of the new book Why Nations Fail, explains the dangers posed to the United States by rising levels of economic inequality.

Around The Dial – April 12, 2012

Economic policy reports, blog postings, and media stories of interest:

• The New York Times reports on declining federal job training funds.
• Economix mulls the economics of corporate social responsibility.
• Kevin Carey sees an inter-generational betrayal in higher education.
• Ezra Klein points out the big problems of welfare reform.
• Mark Schmitt thinks the political parties need to get specific about government.

NC Unemployment Claims: Week Of 3/24/12

For the benefit week ending on March 24, 2012,  some 9,848 North Carolinians filed initial claims for state unemployment insurance benefits and 108,410 individuals applied for state-funded continuing benefits. Compared to the prior week, there were fewer initial and continuing claims. These figures come from data released by the U.S. Department of Labor.

Averaging new and continuing claims over a four-week period — a process that helps adjust for seasonal fluctuations and better illustrates trends — shows that an average of 10,879 initial claims were filed over the previous four weeks, along with an average of 111,480 continuing claims. Compared to the previous four-week period, the average number of initial claims was lower, as was the average number of continuing claims.

One year ago, the four-week average for initial claims stood at 12,556,  and the four-week average of continuing claims equaled 122,518.

In recent weeks covered employment has increased and now slightly exceeds the level recorded a year ago (3.74 million versus 3.71 million). Nevertheless, there are still fewer covered workers than there were in January 2008, which means that payrolls are smaller today than they were four years ago.

The graph shows the changes in unemployment insurance claims measured as a share of covered employment in North Carolina since the recession’s start in December 2007. 

Both new and continuing claims appear to have peaked for this cycle, and the four-week averages of new and continuing claims have fallen considerably.  Yet continuing claims remain at an elevated level, which suggests that unemployed individuals are finding it difficult to find new positions.

Down With “Loser Liberalism”

Dean Baker and Jared Bernstein discuss “loser liberalism” and the manipulation of  “free market” rhetoric to shape who benefits from economic growth in the United States by offering clear examples of the phenomenon, such as drug patents and trade policy.

Around The Dial – April 11, 2012

Economic policy reports, blog postings, and media stories of interest:

• The New York Times  reports on welfare during the recession.
• The Baseline Scenario explains “the impossibility of defense cuts.”
• Working Economics points out the problems with 401(k) plans.
• Matt Stoller argues that “corruption” is “responsible for 80% of your cell phone bill.”
• Matt Taibbi thinks the “JOBS Act couldn’t suck worse.”