South By North Strategies, Ltd.

What $60 Billion Might Buy

The New York Times recently estimated what $60 billion per year — the approximate  amount of annual  revenue lost if the top Bush-era tax cuts expire — might buy. Among the options were the following:

• “As much deficit reduction as the elimination of earmarks, President Obama’s proposed federal pay freeze, a 10 percent cut in the federal work force and a 50 percent cut in foreign aid – combined.”
• “Universal preschool for 3- and 4-year-olds, with relatively small class sizes.”
• “Free college, including room and board, for about half of all full-time students, at both four- and two-year colleges.”
• “A $500 tax cut for all households.”

Around The Dial – Dec. 9

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

• Slate looks at Americans’ confusion about economic matters.
• Tapped points out that black unemployment is still shockingly high.
• David Leonhardt analyzes the proposed tax compromise.
• Barry Eichengreen describes “Europe’s inevitable haircut.”
• Economix notes who doesn’t benefit from an unemployment insurance extension.

NC Unemployment Claims: Week of 11/20

For the benefit week ending on November 20th, 10,169 North Carolinians filed initial claims for state unemployment insurance benefits, and 115,300 individuals applied for state-funded continuing benefits. Compared to the prior week, there were fewer initial and continuing claims; however, the filing week had two fewer days than normal due to the Thanksgiving holiday. 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  13,581 initial claims were filed over the previous four weeks, along with an average of 117,334 continuing claims. Compared to the previous four-week period, there were fewer initial and continuing claims.

One year ago, the four-week average for initial claims stood at 18,147 and the four-week average of continuing claims equaled 181,033.

While the number of claims has dropped over the past year, so has covered employment. Last week, covered employment totaled 3.7 million, down from 4 million a year ago.

The graph (right) shows the changes in unemployment insurance claims (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 business 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. Also, new claims have been on the rise since September.

Also, little change has occurred within recent months. Since April 2010, the four-week average of initial claims consistently has ranged between 14,281 and 11,200.

Improving College Access

A new policy brief from The Working Poor Families Project consider how the federal College Access Challenge Grant Program could better serve adult learners. The report explains how the program work and lays out ways in which state policymakers could leverage the program for the benefit of adult students. From the report:

The College Access Challenge Grant Program, or CACG, is intended to strengthen educational attainment of low-income students by funding state strategies that improve access to postsecondary education. Congress established CACG in 2007 as a federal matching grant program; this year states will receive $150 million from the federal government for this program. states can use the funding for a variety of strategies intended to expand access to postsecondary education, including marketing campaigns, web portals, mentoring programs,financial aid and others. At present, CACG policymakers are primarily focused on improving the rate of college entry by middle and high school students. While this is a vital strategy, CACG has great untapped potential to improve college access and success for a much larger, yet often overlooked, population: low-skilled adults who are no longer in the formal education system.

Around The Dial – Dec. 8

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

• Economix looks at issues tied to sex discrimination in wages.
• Paul Krugman explains why “trade does not equal jobs.”
• Marshall Auerback wonders what would happen if Germany left the Euro.
• Ezra Klein draws a telling graph.