Sally Cameron thought she had done everything right. After studying French and Arabic at a tony liberal arts college, she knew that graduate school would help her career chances. But when she hit the job market, her Ivy League management degree didn’t seem to matter. The worst recession in decades had pushed the unemployment rate to nearly 10 percent and good jobs were scarce. Sally paid the rent by tending bar and filled her time with volunteer work. Meanwhile, experts and government officials warned that the days ahead would be grim.
The U.S. Economy: Not Yet in the Clear?
June 08, 2011
After yet another weak jobs report came out last Friday—the U.S. private sector, it turns out, added just 38,000 jobs in May—economists have been groping for an explanation. One theory is that the economy is still in a deep, deep funk: As the IMF warned back in 2009, it takes a long time for the world to recover from a severe financial crisis.
A Tale of Two Deficits
June 01, 2011
Listening to today’s debates, one might think that the United States faces a budget deficit. Not so. America faces two budget deficits. The first challenge is near term. Once the economic recovery is well-advanced, we must find a way to cut spending or raise taxes to prevent government debt from rising faster than income. The second challenge is dual: to slow the growth of health care spending, in general, and Medicare spending, in particular, and to decide whether to make cuts to Social Security.
March 15, 2011
Not many people in the American electronics industry had ever heard of the Japanese town of Niihama before the summer of 1993. That changed overnight when a small specialty chemical factory there was knocked out by a fire. Obscure though it may have been, this factory accounted for 65 percent of the world's supply of epoxy cresol novolac, a resin essential in making most semiconductors. As shockwaves shot through the world electronics industry, prices of some kinds of semiconductors doubled in days.
The Case for More Federal Aid
February 15, 2011
State governments are facing catastrophic budget deficits for fiscal year2012, and they are suggesting drastic cuts to attempt to fill the gaps. But this proposed austerity may not be necessary, and, moreover, it is almost certainly unwise.
Geithner, A Personal Note, and a Geithner Personal Note
February 14, 2011
[Guest post by Noam Scheiber:] For those who haven't seen it on the homepage, I briefly wanted to plug my profile of Tim Geithner in the latest issue of the print magazine. The piece tries to explain how he recovered after his disastrous start in the Obama administration. My working hypothesis: Geithner now realized it wasn’t enough to get the big calls right and let the politics take care of itself. To really play at this level, he would need, if not an outside game, then at least an inside game that took account of how the public perceived his actions.
From Mississippi to ‘The Corner’: A Tale of Right-Wing Wrongness
February 08, 2011
By now, it’s easy to be cynical about the Internet’s ability to degrade rational argument. After all, one can only read so many birther blogs without starting to go numb. Still, once in a while, the foggy chaos that is the online world parts, and we catch a glimpse of how the realm’s worst ideas form, adapt to the environment, and, despite their utter lack of fitness anywhere else (well, with the popular exceptions of AM radio and Fox News), thrive in cyberspace. Perhaps the best recent example is a chart that has been racing around the conservative blogosphere for the last few months.
February 03, 2011
Cairo, Egypt—Egypt’s economy has by all accounts ground to a halt as a result of curfews, travel restrictions, and communications blackouts. Here in Cairo, the effects are readily apparent: Reduced delivery of goods and a shortage of wheat have shuttered subsidized bread-distribution points, reducing the quantity of bread available and generating long, angry breadlines snaking down the city’s alleyways. “I’ve been waiting here for two hours,” one man in a military-run breadline told me.
Paul Ryan's Other Big Idea
January 23, 2011
[Guest post by Noam Scheiber:] We've all heard that Republican ideas man Paul Ryan--who's slated to give the GOP response to the State of the Union--has some deep thoughts on how to save the country from fiscal ruin. (Though, alas, not everyone understands that these ideas are spectacularly vague and substantively dodgy.) Less well known is that Ryan has some equally dodgy ideas about monetary policy. FrumForum's Noah Kristula-Green unpacked them last week: [H]e wants the Federal Reserve to set monetary policy from the price of a "basket of commodities"...
January 13, 2011
In the summer of 1932, Louis McFadden, a former bank president turned Pennsylvania Congressman, stood up on the House floor to reveal a sinister plot. Over the course of a 25-minute speech, he explained how the Federal Reserve—“one of the most corrupt institutions the world has ever known”—was being steered by a cabal of European bankers who had, among other sins, paid for Leon Trotsky’s return ticket to Russia and funded the October Revolution. But McFadden’s pleas to dismantle the Fed and embrace gold (in his view, “the only real money”) were greeted with ridicule.