Congress should not pass the flawed Colombia trade pact
The lame-duck Bush administration is trying to link support for an auto-industry rescue loan to Congressional passage of the stalled Colombia Free Trade Agreement. The loan is a good idea, but the Colombia trade agreement is a very bad one. For a full understanding of why making a rescue loan contingent on passing another free trade act is such a bad idea, read EPI's new policy memo.

Another extension to unemployment benefits needed
This week's Snapshot shows how the trend in new claims for unemployment benefits since June makes it abundantly clear how important it is to extend unemployment benefits again.

An investment, not a bailout
EPI's new policy memo provides a multitude of reasons why the $25 billion rescue loan being considered for automakers is essential to maintaining the industry and its 3 million jobs.

The work that remains
Read about EPI's Nov. 13 event co-sponsored with the Eisenhower Foundation regarding the progress made on racial inequality since the Kerner Commission report was released 40 years ago.

Unemployment rate reaches highest level in over 14 years
Read EPI's Jobs Picture for analysis of the latest Bureau of Labor Statistics' report on employment.

Election shows the center has shifted in economic thinking
Commenting on the historic election of Barack Obama to the presidency, Economic Policy Institute President Lawrence Mishel writes that U.S. economic thinking has undergone a dramatic shift, and that Americans are increasingly open to careful and effective government intervention. "We can declare with confidence and relief that the conservative era is over," Mishel said in a statement issued Wednesday morning. "It is now possible to build an economy with widely shared prosperity." Mishel noted that many Americans remain skeptical of government, especially given the mismanagement of the past eight years. "The task ahead is to fashion policies that will improve the economic circumstances of the vast majority, and thereby restore confidence," he wrote.

Economic stagnation for Hispanic Americans
Between 2000 and 2007, the U.S. gross domestic product grew by 18% and worker productivity by 19%. Yet despite these gains, the Hispanic population did not benefit from the wealth that it helped create in the U.S. economy in this period. A new EPI Briefing Paper, Hispanics and the Economy: Economic Stagnation for Hispanic Americans Throughout the 2000s, examines the data that show how this group experienced a loss of median income and an increase in the poverty and unemployment rates. The Hispanic population began the 2000s business cycle significantly worse off economically than the nation as a whole, and they are ending the cycle in virtually the same place. For many Hispanics the current economic downturn will mean they will fall further behind the nation as a whole. (Press release [PDF])

A tough economy, by the numbers
By many measures, the U.S. economy has steadily worsened since the beginning of 2008. EPI economists have compiled a one-page reference guide to that decline, featuring data on wages, employment, bankruptcy filings, pensions and foreclosures. For the grim but important fact sheet, click here.

Consumption spending falls for first time in 17 years
Read EPI's GDP Picture for analysis of the latest Commerce Department report on gross domestic product (GDP).

EPI's Basic Family Budgets calculator updated
With income on the decline, unemployment rising, and experts predicting a potentially long dry spell for the economy, people are understandably worried about how they can make ends meet. EPI's newly updated online Family Budget Calculator provides data on the cost of the essentials for families of various sizes wherever they may live across the country, with data for more than 600 locations, including cities, towns, and rural areas in all 50 states and the District of Columbia. Accompanying the calculator are a Briefing Paper and technical documentation [PDF] that give an overview of family budget trends and provide details on the data sources. (Press release [PDF])

American consumers shopped but have now dropped
For two years, consumer spending — which is 70% of the U.S. GDP — has managed to grow even in the face of trillions of dollars of evaporating housing wealth. This Economic Snapshot discusses two recent government reports on overall consumption spending and retail sales that indicate U.S. consumers have finally surrendered their spending habits.

More EPI testimony before Congress on recovery proposals
EPI testifies before Congress for the second time in a week, as John Irons made the case for the right kind of stimulus in his testimony before the House Committee on Transportation and Infrastructure in a hearing entitled: "Infrastructure Investment and Economic Recovery."

NEW BOOK: Grading Education
We should hold public schools accountable for effectively spending the vast funds with which they have been entrusted. But instead of grading a school's progress in just math and reading (No Child Left Behind), we should hold schools accountable for the broad outcomes we expect from public education — basic knowledge and skills, critical thinking, an appreciation of the arts, physical and emotional health, and preparation for skilled employment — and then develop the means to measure, and ensure, schools' success in achieving them. Richard Rothstein's new book, Grading Education, describes a new kind of accountability plan for public education, one that relies upon both higher-quality testing and professional evaluation. Read the introduction and a press release online, or simply order your copy from EPI’s bookstore.

Congressional testimony on stimulus proposals
EPI's Jared Bernstein made the case for the right kind of stimulus in his testimony before the full House Committee on Education and Labor in a hearing entitled: "Building an Economic Recovery Package: Creating and Preserving Jobs in America."

Shopping for the best stimulus
All stimulus is not created equal. Some varieties deliver far less than they cost, while others produce far more bang for the buck in returns to the economy. This Snapshot sorts the evidence to separate the good from the bad and the ugly.

The False Fiscal Debate
Many Americans—including the moderators of all three presidential debates—assume that the Wall Street rescue plan will force the next President to at least postpone, if not abandon, many of the economic plans they have drawn up for the country. But John Irons, EPI's research and policy director, says that assumption is a false one, and he lays out the reasons why in a new policy memo.

Stimulus now! Underemployment at 14-year high
The growing number of underemployed workers is a better barometer of how bad it is these days for jobseekers. Get the facts at a glance in this Snapshot.

Large declines in employer-sponsored health coverage continue
The health coverage most Americans receive is becoming harder to find. Since 2000, workers and their families have become uninsured at alarming rates: there were over 4 million more uninsured workers in 2007 than in 2000. A new EPI Briefing Paper by Elise Gould finds that employer-sponsored health insurance coverage has declined for the seventh year in a row. Between 2006 and 2007, public insurance was the only reason that more Americans did not become uninsured as coverage fell through work. This Economic Snapshot is illustrated by an interactive map that shows the loss in employer-sponsored health insurance coverage in all states and the District of Columbia within the under-65 population, workers, and children from 2000 to 2007.

EPI debates Cato Institute on Google's Knol
The Economic Policy Institute recently began a two-week online debate with the Cato Institute about the $700 billion financial bailout package signed into law by President Bush. This is the first in a series of pre-election debates sponsored by Google using Knol, its new interactive tool that allows readers to suggest edits and leave comments on signed articles. EPI's piece argues that the federal action was imperfect but necessary, and that vigilance is now needed to ensure that taxpayers are protected as much as possible. The success of the Knol depends on the active participation of readers, who can post comments and suggest edits to the original post. The debate will continue for two weeks.

Jobs decline for ninth month in a row
The nation's employers continue to cut payrolls, with jobs down by 159,000 in September, the ninth consecutive month of job losses. In every period since 1948 when payrolls have declined this consistently, the economy has been in an official recession. Read a quick take on the latest employment report released by the Bureau of Labor Statistics, and for in-depth analysis, see EPI's Jobs Picture.

The burden of outsourcing
The U.S. non-oil trade deficit has displaced jobs in all 50 states and the District of Columbia, adding up to 5.6 million jobs lost or displaced in 2007. This week's Economic Snapshot shows how no state is immune to the corrosive effect of the U.S. trade deficit on U.S. workers and domestic economy. A companion Briefing Paper looks closer at the growing U.S. trade deficits, state-by-state, and examines losses by industries. (Press release [PDF])

Bailout plan must help the middle class and grow the economy
The financial bailout package that Congressional leaders are wrestling over is far from ideal, but given current political realities, it might represent the best chance to stop an impending financial meltdown. If passed in its current form, vigilant oversight is needed to ensure that taxpayers are protected and Wall Street doesn't get a free ride. Meanwhile, urgent action is also needed to revive the real economy. Read EPI's latest analysis in this Policy Memo.

The unemployment trend by state
The national unemployment rate has risen to a five-year high of 6.1%, and many states are experiencing rates as high as 8.9%. This Economic Snapshot features an interactive map showing the unemployment rate of each state in August, as well as the employment gains and losses incurred by each state since the economic downturn began in December 2007.

The facts about CEO pay
CEO pay has emerged as a very hot topic in Washington's debate over the proposed $700 billion Wall Street bailout. Details on the meteoric rise of CEO pay in the United States, plus comparisons to workers' pay and to CEO pay in other leading economies, can be found in The State of Working America, 2008-2009. Download a PDF of the relevant section on executive pay. [PDF]

Financial industry bailout needs to protect taxpayers
The financial market meltdown is clearly threatening the U.S. economy and requires prompt action, but the proposal offered by Treasury Secretary Paulson is fundamentally flawed. In a new Policy Memo, EPI economists recommend a series of fixes that will protect taxpayers, aid workers and home owners, lay the foundation for real economic growth, and ensure that those who are bailed out do not enrich themselves further with excessive salaries and benefits.

Do good employment practices mean better investments?
Mainstream investors seeking lower risk and higher returns are beginning to assess a firm's labor and human rights practices in addition to more traditional factors, according to a new paper published by Harvard Law School's Labor and Worklife Program. The study by Aaron Bernstein, a senior research associate at the program, contrasts this latest trend to long-standing efforts to promote moral values through socially responsible investing. The trend suggests a recognition that good employment practices are also good for business, according to the paper being jointly released by EPI and the Harvard program.

Reversal of Fortune
While bad economic news continues to pile up for America's working people, the economic trends are even more disheartening for African American families. Gains made during the strong labor market of the latter 1990s business cycle have eroded, even as the economy grew significantly. On all major indicators—income, wages, employment, and poverty—African Americans lost ground between 2000 and 2007. Algernon Austin, director of EPI's Program on Race, Ethnicity, and the Economy, examines the trends and their impact in a new report: Reversal of Fortune: Economic Gains of 1990s Overturned for African Americans from 2000-07.

State of Working America 2008/2009
Released in time for Labor Day, the advanced edition of EPI's authoritative volume The State of Working America 2008/2009 is now available. Described as the "most comprehensive independent analysis of the U.S. labor market" by the Financial Times, the 11th edition shows that the business cycle that started in 2001 will be one for the record books. In fact, for the first time on record, middle-class families are at the end of a recovery without ever having regained the ground they lost during the previous recession. Gross domestic product and historically high productivity growth should have raised paychecks up and down the income ladder, but instead the benefits of that growth have bypassed most of the people who made it possible. Prepared biennially since 1988, The State of Working America scrutinizes family incomes, jobs, wages, unemployment, wealth, poverty, and health care coverage, describing the economy's effect on our nation's standard of living. Visit the State of Working America Web site now and in coming months to read the executive summary, introduction, select chapters, press releases, and other related material, as well as to order your copy of the advanced and final edition (to be released by ILR/Cornell University Press in January 2009). (Press release [PDF])

Got work?
Since December 2006, the number of job seekers per job opening available has skyrocketed more than 60%. The number of job seekers per job opening is now firmly in recessionary territory—at a higher level than during any month of the official 2001 recession—and it shows no signs of leveling off. This Economic Snapshot and a companion Issue Brief look at current job openings trends, an important counterpart to the more commonly cited measures of unemployment.

Tax-cut snake oil
Two reports from the EPI and the Center for American Progress (CAP) take a hard look at the effectiveness of "supply-side" tax cuts for the wealthy and find they fail to spur economic growth or increase tax revenues—as claimed repeatedly by political leaders on the right. The reports are being released today at a joint EPI/CAP event examining supply side tax cuts, featuring two former White House economic advisors, Larry Summers and Jeffrey Frankel. Read EPI's Briefing Paper Tax-Cut Snake Oil and the joint EPI/CAP report Take a Walk on the Supply Side for more information. Check back on Monday for a video of the panel discussion, which includes an examination of related polling data.

Increase in unemployment not due to extension of jobless benefits
Some analysts have suggested that the dramatic increase in unemployment from July to August 2008 was due to the extension of Unemployment Insurance benefits from 26 weeks to 39 weeks, but the data show unequivocally that the unemployment rate is increasing because people are losing their jobs, not because they are choosing to remain unemployed. Read what's really behind the increase here.

Eight painful months for job market
The unemployment rate jumped to 6.1% last month, the highest jobless rate since September 2003, and payrolls fell by 84,000 jobs, the eighth consecutive month of declines. In every period since 1948 when payrolls have declined this consistently, the economy has been in an official recession. EPI's latest Jobs Picture analyzes the latest data and includes a special supplement focusing on job losses for African Americans and Hispanics.

Obama speech hits major EPI themes on the need for economic change
As he accepted the Democratic nomination Thursday night, Sen. Barack Obama forcefully outlined the failures of trickle-down economics and the need to return to an approach of shared responsibility and prosperity. His analysis echoed the work of EPI economists, who have long been tracking the negative outcomes of the on-your-own philosophy — including growing income inequality, stagnant wages, and heightened risks for workers — and proposing policy solutions.

New poverty, income, and health coverage analysis
The U.S. Census Bureau's annual release of poverty, income, and health coverage held some good news for Americans, but drilling down below the surface reveals a continuing erosion of the economy for working people. Although median household income increased slightly and the poverty rate was essentially unchanged from 2006 to 2007, incomes for working families (as opposed to retirees) actually dropped. The drop was especially significant when compared to median income in 2000, which is a better comparison because—like 2007—it was the final year of a cycle of economic growth. Given current conditions, income levels will surely decline further in 2008. The biggest surprise of the release came in the area of health care coverage. The number of uninsured dropped slightly in 2007, but the decline was due to an increase in government-sponsored coverage for children. Meanwhile, the rate of employer-based insurance coverage continued its seven-year decline.

Social Security: Safe and sound
A new government report re-confirms what most experts already know (and alarmists would rather you didn't): that the Social Security program will be healthy for decades to come. Find out why in this EPI Policy Memo.

A Plan to Revive the American Economy
Collaborating with some of the nation's top progressive thinkers, EPI researchers have been exploring solutions to our most difficult economic problems for the better part of two years. Now, the best of these proposals have been compiled into a small, easy-to-read Policy Handbook called A Plan to Revive the American Economy. For more on the ongoing effort to build a better way forward, please see www.SharedProsperity.org, and be sure to check out Toward Shared Prosperity, a video introduction to EPI's Agenda for Shared Prosperity. (Press release [PDF])

Social Security: Here today, still here tomorrow
Will Social Security be around when I retire? Yes, and it will be paying even more than now, as explained in this EPI Issue Brief.

U.S.-China trade gap: Massive job losses for U.S. workers
Unbalanced U.S. trade with China since 2001 has had a devastating effect on U.S. workers. This Economic Snapshot reveals that between 2001 and 2007, the trade deficit lost or displaced 2.3 million jobs in all 50 states and the District of Columbia, including 366,000 last year. As the nation's economic woes mount, a new EPI Briefing Paper, The China Trade Toll, details the devastating impact that the growing U.S. trade deficit with China is having on American jobs, wages, and key industries. (Press release [PDF])

Comparing health care proposals
This EPI Policy Memo distills the implications of Obama's and McCain's health care plans, based on research findings from the Tax Policy Center. Graphs and concise text draw out each plan's outcomes regarding cost, coverage, and efficiency.

Expert task force calls for broader, bolder approach to education policy
A task force of national policy experts with diverse religious and political affiliations, in public policy fields including education, social welfare, health, housing, and civil rights have launched a campaign to break a decades-long cycle of reform efforts that promised much and have achieved far too little. In ads in The New York Times and The Washington Post, the task force — convened by EPI's president and education policy director, Lawrence Mishel — calls for a "Broader, Bolder Approach to Education" to raise achievement levels for disadvantaged children. Read the statement of the task force and to add your name to the list of signers.

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