July 9, 2019, Shawn Fremstad

July 18, 2019, Eileen Appelbaum

Julio 2019, Mark Weisbrot y Andrés Arauz

July 2019, Mark Weisbrot and Andrés Arauz

Dean Baker
Truthout, July 15, 2019

(This post first appeared on my Patreon page.)

The June jobs report showed the economy created 224,000 jobs in the month, a sharp increase from the revised level of 72,000 reported for May. With considerable evidence that the economy is slowing, and the ADP report showing the economy created just 102,000 jobs in June, the jobs growth number from the Bureau of Labor Statistics was much higher than most analysts had expected.

It led the markets to reverse their expectations of a July cut in the federal funds rate. With average job growth of 171,000 over the last three months, the thinking was that the Fed did not need to provide any additional boost to growth. A bit deeper look suggests that additional stimulus may still be a good idea.

First, it is important to remember where the labor market is. The June unemployment rate of 3.7 percent certainly looks very good relative to almost any other point in the last fifty years.

However, if we look at employment rates (EPOP) for prime age workers (ages 25 to 54), the labor market does not look so great. The June EPOP was 79.7 percent. That is down from a pre-recession peak of 80.3 percent. It is far below the 2000 peak of 81.9 percent. It’s even down from the 79.9 percent peak for the recovery hit in January and February of this year.

The weak EPOP suggests that the economy has room to expand. There have been repeated efforts throughout this recovery to attribute low EPOPs to workers’ reduced interest in working, primarily among young men. This story does not work well for two reasons.

July 11, 2019

July 11, 2019 (Prices Byte)

CEPR regularly publishes a curated collection of original research from academic institutions and nonprofits on the state of the US labor market. The compilation is part of our ongoing effort to promote informed debate on the most important economic and social issues that affect people's lives.

Center on Budget and Policy Priorities (CBPP)

Policy Basics: How Many Weeks of Unemployment Compensation Are Available? 

The federal-state unemployment insurance system provides temporary income support for many people when they lose their jobs. But how many weeks of compensation are available for those that lose their job? It depends on the state. Most states offer the standard maximum of 26 weeks, but others may offer fewer or extended periods of compensation based on various criteria (e.g., unemployment rate). See how many weeks of unemployment compensation each state offers.

This May, millions of new graduates found themselves torn between triumph and trepidation, as looming obligations to begin repaying student loans tempered celebrations nationwide. Still others had no cause to celebrate, having accrued debt without obtaini

Greece's economy has recovered modestly from the depths it hit at the peak of its crisis in 2014 and 2015, but with an unemployment rate that is still close to 19 percent, there hardly seems like great cause for celebration.

Dean Baker
Truthout, July 8, 2019

(This post orginally appeared on my Patreon page.)

Many of the leading Democratic candidates, especially Sanders and Warren, have been putting forward bold progressive plans in a wide variety of areas. Sanders and Warren have both supported a quick transition to a universal Medicare program, with no premiums, co-pays, or deductibles. Several candidates have supported a Green New Deal, which in some versions would guarantee every worker in the country a decent paying job.

Such policies are really big deals. They would both have a huge impact on people’s lives and also pose serious problems of implementation. The willingness of Democrats to think big in other areas makes their determination to think small on prescription drugs surprising. Replacing government-granted patent monopoly financing of research is both a huge deal and one that can be implemented gradually without threatening massive disruptions in a transition process.

Free Market Drugs Are a Really Big Deal

First, it is necessary to realize that having drugs available at free market prices, without patent monopolies or other forms of exclusivity, would have an enormous impact on the economy and the health care system. On the first point, we will spend more than $460 billion on prescription drugs in 2019. Without patent protection, these drugs would almost certainly sell for less than $80 billion, implying a savings of more than $380 billion.[1] 

To put this $380 billion figure in context, it is more than five times the annual food stamp budget. It is more than twice the size of the Trump tax cut. If we project out the savings over the course of a decade, they would come to more than $5 trillion. That is more than three times the amount that is projected to be needed to cover the cost of full forgiveness for outstanding student loan debt. This is more than $30,000 per household. In short, there is huge money at stake by any measure.

July 5, 2019