Subject: Where are the jobs? (AEI Economics Ledger)If you have trouble reading this message, click here to view it as a web page.
148K jobs created in Sept — 11.3M people still unemployed
:“The basic story of the labor market remains unchanged: We’reMichael Strain
in a too-tepid “recovery” that is barely sufficient to bring the unemployment rate down slowly, but notsufficient enough to increase the employment rate or to provide relief for the over four million workers whohave been unemployed for half a year or longer . . . The Fed was right not to “taper” its controversialquantitative easing program at its last meeting, and given this report it seems very unlikely that it willbegin tapering at all in 2013.”
Prospects for budgetary reform
Life beyond the debt limit.
Stan Veuger :“Enough about this CR/debt limit deal: let us look at the futureahead of us, and where the debate on these budgetary issues would ideally take us. Two questions seemparticularly salient: can we avoid future debt-limit crises? And how do we put the United States on asustainable long-run fiscal path?”
Will the tea party force the GOP to give up the fight to reform Medicare and Social Security?
JimPethokoukis:“There certainly seems to be less passion among older tea party GOPers to means testSocial Security and Medicare benefits than to repeal Obamacare and trim Medicaid and other welfarebenefits for the poor.”
Spotlight on tech
Breakdown of the patent reform bills before Congress.
Guro Ekrann and Marshall Watkins:“While theprecise extent of the problem can be debated, there is near-universal agreement that abusive patentlitigation is imposing real costs on the US economy.”
Will Europe fix its banks before it’s too late?
Desmond Lachman: “The need for the Europeans toaddress their banking problem more expeditiously and in a better thought out manner is underlined by thefact that, unlike in the United States, European banks are still responsible for around 80% of lending totheir corporate sector. It is also underlined by the fact that there is no sign to date of any slowing in thepace at which banks are cutting back on credit in the periphery.”
The twisted marriage between banks and government.
do banking regulationsalways promote having banks invest in government and government-sponsored debt (for a U.S. exampleof the latter, investing in the debt of failed Fannie Mae and Freddie Mac without limit)? The answer isapparent: the regulators who write the rules are themselves employees of the government.”