I yield to no one in my admiration for the careful, thoughtful, and reality-based economics practiced by Fed Chair Janet Yellen. So I was taken aback a bit by a section in her Jackson Hole speech on Friday.
I don’t plan to publish this wage mash-up every quarter, but given the building and misguided pressure on the Fed to start raising rates to prevent allegedly incipient wage and price inflation, I thought I’d update the previous quarter’s result through the first half of this year.
Months after Chicago Mayor Rahm Emanuel said budget constraints forced him to push for pension cuts and mass school closures, an analysis of government documents reveals the city has $1.71 billion in special accounts often used to finance corporate subsidies. While the Emanuel administration has rejected open records requests for details of the subsidies, evidence suggests at least some of them have flowed to companies connected to Emanuel’s campaign donors.
The analysis conducted by the TIF Illumination Project evaluated the city’s 151 tax increment financing, or TIF, districts, which divert a share of property taxes out of accounts obligated to schools and into special accounts under the mayor’s control.
The House Ways and Means Human Resources Subcommittee is holding a hearing today on subsidized employment as a tool for boosting economic security. It is high time for Congress to re-examine the evidence on subsidized jobs and to discuss the potential this approach may hold for alleviating our country’s continuing unemployment woes and connecting disadvantaged workers to job opportunities.
We don’t yet have all the data I need to update my full-monty-wage-mash-up, but a few series to which I pay attention are now available for the first half of the year: median weekly earnings (MWE) of full-time workers and two flavors of average hourly earnings. What do they show?
Not much, in terms of wage pressures. MWE is a very noisy series–medians are a more volatile statistic then means–so in order to show underlying pace in nominal weekly earnings, I’ve smoothed the series (using an HP filter; both figures show year-over-year changes). Amidst the jumpiness, the deceleration is clear.
Over at The Washington Post, the usually sensible Greg Sargent endorses the notion that divisions among Democrats are “mostly trumped up.” The tension between the Wall Street wing of the party and the Warren (as in Elizabeth) wing is an overblown fiction of a press corps desperate for some action.
It’s true that the prior divisions on social issues have dissipated, as liberals have swept the field. Obama’s halting attempts to wean the US from its foreign wars have garnered widespread support. And on economics, Sargent argues that Democrats “largely agree on the menu of policy responses to the economic problems faced by poor, working and middle class Americans — a higher minimum wage, universal pre-K, higher taxes on the wealthy to fund a stronger safety net, job creation and job training — whatever the broader rhetorical umbrella is being used.” Even Hillary says she agrees with Thomas Piketty that extreme inequality is a “threat” to our democracy. Continue reading Economic Populism at Heart of Emerging Debate Among Democrats | Bill Moyers→
The rise of corporate Democrats has gone from a quiet but steady pace since 2010, to a very visible and in-your-face spectacle of late. The face of the party has changed, with some of the old guard gone, but many Democrats who were always at the right-most edge of the party playing more central roles in our parliamentary politics.
In Congress, especially over the past year, we’ve seen deals quietly made by certain Senate Democrats with the GOP, on the backs of the poor and unemployed. The economic agenda of the Democratic party, as a whole, has vanished, as has its vocal support for its blue collar constituencies. While there are still a few progressives who stump for jobs, the unemployed, our safety net, education, and infrastructure, that talk isn’t backed by any particular legislative effort on the part of the leadership to, at the very least, give the appearance that it is trying to bring these issues back to the fore. Continue reading The faces of neo-liberalism, Part I: Robert Gibbs, Andrew Cuomo, and Rahm Emanuel→
Have you been following the news about Obamacare? The Affordable Care Act has receded from the front page, but information about how it’s going keeps coming in — and almost all the news is good. Indeed, health reform has been on a roll ever since March, when it became clear that enrollment would surpass expectations despite the teething problems of the federal website.
What’s interesting about this success story is that it has been accompanied at every step by cries of impending disaster. At this point, by my reckoning, the enemies of health reform are 0 for 6. That is, they made at least six distinct predictions about how Obamacare would fail — every one of which turned out to be wrong. Continue reading So Much for Obamacare Not Working – NYTimes→
The official blog of life, the universe, and everything
