How has the U.S. economy changed in the past fifty years? At the Atlantic you can see several answers contained in a single graph, which shows the percentage of total GDP created by each American industry from 1947 to 2009. Continue reading
In a post last week, I wrote about the Congressional Budget Office’s new projection that raising the age of eligibility for Medicare from 65 to 67 could save the federal government $113 billion over the next decade. But I missed a big part of the story: that this savings might be far outweighed by increased costs to senior citizens, employers, and state governments.
In 1950, there were 7 people of working age – 20 to 64 – for every person 65 or older. That ratio is currently below 5 and will fall below 3 by 2030. – CBO, 2012
The current age at which someone becomes eligible for Medicare, the federal government’s health insurance program for seniors, is 65. Guess what the age was when Medicare was created in 1966? Continue reading
In the depths of the recession, from October 2008 to April 2009, around 700,000 people lost their jobs every month. Many of these workers remained jobless for long stretches of time, as this downturn produced the highest levels of long-term unemployment in six decades. Yet even those who found new jobs relatively quickly have experienced lasting setbacks. Two years after losing their jobs, workers who are reemployed are earning 17% less than they previously made, according to a new analysis by the Brookings Institution’s Hamilton Project. The lost income averages about $600 per month.
It’s been well documented that low-skilled workers were more likely to lose their jobs during the recession than those with higher levels of education. The current unemployment rate is 14.0% for workers without a high school degree, 9.7% for those with only a high school degree, and 4.2% for those with a college degree. A new analysis by the Urban Institute identifies the states where low-skilled workers (those with less than a high school degree) were hit hardest by the recession in comparison to other groups: Tennessee, Virginia, Massachusetts, Oregon, and Arizona.
After the stock and housing markets bottomed out three years ago, many older Americans saw their nest eggs disappear and had to delay their plans to retire. Or at least that’s the story that news outlets have been reporting for a while. New data show, however, that a larger share (17%) of individuals over age 62 retired between 2008 and 2010 than during any other two year period in the past decade.
A few weeks ago, the Census Bureau released troubling data showing that the U.S. poverty rate jumped from 14.3% in 2009 to 15.1% in 2010, the highest it’s been in 17 years. Now economists from the Peterson Institute report that one third of the increase in poverty over the past year was caused by rising gasoline prices. The U.S. makes up a smaller share of world demand for oil than it did in the past, so, while global oil prices dropped during the height of the recession, they rebounded strongly last year despite America’s continuing economic difficulties. In 2010, the price of crude oil increased 30% and gasoline prices rose by 18%, pushing nearly 1 million people into poverty.
Last night, President Obama presented the American people and a joint session of Congress with his plan for tackling unemployment and spurring economic growth. He repeatedly exhorted Congress to pass his package, The American Jobs Act, “right away.” Should they? Here’s a look at the main components of his plan and whether or not they’re likely to help create jobs…
In anticipation of President Obama’s major jobs speech tonight, I’m focusing my posts this week on unemployment and what we can do to address it. Earlier I gave an overview of the situation in 10 Essential Facts About Our Unemployment Crisis. In today’s post, I try to understand where exactly the problem lies.
The recession officially ended in mid-2009 when we halted our economic freefall and slowly started to turn the ship around. But the recovery has progressed more sluggishly than people imagined it would – and slower than previous recoveries – and unemployment still stands at 9.1%. With the recession officially over for two years now, what is holding back employment from returning to pre-recession levels?
There was little economic news for American workers to celebrate this Labor Day, given the dismal employment statistics released by the Bureau of Labor Statistics on Friday. This Thursday night, President Obama will respond with a major speech on his plans to improve the economy and specifically to boost job growth. With that in mind, I’ve decided to focus my posts this week on jobs and unemployment. To start off, here are 10 key facts you should know about our current unemployment crisis…