Financial round table participants

Jared Bernstein’s areas of expertise include federal and state economic and fiscal policies, income inequality and mobility, trends in employment and earnings, international comparisons and the analysis of financial and housing markets. He joined the Center on Budget and Policy Priorities in May 2011 as a Senior Fellow.

From 2009 to 2011, Bernstein was the Chief Economist and Economic Adviser to Vice President Joe Biden, executive director of the White House Task Force on the Middle Class, and a member of President Obama’s economic team.

He is the author and coauthor of numerous books for both popular and academic audiences, including “Crunch: Why Do I Feel So Squeezed?” and nine editions of “The State of Working America.”

The point I wanted to make here is that everybody’s unemployment rate ain’t created equal. If you look at the correlation between the overall jobless rate and that of various subgroups, you’ll find that an increase in three-quarters of a point translates into a much larger increase for minorities or those with lower levels of education, and a lesser increase for say, college educated workers.

Rana Foroohar is an assistant managing editor for TIME, overseeing business and economic coverage in print and online.  She also writes TIME’s Curious Capitalist column. Previously, Foroohar served as the deputy editor in charge of international business and economics coverage for Newsweek.

She spent six years as Newsweek’s European economic correspondent based in London, covering Europe and the Middle East. During this time, she was awarded the German Marshall Fund’s Peter R. Weitz Prize for transatlantic reporting. She has also worked as a general editor at Newsweek, a reporter for Forbes magazine and as a writer and editor at various other national and international publications.

The new economics of ‘Made in the USA’ are built in large part around acquiring cutting-edge technologies ahead of global competitors and then using those new techniques to produce more efficiently on super-automated factory floors. And while all the technology will translate into higher end jobs, it will also mean — barring dramatic growth — fewer jobs overall, especially in the middle. Positions will either be high end, or lower paid, since workers still have to compete with cheaper overseas labor (even with wage inflation in China, it will be years before the Chinese are on par with U.S. wages). It’s no accident that many of the new manufacturing clusters in the U.S. are in the South, where unions hold less power.

John Makin is a former consultant to the U.S. Treasury Department, the Congressional Budget Office and the International Monetary Fund. He specializes in international finance and financial markets (stock, bonds, and currencies including the Euro and the U.S. dollar).

He also researches the U.S. economy (including monetary policy and tax and budget issues), the Japanese economy, and European economies. He is the author of numerous books and articles on financial, monetary, and fiscal policy.

Mr. Makin writes AEI’s monthly Economic Outlook.

Congress, especially Republicans, should embrace the sequester. While it represents only a modest, 10-year spending cut of $1.1 trillion—just 2.5% of projected total federal spending over that period—it still amounts to $2 of spending cuts for every dollar of the president’s tax increases enacted on Jan. 2. That’s not the 3:1 ratio recommended in December 2010 by the president’s Simpson-Bowles deficit commission, but it’s the best within reach now.

 
SUGGESTED STORIES
  • thumb
    Main Street: Findlay, Ohio
    Need to Know travels to Ohio to assess how workers are faring after the loss of millions of manufacturing jobs over the past 35 years.
  • thumb
    Following the money: Tax breaks
    New CBO report echoes the findings of Need to Know's "A tale or four tax returns."
  • thumb
      Certifiably employable
    Rick Karr recently visited Seattle to look at a program designed to give the unemployed the skills they need to find jobs in one of the country’s fastest-growing industries.

Comments

  • gisela

    please stop using the trem “entitlement” when talking about social safety nets