Article Artículo
The Stock Market's Effect on Consumption Is Limited and SlowDean Baker / November 12, 2011
Article Artículo
Correction on Pew Report on Wealth of the Young and Old (Corrected version)Dean Baker / November 11, 2011
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Despite Solyndra, Most Republicans Still Support Alternative Fuel SubsidiesDean Baker / November 11, 2011
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The Recession Has a Lot to Do With Europe's Sovereign Debt CrisisDean Baker / November 11, 2011
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Slow Pace of Reconstruction Leads to Lower Economic GrowthThe level of grant support is only marginally higher than in 2009, before the earthquake, while overall spending levels are actually below 2009 levels. Despite the billions pledged in aid, budget support for the Haitian government was lower in 2011 than it had been in 2009.
The January 12 earthquake, which caused an estimated $8 billion in damages, led the Haitian economy to contract by 5.5 percent in 2010. With the prospect of large reconstruction projects backed by donor pledges of $4.6 billion, the economy was expected to begin growing rapidly in 2011. The IMF projected growth of over 8.5 percent in their first review of Haiti’s economic program in May:
Real GDP is expected to grow by 8.6 percent, assuming concerted strong efforts by the authorities and the international community to speed up the reconstruction.
As we have written about previously, disbursements from donors have been slow to materialize, a problem only exacerbated by the five months it took to form a new government. In addition to the effects on the ground, over 550,000 still living in tarp shelters with little services, the slow pace of reconstruction is also slowing economic growth. Updated projections from the IMF now expect slower growth of 6 percent in 2011.
Surprisingly, given the immense needs, government spending contracted sharply in 2011 compared to 2010. In 2010, with substantial grant support (including direct budget support) from donors, government spending reached 27.5 percent of GDP. In 2011 expenditures were significantly lower at 19.7 percent of GDP as grants decreased by ten percentage points to just 7.5 percent of GDP in 2011. The level of grant support is only marginally higher than in 2009, before the earthquake, while overall spending levels are actually below 2009 levels. Despite the billions pledged in aid, budget support for the Haitian government was lower in 2011 than it had been in 2009. The decreased expenditure most drastically affected capital expenditures, which fell from 16 percent of GDP in 2010 to below 10 percent in 2011.
Jake Johnston / November 10, 2011
Article Artículo
O Brasil e a zona do euroMark Weisbrot / November 10, 2011
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Latin America and the Caribbean
Brazil Should Include Conditions for Any Funds Going to the IMF or EuropeMark Weisbrot / November 10, 2011
Article Artículo
Quick Thoughts on the Obama Administration's Opposition to a Financial Speculation TaxCEPR / November 10, 2011
Article Artículo
Europe’s Crisis Worsens Due to Economic Mismanagement, Especially by ECBMark Weisbrot / November 09, 2011
report informe
Maintaining and Improving Social Security for Direct Care WorkersShawn Fremstad / November 09, 2011
Article Artículo
What Political Compromises Could Create Jobs?The political deadlock between President Obama and Congress makes it almost impossible for any further job creation bills to be approved before the next election. If Congress were willing, the best solution would be a large stimulus program. Since Congress is not willing, here are some policies that President Obama could pursue on his own to reduce unemployment.
1. Work sharing
This one should be a simple and non-partisan issue. As it stands now, workers who lose their job can get up to 99 weeks of unemployment benefits. These benefits are typically about half of their wages. However if they have their hours reduced, then they get nothing. This effectively makes it better for many workers to get laid off than to have their hours reduced.
Work sharing allows workers to use their unemployment insurance to partially offset a reduction in hours. For example, a worker who has his hours reduced by 20 percent would have 10 percent of his total wages made up by unemployment benefits.
There are already 23 states that have work-sharing programs. But many employers and workers don't know the programs exist, and the take up rate is low. President Obama could try to increase the take up rate by both promoting the program and encouraging the Labor Department to be flexible in enforcing the rules for Unemployment Insurance program, so that states can have the ability to be more flexible in their administration of the program. If just 5 percent of layoffs/dismissals can be prevented through work sharing, this would translate into 1.1 million additional jobs by the end of a year.
Dean Baker / November 09, 2011
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When it Comes to Cutting Medicare and Social Security High Income Ain't What It Used to BeDean Baker / November 09, 2011
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Haitian Cholera Victims Seek JusticeJake Johnston and CEPR / November 08, 2011
Article Artículo
Letter to Romney: Social Security Does Not Need SavingDean Baker / November 08, 2011
Article Artículo
If the Greek People Got to Negotiate Directly with the ECB and the IMFDean Baker
The Guardian Unlimited, November 8, 2011
Dean Baker / November 08, 2011
Article Artículo
The Sovereign Debt Crisis and the Problem of Political Culture In EuropeDean Baker / November 08, 2011