Archive for July, 2014

AFTER last June’s Ipsos-MORI issues index where race relations and immigration displaced the economy as the most important issue facing Britain today, it is no surprise to see the same this month. 36% of the public mention it as a concern, a drop of three percentage points.Unsurprisingly following the recent announcements surrounding funding (or lack thereof) for the NHS, disquiet has risen to third in the top four worries of Britons: a first since November 2012. Unemployment now sits in fourth with 25% mentioning it in the index, the lowest level since April 2011. ONS figures released this month show promising signs of economic recovery with the Britain’s unemployment rate at a six year low.With house prices almost back to the double-digit pace that preceded the financial crisis, concern over housing is at its highest level since May 2008 at 15%. This rises to 26% of Londoners and 22% of those aged between 25 and 34.
Comment Expiry Date: 

Thu, 2014-08-07

via Economic Crisis http://ift.tt/1z18RC5

UK Only Article: 
standard article

Issue: 

America’s lost oomph

Fly Title: 

The American economy

Rubric: 

The country’s potential growth rate is barely half what it was two decades ago. Here’s how to raise it

Main image: 

20140719_LDP001_0.jpg

BACK in the mid-1990s, America’s economic prospects suddenly brightened. Productivity soared. Immigrants and foreign capital flocked to take advantage of what was quickly dubbed the “New Economy”. The jobless rate fell to 4%, yet inflation remained low. All this led economists to conclude that America’s potential rate of growth—the speed at which the economy can expand while keeping unemployment steady and inflation stable—had risen sharply from its decades-long average of 3%, to 3.5% or even higher.
Sadly, the New Economy is no more. The recovery from the recession of 2008-09 has been the weakest of the post-war era, and evidence is mounting that America’s potential growth rate has plummeted. Its two big determinants, the supply of workers and the rise in …

via Economic Crisis http://ift.tt/1stefND

UK Only Article: 
standard article

Issue: 

America’s lost oomph

Fly Title: 

America’s economy

Rubric: 

New figures show that the speed at which America’s economy can grow without stoking inflation has fallen

Location: 

WASHINGTON, DC

Main image: 

20140719_fbp007.jpg

AMERICAN workers have had no news this good for years. In June employers added 288,000 jobs, bringing the total for the year to 1.4m, the best six-month stretch since 2006. Unemployment has sunk to 6.1%, the lowest rate in almost six years. It could hit levels long regarded as “full employment” within a year. Help-wanted signs are proliferating, with vacancies up by 20% since January.
Such an ebullient labour market is usually the token of a booming economy. Not now. In the first quarter gross domestic product fell by 2.9% at an annual rate, the worst showing since the recession. This was a result in part of bad weather. Yet the second quarter will only be strong enough …

via Economic Crisis http://ift.tt/1stedoM

LAST week the Financial Times reported on anger within the French political establishment over America’s abuse of its “exorbitant privilege” as issuer of the world’s global reserve currency. Because of the dollar’s overwhelming ubiquity in the global economy it is preferred for all sorts of transactions—including the ones in violation of American sanctions that were orchestrated by BNP Paribas, a French bank. As those transactions used dollars, they were ultimately cleared through New York. That, in turn, gave American officials the authority to punish BNP, which they used, socking the bank with a fine of almost $9 billion. The French seethed:We [Europeans] are selling to ourselves in dollars, for instance when we sell planes. Is that necessary? I don’t think so. I think a rebalancing is possible and necessary, not just regarding the euro but also for the big currencies of the emerging countries, which account for more and more of global trade.The very next day, the Financial Times ran another story, which also featured dispeptic French leaders. This time, the irritant was the dear euro:“[Europe] cannot be the only economic zone of the world that doesn’t consider its currency as a weapon . . . as a key asset to promote its economy,” [Airbus CEO Fabrice Brégier] told the Financial Times in an interview.Mr Brégier’s comments coincide with calls from the …

via Economic Crisis http://ift.tt/1ylcClo

UK Only Article: 
standard article

Issue: 

Don’t leave us this way

Fly Title: 

Sweden’s deflated economy

Rubric: 

Interest rates are back to crisis lows

ONLY a few years ago the Sveriges Riksbank was the envy of the central-banking world. Sweden’s economy, which it oversees, grew three times faster than the euro zone’s in 2010 and dodged Europe’s double-dip recession in 2012-13. Even better, the Riksbank felt confident enough in recovery to start raising interest rates in 2010. Its main policy rate reached 2% in July 2011, while rates in most other rich economies stayed near zero.
Yet the Riksbank seems to have got out too far over its cross-country skis. By the end of 2011 inflation was sinking rapidly while the crisis in the euro zone deepened. Since late 2012 inflation has bumped along at roughly zero and occasionally dipped into negative territory (see chart). And on July 2nd the Riksbank announced a further half-point cut to its benchmark rate, larger than expected. This pared the rate all the way back to 0.25%, its lowest point in the worst days of the global …

via Economic Crisis http://ift.tt/1oopEHV

An anti-poverty agency in Ohio says the breakdown of the family is undermining all its other efforts, so it is focusing on teaching moms and dads how their relationship impacts their child.

» E-Mail This

via Economy http://ift.tt/1su7455

The idea is to basically carpet-bomb specific urban neighborhoods and rural areas with programs like after-school classes, GED courses and job training, with the goal of turning those areas around.

» E-Mail This

via Economy http://ift.tt/Vzrgrn