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Editor’s Note

Policy Points is taking a few days off to celebrate the Christmas holiday. Posting will resume on December 27th.

Thank you for your interest in the blog. Happy Holidays!

Around The Dial – Dec. 22

Economic policy reports, blog postings, and media stories of interest:

• The Washington Post looks at the rise in low-income working families.
• Economix noted that 15 % of workers think the economy never will recover.
• The Wall St. Journal reports on the first findings from Census 2010.
• Economist’s View says a better bailout would have shortened the recession.

Social Policy Primer: Christmas Version

The Colbert Report offers a Christmastime primer on social policy.

Bad News about Long-Term Unemployment

The Economist reports on the mounting problem of long-term unemployment. From the article:

Fifteen million Americans are now unemployed, according to the most recent jobs report. The unemployment rate for November inched up to 9.8%. The grimmest numbers, however, are for the long-term unemployed …: 6.3m people, 42% of those unemployed, have been jobless for more than 26 weeks. That number does not include 2.5m people who want a job but who have not looked for a month or more, or the 9m who want full-time work but can only find part-time openings.
…
America, unlike some European countries, is not used to such high numbers. No recent recession has seen so many Americans out of a job for so long. Now, with millions fallen from the ranks of the employed, the federal government has deployed its imperfect safety net to catch them.

The article then describes how far short the nation’s social insurance systems are falling and what this might mean for the long-term unemployed.

But such services are designed to sustain families through a tough spell, not to support them in the long term. Over time, unemployment begins to breed its own problems. Workers may be discouraged or their skills may decay. Employers may be wary of someone who has been out of the labour force for more than a year. The most desperate may try to qualify for disability payments, an expensive federal programme for those physically unable to work. When the economy recovers at last, many will be left behind.

Around The Dial – Dec. 21

Economic policy reports, blog postings, and media stories of interest:

• Richard Thaler calls for a rethinking of the charity deduction.
• Timothy Noah looks at the skirmish over debit card fees.
• The Baseline Scenario considers “symbols and substance.”
• Calculated Risk poses “ten economic questions for 2011.”
• Robert Reich says Washington became business friendly in 2010.