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So Where Are the Jobs?

February 20th, 2010 at 09:01am Under Economy Report

This is the VOA Special English Economics Report.

America’s economy has started to grow again. Now what about jobs?

The government says productivity jumped in July, August and September. That meant companies produced more with fewer workers. Also, new claims for unemployment aid fell last week to the lowest number since January.

People waiting in line at a job fair in Livonia, Michigan

But eight million jobs have disappeared since the recession began in December of two thousand seven.

Jack Strauss at Saint Louis University in Missouri says recent recoveries have been slow to create jobs.

JACK STRAUSS: “Historically, during our last two recessions in ninety-one and two thousand one it’s taken twenty-three months in ninety-one and about thirty-six months, three years, in our last recession in two thousand one for the United States to regain the jobs lost in the recession.”

Experts debate the reason for these so-called jobless recoveries. But Professor Strauss says a banking crisis is especially hard to recover from, because there is less money to lend to support growth. Banks have been holding bigger safety reserves.

On Wednesday, the Federal Reserve kept its target rate near zero for overnight loans between banks. The central bank said levels are likely to remain “exceptionally low … for an extended period.”

Low interest rates and growing federal deficits have weakened the dollar. But that also lowers the price of American exports, which could help drive job creation. Yet where exactly will future jobs come from?

Investor Warren Buffet says America’s “future prosperity” depends on its rail system. On Tuesday his Berkshire Hathaway company agreed to buy the nation’s second-largest railroad, the Burlington Northern Santa Fe. The forty-four billion dollar deal is Berkshire’s biggest ever.

The Obama administration is also putting money into transportation to speed recovery. A program that paid Americans to buy new vehicles with higher fuel economy lifted sales for automakers. Ford just reported a profit of almost a billion dollars for July through September.

A second government program — a tax credit for first-time home buyers — has helped the housing market. These two programs fueled a lot of the recent economic growth.

But economist Jack Strauss says credit conditions threaten the main engine of job growth since two thousand one — small businesses.

This week, CIT, a lender to small and medium sized businesses, sought bankruptcy protection from its creditors so it can reorganize. Taxpayers will likely lose more than two billion dollars in federal rescue money.

And that’s the VOA Special English Economics Report, available online at voaspecialenglish.com. I’m Mario Ritter.

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New Proposals Intensify Debate on Net Neutrality

January 27th, 2010 at 08:31am Under Economy Report

This is the VOA Special English Economics Report.

“Information wants to be free,” the saying goes. But the debate over net neutrality could define how free the exchange of information is going to be in the future.

Net neutrality is the idea that everything on the Internet should be treated equally. That sounds simple. But the issue is a complex mix of technical, business, political and legal questions.

Julius Genachowski

In the United States, communication law is enforced by the Federal Communications Commission. Since two thousand five, the F.C.C. has used four policy principles to guide its enforcement in cases related to the Internet.

The policy statement says consumers must be able to get the lawful content, applications and services of their choice. Users must also be able to connect their choice of devices that are legal and do not harm the network. Another principle supports competition.

This week, in a speech, F.C.C. Chairman Julius Genachowski proposed two more. One would say Internet providers could not discriminate against content or applications. The other would require they explain how they manage their networks.

The F.C.C. chairman also wants to extend all six principles to wireless carriers now that their phones access the Internet. And he wants to make the principles into rules. Next month he will seek to begin the process, which starts with collecting public comment.

The new proposals have roots in disputes involving two companies. In two thousand seven, Verizon refused to make it easier for an abortion rights group to send text messages to its supporters. Verizon said it did not accept programs on issues like abortion or war, but it quickly changed its decision.

And last year, a divided F.C.C. ruled against Comcast for interfering with traffic to a lawful music and video sharing site. At first, Comcast denied it, but then defended its actions as “reasonable network management.” Critics said Comcast was trying to block competition with its cable video programming.

Chairman Genachowski says a “free and open Internet” must be safeguarded. But providers say they sometimes have to block sites to prevent abuse. And a big wireless carrier, AT&T, calls extending the net neutrality policy “a risky experiment” with American investment in high-speed Internet.

There is also debate about the desire of some Internet providers to offer special treatment to sites willing to pay for it. That goes against the custom of treating all sites neutrally.

And that’s the VOA Special English Economics Report, written by Mario Ritter. I’m Jim Tedder.

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