Tag Archives: the state

The Unemployed as Background Noise

We seem to have a way of regularizing the pain felt by working people — worsening living conditions become little more than background noise to business as usual.

The situation for the unemployed is a case in point.  We have a complex, but comparatively miserly, unemployment compensation system.

Workers are generally entitled to 26 weeks of unemployment benefits.  However, there are two programs that potentially extend the benefit period for the unemployed. The first is the Emergency Unemployment Compensation (EUC) program, which was enacted in 2008 in response to the economic crisis.  As the table below shows, the EUC offers workers in states with high rates of unemployment up to 53 additional weeks of benefits.

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Workers who exhaust both their regular unemployment insurance and EUC benefits can receive additional support through the second program, the permanent federal-state Extended Benefits (EB) program.  As the table above shows, that program offers a maximum of 20 extra weeks of benefits depending on state unemployment rate levels.  However, there is an additional provision to the EB program that is now coming into play with negative consequences.  

As Hanna Shaw, of the Center on Budget and Policy Priorities, explains: 

A state may offer additional weeks of UI benefits through EB if its unemployment rate reaches certain thresholds… and if this rate is at least 10 percent higher than it was in any of the three prior years.  But unemployment rates have remained so elevated for so long that most states no longer meet this latter criterion (referred to as the “three-year lookback”). 

Because of this lookback provision hundreds of thousands of unemployed workers are now losing benefits, not because conditions are improving but because they are not continuing to worsen. The table below highlights the 25 states that have been forced to stop providing EB benefits this year and the number of workers in each state that have been cut adrift as a result.  Look at California — more than 95,000 workers have lost their benefits so far this year despite the fact that the state unemployment rate is almost 11 percent.

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This is no accidental outcome.  In fact, according to Shaw,

Policymakers could have addressed the “lookback” when they extended federal UI at the beginning of the year, but they didn’t.  Instead, Congress not only allowed EB payments to fade out, but it also made changes that over the course of the year will reduce the number of weeks of benefits available in the temporary Emergency Unemployment Compensation (EUC) program, which provides up to 53 additional weeks to the long-term unemployed based on the unemployment rate in their state.

How serious is the long term unemployment problem?  Check out the chart below.  As it shows, the share of the labor force that is unemployed for more than 26 weeks is higher than at any point in the last six decades.  Perhaps even more striking is the fact that 41.3 percent of the 12.5 million people who were unemployed in April 2012 had been looking for work for 27 weeks or longer.

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In terms of the master narrative, this is just another of the necessary adjustments required to stabilize the “system;” no need for alarm.  Makes you wonder about the aims of the system, doesn’t it?

“In God We Trust”: Communism, Atheism, & the U.S. Dollar

Americans are familiar with seeing the phrase “In God We Trust” on our paper money.  The motto is, indeed, the official United States motto.  It wasn’t always that way, however.  While efforts to have the phrase inscribed on U.S. currency began during the Civil War, it wasn’t until 1957 that it appeared on our paper money, thanks to a law signed by President Eisenhower.

1956:

1957:

The motto wasn’t simply added in order to please God-fearing Americans, but instead had a political motivation.  The mid- to late-1950s marked an escalation in the Cold War between the U.S., the Soviet Union, and their respective allies.  In an effort to claim moral superiority and demonize the communist Soviet Union, the U.S. drew on the association of communism with atheism.  Placing “In God We Trust” on the U.S. dollar was a way to establish the United States as a Christian nation and differentiate them from their enemy (source).

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Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.

A Case Against the Penny

CGP Gray is in rare form in this 4 1/2 minute argument in favor of phasing out the penny. He argues, entertainingly, that:

…they cost more to make than they’re worth, they waste peoples’ time, they don’t work as money, and because of inflation they’re less valuable every year making all the other problems worse.

See what you think:

Also from CGP Gray:

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Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.

Are Women Civilizing? Thoughts on the Secret Service Prostitution Scandal

U.S. Senator Susan Collins (R, Maine) and Representative Carolyn Maloney (D, New York) have both gone on record claiming that having more women employed in the Secret Service would prevent scandals like the one involving Colombian prostitutes.

In classic Daily Show form, Jon Stewart and his “correspondents” respond (thanks to Dmitriy T.M. for the link!):

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Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.

Is Christian a Religion?: The Cross on Sunrise Rock

A resolution to the matter described below was announced yesterday.  In order to preserve the religious memorial without violating the separation of church and state, the Park Service has agree to give the land it sits on to two private citizens who take care of the monument.  Problem solved?

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The Supreme Court is in the process of deciding whether a cross erected 75 years ago as a memorial to war veterans violates the constitutional separation between church and state. The cross sits on the Mojave National Preserve and, therefore, is on public land:

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After lower court rulings, the cross was covered in plywood:

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In deliberations, Justice Scalia tried to argue that the cross is a neutral and universal symbol. He said:

It’s erected as a war memorial. I assume it is erected in honor of all of the war dead… What would you have them erect?… Some conglomerate of a cross, a Star of David, and you know, a Muslim half moon and star?

Faced with an argument that the cross is distinctly Christian, he said:

I don’t think you can leap from that to the conclusion that the only war dead that that cross honors are the Christian war dead. I think that’s an outrageous conclusion.

Scalia’s comments reveal a common phenonemon that we’ve discussed in terms of race and gender, but not yet religion.  As Jay Livingston pointed out at MontClair SocioBlog, one can only think of Christian symbols as non-specific if one thinks of Christianity as somehow normal, neutral, and for everyone.  In the U.S., because Christianity is the dominant religion, many people simply see it as default.  You’re Christian unless you’re something else.  Something else that marks you as different and specific, Christianity does not.

This is one way that dominance works.  It makes itself invisible.

UPDATE! Dmitriy T.M. pointed out that Steven Colbert addressed this issue on The Colbert Report back in 2009:

See our other posts on how whiteness and maleness are the characteristics we attribute to “person,” unless there are reasons to do otherwise, herehere, here, and here.

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Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.

Too Big to Fail Has Gotten Bigger

Cross-posted at Reports from the Economic Front.

“Too big to fail” — that was the common explanation voiced at the start of the Great Recession for why the Federal Reserve had no choice but to channel trillions of dollars into the coffers of our leading banks. But, the government also pledged that once the crisis was over it would take steps to make sure we would never face such a situation again.  

The chart below shows the growing concentration of bank assets in the hands of the top 3 U.S. banks. The process really took off starting in the late 1990s and never slowed down right up to the crisis.  It was the reality of the top three banks controlling over 40 percent of total bank assets that gave meaning to the “too big to fail” fears.    

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But what has happened since the crisis?  According to Bloomberg Businessweek, the largest banks have only gotten bigger:

Five banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs — held more than $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to the Federal Reserve. That’s up from 43 percent five years earlier.

The Big Five today are about twice as large as they were a decade ago relative to the economy, meaning trouble at a major bank would leave the government with the same Hobson’s choice it faced in 2008: let a big bank collapse and perhaps wreck the entire economy or inflame public ire with a costly bailout. “Market participants believe that nothing has changed, that too-big-to-fail is fully intact,” says Gary Stern, former president of the Federal Reserve Bank of Minneapolis.

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Not surprisingly, this kind of economic dominance translates into political power.  For example, the U.S. financial sector is leading the charge for new free trade agreements that promote the deregulation and liberalization of financial sectors throughout the world.  Such agreements will increase their profits but at the cost of economic stability; a trade-off that they apparently find acceptable.

The recently concluded U.S.-Korea Free Trade Agreement is a case in point.  Leading financial firms helped shape the negotiating process.  As a consequence, Citigroup’s Laura Lane, corporate co-chair of the U.S.-Korea FTA Business Coalition, was able to declare that the agreement had “the best financial services chapter negotiated in a free trade agreement to date.”  Among other things, the chapter restricts the ability of governments to limit the size of foreign financial service firms or covered financial activities.  This means that governments would be unable to ensure that financial institutions do not grow “too big to fail” or place limits on speculative activities such as derivative trading.  The chapter also outlaws the use of capital controls.

These same firms are now hard at work shaping the Transpacific Partnership FTA, a new agreement with a similar financial service chapter that includes eight other countries.  Significantly, although the U.S. Trade Representative has refused to share any details on the various chapters being negotiated with either the public or members of Congress, over 600 representatives from U.S. multinational corporations do have access to the texts, allowing them to steer the negotiations in their favor.

The economy may be failing to create jobs but leading financial firms certainly don’t seem to have any reason to complain.

Access to Abortion Clinics and the Abortion Rate

Abortion is highly politicized in the U.S. (more so than in many other countries) and the fight between those who are in favor of and against available abortion occurs on two fronts.  One is familiar to just about everyone: the effort to overturn Roe v. Wade, the legislation Supreme Court decision that established the legality of abortion in 1973.

The second front, though, is less familiar.  It involves reducing the ease of access to legal abortion. Efforts to increase barriers to accessing legal abortion include passing laws that require minors to notify their parents of an abortion or get their consent, requiring mandatory counseling for abortion-seekers, instituting waiting periods, and discouraging medical schools from teaching abortion procedures.  Some of the issues of diminishing access are non-movement related; others are the direct result of pro-life activism.

I bring this up in order to focus on an additional barrier to access: a reduction in the number of clinics and hospitals that provide abortions.  The map below, based on data from the Guttmacher Institute and compiled by ANSIRH, shows how availability varies by state.  In the darkest states, up to 20% of women live in a county with no abortion provider; in the lightest states, between 81 and 100% percent do.

Living far from the nearest abortion provider is a problem especially for low-income women.  Such women are less likely to have an employer who will give her a day off to travel to the clinic, less likely to get a paid sick day, and less likely to be able to afford to lose even a single day’s wages.  She is also less likely to have a car, making it more difficult to get to a distant location, and less likely to have reliable day care for any existing children.  If the state requires in-person counseling and has a waiting period, it means that the woman must take two days off, travel to and from the clinic twice, and arrange for child care on multiple days.

Reduction in the availability of abortion does not necessarily reduce the number of abortions.  We recently posted global data showing that less liberal abortion laws actually correlate with higher rates of abortion.  The data below, also from Guttmacher, show that were abortion laws are less liberal (largely in developing countries), the rate of abortion is 34/1,000 women oer year, compared to 39/1,000 in developed countries (the difference may look significant here, but imagine how trivial it would look if the horizontal axis went all the way to it’s true maximum of 1,000):

Guttmacher explains that the relevant variable isn’t availability of abortion, but the unintended pregnancy rate (which is surprisingly high in the U.S.).

Barriers to accessing abortion, then, don’t lower the abortion rate.  They do, however, increase the likelihood that an abortion procedure will occur later in pregnancy and guarantee a greater logistic burden on the pregnant woman.

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Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.

From Our Archives: On Taxes

The Numbers

Types of Taxes as a Percent of GDP (1937-2014)
Historical Comparison of Top Tax Brackets (1945-2010)
Tax Receipt for 2009

The Winners and the Losers

Recent Trends in US Income Inequality and the Tax Rate (1990-2010) (pictured)
Social Class and the Tax Burden
Donation and Welfare States
Corporate Tricks of the Trade
Who Benefited from the Bush Tax Cuts

Tax Cultures

Collecting Taxes in Pakistan
Danish vs. American Attitudes Towards Taxes
TurboTax Maps Out a (Conventional) Future