Unemployment high in March, Officials say

By Michael Ruhl, University of New Mexico – Talk Radio News Service

A day after President Barack Obama's budget was passed by a Congress boiling with partisanship, the Bureau of Labor Statistics released a report showing unemployment at its highest since 1983. There are now 13.2 million Americans out of work.

The pouring rain in Washington mirrored the sobered mood in the room, as the Joint Economic Committee heard the testimony of Keith Hall, the Commissioner of the Bureau of Labor Statistics.

March was one of the worst Months on record for unemployment, and when asked outright, Hall told the committee that there were no "bright spots" in the report.

National unemployment climbed to 8.5 percent in March, rising from the level of 8.1 percent in February and 7.6 percent in January.

Hall said that two-thirds of the job loss has happened in the past 5 months. Every state is in recession for the first time in 30 years, according to Carolyn Maloney (D-NY).

Official unemployment numbers do not encompass underemployed Americans or those who have officially left the workforce. It is reported that 16 percent of the country is out of work or underemployed. One in four of those unemployed have been out of work for more than six months, and of those, half have been looking for work for over a year, Hall said.

Maloney highlighted that last month, 8,000 jobs were lost in the news publishing industry. Those losses total 70,000 job cuts since Dec. 2007, Hall said, adding that most job losses have been see in the manufacturing, construction, and temporary services industries. The only area to see any growth in March was the Healthcare industry, Hall said.

Ranking Committee member Senator Sam Brownback (R-KA) noted that the impact of the ongoing recession was not severe for almost a year after it began in December 2007. Brownback attributed recent dramatic jumps in job losses over the past five months to the lockup in the credit markets and the government bailouts that followed.

The Federal Reserve believes that unemployment will peak at 8.8 percent this year, but Ranking House Committee Member Kevin Brady (R-TX) said that the unemployment rate is already higher than what the administration anticipated for 2009. Brady said that the Obama Administration's "optimistic assumptions" would not get the country out of its current mess.

President Obama’s Economic Stimulus package was passed by Congress earlier this year, and saw an unprecedented amount of money placed into public works meant to put people back to work. Obama has pledged the legislation will save or create three to four million jobs over the next two years.

Read the report here: Bureau of Labor Statistics Report

Will the U.S. be put in timeout at the G-20 summit?

by Christina Lovato, University of New Mexico-Talk Radio News Service


“Now the G-20 is not an easier group to get into a consensus, it’s very much harder,” said Jeremy Rabkin, a Professor of law at George Mason University School of Law.

Today at a discussion on the upcoming G-20 meeting in London, panelists expressed their concerns about the meeting, the topics that should be addressed, and the likely results from the meeting.

J.D. Foster, a Senior Fellow in the economics of fiscal policy at the Thomas Roe Institute for Economic Policy Studies of the Heritage Foundation, said there are three issues at stake in the summit, the first being stimulus spending. “Should it be an international priority? Second, international institutions.... Should entirely new institutions of global governance be created? And third, underlying the both of the first two questions is the question of sovereignty. Should nations retain the basic right to regulate their own markets even if the result is that their systems of regulation differ?" Foster also said that at the summits they take on the task of lecturing one another usually on things that they themselves are not doing very well. "In this case we hope very much that the American president, President Obama, heeds some of the lectures of his European counterparts. It is a shameful situation to find ourselves in where we hope the European leaders are effective in lecturing the American president on the dangers of debt finance but that’s where we are.” Foster went on to say that people all over the world have the right to be angry with the U.S. “The Czechs, the French, the Germans, everybody else in the world is right to be angry at the United States and other governments engaged in this sort of enormous debt finance stimulus which won’t work, but they should be more than concerned; they should be furious. They should be furious because this is going to drive up interest rates at some point.... It will be affecting global financial markets,” concluded Foster.

Desmond Lachman, a Resident Fellow at the American Enterprise Institute for Public Policy, said “Europe to me looks like it’s basically in denial. Japan has run out of policy instruments.... interest rates are at zero. China is still counting on exports, really not being flexible on its exchange rate or trying to modify its economy..... You know that I think they diagnosed the problem correctly,” he said. Lachman went on to say, “I think what they have done is executed rather poorly.” Lachman expressed that the the fiscal stimulus package was poorly designed and that the Geithner plan is not attacking the problem in the banking system, saying that the problem is not one of liquidity but of solvency.

Rabkin stated that he thinks it is very unlikely that we are going to see enhanced global governance as the outcome of G-20 deliberations and said that the G-20 group is science fiction. “The majority of these countries are poor and somewhat chaotic. The idea that you’re going to propose a elaborate system of global controls, and ‘China’ will say yeah good idea we really want people to come into our country and monitor how we do our regulation. I think it’s fantastical,” he concluded.

ICE gets slammed at Congressional Border Issues Conference

by Christina Lovato, University of New Mexico-Talk Radio News Service

“What happens on one side of the border affects the other side. Mexico and the United States are separated by a border, but both communities share a goal of helping all of our peoples,” said Speaker Nancy Pelosi at the 13th Annual U.S. - Mexico Congressional Border Issues Conference, where panelists gathered to talk about topics such as Comprehensive Immigration Reform, drug and weapon trafficking, and the Merida Initiative. 

Among the panelists was Geraldo Rivera, host of “Geraldo at Large” on the FOX News Channel who said that instead of sending troops to the U.S./Mexican border, Immigration and Customs Enforcement (ICE) needs to start focusing on catching criminals and stop raiding processing plants where people are just there to work. “The immigration debate in this country has been so poisoned, and it’s become so racist in many ways.... We have distorted policy so that it hurts our national security. We have a totally competent law enforcement agency to deal with these criminals,” Rivera said. Speaker Nancy Pelosi agreed with Rivera saying that unnecessary ICE raids are not the American way and that they must stop.

Pelosi talked about the need for comprehensive immigration reform saying that we need it soon. “It would secure our borders, it would protect our workers, it would prohibit the exploitation of workers coming into our country, it would unite our families,” she stated. Pelosi said that she is sending Congressmen to Mexico to see how our nations can work together. President Obama and Secretary of State Hillary Clinton will also be traveling to Mexico to show support. 

Rivera also expressed his support for the Dream Act, which states that undocumented young people could be eligible for a conditional path to citizenship in exchange for a mandatory two years in higher education or military service. In order for the undocumented young person to have the chance to become an American citizen, they must demonstrate good moral character to be eligible for and stay in conditional residency. Rivera said, “You want to stimulate the gross domestic product? Let’s get these Latino youngsters graduating high school.... But to take kids who are getting A’s and say they can’t get in-state tuition in college because they’re not documented, It’s preposterous, it’s un-American, it’s Anti-American.... Get Dream passed.”

Pelosi also discussed the Merida Initiative, saying that $300 million would be given to Mexico as part of the omnibus bill that was passed last week. “Every person who comes here with that determination, with that optimism, with that hope, with those family values and sense of community and spirit of faith, every person who comes here, certainly from the Hispanic community, when they come here they make America more American,” she concluded. 

Speaker Pelosi: "No more just here's the money, sit on it so that your capitalization is improved."

by Christina Lovato, University of New Mexico-Talk Radio News Service


Today in Speaker Nancy Pelosi’s weekly press conference the economy was still a big issue. Pelosi started off the conference by speaking about the deterioration of the economy and how President Obama is putting forth initiatives in just the four weeks he has been in office. “Yesterday the President put forth the details and guidelines for a housing initiative that he announced earlier. Under it 79 million of Americans over the next couple of years will be able to modify their loans, they will have the opportunity to modify or re-finance their homes, stay in their homes. Today Congress will pass legislation on housing and bankruptcy which will help some more.” she said.

Pelosi addressed the housing, regulatory reform recovery package, stating that she is very positive about it. “A package that cuts taxes for the middle class, 95% of the American people. A package that will create or save 3-4 million jobs over the next few years and a package that strives to bring stability to our economy.” she said. 

Today, President Obama is holding a health care summit and Pelosi said that healthcare costs are the biggest problem of the American people. “It’s about a healthier America, it’s about recognizing that health care reform is regulatory reform and it recognizes that health care is an economic issue.” 

The Speaker also said that she agreed with President Obama stating that we need to have fewer earmarks. “This whole thing about the Republican side about earmarks is so disingenuous...The idea is lower number, more transparency, total accountability.” she said. 

When it came down to talking about money, Pelosi said that distribution of the TARP funds must fulfill the purpose of why the money is given to them. “No more just here’s the money, sit on it so that your capitalization is improved.” When it came down to talk about the auto industry Pelosi concluded by saying, “Any money that we give to the auto industry must be considered a lifeline, not life support. This all has to be about viability of the auto industry to survive.”

Small business was big business in Geithner hearing

by Christina Lovato, University of New Mexico-Talk Radio News Service


“This is a very good budget, because it’s an honest budget...Now just because this is an honest budget does not mean that this is an easy budget. The budget presents some difficult realities, and it presents some hard choices.” said Senate Finance Committee Chairman, Max Baucus (D-Mont).

Today in the Senate Finance Committee meeting, U.S. Treasury Secretary Timothy Geithner testified and expressed why President Obama’s budget plan will work. "We are absolutely committed to working with you on how to produce a package of reforms that meets the President's broad principles in a way that is fiscally responsible for the country...We wanted to put on the table, to improve the credibility of our commitment to do this, concrete proposals that would achieve that.” Geithner stated. 

Senator Chuck Grassley (R-IA) said that in 2007 small business created 74% of new jobs. “I don’t understand why you would charge small business operators more than you would charge corporations...I want to emphasize for the Secretary over half are between 20 and 500 employees. Those larger small businesses are also businesses most likely to expand or contract depending on business conditions.” he stated.

In addition to discussions about small business, taxes, and health care reform, Geithner expressed two critical functions that the government must accomplish to get the economy back on track. “We need to make sure that banks have the resources needed to provide credit to the economy...The basic machinery necessary for credit to work in our country is broken in some respects, the pipes are clogged...So a critical second part of our program is to act directly to get credit flowing again to get those markets to start opening up. The entire small business lending market, the auto finance market, the student loan market, the consumer credit markets depend on that machinery.” Geithner concluded.