Economic+Policy+Briefing

Economic Policy Briefing

1. Top Five Economic Issues: [] 2. Main Economic Issue: [] [] 3. The Cause [] [] 4. Main Industries Impacted [] 5. Region Impacted [] [] 6. Demographic Impacted [] 7. Estimated Economic Cost of Current Issue [] 8. Estimated Economic Cost to Reform/Expand the Way it is Funded/Addressed [] [] [] 9. Estimated Cost (economic and human) if Not Fixed [] 10. Possible Solutions [] 11. Political Allies of Solution [] 12. Political Adversaries of Solution http://motherjones.com/blue-marble/2010/05/senators-pledge-filibuster-climate-bill-drilling
 * Unemployment
 * Inflation
 * Credit
 * Public Debt
 * Social Security Funding
 * Unemployment
 * According to Time Magazine and economist David Levy, unemployment can be caused by economic downturns, which are often a result of high gas process and high interest rates, among other things. The cause f unemployment issues are becoming more complex, and therefore more difficult to solve. Unemployment, according to Levy, is staying at a high rate due to “capital flows and deflation of assets and debt,” which lead to loss of money for large companies.
 * According the Library of Economics and Liberty, the government somewhat contributes to the unemployment by giving unemployment benefits to those out of work, including welfare and unemployment insurance.
 * Construction, Manufacturing
 * Highest Unemployment Rates in Michigan, California, Nevada. The West has highest regional unemployment.
 * In order of greatest percent unemployed to least: Teenagers, African Americans, Hispanics
 * Over the past three years (as of November 2010), unemployed Americans collected $319 billion in unemployment benefits.
 * In July 2010, a $34 billion expansion was proposed.
 * Since the Bush tax cuts were extended for two more years, it will cost $1 trillion. Extending jobless benefits are included in the tax cuts.
 * These costs include loss of lifetime earnings, loss of human capital, adverse health effects, and loss of social cohesion. Loss of earnings continues in the long run; after 15 or 20, an average of 20% of earnings are lost. Job loss can lead to increased morality; can lead to an average loss of 1 to 1.5 years in life expectancy. Parental job loss increases the probability that a child will repeat a grade by 15%.
 * A solution that was proposed in 2009 was the “No Cost Stimulus Bill.” It would create an estimated 3 million jobs by opening areas in the Outer Continental Shelf for oil drilling.
 * Senator David Vitter Of Louisiana helped propose this bill to Congress. On his website, Vitter openly supports this bill. He also mentions organizations that also support it. The organizations are: “Alliance for Worker Freedom, Americans for Tax Reform, the National Association of Manufacturers, the National Black Chamber of Commerce, and the U.S. Chamber of Commerce.”
 * Bill Nelson, a Democratic Senator from Florida, does not support any bill that expands off-shore drilling. He says; "Any proposal for offshore drilling is dead on arrival.”