Unemployment Economic Edition

I though since our economy is (almost sequentially) taking us through a course in classic economic theory I would make today a deep dive on employment and its role in the economy.

Economic Reading

If you are looking to brush up on all of your economic classics I have assembled a great economics reading list. Or, if you prefer to have all the quintessential classic economic writings in one place I recommend Michael Lewis’s The Real Price of Everything: Rediscovering the Six Classics of Economics.

Official Jobless Report

• Unemployment Insurance Weekly Claims Report [DOL.gov]

The Unemployment Headlines

• No End In Sight For US Jobless Claims [Forbes.com]
• Jobless Claims Highest Since Sept 11 Attacks [CNNMoney.com]
• Jobless Claims at Highest Level Since 1983 [BloggingStocks]

Modern (Even Nobel Prize Winning) Economist Weigh In

• Krugman is Dusting off His Depression Economic Theories [NYTimes.com]

We are already, however, well into the realm of what I call depression economics. By that I mean a state of affairs like that of the 1930s in which the usual tools of economic policy — above all, the Federal Reserve’s ability to pump up the economy by cutting interest rates — have lost all traction. When depression economics prevails, the usual rules of economic policy no longer apply: virtue becomes vice, caution is risky and prudence is folly.

• Mark J Perry Thinks We are Not Quite to Depression Talk, Yet [Carpe Diem]

Under the consensus assumptions of the WSJ panel of 55 forecasters about the coming economic conditions in 2009, the comparisons to the 1930s and the Great Depression seem fantastic, exaggerated and alarming. As I mentioned before: only until we experience a 9% jobless rate like the 1970s, or the double-digit jobless rates of the 1980s, or the 7.8% jobless rate of 1991, should we start making comparisons to the 1930s.

Let’s Take a Look at Main Street

There is certainly more to the story than just people out of jobs. Current unemployment rates are already hitting municipalities and bankrupting State unemployment insurance funds…more Federal tax dollars.

• Chicago Prepares For Mass Layoffs: Mayor Daly [Mish's Global Economic Trend Analysis]
• Ohio’s Jobless Benefits Fund Running Dry [Plain Dealer]
• Florida Faces Ugly Unemployment Situation [MyFoxTampaBay]
• Michigan’s Unemployment Fund is Insolvent [Chicago Tribune]

Recession Proof Jobs

Looking for a recession proof job or industry? Maybe even one that thrives in recession?

• Recession Proof Jobs [Economics Help]

Just Remember We Have Come Through This Before, In the “History of the World”

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I am Bill Rice the Managing Editor of MortgageLoan.com. These are my morning notes. If you have comments, feedback, or pointers to something interesting email me or follow me on Twitter.

(photo credit: Ed.ward)