Without a major economic stimulus plan, "the shortfall in the nation's output relative to its potential would be the largest - in terms of both length and depth - since the Depression of the 1930s," said new CBO Director Douglas Elmendorf in testimony prepared for the House Budget Committee.
With the bill, CBO figured economic output would be between 1.3 percent and 3.6 percent higher at the end of this year, higher by a similar amount at the end of 2010 and even higher in 2011.
The help is needed to reverse a downturn that CBO estimates will easily surpass the 1981-82 and 1873-74 recessions, each of which last 16 months, by mid-year.
"It could also be the deepest recession during the postwar period in terms of the difference between actual and potential output," Elmendorf said. By his estimates, output over the next two years will average 6.8 percent below normal.
Results tagged “Economic collapse” from The Slug
NASHVILLE - Beginning Thursday, Jan. 29, Tennessee workers will have another means for filing initial claims for unemployment insurance. This new service is a temporary measure to help relieve the state's overloaded telephone network for processing claims.
"In addition to using telephone, Internet, or paper claims forms, claimants will now be able to go to one of 22 Career Centers across the state to take part in a small group session to file their claim," said Labor & Workforce Development Commissioner James Neeley. "Our phone lines have been overwhelmed by the volume of claims we are processing. Offering another means for filing initial claims will help us serve those who have lost their jobs more efficiently."
During the meetings claimants will complete their required forms and learn how to certify their eligibility on a weekly basis, either online or by phone. Weekly eligibility certification is required as long as they are receiving unemployment benefits. At the end of the session, staff will review and process the claims onsite.
Commissioner Neeley emphasized the new option is limited to those who are filing simple lack-of-work claims. Other types of claims, such as voluntary quit or discharge, will not be processed in these sessions.
In order to file during a group meeting, the claimant must have been laid off from his job due to lack of work and must have a separation notice or letter from the employer stating that the separation was because of lack of work or reduction in force (sometimes written as furloughed).
Tennessee employers are urged to provide each of their employees a separation notice stating separation due to lack of work. The separation notice form can be found at www.state.tn.us/labor-wfd/Employers/forms/LB-0489.pdf.
Mass claims sessions will be held at 8:30 a.m. and 1:30 p.m. local time on Mondays and Thursdays and at 8:30 a.m. on Fridays. It is not necessary to make an appointment. Meeting rooms will accommodate a limited number of claimants. Weekly mass claims sessions will continue as long as necessary.
Knoxville's is at 1610 University Ave. Have at it.
Student senators from the Student Government Association Students for a Just University caucus, as well as representatives of Progressive Student Alliance and UT Alumni for a Living Wage, will begin the drive on the newly renovated 8th floor of Andy Holt Tower, where UT administration has its offices, by meeting with President John Petersen at 1pm.
"We hope that President Petersen will be the first on the list, sending a clear message that he's fighting hard to save UT and make up for the budget cuts," says sophomore Karen Principe of PSA. "At the very least we want to talk to him about developing a strategy to get some of that money so we can stabilize tuition, keep classes open and departments running, and especially save jobs."
And, on Wednesday, members of the staff faculty union, the United Campus Workers, are planning a rally to demand additional federal funding for higher ed.
UT EMPLOYEES AND STUDENTS RALLY TO SUPPORT TENNESSEE'S ECONOMY - SAVE
Knoxville, TN--United Campus Workers is planning a rally of UT staff,
faculty, students, and community members on Wednesday, January 28 at 4:30
p.m. along Cumberland Avenue outside the College of Law. The rally will
highlight the need for federal assistance to support our state economy by
saving public higher education.
In the coming weeks, Congress will consider a national stimulus package,
and members of the Tennessee General Assembly and Congressional delegation
must ensure that these monies support public higher education and its
promise of good jobs and economic development for all of Tennessee's
citizens. Tom Anderson, UT staff member and UCW-CWA President said, "We
have seen the federal government give bailouts to the financial-services
industry, and now Congress and President-Elect Obama have started work on
a much-needed stimulus package to help average Americans. Any stimulus
must include help for state budgets facing major shortfalls, and during an
economic recession higher education has to be a top funding priority."
Nonfarm payroll employment declined sharply in December, and the unemployment
rate rose from 6.8 to 7.2 percent, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today. Payroll employment fell by 524,000 over the
month and by 1.9 million over the last 4 months of 2008. In December, job losses
were large and widespread across most major industry sectors.
This news came the same day as President-Elect Obama's calls for an $800 billion stimulus package, which would include a middle-class tax cut as well as increased federal spending on education, infrastructure, and alternative energy. The plan has so far gotten a cool reception from Congress.
According to the Labor Department's monthly jobs report, the unemployment rate rose to 6.5% from 6.1% in September and higher than economists' forecast of 6.3%. It was the highest unemployment rate since March 1994.
"There is so much bad in this report that it is hard to find any silver lining," said Morgan Keegan analyst Kevin Giddis.Come on 2008, let's see if we can beat out 1994 by the end of the year.
The fall 2008 Economic Report to the Governor was released today, and it said the path forward is nothing other than "downright ugly."
It cites housing starts at their lowest since 1945, job losses every month, and a shrinking Gross Domestic Product as indicators.
The report's authors expect the GDP to keep shrinking through the middle of 2009.
If you want to know your home's estimated value, go here, and click on Home Price Calculator.
Data from the Knoxville Area Association of Realtors show the median sale price of a three-bedroom home fell 4.4 percent in September, to $142,500.
Total residential sales fell 27.8 percent, to 931, while the average market time was 105 days.
From September 2007 to September 2008, educational and health services added 6,100 jobs. Local government educational services employment increased by 1,900. From 2007 manufacturing was down by 10,000. Professional and business services lost 6,800 jobs; leisure and hospitality lost 5,700.