Scott Hoyt, an economist at Moody’s Analytics who specializes in consumer spending, said there were two competing hypotheses as to why the savings rate had dropped. “One is that consumers have just decided that they need to spend ”” they need to replace the car, the appliance, they want a new wardrobe.” The other, he said, is that the data, which is often revised months down the road, is simply incorrect.

“There have been several times where we spent a year or more talking about a negative savings rate” ”” meaning consumers spent more than they took in ”” “only to get benchmark revisions to the data,” Mr. Hoyt said. “The savings rate’s never been negative.”

Read it all.

A former delivery driver has filed a federal lawsuit against a soft-drink bottling plant in a Chicago suburb that he said fired him shortly after he asked to time his lunch break to attend weekly prayers at a mosque.

According to the lawsuit, Nathan Henderson had worked for the American Bottling Company in Harvey for only a month in early September 2007 when his boss pulled him aside to discuss reports that Henderson was taking time to say his five daily prayers during the workday. Because those breaks lasted only a minute or two and didn’t interfere with Henderson’s work, his boss added that he didn’t have a problem with it, the suit said.

The suit alleges that when Henderson then asked permission to take his lunch break in time to correspond with the Friday Jumma prayers, the weekly congregational prayer in the Muslim faith, his superior told him he could not do so.

Read it all.

Twenge, the Generation Me author, turned me on to the existence of a concept called “locus of control.” Essentially, it’s a measure of whether you think your destiny is controlled by you or outside forces. For years, young people have increasingly placed their loci of control outside themselves, and this is true of my generation more than any yet. It seems unlikely that a global financial crisis that revealed just how deeply ingrained, intertwined, and intractable are the world’s problems is doing much to counteract that trend. Yet someone like Desi manages to place the locus of control firmly within himself, centered narrowly on his own life and the people he knows. Notwithstanding what that attitude portends for social justice (nothing good), maybe it’s the only way to feel like you are in charge of your own destiny, by focusing your lens ever tighter.

Another phrase I now can’t get out of my head is “managed decline.” It’s been batted around in the context of Europe; George Soros splashily said it about the U.S. dollar a few years ago; and Ken Layne, the Wonkette Cassandra, used it when we spoke. It also strikes me as a fairly good way of describing the process of getting older. That’s what we’re doing when we decide that we can be okay with having more unpredictable careers and more modest lifestyles, if that’s what’s in store: Even as we hold out hope that something will reverse the trajectory, we are managing our decline, we are making do.

Read it all.

…rare is the analysis that traces all these problems back to the structural change in money that was brought about in the early 1970s.

We went from a hard-money regime, in which there were restrictions on the power of central banks and financial institutions to create money and credit, to one where money became purely paper. There were no restrictions remaining on the power of governments to finance unlimited debt. Banks could create credit seemingly without limit. Central banks became the real power in the world economy.

None of this was true under a gold standard. That system limits the expansion of credit by an indelible physical fact. There was a limit, a check, a rule that went beyond the whim of financial masters and politicians. The Vatican seems to understand this.

Read it all.

[Tim] Ticknor’s story reflects how, across the nation, the middle class’ share of the nation’s income is shrinking. Reno, which has among the highest rates of unemployment and foreclosures in the United States, is a stark example: The share of income in the metro area that was collected by the middle class fell from 49.8% in 2006 to 45.8% in 2010, the year after the 18-month recession ended.

A USA TODAY analysis of Census data found the Reno area was among 150 nationwide where the share of income going to the middle class — generally made up of households that make $20,700 to $99,900 a year — shrank from 2006 to 2010. Metro areas where the middle class’ share of income dropped outnumbered those where it grew by more than 2-to-1.

“The lower share of income is a way of saying income inequality is growing in the middle,” says Paul Taylor, executive vice president of the Pew Research Center, who has studied the shift. “The vast middle has less of the pie than it had before.”

Read it all.

If start-up activity is the true engine of job creation in America, one thing is clear: our current educational system is acting as the brakes. Simply put, from kindergarten through undergraduate and grad school, you learn very few skills or attitudes that would ever help you start a business. Skills like sales, networking, creativity and comfort with failure.

No business in America ”” and therefore no job creation ”” happens without someone buying something. But most students learn nothing about sales in college; they are more likely to take a course on why sales (and capitalism) are evil.

Moreover, very few start-ups get off the ground without a wide, vibrant network of advisers and mentors, potential customers and clients, quality vendors and valuable talent to employ. You don’t learn how to network crouched over a desk studying for multiple-choice exams. You learn it outside the classroom, talking to fellow human beings face-to-face.

Read it all.

After [Education Secretary Arne] Duncan’s visit there was some back and forth between the Obama administration and Oregon City on how the money should be spent. But ultimately, the Department of Education said it should be given to teachers as direct bonuses. It also said it wanted to restrict the funds to schools with lots of low-income students, which would have excluded half of Oregon City’s schools.

Oregon City wanted to put the money into a shared fund, possibly for teachers’ continuing education.

Nancy Noice, president of the Oregon City teachers union, said one solution the feds proposed was that employees hand their bonuses back to the district. But Noice says that didn’t seem workable.

Read or listen to it all.

Emily Hatcher, 26, is working overtime to find a job.

She keeps a strict schedule. On Monday, Wednesday and Friday she spends six to eight hours applying for jobs. The other days of the week, she sharpens her skills by taking computer classes online and networking.

The college graduate with a degree in early childhood education works as a babysitter and a substitute schoolteacher….

[She]…is [also] part of a job-networking group that meets at…[Roswell United Methodist Church] every other Monday.

Read it all.

Under the current uncertainties, in a society capable of mobilizing immense means but whose cultural and moral reflection is still inadequate with regard to their use in achieving the appropriate ends, we are invited to not give in and to build above all a meaningful future for the generations to come. We should not be afraid to propose new ideas, even if they might destabilize pre-existing balances of power that prevail over the weakest. They are a seed thrown to the ground that will sprout and hurry towards bearing fruit.

As Benedict XVI exhorts us, agents on all levels ”“ social, political, economic, professional ”“ are urgently needed who have the courage to serve and to promote the common good through an upright life. Only they will succeed in living and seeing beyond the appearances of things and perceiving the gap between existing reality and untried possibilities.

Paul VI emphasized the revolutionary power of “forward-looking imagination” that can perceive the possibilities inscribed in the present and guide people towards a new future. By freeing his imagination, man frees his existence. Through an effort of community imagination, it is possible to transform not only institutions but also lifestyles and encourage a better future for all peoples.

Read it all.

The protesters have different aims in different countries. Higher taxes for the rich and a loathing of financiers is the closest thing to a common denominator, though in America polls show that popular rage against government eclipses that against Wall Street.

Yet even if the protests are small and muddled, it is dangerous to dismiss the broader rage that exists across the West. There are legitimate deep-seated grievances. Young people””and not just those on the streets””are likely to face higher taxes, less generous benefits and longer working lives than their parents. More immediately, houses are expensive, credit hard to get and jobs scarce””not just in old manufacturing industries but in the ritzier services that attract increasingly debt-laden graduates. In America 17.1% of those below 25 are out of work. Across the European Union, youth unemployment averages 20.9%. In Spain it is a staggering 46.2%. Only in Germany, the Netherlands and Austria is the rate in single digits.

It is not just the young who feel squeezed. The middle-aged face falling real wages and diminished pension rights….

Read it all.

Think life is not as good as it used to be, at least in terms of your wallet? You’d be right about that. The standard of living for Americans has fallen longer and more steeply over the past three years than at any time since the US government began recording it five decades ago.

Bottom line: The average individual now has $1,315 less in disposable income than he or she did three years ago at the onset of the Great Recession ”“ even though the recession ended, technically speaking, in mid-2009. That means less money to spend at the spa or the movies, less for vacations, new carpeting for the house, or dinner at a restaurant.

In short, it means a less vibrant economy, with more Americans spending primarily on necessities. The diminished standard of living, moreover, is squeezing the middle class, whose restlessness and discontent are evident in grass-roots movements such as the tea party and “Occupy Wall Street” and who may take out their frustrations on incumbent politicians in next year’s election.

Read it all.

Local governments, once a steady source of employment in tough economic times, are shedding jobs in unprecedented numbers, and heavy payroll losses are expected to persist into next year.

The job cuts by city and county governments are helping offset modest private-sector employment gains, restraining broader job growth.

“They’ll continue to be a drag on the overall (employment) numbers and the economy,” says Wells Fargo economist Mark Vitner.

Read it all.

Occupy Charleston is a local version of the Occupy Wall Street movement that has spread across the country. No one at this point is predicting how many people might turn out for the 99 hours of camping, music, cooking, free speech, educational events and smaller-size marches to area banks.

Read it all.

Despite the marketing pitch from the armed forces, which promises to prepare soldiers for the working world, recent veterans are more likely to be unemployed than their civilian counterparts.

Veterans who left military service in the past decade have an unemployment rate of 11.7 percent, well above the overall jobless rate of 9.1 percent, according to fresh data from the Bureau of Labor Statistics.

The elevated unemployment rate for new veterans has persisted despite repeated efforts to reduce it.

Read it all.

A specter haunts America: downward mobility. Every generation, we believe, should live better than its predecessor. By and large, Americans still embrace that promise. A Pew survey earlier this year found that 48 percent of respondents felt that their children’s living standards would exceed their own. Although that’s down from 61 percent in 2002, it’s on a par with the mid-1990s. But these expectations could be dashed. For young Americans, the future could be dimmer.

Along with jobs, the 2012 presidential election could be fought over this issue. “Can the Middle Class Be Saved?” worried a recent cover story in the Atlantic. Pessimism rises with schooling. In the Pew poll, 54 percent of respondents with a high-school diploma or less felt their children would do better; only 35 percent of graduate school alums agreed. “A kind of depression has set in,” writes Washington Post columnist Richard Cohen. “We’ve lost our mojo, our groove.”

Read it all.

The greatest challenge faced by Catholic health care workers is a “growing secularism,” said Los Angeles Archbishop Jose H. Gomez.

“This growing secularism endangers our religious freedom,” he said Oct. 8, giving the keynote address that concluded the Oct. 6-8 Catholic Medical Association’s annual conference.

The archbishop pointed to the federal Department of Health and Human Services’ mandate that health insurance plans cover contraception and sterilization.

“When we stop acknowledging our Creator, we stop acknowledging who we are,” Archbishop Gomez said. “Without God we lose our ethics and the reason for human rights.”

Read it all.

UK unemployment rose by 114,000 between June and August to 2.57 million, a 17-year high, according to official figures.

The Office for National Statistics (ONS) said the unemployment rate also increased to 8.1%.

The unemployment total for 16-24 year olds hit a record high of 991,000 in the quarter, a jobless rate of 21.3%.

Read it all.

The U.S. economy added more jobs than expected last month, and employment gains for the previous two months were revised higher, providing some hope for the weak labor market.

Nonfarm payrolls rose by 103,000 in September as the private sector added 137,000 jobs, the Labor Department said Friday in its survey of employers. Payrolls data for the previous two months were revised up by a total 99,000 to show 57,000 jobs were added in August and 127,000 jobs in July.

However, the September payrolls data was boosted by a one-time event: 45,000 telecom workers returning to their jobs following a strike at Verizon Communications Inc. in August.

Read it all.

Check it out.

Dan Tolleson, a researcher and writer with a Ph.D. in politics, has been out of work since 2009, except for brief stints as a driver. Still, he opposes President Obama’s call for Congress to renew extensions on unemployment benefits.

“They’re going to end up spending more money on unemployment benefits, while less money is coming in on tax returns,” he said, suggesting that the government should focus on measures that might encourage businesses to hire. “Far better to relax some of these outrageous regulations.”

Make no mistake ”” Mr. Tolleson, 54, has collected unemployment checks, saying he had little choice. But his objection to a policy that would probably benefit him shows just how divisive the question has become of providing a bigger safety net to the long-term jobless, a common strategy in recessions….

Read it all.

In a bold new measure intended to address unemployment among young professionals, lawmakers from across the political spectrum agreed on legislation Tuesday to subsidize the cryogenic freezing of recent college graduates until the job market recovers.

Read it all.

“Hungry” is the headline on a Craigslist post from Phoenix. In Boise: “I NEED WORK!!!” In Chicago: “Laid off vet needs to pay rent.” In Little Rock: “Please help us!!!” In Richmond, Va.: “Need a miracle.” In Oklahoma City: “Broke girl needs help fast.”

Craigslist, a network of online communities that offers free classified advertisements, is a portal into the misery of people who are struggling to find jobs. Posts from people who are desperate for work read like Haiku poems that detail hard times and fear.

Some people post sad tales that might or might not be true, and ask for cash donations or loans. Most, though, offer to do almost anything legal for pay. Need Ikea furniture assembled? The going rate is $20-$40. Need your garage organized? That will set you back as little as $10 an hour. Jobless people offer rides across town or to the airport. They’ll tend to aging parents, repair cars or replace kitchen faucets.

Read it all.

The Supreme Court on Wednesday (Oct. 5.) will hear one of most important religion cases in decades, centered on the degree to which religious institutions should be exempt from anti-discrimination laws.

The case started at a Lutheran elementary school in Michigan where a teacher claimed she was fired in violation of the Americans With Disabilities Act.

The question before the justices concerns the “ministerial exception,” a 40-year-old legal doctrine that protects churches and other religious institutions from government interference in their employment decisions.

Read it all.

The 17 European Union nations that share the euro don’t have that much time, of course, to convince investors that they have a plan to hold the currency together and prevent a run on the Continent’s banks. Some analysts say they have less than five weeks, until the Group of 20 summit meeting in November; others say a bit longer.

But rapid action comes hard to a union that works in increments, with political agreement required at every step.

In the short term, Greece remains the central problem. Two bailouts have not been enough. Greek public debt continues to mount, and so does the pressure on the government to find more revenue and make more cuts. Europe’s strategy, to the extent it can be discerned, is to put off restructuring Greece’s debt as long as possible and build up enough backing for a bailout fund so that banks with large exposure to the sovereign debt of Greece and other troubled euro-zone countries, like Portugal, Ireland, Italy and Spain, can survive an all-but-inevitable Greek default.

Read it all.

Greece’s government acknowledged Sunday that it will miss its deficit targets this year, but moved ahead with a controversial plan to slash thousands of public sector jobs to meet the demands of its international creditors.

“I want to repeat that we will be unswerving in our goal: to fulfill all that we have promised to ensure the credibility of our country,” Prime Minister George Papandreou told an extraordinary cabinet meeting called to approve the country’s 2012 draft budget as well as the job-cutting plan.

Read it all.

We’re just stuck?

If we don’t deal with it ”“ if we don’t proactively say we’re going to get our deficit under control ”“let me put it this way: My personal belief is that if we do proactively get our long-term budget issues under control, the bond market will say, “Okay, you’re credible and we will buy your bonds, because you have put yourself on a credible path ”“ whether it’s through cuts, whether it’s through tax increases, however you want to do it ”“ but you have to do it. But you have shown us a credible way to get to the place where the growth rate of your deficit is below the growth rate of nominal GDP.”

But if we don’t do that, my wine bottle of pain becomes a jeroboam and we end up downing it all at once.

That sounds ugly.

It is. It will force budget cuts; it will force tax increases of the magnitude that no one is ready to contemplate. We’re talking cuts in Medicare, cuts in education, in defense, in spending of all kinds. That would create a depression, a true depression that would last 4-5 years, push unemployment to 20%-25%….

Read it all.

Households, after all, are far more reliant on paychecks (and government benefits) now than during the credit-fueled boom. Consumer credit as a percentage of personal spending, for example, rose from 18.4% in the early 1990s to a peak of 26.3% in December 2008.

It has since dropped sharply, notes Omair Sharif of RBS Securities. But with the level still at 22.8% as of July, “we’re probably not even halfway through” the household debt-shedding process, he says.

That has two broad implications for consumer spending and, in turn, U.S. growth.

Read it all.

The Anglican Bishop of Blackburn has pledged church support for BAE Systems workers in Lancashire who are set to lose their jobs.

In Lancashire, 565 jobs will be shed from 3,970 at Samlesbury, and 843 posts will go from 6,537 at Warton.

Bishop Nicholas Reade said every Christian in the county should ask what they can do to help the BAE workers.

Read it all.

There is an optimistic scenario for the U.S. economy: Europe gets its act together. The pace of world growth quickens, igniting demand for U.S. exports. American politicians agree to a credible compromise that gives the economy a fiscal boost now and restrains deficits later. The housing market turns up. Relieved businesses hire. Relieved consumers spend.

But there are at least two unpleasant scenarios: One is that Europe becomes the epicenter of a financial earthquake on the scale of the crash of 1929 or Lehman Brothers 2008. The other is that Europe muddles through, but the U.S. stagnates for another five years, mired in slow growth, high unemployment and ugly politics.

No one would intentionally choose the second or third, yet policy makers look more likely to stumble into one of those holes than find a path to the happier ending.

Read it all.

When the unemployment rate rose in most states last month, it underscored the extent to which the deep recession, the anemic recovery and the lingering crisis of joblessness are beginning to reshape the nation’s economic map.

The once-booming South, which entered the recession with the lowest unemployment rate in the nation, is now struggling with some of the highest rates, recent data from the Bureau of Labor Statistics show.

Several Southern states ”” including South Carolina, whose 11.1 percent unemployment rate is the fourth highest in the nation ”” have higher unemployment rates than they did a year ago. Unemployment in the South is now higher than it is in the Northeast and the Midwest, which include Rust Belt states that were struggling even before the recession.

Read it all.