Hear: Staring At The Job Market

Seen at a Brooklyn hot dog shop.

Bronwen Stine

 

Today on Planet Money:

-- Pam Olson in Centerville, Ohio, checks in with a Planet Money indicator.

-- Roger Lowenstein's While America Aged sees doom in the pension system. Mike Pesca reads it for you.

-- Economist House Call! Renee Edlund, 26 and living in Houston, takes a hard look at the job market with help from economist Simon Johnson of Baseline Scenario.

Download the podcast; or subscribe. Intro music: Alphabeat's "Fantastic Six." Find us: Twitter/ Facebook/ Flickr.

-- Laura Conaway

3:32 PM ET | permalink

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Maybe Decaf This Morning

A big headline this morning : U.S. Auto Sales Fell 36% last month. I think headlines like that are a little unfair. It's a 36% drop when compared to last December. That's a smart comparison in steadier times. But auto sales were just as bad last month, down 36.7% compared to a year before. So are we going to keep writing headlines for the next ten months saying "Auto Sales Down 30%"?

And here's an economic indicator for you; there's less mail flowing through the U.S. Postal system.

Meanwhile, the auto repair business in Branson, Missouri is thriving.

The Planet Money minds are gathering here in DC today so we won't be tending the blog, but check back this evening -- we have a good podcast for you that includes our first ever Planet Money book review, which I'm sure will not be the usual affair since Mike Pesca did it.

-- David Kestenbaum

9:38 AM ET | permalink

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Do YOU Owe Madoff Money?

The folks combing through Bernard Madoff's books to see how much money is left have reportedly found about $830 million. And they're looking for more.

Letters went out to over 8,000 people who might have been customers. Most of them will of course be trying to recover some part of their investment.

But the form also has a section for investors who might owe money to the guy who allegedly took everyone else's money.

"c. If you wish to repay the Debit Balance,
please insert the amount you wish to repay and
attach a check payable to "Irving H. Picard, Esq.,
Trustee for Bernard L. Madoff Investment Securities LLC."
If you wish to make a payment, it must be enclosed
with this claim form. $__________________"

Wonder if they'll get any checks.

-- David Kestenbaum

9:02 AM ET | permalink

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Hear: If FDR Had Done Nothing

Freezing in Allston, Mass.

Grandwazoo/Planet Money Flickr group

 

Today on Planet Money:

With the incoming Obama administration planning a $700 billion economic stimulus, the question now is whether a wave of government spending will revive the economy.

For answers, we turn to the example of President Franklin Delano Roosevelt. If you're like me, you first encountered FDR in history class as the hero of the Great Depression. Lately, though, some people have renewed debate over whether FDR and the New Deal saved America or made matters worse.

We'll start with historian Eric Rauchway, who considers a world in which FDR had done nothing.

Bonus: Rauchway's got a blog and a new book, The Great Depression and the New Deal: A Very Short Introduction.

Download the podcast; or subscribe. Intro music: Paramore's "I Caught Myself." Find us: Twitter/ Facebook/ Flickr.

-- Laura Conaway

4:48 PM ET | permalink

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You've Got Maille

Click for bigger image.

Ben Hatke

 

Ben Hatke, an illustrator, sent this over today. He first posted it back in October, with the idea that fashion might become a silver lining. Me, I'm holding out for a Great Recession t-shirt.

-- Laura Conaway

3:52 PM ET | permalink

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'Not A Tax Cut!'

Economist Russell Roberts battled his way through our Friday podcast, arguing against a federal stimulus package to revive the economy. Now Roberts is back, on his own blog, where he tees off on President-elect Barack Obama's proposed tax cuts.

Roberts writes:

"[A]n increase in spending coupled with lower tax collections is an INCREASE in taxes. AN INCREASE in taxes. NOT A TAX CUT. If I spend more money and collect less, the government is promising to collect more taxes in the future. It is not a tax cut. Not a tax cut. Not a tax cut. And when you don't cut rates but rather give people a lump sum of $500, there are no incentive effects other than to increase the probability that the US Treasury will be unable to honor its obligations in the future."

-- Laura Conaway

3:34 PM ET | permalink

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As Goes Real Estate . . .

The smart folks at Calculated Risk take a look this week at the connection between unemployment and sales of new homes.

Typically, new home sales bottom out during a recession and then start growing at least three months before the worst is over. Unemployment, on the other hand, can peak as late as a year after the recession ends. That makes sense, because companies start hiring once they feel confident that business will keep growing.

So far, so good, right? Calculated Risk says this is not your typical recession. Right now, we've still got falling home sales and rising unemployment. What we'll have next, they write, could be anyone's guess.

-- Laura Conaway

3:08 PM ET | permalink

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Cooking For The Recession

I've got the recession on my mind today -- and so, apparently, do any number of you.

Twitter pal @olevia sends this bit about the ways in which recessions tend to make us healthier.

Meanwhile, Claire in Northern California reports that her husband's talking about a possible pay cut. She says the same thing we always say at my house -- break out the rice and beans.

-- Laura Conaway

1:59 PM ET | permalink

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Recession Attire

Pam Olson sends this "3 Suits for the Price of 1!" ad from Centerville, Ohio. Pam says:

Look what came in the mail last weekend! Thought you might want to add this to your list of indicators. If you had a job, a job where you needed to wear a suit, these deflationary times have got you covered!

(See the ad after the jump.)

Continue reading "Recession Attire " »

-- Caitlin Kenney

11:25 AM ET | permalink

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The Layoff Guarantee

With economists expecting really, really bad numbers on job losses this week, Hyundai's offering a deal: Buy or lease a car, and if you lose your income, the dealership will take the car back.

Among the asterisks: The offer's good for up to $7,500 of what you owe.

(Thanks, Shannon and Aimee.)

-- Laura Conaway

11:19 AM ET | permalink

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