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...What Summers proceeded to offer was, in fact, an unusually candid insight. And though couched in jargon, it was an insider's confession of why our present economic moment is fraught with both danger and opportunity. There appears to be, Summers told the suddenly very attentive crowd, a strange bit of physics working itself out in our economy. The problem is related to a hiccup in an economic rule called Okun's law. First mooted by economist Arthur Okun in 1962, the law (it's really more of a rule of thumb) says that when the economy grows, it produces...

Author: /time Magazine | Title: Jobless in America: Is Double-Digit Unemployment Here to Stay? | 9/11/2009 | See Source »

...Labor Conundrum The speed of America's now historic employment contraction reflects how puzzling this economic slide has been. Recall that the crisis has included assurances from the chairman of the Federal Reserve that it was over when in fact it was just getting started and a confession from a former Fed chairman that much of what he thought was true for decades now appears to be wrong. Nowhere is this bafflement clearer than in the area of employment. (See 10 things to buy during the recession...

Author: /time Magazine | Title: Jobless in America: Is Double-Digit Unemployment Here to Stay? | 9/11/2009 | See Source »

...afford to wait. The longer someone is unemployed, the harder it is to get back to work, a fact as true for the nation as it is for you and me. As the Peterson Institute's Jacob Kirkegaard explains, "It is entirely possible that what started as a cyclical rise in unemployment could end up as an entrenched problem." Past crises have illustrated that lesson: the longer you wait, the harder it is to contain. This is as true for joblessness as it was for subprime mortgages, al-Qaeda and computer viruses...

Author: /time Magazine | Title: Jobless in America: Is Double-Digit Unemployment Here to Stay? | 9/11/2009 | See Source »

Cash for Clunker Careers What to do? If your goal is to create jobs, you have two choices - and one painful fact - to confront. The painful fact is that the 1930s option, to have the government directly employ millions of people in labor fronts, is not an option today. "There's no way to create real jobs using this approach," says Harvard professor Roberto Mangabeira Unger. In the 1930s, you could throw 10,000 people with shovels at dam or road projects. Today the work of 10,000 shovels is done by a few machines...

Author: /time Magazine | Title: Jobless in America: Is Double-Digit Unemployment Here to Stay? | 9/11/2009 | See Source »

...Unni says framing the attacks in a purely racial context masks the fact that, on the whole, Indian students have found Australia a safe country to study and work in, though he adds many Australians have yet to adapt to the reality that the formerly white nation has become a diverse, multicultural society. Luthra believes the Indian media went overboard in emphasizing the racial motivation of the assaults, and as a result, "Australia has picked up a tag as a racist country in India." That perception has further damaged a relationship already strained by the fallout over the Mohamed Haneef...

Author: /time Magazine | Title: Australia: Attacks on Indian Students Raise Racism Cries | 9/10/2009 | See Source »

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