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...state won't divide his political coalition; it will divide the other side. On domestic economics, Democrats up and down the class ladder mostly agree. Even among Democratic Party economists, the divide that existed during the Clinton years between deficit hawks like Robert Rubin and free spenders like Robert Reich has largely evaporated, as everyone has embraced a bigger government role. Today it's Republicans who - though more unified on cultural issues - are split badly between upscale business types who want government out of the way and pro-government conservatives who want Washington's help. If Obama moves forcefully...

Author: /time Magazine | Title: The New Liberal Order | 11/13/2008 | See Source »

...nine straight months of a national net decline in jobs, the question is whether the U.S. labor market's fortunes are about to plunge even more steeply. In the eyes of many experts, the answer is a bleak one. "Unfortunately, the worst is to come," says Robert Reich, a former U.S. Secretary of Labor under President Bill Clinton and a professor at the University of California, Berkeley. Reich argues that consumers have only begun to tighten their purse strings, which will shrink business markets and force employers to cut costs largely through payroll reductions. "We will see substantial layoffs...

Author: /time Magazine | Title: Corporate Layoffs: The Worst is Yet to Come | 11/4/2008 | See Source »

...with unemployment climbing to 8%. "As the economy slides into a deeper recession, it appears we are closer to the beginning of the labor market downturn than the end," wrote the study's co-author, economist Ed McKelvey. "We anticipate a sharper decline in employment in coming months." Reich also quotes 8% as a likely unemployment figure, though he notes that figure excludes job seekers who have given up searching altogether and part-time workers seeking full-time employment. With those segments of the population added, the figure could skyrocket to 12%, according to Reich...

Author: /time Magazine | Title: Corporate Layoffs: The Worst is Yet to Come | 11/4/2008 | See Source »

...Goldman report suggests that over the next year, "lagging" sectors of the economy - like construction, manufacturing, financial services and retail - are likely to incur many of the coming losses. According to the Bureau of Labor Statistics, some of these sectors already have seen deep cuts of late. Reich says all industries that rely on discretionary spending are at risk, while regions where at-risk industries once thrived could be battered. Dwindling housing and construction markets could cripple the Sun Belt; hospitality-heavy regions like Florida could suffer from a lack of tourist spending; and auto-manufacturing states like Michigan should...

Author: /time Magazine | Title: Corporate Layoffs: The Worst is Yet to Come | 11/4/2008 | See Source »

...dire prognosis, but there are bright spots. Necessities like health care will remain steady, and "Hollywood should do O.K.," Reich says, suggesting that "Americans want to be cheered...

Author: /time Magazine | Title: Corporate Layoffs: The Worst is Yet to Come | 11/4/2008 | See Source »

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