America's Two Economies

America's Two Economies, and Why One Is Recovering and the Other Isn't
By Robert Reich
Robert Reich's Blog

Next time you hear an economist or denizen of Wall Street talk about how the "American economy" is doing these days, watch your wallet.

There are two American economies. One is on the mend. The other is still coming apart.

The one that's mending is America's Big Money economy. It's comprised of Wall Street traders, big investors, and top professionals and corporate executives.

The Big Money economy is doing well these days. That's partly thanks to Ben Bernanke, whose Fed is keeping interest rates near zero by printing money as fast as it dare. It's essentially free money to America's Big Money economy.

Free money can almost always be put to uses that create more of it. Big corporations are buying back their shares of stock, thereby boosting corporate earnings. They're merging and acquiring other companies.

And they're going abroad in search of customers.

The Dow Jones Industrial Average is back to where it was before the Lehman bankruptcy filing triggered the financial collapse. And profits at America's largest corporations are heading upward.

But there's another American economy, and it's not on the mend. Call it the Average Worker economy.

Last Friday's jobs report showed 159,000 new private-sector jobs in October. That's better than previous months. But 125,000 net new jobs are needed just to keep up with the growth of the American labor force. So another way of expressing what happened to jobs in October is to say 34,000 were added over what we need just to stay even.

Yet the American economy has lost 15 million jobs since the start of the Great Recession. And if you add in the growth of the labor force - including everyone too discouraged to look for a job - we're down about 22 million.

Or to put it another way, we're still getting nowhere on jobs.

One out of eight breadwinners is still out of work. Most families in the Average Worker economy rely on two breadwinners. So if one out of eight isn't working, chances are high that family incomes are down compared to what they were three years ago.

And that means the bills aren't getting paid.

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Vatican synod calls for end to Israel’s ‘occupation’

At conference on Christians in the Middle East, US Melkite archbishop says: "There is no longer a chosen people."
By Lisa Palmieri-Billig
Jerusalem Post Correspondent

ROME – Bishops from the Middle East who were summoned to Rome by the pope demanded on Saturday that Israel accept UN resolutions calling for an end to its “occupation” of Arab lands.

In a final joint communique, the bishops also told Israel it shouldn’t use the Bible to justify “injustices” against the Palestinians.

The bishops issued the statement at the close of their two-week meeting, called by Pope Benedict XVI to discuss the plight of Christians in the Middle East amid a major exodus of the faithful from the region.

The Catholic Church has long been a minority in the largely Muslim region but its presence is shrinking further as a result of war, conflict, discrimination and economic problems.

“The Holy Scriptures cannot be used to justify the return of Jews to Israel and the displacement of the Palestinians, to justify the occupation by Israel of Palestinian lands,” Monsignor Cyril Salim Bustros, Greek Melkite archbishop of Our Lady of the Annunciation in Boston, Massachusetts, and president of the “Commission for the Message,” said at Saturday’s Vatican press conference.

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