North Carolina Newspapers

FORUM The Real Deal on Recession Dr. Julianne Malveaux Guest Columnist Is our economy in a reces sion or not? And does it mat ter if the material conditions of many Americans have worsened, especially this year? The squabbling among economists - which is partly a result of the fact that different people use different defini tions to define recessions - offers little comfort to the consumer trying to make ends meet. Technically, a recession is a contraction in the business cycle. One definition says that GDP (gross domestic product) growth has to be negative two or more quarters in a row to declare a recession. .But another definition sayfc that when economic activity declines, or when indicators like unemployment, income, sales, construction, and pro duction go down, we are in a recession. If the second defi nition is used, despite positive (but decreased) GDP growth, we are in a recession. And if things continue, we may be talking depression. The ec9nomy is like an aging boxer taking body blows from an agile newcom er. There is rarely a headline that favors this economy: Construction is down, unem ployment is up, inflation is up. GDP is growing at around 2 percent, there is a foreclo sure crisis, a credit crisis, an energy crisis, food prices up by 5 percent this year and gasoline prices up by more than 20 percent. Does that sound like a recession or what? And if it doesn't, what should we call it? Economic hard times? To be sure, there are a few consumers who are living their lives like it's golden. There are a few consumers who don't have to worry about the contractions in the business cycle because they are profiteering. There are Fortune 500 CEOs who will lose their job and get a seven or eight figure package to gild their exit. And then there are people who are being laid off and being told to go see if they qualify for unemploy ment. Meanwhile, our economy is shedding jobs, generating fewer jobs every month this year. And hundreds of thou sands of Americans, despite helping legislation, fear that they may lose their homes due to foreclosure. The conversa tion that economists should be having ought to be about how to get out of this mess, not what to call it. Some legislators think the only way to fo is to continue the Bush tax cuts, though those cuts have not done any thing for anybody until now. Others would offer incentives and stimulus, but so broadly distributed that those who need the most help won't get it. Too many are shackled by the short run, and they need to dig in for the long haul. In other words, a stimulus pack age that includes K-12 school construction, subsidies for higher education, especially HBCUs (yes, I'm self-inter ested here), and a job training program for those inner city folks who are stuck at the periphery of the economy makes sense. Well-meaning legislators never quite get around to suggesting these kinds of stimulus measures because some believe that their colleagues won't support help to the most needy. If we look at the poor, at inner city folk, at people of color, at immigrants, at the people who lack health insur ance, housing assurance, food security, and employment possibilities, we find a group of people who are so much more distressed than the aver age American that it is fright ening. To be sure, this economy is kicking lots of folks to the curb, but there are some who have no curb, even, to be kicked to. Congress has recessed without paying spe cial attention tfef the most impoverished among us. And economists are debat ing recession. While the news cycle seems obsessed with political trivia (who cares about Paris Hilton), there are real stories that should be told about ways people are managing the economy. . What can we say about the renter whose bills are up thanks, to an increase in ener gy prices? Or the laid off worker who has to hit pension funds to make ends meet? Few want to tell these stories because people are more interested in gossip than eco nomic news. Especially when it's bad news. Recession, any one? Jujianne Malveaux is an economist and president of Bennett College for Women. She can be reached at presof fice@bennett.edu. We Are Making History Marc Morial Guest Columnist The 2008 National Urban League annual conference is now history. But, as our chair man, John D. Hofmeister, so eloquently put it, we were in Orlando from July 30 to August 2 to make history and we did. Several thousand atten dees from every corner of this country joined with us to renew our commitment to the movement, develop new strategies for the 21st century, and challenge the current Administration and the pre sumptive presidential nomi nees to make the development of an urban agenda a top national priority. We did it with an impres sive array of plenary sessions and workshops which explored the wide range of issues pertinent to urban America - from the loss of jobs, to the mortgage foreclo sure crisis, to the dire condi tion of public education, to the special challenges facing African American women. I want to personally thank q everyone who attended the conference, especially Senators John McCain and Barack Obama. Both presi dential candidates devoted extensive time sharing their views about how they would move the country forward during the next four years. They also took some tough questions and engaged in a dialogue with us about the needs and importance of urban America . I am happy to report that while we never endorse polit ical candidates, both Senators McCain and Obama endorsed the National Urban League and the objectives of our Opportunity Compact. The Compact is a compre hensive set of principles and policy recommendations designed to empower all Americans to be full partici pants in the economic and social mainstream of this nation. The four cornerstones of the Opportunity Compact are: The Opportunity to Thrive, Earn, Own and Prosper. While both candidates impressed the Urban League audience with their commit Chairman Hofmeister ment to build a stronger America, it was clear that they have very different views about how to get there. They both agreed that fix ing our broken public educa tion system is key to healing what ails our cities. But, Senator McCain touted the benefits of private school vouchers while Senator Obama argued that rather than using public money for pri vate education, we need to demand more resources and more accountability for public schools. Senator Obama sup ports targeted use of Affirmative Action, while Senator McCain objects to what he calls "quotas." One of their biggest divides is over war spending. Senator Obama argued that the tens of millions of dollars we are spending on the war in Iraq could be best spent here at home improving our schools, rebuilding our infra structure and creating "green' jobs. Senator McCain insisted that the surge, which he sup ported. has reduced casualties and given the United States the best chance for victory. There is so much more I want to tell you about the 2008 National Urban League con ference. Fortunately, much of it, including the full speeches and dialogues with Senators McCain and Obama are now available via web cast at www.NUL.org. The confer ence proceedings and the dia logue with the candidates will be a valuable tool as you make your voting decisions this November. i Marc H. Morial is presi dent and CEO of the National Urban League. The Chronicle, the Choice for African-American Newt, la located at <17 N. Liberty Street Winston -Salem, NC 27101 336-722-8624 Fax - 336-723-9173 ? news?wschroniclexom www.wschronicU.com The Chronicle was established by Ernest Pitt and Ndubisi Egemonye in 1974, and is published every Thursday by Winston-Salem Chronicle Publishing Co., Inc. The Chronicle is a proud member of : " National Newspapers Publishers Association ?' North Carolina Press Association ? North Carolina Black Publishers Association ? Inland Press Association The i V//H- ; v{ Home Delivery Subscription Order o YES, Please send me The Chronicle o 2 years: $40.95 o I year: $.10.72 o 6 months: $20.48 O Visa O Mastercard 0 American Express O Check enclosed 0 Please bill me hxpirtfion Dale Send TO: The Chronicle, P.O. Bo* 1636, Winston-Salem, NC 27102 SifiMlurr Business Office Ui-Ult, exL 100 Pauutte Moo?f Business Office 723-4421, txt III Andufa Mos<?< i Sharon S Dobbins. ChFCS ' 336-431 -W05 PLANNING TO RETIRE SOON? Congratulation!! 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Winston-Salem, NC 27101 (-'-'O) /O I -0222 The Teaching Fellows Scholarship Program awards $26, 000. 00 scholarships to 500 of NC 's best and brightest graduating high school students each year at one of eighteen colleges and universities. The scholarship provides an enriched preparation program which helps them become highly qualified teachers. 2008-09 applications will be available online from August 15th through October if1! TEAOflNG For more information visit BELLOWS mm teachintfellows. ors PETS MADE EASY. USA.gov 1 (800) FED-INFO GOVERNMENT MADE EASY. t Your official source for federal, state and local government info.