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MN Job Watch – January 23

MN Job Watch As expected, MN unemployment jumped again in December, to an official 6.9 percent. Official MN unemployment increased by 13,900 workers, which raised the total number of unemployed MN workers to 202,800. Jeff van Wychen in MN 2020 writes that is probably the highest number since the Great Depression. Employers cut 11,800 jobs in December, and November’s job loss numbers were revised upward (surprise!) to 13,366. According to the MN Department of Employment and Economic Development:

Overall, there were 2.9 unemployed workers for each job vacancy statewide. This ratio indicates that the second quarter 2008 labor market was the least favorable for job seekers during the history of the job vacancy series dating back to fourth quarter 2000.

The Strib put a hopeful headline spin on the bad news saying the report “hints slide may be nearing bottom.” Not clear to me that there’s any factual basis that conclusion.

In rare good news, despite Microsoft’s plan to cut 5,000 jobs worldwide, the software giant says it still plans to open a new software development office in the Twin Cities. Leslie Brooks Suzukamo reports in the PiPress that the office will employ fewer than the originally-planned 55 employees. It’s not clear how the worldwide job cuts will affect about 100 employees in Microsoft’s Bloomington sales office. And on another front, Session Daily reports that, “It may not be the best deal Minnesota could get, but an airline agreement will still keep thousands of jobs in the state.”

NPR’s Planet Money notes that jobless claims nationally continue to rise, with the labor market “a disaster area,” and that other indicators also point downward, with housing starts dropping and the Consumer Price Index continuing a deflationary downturn. You might think lower prices are good, but the experts say that’s not necessarily true. NPR quotes High Frequency Economics’ chief economist Carl Weinberg to explain why:

If people perceive themselves to be bogged down in a deflation, they will behave accordingly. They will defer purchases because they expect the price of a new coat or refrigerator or iPod to be lower in a few months than it is right now. Indeed, all the people in the world who are deferring house purchases rather than borrow money to buy a depreciating asset . . .are demonstrating deflationary behavior. . . . This will make the recessions in the developed market economies worse than they might have been in an environment of rising prices.

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News Day – January 23

Cut the trees and plow under the wetlands? And this time, writes Dennis Lien in the PiPress, it’s MN House DFLers who are ready to trash the environment in order to avoid changes to the flawed “Green Acres” program. Here’s a (relatively) simple explanation.

Part One: Property taxes are levied based on land value. Farmland costs less and is taxed at a lower rate than higher-priced commercial, industrial and residential property. Near urban areas, developers and speculators are willing to pay more for farmland, driving up its value and tax burden. Farmers can’t afford to pay the higher prices, and so are driven to sell, increasing urban sprawl.

Part Two: Forty years ago, the “Green Acres” law said that farmers could pay taxes based on farmland value, rather than development value, so long as they were farming the land. Most non-industrial farms, like the one I grew up on, contain a mix of land, including woods and wetlands as well as corn and soybean fields. And then, Lien writes:

Declaring that only productive farmland qualifies for the tax break, lawmakers stripped wetlands, woods and other areas from the program. Afterward, some farmers faced with large tax increases began doing things such as bulldozing their trees to make sure they could remain part of the program.

Session Daily reports that on 1/22, House Republicans tried to suspend the rules and rush through a repeal of last year’s changes without going through hearings. DFLers refused, saying they have several bills in committee, and will hold hearings, beginning next week.

Go, Robyne! In media news, Fox9 news anchor Robyne Robinson launches “Community Commitment,” a 30-minute quarterly public affairs program, on Saturday. The show will debut at 8:30 a.m. Saturday on KMSP and re-run at 11:30 a.m. Sunday WFTC, according to the PiPress. Strangely, there’s no mention of the show on the Fox Twin Cities website, and even a search doesn’t turn up a mention of the show. It is listed in the 8:30 a.m. time slot, but without any description. Not quite the way to promote your star, folks!

And in DC The economic stimulus package stumbles through Congress, and probably won’t reach President Obama’s desk until mid-February, as Republicans and Democrats debate the amount of money to put in it and how much of that money should go to tax cuts rather than jobs programs or other direct government spending. In MinnPost, Steve Berg says MNDOT “is busy figuring out how best to spend the gusher of cash soon expected from the Obama administration’s recovery plan.”

The International Herald Tribune reports that President Obama took action Wednesday on the Iraq front, quoting a presidential statement that said, in part, “I asked the military leadership to engage in additional planning necessary to execute a responsible military drawdown from Iraq.”

BusinessGreen.com reported on the environmental front, “In a traditional game of political whack-a-mole, the Obama White House has moved quickly to freeze all pending regulations proposed by the former president’s administration, including president Bush’s attempts to roll back large swathes of environmental legislation.” The Bush administration finalized 157 “midnight regulations” in its final quarter, and either lengthy and onerous reverse rule-making procedures or Congressional action will be necessary to roll back any of these regs, which include controversial environmental deregulation as well as restrictions on women’s rights to medical care.

In other early moves, the NYT details President Obama’s moves to open up information flows from the White House, freeze staff salaries, and strengthen ethics rules.

What’s going on in DR Congo? There may not be much MN connection with the Democratic Republic of Congo, but I want to understand what is happening there, so I read and write about it. This blog noted a few days ago that the Lord’s Resistance Army has massacred hundreds of people in the Democratic Republic of Congo. The LRA is active in the northeast region of Congo, but that is only one front in Congo’s wars. Today’s major developments come in the southeast, where Rwandan and Congolese troops fight Hutu and Tutsi rebels.

BBC explains that the Congolese Tutsi rebel CNDP (National Congress for the Defence of the People), which declared a ceasefire last week, has long insisted that the Hutu rebels of the Democratic Forces for the Liberation of Rwanda (FDLR), are targeting Congolese Tutsis. However, the CNDP itself stands accused by the United Nations of massacres and abuses under the leadership of “megalomaniacal” General Laurent Nkunda. The conflict and the militias spilled over from neighboring Rwanda after the 1994 genocide in which Rwandan Hutus slaughtered more than 800,000 people, mostly Tutsis. The Rwandan government has been accused of supporting Nkunda’s forces.

Last week the National Congress for the Defence of the People (CNDP) last week declared a ceasefire in its long-standing war with Rwandan Hutu rebels of the Democratic Forces for the Liberation of Rwanda (FDLR). Some CNDP members rejected Nkunda’s leadership and left his command.

Today, the NYT reports, Rwandan and Congo troops worked together to capture Nkunda. Rwandan troops were sent into Congo to pursue Nkunda, though he, like Rwanda’s government, is Tutsi. The NYT explains:

“Rwanda and Congo have cut a deal,” said John Prendergast, a founder of the Washington-based Enough Project, which campaigns against genocide. He said Congo had allowed Rwanda to send in troops to vanquish the Hutu militants, something Rwanda has been eager to do for some time.

“In exchange, the Congolese expected Rwanda to neutralize Nkunda and his overly ambitious agenda,” Mr. Prendergast said. “Now the hard part begins.”

Now, says BBC, the “next step is for the joint Congolese-Rwandan force to tackle the FDLR Hutu rebels,” some of whom were involved in the 1994 Rwanda genocide.

Signs of hope NWAF’s Horizons project is sowing hope in small towns such as Evansville, Hoffman and New York Mills, reports Echo Press in Alexandria:

Always on the lookout for ways to help her town, Muriel Krusemark, Hoffman’s economic development authority coordinator, said she and several other local residents decided to apply for Horizons after hearing about the positive impact it had on nearby New York Mills, a past program participant. …

New businesses are opening up in town, she said, and the city recently finished a Main Street Galleria with space for 23 local retailers. …

Krusemark said Hoffman residents also have plans for a community garden, a computer and communication center and a mentorship program for local youth, as well as other projects.

“If we accomplish half the things we have on our list, it will be a way better community to live in,” she said. “With the people we have on these committees, I can’t believe we won’t accomplish at least half these things.”

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News Day January 7

(Not) teaching English already? Education Week magazine finds that Minnesota lacks enough ESL teachers, the Strib reports, with a ratio of 49 students to each ESL teacher, compared to a national 19 to 1 average. That’s critical, since Minnesota’s ESL student population doubled, growing from 30,000 in 1995 to 61,000 in 2005, according to Education Commissioner Alice Seagren. In suburban Anoka-Hennepin, the state’s largest district, ESL enrollment has gone from 118 students 15 years ago to 3,200 today. In contrast to today’s push for all immigrants to learn English yesterday, the Hispanic Fanatic notes a recent University of Wisconsin study showing that a century ago “many immigrants felt no need to learn English at all, much less quickly, and that some of them, in the words of the researchers, ‘appeared to live and thrive for decades while speaking exclusively German.'”

Kudos to MinnPost for adding a DC correspondent, Cynthia Dizikes. That makes two for MN, with the other spot occupied by the Strib’s Kevin Diaz. Minnesota may have only one senator at the moment, but we have eight congressional reps, and now two whole reporters to cover the crowd.

Maybe we should move to NoDak. MPR reports that North Dakota has a $1.2 billion budget surplus and Governor John Hoeven is planning both tax cuts and increased state spending. (He also wants to keep a budget reserve of at least $600 million, noting that the state is not immune to the national economic recession.)

Okay to discriminate. The Minnesota Court of Appeals agreed that a lesbian couple raising two daughters can be denied family membership in a Rochester health club, reports the Strib. No gay marriage, no equal rights: 2009 repeats 2008 repeats 2007 …

“It’s a nightmare, dude.” Both the Strib and the PiPress devote major column inches to the Minnesota Fatal Attraction story of a former “female friend” who trashed her ex’s apartment, pouring paint over walls and into computer and toilet and even impaling his daughter’s teddy bear on a steak knife. The case should be easy to make — she posted photos on her MySpace account.

Their ex-prime minister trumps our president-elect. TPM has the Blair House answer we have been waiting for: King George Bush II said president-elect Obama and his family can’t stay in the official guest house while awaiting the inauguration (and getting daughters in school and naming cabinet members and handling the rest of the transition business) because, in the waning moments of the reign of George II, he is “hosting former Australian Prime Minister John Howard, and will be giving him the Presidential Medal of Freedom. Fun fact about Howard: He is a staunch Iraq War supporter who said in early 2007 that if he were in al-Qaeda he would be praying as much as possible for an Obama victory and for the Democrats in general.”

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