With unemployment above 9 percent for more than two years, policymakers are grappling with how to create jobs. But many proposals, such as more fiscal stimulus, temporary tax breaks, and subsidies for private hiring, may not have the punch that their supporters hope. The cover story in the latest issue of Region Focus magazine looks at these and other job-creation concepts.
Also in this issue:
• The Dodd-Frank Act and Insolvency 2.0. The 2010 Wall Street reform law gives regulators the power to pull the plug on large financial companies in trouble—even if their shareholders want them to live. How will the law work?
• A New Kind of Farm. Western North Carolina once depended on tobacco and cotton farms. Now server farms owned by such companies as Google, Apple, and Facebook are locating there. What do the companies like so much about this largely rural area?
• Wartime Wilmington. Wilmington, N.C., was a hotbed of defense activity during World War II, especially in shipbuilding. It took all of the city's resourcefulness to cope with the population boom, including more than 550 German prisoners of war.
• Interview on education reform with Derek Neal of the University of Chicago.
Region Focus covers the economy and business activities of the Fed's Fifth District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
For free copies of Region Focus, contact the Bank's Research Publications division at (800) 322-0565. The articles are available online at http://www.richmondfed.org/publications.
The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.