• A tale of two recoveries, By Michael A. Fletcher, August 27, 2010, Washington Post: “The massive government effort to repair the damage from Hurricane Katrina is fostering a stark divide as the state governments in Louisiana and Mississippi structured the rebuilding programs in ways that often offered the most help to the most affluent residents. The result, advocates say, has been an uneven recovery, with whites and middle-class people more likely than blacks and low-income people to have rebuilt their lives in the five years since the horrific storm…”
• On Katrina anniversary, recovery takes hold, By Campbell Robertson, August 27, 2010, New York Times: “This city, not that long ago, appeared to be lost. Only five years have passed since corpses were floating through the streets, since hundreds of thousands of survivors sat in hotel rooms and shelters and the homes of relatives, learning from news footage that they were among the ranks of the homeless. For most of the last year, in many parts of the city, the waters finally seemed to be receding. In November, a federal judge ruled that much of the flooding after Hurricane Katrina was a result of the negligence of the Army Corps of Engineers, vindicating New Orleanians, who had hammered this gospel for four years. In January, the federal government cleared the way for nearly half a billion dollars in reimbursement for the city’s main public hospital, an acceleration of funds that led to the announcement this week that nearly two billion more would be coming in a lump-sum settlement for city schools…”
• Billions in Katrina relief funds still unspent, By Geoff Pender, August 27, 2010, Miami Herald: “More than a quarter of the $20 billion in Housing and Urban Development relief funds earmarked for Gulf states after Katrina remains unspent five years after the storm, a fact noticed by at least one congressional leader eager to spend it elsewhere. In June, U.S. Sen. Tom Coburn of Oklahoma, the top Republican on the Permanent Subcommittee on Investigations, ordered data from the Department of Housing and Urban Development into how much remains unspent from the more than $20 billion in Community Development Block Grant hurricane relief funds earmarked for Gulf states after the 2005 storms. The answer: about $5.4 billion, including $3 billion of the $13 billion earmarked for Louisiana and $2 billion of the $5.5 billion for Mississippi…”
• New Orleans five years after Katrina: Chins up, hopes high, August 26, 2010, The Economist: “It is still obvious to any visitor-especially one who ventures out of the French Quarter, with its restaurants and night clubs, into the unstarred districts of the city. Something awful happened here in the not-too-distant past. The signs are everywhere: empty lots overgrown by weeds, ramshackle, leaning houses, derelict public buildings still awaiting restoration. Some houses feature ‘Katrina tattoos’ sprayed by rescuers as they completed house-by-house searches in 2005. Nobody at home. And yet New Orleans has undoubtedly recovered its essence. The old neighbourhoods are almost intact, and the city’s irrepressible people have mostly returned. Experts estimate that perhaps 360,000 people now live in a city that was home to around 100,000 more on the day disaster struck. Those who left were probably disproportionately black and poor. Yet the city’s large black majority, still there and mostly still poor, has ensured that the extravagant culture of New Orleans has survived the flood unharmed…”
• Disasters widen the rich-poor gap, By John Mutter, August 25, 2010, Nature.com: “As the fifth anniversary of Hurricane Katrina approaches, recovery in New Orleans is patchy. The hurricane flushed out many of the poorer people. For those who remained, almost without exception, the poorer neighbourhoods have experienced the slowest repopulation and recovery of basic amenities such as schools, shops and petrol stations. The poorest district of New Orleans - the Lower Ninth Ward - has about 24% of its former residents, whereas the wealthy Central Business District has seen 157% repopulation. Low-income black workers were seven times more likely to lose their pre-Katrina jobs than higher-income white workers. And low-income people have found it more difficult to attain basic living conditions, including good access to health care - in 2008 there were 38% fewer hospital beds available in New Orleans than before the storm…”

Drive to overhaul low-performing schools delayed, By Sam Dillon, August 23, 2010, New York Times: “Secretary of Education Arne Duncan set an ambitious goal last year of overhauling 1,000 schools a year, using billions of dollars in federal stimulus money. But that effort is off to an uneven start. Schools from Maine to California are starting the fall term with their overhaul plans postponed or in doubt because negotiations among federal regulators, state officials and local educators have led to delays and confusion. In this sprawling district east of Los Angeles, for example, the authorities announced plans earlier this year to use the program to convert Pacific High, one of California’s worst-performing schools, to a charter school, involving a comprehensive makeover. But with time running short this summer, the San Bernardino district switched course, adopting only smaller changes - a crackdown on tardiness and extending the school day, among others - that officials said would be more manageable…”

FoodShare program expands reach in Brown County, By Malavika Jagannathan, August 27, 2010, Green Bay Press Gazette: “Northeastern Wisconsin residents continue to need and use federal assistance to help buy groceries through the FoodShare Wisconsin program, a trend not likely to change soon as the economy continues to falter. FoodShare Wisconsin supplemented 10,032 households in Brown County last month, according to the most recent data compiled by the state’s Department of Health Services. That’s a 45 percent increase of households using the benefit, formerly known as food stamps, compared with July 2008. The funding disbursed through the program has almost doubled from about $1.4 million in July 2008 to $2.8 million last month, thanks partially to an influx of cash from federal stimulus legislation that took effect last year. The number of participants is increasing, but many more people could be receiving the assistance and are not because they don’t know they are eligible, said Jim Jones, the state’s FoodShare director…”

• Joblessness in America: A stickier problem, August 26, 2010, The Economist: “The economy stopped shrinking a year ago, but America’s unemployment problem is as big as ever. The official jobless rate was 9.5% in July, and would be higher still had many people not given up searching for work. Some 45% of the unemployed have been out of a job for more than six months-the highest proportion since the 1930s. And judging by the recent rise in applications for unemployment benefits, the situation may soon get worse rather than better. Why is joblessness still so high? The prevailing view among policymakers is that unemployment is a painful reflection of the economy’s weakness. Americans are out of work because the slump was deep and the recovery has been lacklustre. Stronger demand will eventually solve the problem…”
• Unemployment and the mid-terms: To help or not to help, August 26, 2010, The Economist: “The gargantuan statue of a dining-room chair that graces the centre of Martinsville is a tribute to the legacy of the local furniture-making industry. That legacy is grim, however: for decades, local factories, bested by foreign competition or automating to keep pace with it, have been shedding workers or shutting up shop altogether. Earlier this year American of Martinsville, a 100-year-old furniture manufacturer whose headquarters overlooks the giant seat, declared bankruptcy and closed its local factory, eliminating 225 jobs. Another local firm, Stanley Furniture, recently laid off 530 workers. Two other big local industries, textiles and tobacco, are equally sickly. Unemployment in the town, which was already 9% before the recession, is now 20%. Martinsville also happens to sit in one of the most marginal congressional districts in the country. At the most recent election, in 2008, Tom Perriello, a Democrat, ousted the Republican incumbent by just 727 votes, even as the district voted against Barack Obama for president. In November Robert Hurt, a popular state senator, aims to recapture the seat for the Republicans. Both candidates agree that the biggest local concern is unemployment. The same is true of America as a whole, where polls consistently rank the state of the economy, and unemployment in particular, as the voters’ main worry (see chart). But the two candidates, in keeping with the orthodoxy of their parties, have very different ideas about how to reduce it…”
• Economics focus: Bad circulation, August 26, 2010, The Economist: “Americans are used to thinking of their job market as lithe and supple. Employment snaps back quickly after recessions. Workers routinely shuttle between industries and cities to wherever jobs are abundant. But in the past decade, the labour market has resembled an ageing athlete. Each new injury is more painful and takes longer to heal. More than a year into the current economic recovery the unemployment rate remains stuck close to 10%, raising concerns about the kind of sclerosis that continental Europe suffered in the 1980s. The slow rehabilitation is in part because the economy suffered a trauma, not a scrape. The fall in GDP during the last recession was easily the largest of the post-war period, and output remains well below its potential. Few had expected a rapid return to full employment, but even modest expectations for jobs growth have not been met. Employment has actually fallen since the end of the recession; and unemployment would be even higher than it is were it not for discouraged would-be jobseekers quitting the workforce. Some economists now fret that other barriers besides weak demand stand between workers and jobs, and that high unemployment is partly ’structural’ in nature…”

Pakistan flood sets back infrastructure by years, By Carlotta Gall, August 26, 2010, New York Times: “Men waded waist deep all week wedging stones with their bare hands into an embankment to hold back Pakistan’s surging floodwaters. It was a rudimentary and ultimately vain effort to save their town. On Thursday, the waters breached the levee, a demoralizing show of how fragile Pakistan’s infrastructure remains, and how overwhelming the task is to save it. Even as Pakistani and international relief officials scrambled to save people and property, they despaired that the nation’s worst natural calamity had ruined just about every physical strand that knit this country together - roads, bridges, schools, health clinics, electricity and communications. The destruction could set Pakistan back many years, if not decades, further weaken its feeble civilian administration and add to the burdens on its military. It seems certain to distract from American requests for Pakistan to battle Taliban insurgents, who threatened foreign aid workers delivering flood relief on Thursday. It is already disrupting vital supply lines to American forces in Afghanistan…”