INSTRUCTOR DISCUSSION NOTES:
Despite Katrina’s Worst, U.S. Economy Loses Only 35,000 Jobs

1. Discuss the notion of “discouraged workers” as it relates to the article.

The notion of discouraged workers relates to the fact that workers who have been seeking jobs for a long period of time simply leave the work force as their expectations of finding a job decrease. Given the conditions in the devastated Gulf Coast, one would have to expect this effect to be greater than normal.

2. Visit the website for the Census Bureau and compare the current unemployment rates with the ones reported in the article.

Let the students search the site for the data. You may go directly to the appropriate page at http://www.bls.gov/bls/proghome.htm#OEUS and click on “employment and unemployment.”

3. In your own opinion, do you support the rebuilding of New Orleans on the basis of economic reasoning? Why or why not?

Arguments have been made on both sides of this issue, so there is no right answer. Expect some students to want to rebuild while others will not. An interesting extension of this type of question is to discuss the answers in class and list both reasons side by side on the blackboard. When the discussion ends, ask the students if any of them changed their mind after hearing both sides of the issue. On a national basis, the consensus definitely seems to favor rebuilding.

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