Health Economists Urge Passage of Reform

Health Economists agree with the President and feel that if change is going to happen in the U.S. health care system that it should be "quickly to enact comprehensive reform." One thing that many wish for is that the bills that come out do more to reduce cost growth. The Economists also side with the President's "pursuit of bipartisan solutions." If Republicans won't let the health reform pass, then they will proceed with majority-vote reconciliation process.

Projects across USA turn landfill gas into energy

The garbage in US landfills decomposes it creates a gas that is half methane gas which has 20 times the global warming potential that CO2 has. To fight this, Landfills are collecting the gas before it gets into the air and treating it so that it can be used for pipeline-grade gas or electricity; This potentially can power homes, buildings and vehicles. In Obama's effort to promote alternative power President Obama has allocated Recovery Act funds for this project. Construction of these plants are popping up at landfills across the US. One example of this technology in use is at the University of New Hampshire who has cut its natural gas usage by 80%.

Winter chills outlook for European economic thaw

This article is interesting because it is the second one I have come across about how severe climate changes have impacted the economy. Last time I posted an article about the affect of the chilly temperatures on American unemployment levels and this article mimics the sentiments described in that article however in this case, it affected the German and French consumers.

"The economic recovery is expected to continue when winter is over," Ifo president Hans-Werner Sinn said. Obviously not all of the problems could be attributed to the weather however the harsh winter has frozen over construction sites and consumer wallets. This only further interests me as to whether there has been an index that attributes certain economic problems to severe weather conditions.

Socialists Get Newfound Attention

The head of the Committee of Correspondence for Democracy and Socialism says suddenly there are more people who want to know what socialism actually is. With a 64% rise in memberships between 2008 and 2009, the Democratic Socialists of America now has 7,000 U.S. members. The Socialist Party USA has 1,000 members. Further interest in socialism has been sparked by the recent banking crisis. The article says while there is no precise definition of socialism, some socialists say they don’t want to destroy markets or nationalize everything, but rather that they want less-stagnant wages, more regulation, and taxes that fund everyone’s health care, education, unemployment insurance and job training.

Obama Rejects Attackers' Cries of 'Socialism'

As we move into the Socialism part of course, we can analyze the argument of whether or not Obama is passing socialist agendas. He certainly is pushing for reforms on the national level, but it doesn't not technically make him socialist. Obama is still facing resistance and criticism from big business and CEO's but you can't blame them.

Fed Reviewing Goldman’s Moves on Greek Debt

This article could possibly be a example of a market failure because of the capture of regulators and bribery. It talks about how the Federal Reserve is examining the policies of big banks such as Goldman Sachs that might have helped Greece mask its debt lately.

Coca-Cola's Plan

This article shows how Coca-Cola is attempting to stay ahead by accelerating their growth. As evidenced by their presence in multiple countries, it also demonstrates what a universal brand Coca-Cola has become.

CBO: Stimulus bill created up to 2.1 million jobs

This article is fairly obvious, but the question I would like to know is whether the CBO counted "jobs saved" under this statistic or if "saved jobs" are a completely different group of people altogether. If that is the case, the stimulus may have done much more than previously thought.

Kabuki economics

This article discusses how Japan's economy grew 1.1% in the fourth quarter of 2009. This was not hard since there was not much growth in the previous quarter, as the numbers were revised and lowered multiple times. This may also happen with the current figures. Even if the numbers do not change, the future is not looking bright. The main drivers of the growth are domestic demand and exports. Domestic demand for durable goods rose recently after the government subsidized car and electronics industries, but these expire in the coming year. Exports increased to China, but these might be reduced if the Chinese government puts a hold on bank lending.

This article demonstrates that Japan is continuing to struggles to maintain any type of strong growth. Many of the reasons cited for the problems in the early 1990's continue today. There remains high unemployment by Japanese standards and wages are falling. Subsidies provided by the government were to stimulate consumer spending, which will probably fall when they are taken away and price levels increase.

The Paradox Of A 'Giving' Government

This article on forbes.com talks about the nature of our government and politicians being courted by private sector CEO's and the effect of government borrowing. Any favor done in Washington is expected to be returned in one way or another and it usually does get repaid. The author also talks about how other firms with weaker ties to Washington will face lower wages in the future. He also gives examples of Pfizer, GM, and other banks who received TARP payments. One part that stuck out the most is, "the re-orientation of precious capital away from the U.S. version of "crony capitalism" will almost without a doubt bring more economic pain than any near-term difficulties wrought by a weak economy would." Asian model meets American?

Poll: Economists see 'healthy' expansion under way

This article reports on the National Association for Business Economics's quarterly poll about the direction of the economy. They say growth of the US economy will be 'healthy,' slow, and job growth will continue to lag. However, they do say job growth will average 100,000 jobs a month, so good news for graduating seniors!

U.K. Unemployment Claims Jump to Highest Since 1997 (Update2)

This article talks about how UK unemployment has unexpectedly risen in january to a new high. The rate is currently the highest its been since the year 1997; in the 13 years since the labour party and Tony Blair were in authority. There is worry that the rate and unemployment funding will continue to go up

Russia Cuts Interest Rates

This article is interesting because clearly other countries around the world are struggling to keep consumer confidence and spending going.
"The central bank cut the refinancing rate one quarter of a percentage point to a low of 8.5%, effective Feb. 24. Other key rates were lowered as well, the central bank said. The widely expected cut in the benchmark refinancing rate, the first this year, follows 10 cuts throughout 2009."
"In an effort to stem the ruble's gains, the central bank spent about $2 billion Thursday in currency interventions, its first deputy chairman, Alexei Ulyukayev, told Interfax."

Germany and the Euro: Let the Greeks Ruin Themselves

The Greek economy is in trouble and the nations involved in the European monetary union are left with two unfavorable options. They could let Greece default on its loans, panicking other countries with large deficits. Or, bail Greece out (in violation of the euro's founding treaty) which would weaken the currency. Germany was the most reluctant of the founding members of the monetary union, but is the strongest economy and most able to help Greece. Germany has worked hard to become a strong economy and has always said that it would not suffer to pay for the mismanagement of other economies. It is unclear as to what will happen next.

Stumbling In The Race To Feed Africans

The article starts off by talking briefly about how once China and India adopted the use of technological agriculture they were able to become economic powerhouses. But this migration of technological agriculture skipped over sub-saharant Africa and there is now a split between people who want to bring productivity to the farms of Africa or the people who are more concerned with the idea of organic farming and sustainability.

For Chip Makers, the Next Battle Is in Smartphones

The semiconductor industry is growing in demand. Companies are investing all their time and money in producing the next, most complex items at lowest price possible. Chip developers are focusing on smartphones, tiny laptops and tablet-style devices. Consumers will benefit due to the increase in competition and innovation of chip designers.

Global Crisis Leads IMF experts to Rethink Long Held Ideas

This article is an interesting addition to class discussion about how sometimes certain policies by the IMF can hurt countries rather than help them. It is interesting to see how the financial crisis has caused many to rethink and re-evaluate past policy decisions. In my opinion, I think the rethinking and reconceptualizing of the role of regulation is an important debate that needs to take place so that we can find a better balance that would hopefully help make the next financial crisis a less painful one.

The Politics of Repression in China

This article addressed the paradox of China's governmental attitudes and the state of its economy. China has survived the current economic crisis very well. It had almost 10% growth last year and is expected to post similar numbers this year. China's economy appeared to be moving in a more liberal direction that focused on global trade and partnerships with western countries in the late 1990s. However, it appears that the push for relationships with other countries has not been as strong in recent years. The government is cracking down on domestic unrest (they recently harshly punished protesters with severe jail time) and not focusing on relationships with industrialized countries. And China does not seem to be shifting in a more congenial direction, as we once thought it would.

A Small Price for a Large Benefit

This article analyzes global warming from an economic viewpoint where it proposes a possible $80 tax on a metric of carbon dioxide. The revenue earned from this tax could then be used to research and finance countermeasures to stabilize temperatures. Based on current climate forecasts, the median forecast suggests an increase of 9 degrees Fahrenheit which would be catastrophic. The author acknowledges the increase of prices for goods and services tied to carbon dioxide such as gasoline however he also provides suggestions for using more efficient automobiles and phasing in the added costs. This may prove to be very beneficial and represents a small cost to combating global warming.

Keeping the Plates Spinning

A very interesting article that mentions the hardships of jobs in the economic crisis. A woman works much longer hours as a journalist, nearly constantly thinking about work, to the point where it consumes her life. She asks at the end whether when the economy recovers will they hire more labor? She argues that perhaps not since she can do it herself. Like discussed in class, the MPL would be zero if they higher more labor, since she is able to the work herself, adding more people would simply put less pressure on her, not actually add any efficiency to the market. Based on that (an MPL=0) this may be a new shift in journalism, and perhaps other industries as well!

Ski Resorts Thrive, Despite Recession Pain

In the midst of the recession in 2009, as most industries were going under and doing poorly, the ski resort industry rose by 2.3%, and is forecasted to rise by 6% throughout 2010. Small resorts have been boughten out by larger ones and no two main companies, Intrawest and Vail Resorts control 51% of industry revenue. Even thought things look good, they can never be too sure because their profits mainly deal with weather, and there is no predicting that.

A Midstream Switch to Teaching

Interesting article about economic change. I honestly have been thinking about this shift as well. Written from a personal viewpoint, it was a breath of fresh air to know that at least some people are not completely driven by making loads of cash. And to know that the feeling of helping somebody is still amazing.

Early in the Year, and Already Surprised

Another interesting article on the global stock markets.

"Less than two months into the new year, many of these assumptions are already under fire. For starters, economic turmoil overseas, spearheaded by a crippling debt crisis in Greece, is leading to new doubts about the global recovery. Even if Europe doesn’t fall into a double-dip recession, some economists fear that the region won’t fully recover until 2012. "

January 2010 Manufacturing ISM Report On Business

The government's ISM Manufacturing index increases by 3.5 points in December reaching a high of 58.4. This cyclical peak has not been reached since 2003. December marked the sixth consecutive month that the index was above 50 points, meaning that there has been consistent activity in the manufacturing sector. The production component of the manufacturing sector jumped 6.5 points to a total of 66.2. This is more proof that that gains in the manufacturing industry are going to continue. "New orders also came in strong at 65.9 indicating likely future expansions in output. Firms are also beginning to increase payrolls at a modest pace with the employment component improving 3.1 points to 53.3, which is a significant amount above the expansionary threshold. This suggests that payroll data may soon show employment gains in manufacturing." Things are looking up in the manufacturing industry from the month of December.

GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2009 (ADVANCE ESTIMATE)

The Bureau of Economic Analysts projects that there will be an increase in the GDP for this coming year based on the increases in GDP for the year 2009. "Motor vehicle output added 0.61 percentage point to the fourth-quarter change in real GDP afteradding 1.45 percentage points to the third-quarter change. Final sales of computers subtracted 0.03percentage point from the fourth-quarter change in real GDP after subtracting 0.08 percentage pointfrom the third-quarter change." The article goes on to say that the price index, which measures prices paid by US costumers, rose 2.1%. This coupled with other statistics such as real personal consumption increases show hope for future GDP increases.

China Tightens Bank Lending Rules

This article goes along the lecture we had on Asian economies. The main point of this article is credit control, i.e. decrease in risk through a careful screening process of the borrowers. This applies to both working and personal loans - borrowers will have to specify what they will use the loan for. All these regulations were put in place to avoid inflation and to strengthen control over lending.