Lawsuit Loans & Lawsuit Funding. Finance Companies Making Moves Online. Obama boosts global collaboration to conquer US economic crisis. Artificial intelligence: Difference Engine: Luddite legacy. America’s Three Deficits - Laura Tyson. Exit from comment view mode.
Click to hide this space BERKELEY – This year began with a series of reports providing tantalizing evidence that economic recovery in the United States is strengthening. The Economy is Killing Las Vegas. "Democratic Inequality" by Raghuram Rajan. Exit from comment view mode.
Click to hide this space CHICAGO – Why did the household savings rate in the United States plummet before the Great Recession? Two of my colleagues at the University of Chicago, Marianne Bertrand and Adair Morse, offer an intriguing answer: growing income inequality. The Age of Double Standards. “But, Yossarian, suppose everyone felt that way.”
“Then,” said Yossarian, “I’d certainly be a damned fool to feel any other way, wouldn’t I?” —Joseph Heller, Catch-22 Last November 29, American Airlines declared bankruptcy under Chapter 11, the provision of the bankruptcy code that allows a corporation to stiff its creditors, break contracts, and keep operating under the supervision of a judge. This maneuver, politely termed a “reorganization,” ends with the corporation exiting bankruptcy cleansed of old debts. In opting for Chapter 11, American joined every other major airline, including Delta, Northwest, United, and US Airways, which has been in and out of Chapter 11 twice since 2002.
Bankruptcy is intended to give a fresh start to persons and enterprises overwhelmed by creditors. This national indulgence for corporate bankruptcy has a certain logic. Income Inequality Is Killing the Economy, Obama Says—Is He Wrong? - Derek Thompson - Business. The president wants to turn inequality into both a campaign banner and a grand unifying theory of the recovery.
But not all economists agree with him. Reuters "What drags down our entire economy is when there is an ultra-wide chasm between the ultra-wealthy and everyone else," President Obama said in a speech today, citing evidence that income inequality hurts economic growth. The Poor Are Getting Poorer. Is It Time to Raise the Minimum Wage? - Jordan Weissmann - Business. One of the harshest realities of America's slow economic recovery -- and there are many -- is the fact in spite of modest job growth, pay for workers is falling.
Year over year, average inflation adjusted wages have dropped by 0.6 percent for all private sector employees. They're down a full 1 percent for non-supervisors -- your retail salespeople, your shop floor factory workers, your cashiers. Why America spends while the world saves. Editor's Note: The following is an edited transcript of my interview with Sheldon Garon, a professor of history and East Asian studies at Princeton University and author of the new book, Beyond Our Means: Why America Spends While the World Saves.
Why Americans don't save Amar C. Bakshi: U.S. household saving rates peaked in the 1980s at around 11 percent, and by 2005, they had plummeted to near zero. "The American Recovery" by Mohamed A El-Erian. Exit from comment view mode.
Click to hide this space NEWPORT BEACH – The United States has gone through an arduous period of intervention and rehabilitation since the global financial crisis in 2008 sent it to the economic equivalent of the emergency room. It moved from the intensive-care unit to the recovery room and, just recently, was discharged from the hospital. The question now is whether the US economy is ready not just to walk, but also to run and sprint. The answer will powerfully influence global economic prospects. A Nation of Spoiled Brats - Interview by David Rothkopf. Financial Times columnist Edward Luce has written a new book called Time to Start Thinking: America in the Age of Descent that has received well-deserved acclaim and recognition not only for its superb reporting of the on-ground reality of America's current economic crisis but also because it is an unflinchlingly brave book.
Luce does not shy away from conclusions that are hard for many Americans to hear, nor does he cop out and offer up the happy ending many in his audience may want to read. Rather, he offers what is most needed now: an objective, profoundly thoughtful look at the underpinnings of America's economic troubles, what makes the current crisis different from those of the past, and where we are likely headed from here. Luce recently sat down with Foreign Policy CEO and Editor-at-Large David Rothkopf. Here are some of the highlights of their conversation. "The Energy Deficit" by Michael Spence. Exit from comment view mode.
Click to hide this space MILAN – I have been surprised by the recent coverage in the American press of gasoline prices and politics. Political pundits agree that presidential approval ratings are highly correlated with gas prices: when prices go up, a president’s poll ratings go down. But, in view of America’s long history of neglect of energy security and resilience, the notion that Barack Obama’s administration is responsible for rising gas prices makes little sense. The Spectacular Rise and Fall of U.S. Whaling: An Innovation Story - Derek Thompson - Business. An extinct business offers surprisingly current lessons about the triumph of technology, the future of work, and the inevitable decline of industries that might not be worth saving "Some years ago -- never mind how long precisely -- having little or no money in my purse, and nothing particular to interest me on shore, I thought I would sail about a little and see the watery part of the world.
" -- Moby Dick One hundred and fifty years ago, around the time Herman Melville was completing Moby Dick, whaling was a booming worldwide business and the United States was the global behemoth. In 1846, we owned 640 whaling ships, more than the rest of the world put together and tripled. Is the U.S. feeling pressure about the World Bank presidency? Robin Harding and John-Paul Rathbone insist that the United States is feeling pressure from the developing world over the World Bank leadership question.
They also think the dynamic surrounding the Bank leadership race is quite different than it was in the case of the International Monetary Fund: In contrast to the recent battle to lead the International Monetary Fund, which was never in real doubt as French finance minister Christine Lagarde raced around the world to secure support, developing countries are organised to challenge a procession to the World Bank presidency. "We as emerging markets and developing countries have been making a concerted effort to identify our most qualified and competent candidates," said Amar Bhattacharya, director of the G24 office in Washington.
The G24 is an economic umbrella group for the largest developing countries, and the Brics group of Brazil, Russia, India and China has also been active in debating candidates. I don't see it. A qualified defense of national privilege. What Export-Oriented America Means - Tyler Cowen. In his State of the Union address two years ago, President Obama promised to double American exports over the next five years. At the time critics called this an unrealistic political promise, one that voters would forget by the 2012 election. But America is currently on track to meet that goal. As of early 2012, exports measure in at about $180 billion each month, whereas two years ago it was $140 billion per month. The growth rate of exports is about 16 percent per year, a trend that at least conceivably could get us to Obama’s target. Since the recession officially ended, exports have accounted for about half of the nation’s economic growth. United States' economy: Over-regulated America. Gray Nation: The Very Real Economic Dangers of an Aging America - Derek Thompson - Business.
Two economists envision a scary -- and scarily realistic -- future where the working population expands slower and slower, and jobless recoveries are the only recoveries we know Reuters In the future, U.S. growth will be slower. Recessions will be deeper. Recoveries will be weaker. And there's exactly one thing to blame. Demographics. The Two Issues That Can Bring Down the Economy. The term “crisis” is frequently overused in Washington, never more so than in budget debates. The problem is that a real crisis requires a hard deadline by which time something must happen or something terrible will happen. "Fed Policy and Inflation Risk" by Martin Feldstein. Exit from comment view mode. Click to hide this space CAMBRIDGE – During the past four years, the United States Federal Reserve has added enormous liquidity to the US commercial banking system, and thus to the American economy. The Mobility Myth.
Manufacturing Illusions) Can Radical Efficiency Revive U.S. Manufacturing?