Chairman of the Federal Reserve, Ben Bernanke, has just opened the door to discussing new ideas to stimulate economic growth. Economic uncertainty is very high right now. The Federal Reserve is possibly going to lend money to the labor market. There is speculation however, due to the mistakes the Fed has made in the past about lending money. It was lending money to big banks during one of the greatest economic depressions of all time that has marred the Fed’s reputation. To create more jobs there should be more dissemination of money to the smaller banks. This money would then be distributed to smaller businesses which would create more jobs. The Fed needs to be wiser about distribution of money if it wants to stimulate this hurting economy.
The article I read was about the economic differences between the FCS (Football Championship Subdivision) and the FBS (Football Bowl Subdivision) for college football. The article spoke of how Georgia State, Texas-San Antonio, South Alabama, Massachusetts and Texas State are all colleges that are transitioning into the FBS. The article explained how not many schools are part of the FBS, because the FBS is more expensive. However, The FBS costs about four million dollars on average, but a profitable program can gross up around thirty-eight million dollars. The problem with these five schools just beginning the FBS is that they will probably lose money the first year. Most schools lose an average of 2.9 million dollars. A new FBS program costs about 11.8 million dollars more than it generates, but it revenues about twenty times more money than an FCS program. These five schools are going to have to make a lot of changes, including building a new stadium, and they will probably lose most of their games because of the change, but eventually they will be better off with an FBS program than an FCS program.
http://www.cnbc.com/id/48882710 This article, by Dhara Ranasinghe, explains why China should not try to boost its’ economy quickly. Growing at a steady rate of 7-8%, China should not immediately impose a heavy “large monetary or fiscal boost” – even though some would prefer this. However, since the economy is seemingly stable, and there will be a huge change in political leaders at the end of this year, it may be better to delay a huge stimulus package of any sort. However, they must be cautious; data shows the country’s economic numbers are slowly weakening. They must be heedful not to make the same mistake as in 2008-20009, when the country spent 14% of its’ GDP to boost the economy during a global financial downfall – this spending is now to blame for issues such as inflation. Chief Economist, Taimur Baig states, “China is between a rock and a hard place. They need policy measures but at the same time the macro situation is not that dire to call for major stimulus measures.”
http://www.theaustralian.com.au/business/economics/china-faces-lowest-growth-in-more-than-a-decade-as-economists-pare-back-forecasts/story-e6frg926-1226464268946 As China’s economy begins to falter, other economy’s across the world struggle not to crash. This will cause great concerns for Australia’s economy especially, because China has one of its largest mining sectors there. This will also cause China’s GDP forecast to lower from 8.2 percent down to a 7.8percent. The last time it was below 8.0 percent was in 1999 during the Asian financial crisis at that point it was at 4.1 percent. If they don’t do something by the end of September then it will push there recovery out into next year. The rest of Asia is being hit with Europe’s recession which is slowing the recovery of the US.
Due to hurricane Isaac, the national average for gas prices went up 14 cents from the same time last year. The average price over labor day weekend was $3.83, which beats the previous record set in 2008, and this issue has not gone unnoticed—particularly due to its unfortunate rise at the time of one of the busiest American holidays. According to gasbuddy.com, South Carolina and New Mexico have the lowest gas prices in the country, while prices in California and Illinois are skyrocketing past $4. The increase in gasoline prices has frustrated many, but it will likely aid the automobile industry, particularly the Honda Insight and Toyota Prius, who are both currently promoting vehicles that claim to get 60 MPG. This is 3 times the fuel economy of many SUVs and can lead to big savings.
The article expands on the idea of death of cheap food. In the last five years, there has been three major spikes in the prices of maize, wheat and soya beans. These ingredients are contained in very common foods, such as: bread. In total the overall food prices have drastically increased 10% from June to July. The article continues, by explaining the increasing demand of western fast food. Meat consumption is continually rising in china, brazil and india. The farmers have become more efficient over the years through the introduction of modern technology; however, they are restricted by US policies and the demand of corn for biofuels. In 2030, projections show that there will be 50% more mouths to feed and no current solution.
For many Pakistanis, what is most terrifying in their country is not war on terror, nor the outrageous murder rate, but rather the struggling economy. Pakistan’s economic growth rate is the lowest in South Asia, and has been declining for ten years. Around twenty-five percent of the population lives under the poverty line. Pakistan also has Asia’s highest annual inflation rate, over eleven percent. Everything from food prices to electricity bills has gone up, even though most people go without power for up to ten hours a day. To make matters worse, the government is either too powerless to help or too corrupt to care. Headed by an “all-powerful” military and a new prime minister – “a nothing candidate, picked in haste” – whose “influence on policy will be zero to none,” the future of Pakistan is looking bleak. http://www.usatoday.com/news/world/story/2012-09-03/pakistan-economy-leaders-corruption/57561118/1
This article from abc news, published only a few hours ago is about president Obama taking credit for a boosted economy in Ohio. Apparently the state has experienced a lot of recent job creation specificaly in the auto industry, reportedly due to Obamas policies.the auto industry in ohio has reportedlyadded over 13000 jobs to their auto industry since 2009. These claims are backed up by the labor department, who report an unemployment rate of 7.2% which is more than a point below the national average.
India's GDP has shown a rapid 5.5% increase in the April-June period. Although this seems like good news for India, there are some important things to note.
Although their current economy is doing well, their long-term economy looks practically dismal. This makes the distinction between short-term and long-term economic growth ever present. India's long term economy looks unfortunate because of "poor manufacturing data, poor monsoon rainfall, and high interest rates", because of this, economists expect India's economic growth to slow down in the near future.
India's economy also sheds light on how sporadic economies are. In reality their 5.5% GDP increase really is not much compared to their 9% GDP increase of early 2011.
http://www.usatoday.com/news/world/story/2012-09-03/pakistan-economy-leaders-corruption/57561118/1 In this article that I read it states that what concerns the Pakistanis the most is not the war but the declining standard of living. The government has failed to do anything about the high unemployment, soaring inflation and stagnant wages. Pakistan just had a leadership change to Raja Pervez Ashraf is now in the prime ministers seat. The United States has accused Pakistan of not doing enough combat radicalism despite $1.3 billion in U.S. aid. Pakistanis only hope for improvement there economic growth rate is the lowest in South Asia and has been on a downward spiral for 10 years.
The article I chose to right on is about the current national debt. New polls show that the United States was ten billion dollars in debt at the start of 2008; the country is now sixteen billion dollars in debt. With the political season now in full swing both political parties have presented two different ideas as to how to possibly cut this national debt. The Democrats have proposed that we raise taxes, in particular income and business taxes. This has the benefit of producing a stable income of tax dollars, but at the same time it takes money directly out of the hands of consumers and potential businesses. The Republicans on the other hand have proposed that we cut back spending, but this would require stimulus money and government spending to help the economy “grow”. Both of these plans are unpopular with the American people because they could both make our current economic status even worse. And with both sides blaming the other only one thing seems to be for certain; America will never be able to climb out of this defecate unless Her politicians stop playing the blame game and start coming up with real solutions to this problem.
http://www.businessweek.com/news/2012-08-30/decline-in-u-dot-s-dot-seen-without-more-immigration-cutting-research#p1 In this article, I read about the how the economy would be better if there were more immigrants coming in. There are many problems in the economy such as rising inequality, globalization, more expensive education, demographics, and poorer performance in secondary school. Something that would help would be having more immigrants come into the country. But the number of immigrants would have to be unlimited. They would have to be specialized in some way so that they could work in that area. That way the other problems will not hurt the economy as bad as it was predicted.
http://www.voxxi.com/us-economy-speculation-times-uncertainty/
ReplyDeleteChairman of the Federal Reserve, Ben Bernanke, has just opened the door to discussing new ideas to stimulate economic growth. Economic uncertainty is very high right now. The Federal Reserve is possibly going to lend money to the labor market. There is speculation however, due to the mistakes the Fed has made in the past about lending money. It was lending money to big banks during one of the greatest economic depressions of all time that has marred the Fed’s reputation. To create more jobs there should be more dissemination of money to the smaller banks. This money would then be distributed to smaller businesses which would create more jobs. The Fed needs to be wiser about distribution of money if it wants to stimulate this hurting economy.
http://sports.yahoo.com/news/economics-primer-fbs-football-135859667--ncaaf.html
ReplyDeleteThe article I read was about the economic differences between the FCS (Football Championship Subdivision) and the FBS (Football Bowl Subdivision) for college football. The article spoke of how Georgia State, Texas-San Antonio, South Alabama, Massachusetts and Texas State are all colleges that are transitioning into the FBS. The article explained how not many schools are part of the FBS, because the FBS is more expensive. However, The FBS costs about four million dollars on average, but a profitable program can gross up around thirty-eight million dollars. The problem with these five schools just beginning the FBS is that they will probably lose money the first year. Most schools lose an average of 2.9 million dollars. A new FBS program costs about 11.8 million dollars more than it generates, but it revenues about twenty times more money than an FCS program. These five schools are going to have to make a lot of changes, including building a new stadium, and they will probably lose most of their games because of the change, but eventually they will be better off with an FBS program than an FCS program.
Are you sure this post is about the economy? :-)
Deletehttp://www.cnbc.com/id/48882710
ReplyDeleteThis article, by Dhara Ranasinghe, explains why China should not try to boost its’ economy quickly. Growing at a steady rate of 7-8%, China should not immediately impose a heavy “large monetary or fiscal boost” – even though some would prefer this. However, since the economy is seemingly stable, and there will be a huge change in political leaders at the end of this year, it may be better to delay a huge stimulus package of any sort. However, they must be cautious; data shows the country’s economic numbers are slowly weakening. They must be heedful not to make the same mistake as in 2008-20009, when the country spent 14% of its’ GDP to boost the economy during a global financial downfall – this spending is now to blame for issues such as inflation. Chief Economist, Taimur Baig states, “China is between a rock and a hard place. They need policy measures but at the same time the macro situation is not that dire to call for major stimulus measures.”
http://www.theaustralian.com.au/business/economics/china-faces-lowest-growth-in-more-than-a-decade-as-economists-pare-back-forecasts/story-e6frg926-1226464268946
ReplyDeleteAs China’s economy begins to falter, other economy’s across the world struggle not to crash. This will cause great concerns for Australia’s economy especially, because China has one of its largest mining sectors there. This will also cause China’s GDP forecast to lower from 8.2 percent down to a 7.8percent. The last time it was below 8.0 percent was in 1999 during the Asian financial crisis at that point it was at 4.1 percent. If they don’t do something by the end of September then it will push there recovery out into next year. The rest of Asia is being hit with Europe’s recession which is slowing the recovery of the US.
http://www.foxnews.com/us/2012/09/03/us-gas-prices-at-highest-ever-for-labor-day-weekend/?test=latestnews
ReplyDeleteDue to hurricane Isaac, the national average for gas prices went up 14 cents from the same time last year. The average price over labor day weekend was $3.83, which beats the previous record set in 2008, and this issue has not gone unnoticed—particularly due to its unfortunate rise at the time of one of the busiest American holidays. According to gasbuddy.com, South Carolina and New Mexico have the lowest gas prices in the country, while prices in California and Illinois are skyrocketing past $4. The increase in gasoline prices has frustrated many, but it will likely aid the automobile industry, particularly the Honda Insight and Toyota Prius, who are both currently promoting vehicles that claim to get 60 MPG. This is 3 times the fuel economy of many SUVs and can lead to big savings.
http://www.guardian.co.uk/business/2012/sep/02/era-of-cheap-food-over
ReplyDeleteThe article expands on the idea of death of cheap food. In the last five years, there has been three major spikes in the prices of maize, wheat and soya beans. These ingredients are contained in very common foods, such as: bread. In total the overall food prices have drastically increased 10% from June to July. The article continues, by explaining the increasing demand of western fast food. Meat consumption is continually rising in china, brazil and india. The farmers have become more efficient over the years through the introduction of modern technology; however, they are restricted by US policies and the demand of corn for biofuels. In 2030, projections show that there will be 50% more mouths to feed and no current solution.
For many Pakistanis, what is most terrifying in their country is not war on terror, nor the outrageous murder rate, but rather the struggling economy. Pakistan’s economic growth rate is the lowest in South Asia, and has been declining for ten years. Around twenty-five percent of the population lives under the poverty line. Pakistan also has Asia’s highest annual inflation rate, over eleven percent. Everything from food prices to electricity bills has gone up, even though most people go without power for up to ten hours a day. To make matters worse, the government is either too powerless to help or too corrupt to care. Headed by an “all-powerful” military and a new prime minister – “a nothing candidate, picked in haste” – whose “influence on policy will be zero to none,” the future of Pakistan is looking bleak.
ReplyDeletehttp://www.usatoday.com/news/world/story/2012-09-03/pakistan-economy-leaders-corruption/57561118/1
http://abcnews.go.com/m/blogEntry?id=17143898
ReplyDeleteThis article from abc news, published only a few hours ago is about president Obama taking credit for a boosted economy in Ohio. Apparently the state has experienced a lot of recent job creation specificaly in the auto industry, reportedly due to Obamas policies.the auto industry in ohio has reportedlyadded over 13000 jobs to their auto industry since 2009. These claims are backed up by the labor department, who report an unemployment rate of 7.2% which is more than a point below the national average.
http://blogs.wsj.com/indiarealtime/2012/08/31/economists-react-indias-growth-picks-up/
ReplyDeleteIndia's GDP has shown a rapid 5.5% increase in the April-June period. Although this seems like good news for India, there are some important things to note.
Although their current economy is doing well, their long-term economy looks practically dismal. This makes the distinction between short-term and long-term economic growth ever present. India's long term economy looks unfortunate because of "poor manufacturing data, poor monsoon rainfall, and high interest rates", because of this, economists expect India's economic growth to slow down in the near future.
India's economy also sheds light on how sporadic economies are. In reality their 5.5% GDP increase really is not much compared to their 9% GDP increase of early 2011.
A check-plus comment (double credit). Well done!
Deletehttp://www.usatoday.com/news/world/story/2012-09-03/pakistan-economy-leaders-corruption/57561118/1
ReplyDeleteIn this article that I read it states that what concerns the Pakistanis the most is not the war but the declining standard of living. The government has failed to do anything about the high unemployment, soaring inflation and stagnant wages. Pakistan just had a leadership change to Raja Pervez Ashraf is now in the prime ministers seat. The United States has accused Pakistan of not doing enough combat radicalism despite $1.3 billion in U.S. aid. Pakistanis only hope for improvement there economic growth rate is the lowest in South Asia and has been on a downward spiral for 10 years.
http://drudgegae.iavian.net/r?hop=http://www.washingtontimes.com/news/2012/sep/2/debt-to-reach-16-trillion-in-time-to-crash-democra/
ReplyDeleteThe article I chose to right on is about the current national debt. New polls show that the United States was ten billion dollars in debt at the start of 2008; the country is now sixteen billion dollars in debt. With the political season now in full swing both political parties have presented two different ideas as to how to possibly cut this national debt. The Democrats have proposed that we raise taxes, in particular income and business taxes. This has the benefit of producing a stable income of tax dollars, but at the same time it takes money directly out of the hands of consumers and potential businesses. The Republicans on the other hand have proposed that we cut back spending, but this would require stimulus money and government spending to help the economy “grow”. Both of these plans are unpopular with the American people because they could both make our current economic status even worse. And with both sides blaming the other only one thing seems to be for certain; America will never be able to climb out of this defecate unless Her politicians stop playing the blame game and start coming up with real solutions to this problem.
http://www.businessweek.com/news/2012-08-30/decline-in-u-dot-s-dot-seen-without-more-immigration-cutting-research#p1
ReplyDeleteIn this article, I read about the how the economy would be better if there were more immigrants coming in. There are many problems in the economy such as rising inequality, globalization, more expensive education, demographics, and poorer performance in secondary school. Something that would help would be having more immigrants come into the country. But the number of immigrants would have to be unlimited. They would have to be specialized in some way so that they could work in that area. That way the other problems will not hurt the economy as bad as it was predicted.