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Mathias S

More On The Interpretation Of European Recovery: It Really Isn't The Supply Side, Stupid - 0 views

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    This article is interesting as it treats the supply-side in relation to the Eurozone crisis. It provides insight to its relation with the economic crisis in Europe
Xinmian H

Laura D'Andrea Tyson: The Sequester and Fiscal Policy - NYTimes.com - 0 views

  • sequester. It is the wrong medicine for what ails the economy now and the wrong cure for its future budgetary challenges.
  • deep and lingering deficiency in aggregate demand
  • The gap between the actual and potential level of output means about $900 billion of forgone goods and services this year alone. This tremendous waste of productive potential is reflected in an unemployment rate of 7.9 percent,
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  • The economy needs less rather than more deficit reduction in the near term.
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    The article is talking about the economy of US right now. The aggregate demand is far lower than potential and government is cutting expenditure rapidly. However, the author thought that's not the right way of doing it. Although the money is short, government is still supposed to take necessary actions to induce recovery.
anonymous

King Says Debate on U.K.'s Fiscal Policy Has Become 'Overblown' - 0 views

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    Mervyn King, the governor of the Bank of England, said that the economy should be left alone in order for the "automatic stabilizers to work." He said that the "government's plan to aid home buyers shouldn't become permanent."
Nehir D

Strong Housing and Auto Sales Boost U.S. Economy - 0 views

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    The article is talking about the strengthening housing recovery and robust auto sales contributed to moderate growth across the United States.Employers added only 88,000 jobs in March, a sharp slowdown from average gains of 220,000 in November through February. And consumers cut back on their spending at retail stores and restaurants last month, a sign that higher Social Security taxes have made more Americans cautious about spending.Debate was about Fed policymakers about when to rein in the bond-buying program, which began last fall.The Fed is expected to stick with plans to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent. And it will likely continue purchasing $85 billion a month in Treasury and mortgage bonds to lower long-term rates and encouraging more borrowing.
Christopher P

Housing Market Moving Towards Equilibrium - 0 views

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    According to statistics of various communities in Naples, Florida, the housing market of that area is beginning to take a change. Many areas are beginning to shift in the amounts of real estate available versus the demand for this housing. Due to the concepts of the price mechanism, when less housing is available than what is demanded the price of real estate will increase, signalling what is possibly the recovery of the economy.
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    The housing market really is a complicated idea. It seems that the more governments foreclose houses, the more the are hurting the economy. This makes it very hard to better the housing market.
Christopher P

India Likely to Miss 2012-2013 Fiscal Deficit Goal - 0 views

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    A new poll shows that India's economic recovery may not go according to plan. The country aimed this year to keep the fiscal deficit at 5.3% of Gross Domestic Product, .5% lower than last year's. Reuters polled 21 different economists to get their opinion on the matter, and most agree that India's higher spending on fuel and fertilizer subsidies could keep the country from reaching its new goal. Because of this, it seems likely that India's credit rating will soon be downgraded from BBB- to a "junk-bond" status.
Adil R

Obama Needs to Learn "Opportunity Cost" - 1 views

    • Adil R
       
      This article asses Obama's stimulus plan. It talks off how congress passed the ARRA stimulus package which injected $787billion into the government sector. Obama stated that this package wouldnt allow the unemployment rate to pass 8% however it reached 10%. Obama said that the depth of the recession couldnt be foreseen however there were many people who predicted it.
  • that unemployment with his bailout would likely reach 10 percent.
  • he also doesn’t understand basic economic concepts such as “opportunity cost.
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  • experts promised that unemployment rates wouldn’t pass eight percent
  • creates money out of thin air via the Federal Reserve
  • as the cost paid when something is given up to get something else.
  • The federal government can’t spend money on “stimulus” projects without siphoning the money out of the economy as a whole
  • resulting inflation of the money supply dimishes the purchasing power
    • Adil R
       
      The article then goes on by stating Obama does not know the concept of opportunity cost. $787billion was taken out of the federal reserve to pay for federal programs resulting into the weakening of the current dollar value and inflation. This had an impact on everyone, nearly $7000 per household. Government jobs do not make a salary and therefore do not stimulate the economy. This can also lead to an increase in taxes whilst still barely benefiting the community. Opportunity cost kicks in here as the obama administration thought that this was the next big thing as apposed to injecting it to private sector. The article too talks about how private businesses contribute to the economy even if the company is failing as it still receives services and eventually the more efficient company will take over. Moreover they can make profits and they can better the economy by hiring or purchasing consumer goods.
  • taxpayers would likely spend or invest nearly all of that money taken from them
  • dollars with more valu
  • nvest more in their company, or pay higher dividends to investors
  • save the money and invest it in business growth
  • more consumer goods
  • $7,000 per household
  • defined
  • teachers, police officers,
  • irefighters on state
  • payrolls doesn’t stimulate the national economy
  • hurts
  • Government jobs
  • do not make a profit
  • Governments
  • hire employees and build overpriced buildings and roads
  • money is gone.
  • putting more funds into the hands of government is not efficient
  • reinvest those profits in the manufacture of new goods, jobs, and more efficient factories.
  • businesses employ people for a profit
  • replaced with more efficient businesses
  • allowed
  • to fail
  • government entities subsidize inefficient private corporations
  • allowed to fail
  • hey should
  • free market inefficient businesses
  • inefficient governments
  • never happens
  • government jobs require constant transfusions of taxes
  • static number of people employed
  • private sector is the only area of the economy that can lead to self-sustaining job growth and economic recovery
  • He should know that opportunity costs under ARRA demonstrate that the “stimulus” bill tipped the unemployment figures higher and worsened the economic recession.
Nehir D

India's exports to grow by 7.2% in 2014 fiscal: Morgan Stanley - 0 views

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    The article is talking about India's exports which are expected to grow by 7.2 per cent in 2014 fiscal on the back of improvement in growth of developed markets, says a report by Morgan Stanley Research. "We expect export growth of 7.2 per cent in fiscal year 2014 versus minus one per cent in fiscal 2013," it said in a report on Asia Pacific Economics.Morgan Stanley Research expects a gradual sequential recovery in India's exports on the back of improvement in developed markets growth from the third.
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