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Contents contributed and discussions participated by Hanna Tirto

Hanna Tirto

Lost economic time: The Proust index | The Economist - 2 views

  • the economic crisis rumbles on. In order to assess how much economic progress it has undone, The Economist has constructed a measure of lost time for hard-hit countries. It shows that
    Greeceā€™s economic clock has been turned back furthest: it has been rewound by over 12 years .
  • Britain, the first country forced to rescue a credit-crunched bank, has lost eight years. America, where the trouble started, has lost ten
  • House prices have gone backwards, too. The average American homeowner is living in 2001, judging by inflation-adjusted property values. Britain has suffered less dramatic drops in house prices, but has still lost seven years.
  • ...2 more annotations...
  • Growth will reset the economic clock, providing new jobs and the resources to pay down debts.
  • But periods of unemployment scar workers even after economies have crawled back to health. For some, the time lost to the crisis will never be recovered.
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    The economy right now is continue to rumble down. Greece's economy has been rewound back by over 12 years in the economic clock. Britain has lost eight years and ten years. Their GDP fell rapidly. Unemployment rate are also high.
    The clock uses seven indicators of economic health that falls into three broad categories: 1. Household wealth and its main components, financial-asset prices and property prices. 2. Measures of annual output and private consumption are in second category. 3. Real wages and unemployment make up the third. An average of how much time has been lost in each of these categories produces the overall measure of the clock. Greek stocks were higher in 1992 than today: 20 years have been wiped away. After the collapse of Lehman Brothers in September 2008, in that month alone America's five years of gains were eradicated. The average American homeowner is living in 2001, judging by inflation-adjusted property values. How quickly the economies make up lost time will depend on how long they can bounce back quickly. Share prices is one of the indicators that can be asses to see how much time can be gain. A different measure of GDP is also an indicator to see how well consumers are doing. Population growth also needs to be taken into account, since living standards are best measured on a per-person basis. One thing for sure is that growth will reset the economic clock, providing new jobs and the resources to pay down debts. But periods of unemployment also can scar workers even after economies have crawled back to health. For some, the time lost to the crisis will never be recovered. What do you think of the economic clock? Can countries such as Greece, America and Britain recover their time lost in the clock?
Hanna Tirto

America's recovery: It could be worse | The Economist - 2 views

  • the labour market's recent performance has proved a pleasant surprise. Yet the economy has a very long way to go to return to full employment, and it's getting their painfully slowly.
  • The initial zero-job figure from August has now been revised up to an increase of 104,000, and September's total has also been revised up, to 158,000.
  • employment rose by 277,000 in October, outstripping growth in the labour force and bringing the unemployment rate down a notch to 9.0%.
    • Hanna Tirto
       
      America's unemployment rate has decreased and the labour market's performance has improved. However, the economy has a very long way to go before it reach back to full employment (6 % unemployment rate). Right now, the unemployment rate has decreased from 10% to 9%, a 1% improvement that proves to be quite significant, (even though it's still 3% far from the requirement of full employment). According to household survey, employment rose by 277,000 in October bringing the unemployment rate to 9%, broader measures of underemployment and numbers of long-term unemployed also dropped. Nonfarm payroll employment rose by 80,000 jobs (less than economists expected but it was less dissapointing than we might imagined.)

      People still think the America's economy is still unbalance and in any second it can go to a double-dip recession. Even though there are some and small improvements in employment rate, we still wonder if American economy can keep up this "improvement" pace to go back to full employment and its strong economy. In addition, the global economy right now is also very unstable and weak. Europe is in recession, Greece is heavily in debt and needs money from IMF and EU (consists of billons), Congress is incapable of action and the Fed works to imrpove American economy is still well behind the curve. However, the improvement in employment rate in private sectors is really a good sign for America. Things could be far worse and they're getting better. But they still remain a long way from good.
Hanna Tirto

Vegetable oil: What's cooking? | The Economist - 1 views

  • In the past few years a new source of demand has emerged for vegetable oils. Biodiesel production has rapidly accelerated and now consumes over a tenth of the global vegetable-oil crop
  • The effect of growing demand for the two main types of vegetable oil, palm and soya (see chart), is amplified by supply problems. In the case of soya, competition for land is the main concern
  • Finding more land has unpalatable costs. Environmentalists point out that the spread of palm-oil plantations is the greatest threat to forests in Indonesia and Malaysia. In May Indonesia introduced a two-year moratorium on forest clearance in return for $1 billion
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    The price of vegetables oils are increasing because the demand for them are booming. Vegetable oils used for cooking and other industrial processed foods. As consumers demand more of these oils, the producers need more land to grow the palm-oil plantations needed for the oil (soya and palm to create vegetable oil). But these palm oil plantations have been great threats to forests in Indonesia and Malaysia. Finding more land has unpalatable costs. I think consumers and restaurants should buy a different type of oil (olive oil and grapeseed oil ) rather than vegetable oil. First because vegetable oil is not that good for our health (hydrogenated vegetable oil used for industrial processed foods and deep fried foods). Second, planting more and more plantations of palm oil are great threat for forests.
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