demand

Dear American Companies: Here's How to Fix the Economy

In 1914, a business executive named Henry Ford did a startling thing: He announced that he was going to more than double the wages he was paying his employees. The country was as shocked by this then as it would be today.

Good News on Gas Prices: A Sharp Drop Is Just Ahead

With security concerns in the Middle East receding and the commodities bubble deflating, oil prices are headed sharply lower. Gas prices should follow suit: The analysts say they will get 25 cents a gallon cheaper in the next few days, and drop even further as the summer rolls on.

Why $4 a Gallon Gas Wouldn't Last Long

Not long ago, everyone knew gas was sure to reach $4 a gallon for regular on a nationwide basis soon. Now, though, that sure thing is looking iffy: Gas prices are wavering, and a number of factors at home and abroad are about to come together to push demand -- and prices -- lower.

Will Saudi Arabia's Gambit Drive Oil Prices Even Higher?

Saudi Arabian Oil Minister Ali al-Naimi said his country cut oil production in March because the market was oversupplied. Was this move an honest bid to a bid to expose the speculators and push prices back down, or an attempt to capitalize on the current instability to propel prices higher?

Inflation Warning: Should the Fed Raise Interest Rates?

It's no surprise that consumer prices are rising -- the prices of commodities from cotton to copper are near record levels, thanks to shrinking supplies and rising demand worldwide. The question is whether the Fed will raise rates to combat this price inflation -- and whether it should.

Natural Gas Can Be America's Fuel of the Future

Unless there's a breakthrough in battery technology, gasoline will remain the primary auto fuel in the U.S. for years. But our dependence on imported oil comes with a major risk of supply disruption. And the U.S. has a domestic alternative that's ready and reliable: natural gas.

What's Really Ailing Employment: Lack of Demand

Many people blame America's high unemployment rate on a mismatch between workers' skills and the fields with open jobs. But it seems clear that jobs are scarce across all sectors. That means effective policies are needed to stimulate demand and rebuild economic output.

Oil Prices Are Likely to Drop Before They Rally Again

With an oversupply of oil on the market and OPEC afraid that higher prices will impair the U.S. recovery and sap demand, the fundamentals point to an oil price drop in the near term. Yes, markets move on emotion, and fears about unrest in Egypt have reversed that downward price trend, but the drop is probably coming.

Follow the Money to Real Growth, Not Tax Breaks

This week, David Cay Johnston published a thought experiment titled "How Would You Invest $1 Billion Under the Current Tax System?" Its premise is that if we use tax policy to boost demand, we can find more profitable ways to invest. It's a premise DailyFinance columnist and venture capitalist Peter Cohen rejects.

Two More Reports Hint at a Slowing Economy

On the heels of Intel%u2019s better-than-expected June quarter earnings report, the latest U.S. business inventory and import/export reports suggest the nation's economy slowed somewhat in the second quarter.

Do Intel's Record Earnings Signal a New Tech Boom?

Intel's record earnings suggest that companies are starting to loosen up a bit on tech spending: They are finally replacing their 4- and 5-year-old PCs. This replacement cycle should bid up the stocks of other PC makers -- but how long will this wave of IT buying last?

How Not to Mess Up the U.S. Economy

Every 40 years or so in the United States, American capitalism has to be saved from the capitalists, and the current economic slump appears to be one of those times.