Millions of workers are hoping President Obama acts to extend the temporary reduction in Social Security payroll taxes that he enacted two years ago. That's sure to draw criticism, but it has to be done. Dan Caplinger of The Motley Fool explains why.
Though most Americans wish that Congress would rein in excessive pay on Wall Street, that won't happen while the huge campaign contributions keep flowing. And the financial industry's big money shell game drains away something more precious from our society than money -- it siphons off talent.
The tax cut compromise between Obama and the GOP is now being touted as a back-door stimulus plan, one that some economists predict will create or save 3.1 million jobs. Unfortunately, the model on which those forecasts are based makes some flawed assumptions.
The Federal Reserve bought $7.3 billion worth of U.S. Treasuries Friday as it started a second round of quantitative easing meant to stimulate the nation's economy, media reports indicate. The QE2 plan, designed to boost job creation and prevent deflation, has been highly criticized.
Some of the best reads for investors from around the Web, including posts evaluating how consumers spend their money, whether Google could be considered a monopoly and the debate about the Fed's policy on quantitative easing.
Some of the best reads for investors from around the Web, including posts on a misunderstanding about kickbacks at Foursquare, the second stimulus plan and the latest in Google perks: servants for its employees.
Asian markets closed higher Friday. In Japan the Nikkei 225 Index climbed 1.5% after Prime Minister Naoto Kan announced a new $11 billion stimulus plan designed to promote job creation, coax shoppers back into stores, and stem the surge in the value of the yen. In China the Shanghai Composite Index inched up 0.3% and Hong Kong's Hang Seng Index added 0.4%.
Speaking in Cleveland, President Obama laid out the details of his plan to boost the economic recovery: $50 billion for infrastructure spending; a $100 billion R&D tax credit; and $200 billion to induce U.S. companies to make capital improvements now rather than later.
Economists say the Obama administration's stimulus program actually saved the country's economy from plunging into the Great Depression 2.0. Yet that news will likely fail to sway voters who believe the current administration didn't do enough to support the economy.
With the Fed adopting a more a pessimistic view, the revival has been swift in calls for the federal government to do more to help spur growth. But what can Washington do, and would it be counterproductive?
While many U.S. economists battle over the wisdom of stimulus spending, Yale's Robert Shiller has a straightforward suggestion: Hire workers directly for public services, as we did during the Great Depression.
The Consumer Price Index fell 0.1% in June, but the core rate rose a higher-than-expected 0.2%, which suggests that the slowing U.S. economic recovery has lowered inflation. But it hasn't triggered deflation -- at least not yet.
The academic tussle over stimulus spending is a sign that the Establishment has run out of ideas about how to turn around a limping economy. America needs effective policy responses now -- not a raging battle in ivory towers.
