Every 40 years or so in the U.S. American capitalism has to be saved from the capitalists, and the current economic slump appears to be one of those times. What's needed now are policies that will help boost demand.
It may be because of the slowing European economy, the drive for austerity by the continent's national governments, or planned tax increases. But whatever the reasons, the European Central Bank said Thursday it would hold its benchmark interest rate steady at 1%.
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.
After decades of languishing while financial services flourished, U.S. manufacturers are posting a stronger-than-expected rebound. An 11% sales gain in May makes Caterpillar a bright spot -- and it's not alone. [With video]
Ahead of the G-20 summit in Toronto this weekend, billionaire investor George Soros warns that Germany's policy of fiscal austerity could put Europe in danger. Could the budget cuts ultimately destroy the euro and fracture the European Union?
Massive liquidity injections in the form of monetary and fiscal stimulus seem to be the cure-all these days for any economic malady. But staggering unemployment, especially among the most vulnerable, calls for a very different response.
Desperate to help unemployed Americans find new jobs, the government has opened the funding spigot to boost programs at community colleges, career institutes and nonprofits. Billions of dollars in funding mean most courses can be taken for free.
The professors on the National Bureau of Economic Research aren't ready yet to call this one over. That makes sense, given that jobs are a key factor in the group's judgment about when recessions begin and end. Delaying that call, however, also has major political implications.
JPMorgan Chase could bank a rich $1.4 billion tax refund this year, owing to Washington Mutual's 2008 losses and an oft-overlooked business tax break that was squeezed into the 2009 Stimulus Bill.
Having promised a renewed focus on addressing the nation's high jobless rate earlier this year, President Barack Obama on Thursday signed into law a $17.6 billion jobs bill, which he said is a start in helping putting Americans back to work.
Fed Chairman Ben Bernanke and a panel of top economists will go before a House committee to discuss the right way to remove the crutch of government stimulus from the economy so that it doesn't knock the nation back into recession.
Banks are not the enemy. Although many imperfections exist in our financial system, turning banks into a target or a tool for recovery will end poorly. Over time, things will work out in the absence of counterproductive, even if well-intentioned, meddling.
An additional stimulus package will be required if the nation is going to avoid a double-dip recession, said both Mark Zandi of Moody's Economy.com and former Congressional Budget Office Director Rudolph Penner at a conference Friday.
During his address Wednesday night, look for President Obama to focus on solutions for problem No. 1: The lack of jobs. Employment growth will determine not just the economy's fate, but also that of the Democratic majorities in Congress -- and possibly of Obama's presidency.
