 |
|
||||
|
||||||||
|
|
|
||||||
|
||||||||
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
|
|
|
||||||||||||||
 |
| In the fall of 2007, when the U.S. economy first seemed in peril, I began answering reader queries here on the Business Desk. I still do so, but this page has expanded to include posts from eminent economists, "far-flung correspondents," and a variety of voices that have intriguing and/or useful things to say about economics, broadly defined. Please feel encouraged to respond to any and all of them. |
|
ArchiveInequality Today: Worse than a Century Ago?
May 17, 2013 |
By Paul Solman The entrance at the 1912 Democratic National Convention held in Baltimore, Md. The theme of the presidential campaign of 1912 was economic inequality, but looking at the data, the problem is worse today than it was more
... » Continue reading
Economics, Game Theory and Jane Austen
May 16, 2013 |
By Michael Chwe Economist Michael Chwe has written a book called "Jane Austen: Game Theorist." Do you need more of a reason to read this post? Video from Michael Chwe's YouTube channel. I'm a specialist in game theory, the mathematical
... » Continue reading
Would a New 'Bretton Woods' Save the Global Economy?
May 15, 2013 |
By Benn Steil Britain's chancellor of the Exchequer George Osborne, center right, at the start of the G7 finance ministers and central bank governors meeting on Friday, May 10 in Aylesbury, England. The role of central banks in shoring up
... » Continue reading
Ask The Headhunter: Am I Getting Stiffed on Salary?
May 14, 2013 |
Headhunter Nick Corcodilos explains how to approach your employer when negotiating a raise. Image by Ojo Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over
... » Continue reading
Will Social Security Benefits Increase This Year? By How Much?
May 13, 2013 |
By Larry Kotlikoff If Social Security benefits increase, will they rise enough to give beneficiaries more money in hand? Expert Larry Kotlikoff answers this question, along with others from readers. Photo by Flickr user 401(K) 2012. Larry Kotlikoff's Social Security
... » Continue reading
The One Safe Investment and Why You Never Hear About It From Financial Advisors
May 10, 2013 |
By Zvi Bodie Economist Zvi Bodie, perhaps the country's foremost expert on pension finance, insists that every American at least consider an investment that financial advisors almost never mention. Photo by Peter Gridley/Getty Images. A note from Paul Solman: Zvi
... » Continue reading
Seven Tips for the Reluctant Senior Entrepreneur
May 9, 2013 |
By Judi Henderson-Townsend and Cynthia Mackey Two "senior" entrepreneurs (women in their 50s) explain how to overcome the reluctance to start your own business when you're older. These days, entrepreneurship is simply self-reliance, they explain. EmbedVideo(6226, 620, 386); NewsHour economics
... » Continue reading
The Stockholm Syndrome and Printing Money
May 8, 2013 |
By Terry Burnham A note from Paul Solman: Former Goldman Sachs trader, biotech entrepreneur, money manager and economics professor at Harvard's Business School and Kennedy School of Government (where he taught me microeconomics), Terry Burnham, now teaching at Chapman College,
... » Continue reading
Ask The Headhunter: Should Employers Pay to Interview You?
May 7, 2013 |
By Nick Corcodilos Ever feel like a company wasted your time after an interview because they never got back to you about their hiring decision? Headhunter Nick Corcodilos says that when employers ignore deadlines for hiring decisions, job seekers have
... » Continue reading
How Underfunded Is Social Security and How Might It Be Fixed?
May 6, 2013 |
By Larry Kotlikoff Social Security expert Larry Kotlikoff makes the case that the program is $220 trillion in the hole. Counter-expert Alicia Munnell disagrees, and shows how little it would take to fill the hole. Photo by Flickr user Fabricator
... » Continue reading
The Pros and Cons of Being a Jobless Single Dad for 711 Days
May 3, 2013 |
By Paul Solman EmbedVideo(6371, 620, 386); More than 4 million Americans remain out of work for more than six months now. And for those 55 and older, it takes at least a year on average to find work, longer than
... » Continue reading
What Are the Risks of Low Interest Rates?
May 2, 2013 |
By Paul Solman When the Federal Reserve buys up Treasury bonds to keep interest rates low, is this risky? Paul Solman answers a reader's question on the potential consequences and explains why this Federal Reserve practice -- known as "quantitative
... » Continue reading
Long-term Unemployment: Is This Blatant Age Discrimination?
May 1, 2013 |
By Paul Solman Is age discrimination a hushed secret or a blatant action by employers filling vacant jobs? Nick Corcodilos explains why the practice continues despite some companies' worries that they are losing out on the institutional knowledge and experience
... » Continue reading
Ask The Headhunter: The Four Best (Not Easiest!) Ways to Land a Job
April 30, 2013 |
By Nick Corcodilos Photo by David McNew/Getty Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of
... » Continue reading
Waiting Until 70 for Social Security: How Long Must You Live to Make it Worth the Wait?
April 29, 2013 |
By Larry Kotlikoff If you outlive your life expectancy, economist Larry Kotlikoff says you will want the highest possible Social Security check. If you don't, you won't need one. Image by Tetra Images/Getty Images. Larry Kotlikoff's Social Security original 34
... » Continue reading
The Truth About Entrepreneurs: Twice As Many Are Over 50 As Are Under 25
April 26, 2013 |
By Vivek Wadhwa A Note from Paul Solman: In January, PBS NewsHour featured a company where the average age was 74. In March, the graying of academia, with a physicist in his 80s who may be a better teacher than
... » Continue reading
Will We Ever Get to 'Full Employment'?
April 25, 2013 |
By Paul Solman A man enters a Shoe Carnival store in Morton Grove, Ill. Photo by Tim Boyle/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sense page. Here is
... » Continue reading
Why Older Entrepreneurs Are Crucial, Even in Silicon Valley
April 24, 2013 |
Facebook CEO Mark Zuckerberg founded his social media website from his dorm room at Harvard University when he was only 19 years old. As Silicon Valley investors search for the next "Zuckerberg," they increasingly maintain a prejudice against older
... » Continue reading
Ask The Headhunter: How to Transition From Military to Civilian Work Without a Resume
April 23, 2013 |
By Nick Corcodilos Jobless veterans take a class at the new Workforce1 Veterans Career Center in New York. The center offers area veterans assistance in their job search, help with resumes and classes on how to perfect the interview process.
... » Continue reading
How to Start a Senior Business for 'Dummies'
April 22, 2013 |
By Diane Lincoln Estes and Paul Solman EmbedVideo(6226, 620, 386); We interviewed Judi Henderson-Townsend, the owner of Mannequin Madness, for our story on senior entrepreneurs, airing on the Monday broadcast of PBS NewsHour. Surrounded by "stiffs" in an Oakland, Calif.,
... » Continue reading
Why You Should Never Wait Until After 70 to Take Social Security
April 22, 2013 |
By Larry Kotlikoff Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature "Ask Larry" every Monday. We
... » Continue reading
Why Paul Krugman, Others Think Reinhart and Rogoff Are Wrong About Debt
April 19, 2013 |
By Paul Solman Photo by Andrew Harrer/Bloomberg via Getty Images. Instead of answering any questions Friday, I should probably address the hot topic in the world of economics this week and the subject of Paul Krugman's column in The New
... » Continue reading
The Chosen Few: A New Explanation of Jewish Success
April 18, 2013 |
By Maristella Botticini and Zvi Eckstein A note from Paul Solman: Nine years ago, someone sent me an academic paper that put forward a radically new explanation of why Jews have been so successful economically. Written by economists Maristella Botticini
... » Continue reading
Ten Tips for Senior Entrepreneurs
April 17, 2013 |
By Judi Henderson-Townsend and Cynthia Mackey "Seniorpreneurs" Judi Henderson-Townsend, owner of Mannequin Madness, and Cynthia Mackey, founder of Baby Boomer Business Owner. Paul Solman: Mannequin Madness. That's where we met Judi Henderson-Townsend and Cynthia Mackey -- at Townsend's "body shop"
... » Continue reading
Ask The Headhunter: How to Talk to the Boss Before and After Getting Hired
April 16, 2013 |
By Nick Corcodilos When interviewing for a job, you may feel intimidated to contact your potential boss and follow up on any remaining questions. Headhunter Nick Corcodilos says don't be scared. Plus, once you have the job, learn how to
... » Continue reading
The Income Tax in 1913: A Way to 'Soak the Rich'
April 15, 2013 |
By Paul Solman A copy of the original IRS form from 1913. Image by National Archives. So how heavy is the income tax burden these days, especially on those in the upper reaches of the income range? One comparison is
... » Continue reading
Are Income Taxes on Social Security Benefits Egregiously Unfair?
April 15, 2013 |
By Larry Kotlikoff April 15, also known as Tax Day, is the deadline to file federal income tax returns to the IRS. Paul Solman asks Social Security expert Larry Kotlikoff about whether or not Social Security benefits are taxed equitably.
... » Continue reading
Does Obama Have it Right or Wrong on Social Security?
April 12, 2013 |
By Paul Solman Staffers pick up their copies of the President's Fiscal Year 2014 Budget at the Senate Budget Committee in the Dirksen Senate Office Building on April 10, 2013. Photo By Douglas Graham/CQ Roll Call/Getty Images. Today we present
... » Continue reading
The Hard Truth about Economic Inequality that Both the Left and Right Ignore
April 11, 2013 |
By Jerry Muller Economic historian Jerry Muller argues that rising economic inequality "is more deeply rooted and intractable than generally recognized" -- because of families. He says your financial fate could be determined by who you choose as a partner,
... » Continue reading
Self-Censorship on Chinese TV: An American Comedian's Experience
April 10, 2013 |
By Jesse Appell Fulbright fellow Jesse Appell's "Gangnam Style" parody was subject to censorship when he was asked to perform on Chinese television. A note from Paul Solman: Jesse Appell is a young humorist, fluent in Mandarin, studying stand-up comedy
... » Continue reading
Ask the Headhunter: How New Grads Can Get in the Door for a Job Interview
April 9, 2013 |
By Nick Corcodilos Young people graduate from college in search of jobs, only to be rejected for a lack of experience. Headhunting expert Nick Corcodilos explains how to combat age discrimination at the start of a career. Photo by Mehmed
... » Continue reading
Is There a Maximum a Husband and Wife Can Collect Monthly from Social Security?
April 8, 2013 |
By Larry Kotlikoff Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature "Ask Larry" every Monday.
... » Continue reading
How Dismal Were March's Job Numbers?
April 5, 2013 |
By Paul Solman At first blink, today's jobs numbers don't look too bad. The official unemployment number dipped again, to 7.6 percent. The number of people reporting that they didn't work even one hour last week and looked for work
... » Continue reading
Why Saving for a Rainy Day is Pointless -- For the Economy
April 5, 2013 |
By James Livingston By examining history, economic historian James "Against Thrift" Livingston says the sacrifice of saving for a rainy day -- of foregoing present consumption on behalf of future growth -- could be potentially destructive of the general welfare.
... » Continue reading
A Libertarian Take on Economic Faith, 'Facts' and Follies
April 4, 2013 |
Still from a John Papola-produced rap on saving vs. spending, a la Friedrich Hayek and John Maynard Keynes. Thursday's post is round three in the debate between Papola and his opponent, economic historian James Livingston. Image Courtesy of John Papola
... » Continue reading
The Plusses and Pitfalls of Teaching Online
April 3, 2013 |
By Dan Ariely Dan Ariely is not just a great and funny teacher, but he's dedicated his life to making the world a somewhat better place. To that end, he's produced an online course on behavioral economics that already has
... » Continue reading
Ask The Headhunter: The Talent Shortage Myth and Why HR Should Get Out of the Hiring Business
April 2, 2013 |
By Nick Corcodilos When HR personnel are put in charge of hiring new employees, they often rely on database searches, keywords and collecting stacks and stacks of resumes. Headhunting expert Nick Corcodilos says these may not be the most effective
... » Continue reading
What to Do If Social Security Says You Can't File and Suspend
April 1, 2013 |
By Larry Kotlikoff Larry Kotlikoff answers your Social Security questions. Photo by Flickr user 401(K) 2012. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of
... » Continue reading
The Economic Benefits of Gay Marriage
March 29, 2013 |
By M.V. Lee Badgett An economist looks beneath the same-sex marriage debate to the costs incurred by couples who can't marry, by regions that won't let them, and by the economy as a whole. Chris and Renee Wiley pose for
... » Continue reading
High Foreign Tariffs on US Surfboards: Should We Retaliate?
March 28, 2013 |
By Robert Lawrence In response to complaints from a world-class California surfboard maker that protective tariffs from abroad are hurting his business and America, Harvard economist Robert Lawrence mounts a spirited defense of freer trade. A Note from Paul Solman:
... » Continue reading
The Death of Dishonest Advertising
March 27, 2013 |
By Bob Garfield Co-host of NPR's "On the Media" and longtime advertising columnist Bob Garfield talks about the dark side of the digital revolution -- the squeeze on journalism -- and the bright side: "for the first time in human
... » Continue reading
Ask The Headhunter: Dealing With an Undeserved Nasty Reference
March 26, 2013 |
By Nick Corcodilos Did you ever have a horrible former boss and then worry about what that boss would say as a reference for future jobs? Nick Corcodilos explains how to proactively compensate for undeserved nastiness. Photo by Hans Neleman/Getty
... » Continue reading
Social Security Benefits to Take While You Wait Until 70
March 25, 2013 |
By Larry Kotlikoff Larry Kotlikoff answers your Social Security questions. Creative Commons photo courtesy flickr user 401(K) 2012 Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so
... » Continue reading
Economic Inequality: Isn't it Inevitable?
March 22, 2013 |
By Paul Solman If you get equal opportunity -- an equal slice of the educational cake or pie -- that doesn't necessarily mean you will have equal economic opportunities as a result. Paul Solman answers a reader's question on why,
... » Continue reading
Cyprus: The Nightmare Scenario and How to Avoid It in America
March 21, 2013 |
By Larry Kotlikoff Customers queue to withdraw cash from an automated teller machine (ATM) outside a Cyprus Popular Bank Pcl, also known as Laiki Bank on Thursday, March 21. The European Central Bank said it may cut Cypriot banks off
... » Continue reading
Silicon Valley Discriminates Against Women, Even If They're Better
March 20, 2013 |
Silicon Valley entrepreneur Vivek Wadhwa discovers that the famed "meritocracy" of Silicon Valley is a myth and that women are systematically discriminated against there, despite the fact that they're more productive, on average, than their male counterparts. He has
... » Continue reading
Ask The Headhunter: How to Overcome Missing Job Requirements
March 19, 2013 |
By Nick Corcodilos When you see a job description for which you are an almost perfect fit, there are many ways to overcome any shortcomings. Headhunter Nick Corcodilos advises that you take control during an interview and explain what separates
... » Continue reading
When Will You Retire?
March 18, 2013 |
Creative Commons photo courtesy of flickr user wheatfieldbrown. Monday's PBS NewsHour will feature our Making Sense story on the aging of academia. The population of professors over 65 has more than doubled since 2000 and many say they have
... » Continue reading
How to Take Social Security If You Earn a Lot More Than Your Spouse
March 18, 2013 |
By Larry Kotlikoff If you make more than your spouse, Larry Kotlikoff explains that you may want to consider a couple of strategies to ensure you both maximize your Social Security benefits. Photo by Siri Stafford/Getty Images. Larry Kotlikoff's Social
... » Continue reading
Senior Moments Author: Does Forgetfulness Drive the Economy?
March 15, 2013 |
By Paul Solman "Senior Momentologist" Tom Friedman (not the guy from the New York Times, but the noted humor writer) " explains what pandemic amnesia is and how "senior moments" may lead to economic growth. Image by CSA Images/Snapstock/Getty Images.
... » Continue reading
How Modern Finance Promises to Break the Cycle of Recidivism
March 14, 2013 |
By Paul Solman A new type of financial investment being pioneered in the United Kingdom may be the key for breaking the cycle of recidivism -- and it could be coming soon to a prison near you. Paul Solman visits
... » Continue reading
Three Rules for How to Get the Highest Social Security Benefits
March 13, 2013 |
By Larry Kotlikoff Social Security provisions are so nuanced and difficult to understand that they are sure to make anyone go mad. That's why Larry Kotlikoff has three general rules, which if followed, can help maximize Social Security benefits without
... » Continue reading
Premium Job Board Sued for Promising Customers Jobs That Don't Exist
March 12, 2013 |
If you are a job seeker looking on massive online job boards for opportunities, beware. You may fall victim to a scam like the alleged scam by premium job board TheLadders, a website that is now the subject of
... » Continue reading
How a 'Start-Stop-Start' Strategy Can Maximize Your Social Security Benefits
March 11, 2013 |
By Larry Kotlikoff Larry Kotlikoff says that maximizing your Social Security benefits is more complicated than reaching retirement and receiving the "green light" to start collecting Social Security. In some cases, you could receive the highest amount of benefits with
... » Continue reading
Companies Hire 236,000 in February, But Long-Term Unemployment Unchanged
March 8, 2013 |
In February, 236,000 new jobs were added to the economy, which was higher than expected and the unemployment rate dropped by 0.1 percent. But the 7.7 percent unemployment rate -- the official unemployment rate -- is only a small part
... » Continue reading
Is It Inevitable That the United States Will Default?
March 8, 2013 |
By Paul Solman With all the talk of the fiscal cliff and the sequester, I respond to a reader who wants to know if the economic dominoes are likely to fall, causing a government default, and I weigh in on
... » Continue reading
The Depressing Data on Early Childhood Investment
March 7, 2013 |
By Paul Solman Photo by Marc Romanelli/Getty Images. Jerome Kagan is one of the pioneers of developmental child psychology. But I interviewed him a few weeks ago with an economic motivation. PBS NewsHour has begun to explore a virtual reality
... » Continue reading
The Nonsense of Austerity
March 6, 2013 |
By James Livingston John Maynard Keynes, pictured above in 1942, overturned the ideas of neoclassical economics, advocating that fiscal and economic policy should be used to curb the adverse effects of economic recessions. Photo by Tim Gidal/Picture Post/Getty Images. A
... » Continue reading
Consuming Our Way to Prosperity is Macro Folly
March 6, 2013 |
By John Papola Produced by Emergent Order for Econstories.tv, a place to learn about the economic way of thinking through the eyes of creative director John Papola and creative economist Russ Roberts. A Note from Paul Solman: We first encountered
... » Continue reading
Ask The Headhunter: Resume Blasphemy
March 5, 2013 |
Headhunter Nick Corcodilos urges job seekers to write their own resumes, in plain ol' English, so that potential employers can see how candidates would be profitable additions to their companies. Photo by Flickr user Olivier Charavel. Nick Corcodilos started headhunting
... » Continue reading
Remembering the Businessman Who Took a Chance on Ex-Cons
March 4, 2013 |
Remembering John Neu, a businessman who took chances on convicted criminals by hiring them at his recycling company, WeRecycle. John Neu, chairman of Hugo Neu Corp., passed away Feb. 27. Paul Solman: John Neu, a major figure in the
... » Continue reading
How Unfair Is Social Security's Maximum Family Benefit?
March 4, 2013 |
When you take your retirement benefit and whether you are a high, moderate or low wage earner can dramatically affect how much your family can get in Social Security auxiliary benefits. Photo by Mike Kemp/Getty Images. Larry Kotlikoff's Social
... » Continue reading
Is Obama's Climate Change Policy Doomed to Fail? Maybe Not.
March 1, 2013 |
Until there is an obvious, sudden and perhaps cataclysmic event, such as a loss of part of the Antarctic ice sheet, the odds would seem to be stacked heavily against climate change legislation, says Harvard's Rob Stavins. But the
... » Continue reading
Why We Want to Keep Spending and Cut the Deficit
February 28, 2013 |
How can Americans want to maintain or increase spending on almost every line item in the budget (except foreign aid) and yet insist we need to cut the yearly deficit and cumulative debt? Paul Solman: "The test of a first-rate
... » Continue reading
Lessons from the Political Gridlock of 1842
February 28, 2013 |
Do you think that American legislators are hindered by partisan politics? Take a historical trip back to 1842 when the country was on the brink of a financial disaster that led to public disgust of Washington politicians. Photo John
... » Continue reading
Why the Sequester Won't Solve America's Debt Problems
February 26, 2013 |
While Congressional leaders squabble about the sequester, scheduled to take effect March 1, Making Sense contributor Larry Kotlikoff says that the United States has bigger financial problems that could affect generations to come. Photo by Dave Reede/Getty Images. Paul
... » Continue reading
Ask The Headhunter: The Only Interview Question That Really Matters
February 26, 2013 |
Photo by Altrendo/Getty Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask The Headhunter,
... » Continue reading
Why Not Raise the Social Security Payroll Ceiling and Other SS Questions
February 25, 2013 |
Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature "Ask Larry" every week. We are determined
... » Continue reading
It Pays Off to Invest in Early Education, Says Nobel Economist Who Boosts Kids' IQs
February 22, 2013 |
One economist has found a powerful connection between a child's early education programs and his or her earnings, IQ and behavior later in life. Photo by Flickr user Sarah Gilbert. Paul Solman: James Heckman is one of the economists
... » Continue reading
How to Find a Financial Advisor, Step by Step
February 20, 2013 |
Paul Solman answers a Next Avenue reader's question about how to choose an advisor who puts your financial interests first. This little financial advisor would put anyone's books in the black. Find a better one using advice from pension expert
... » Continue reading
How Social Security Pays You to Work Forever
February 20, 2013 |
Our Social Security expert, Larry Kotlikoff, explains why it's a smart financial move to put off retirement as long as possible in order to maximize your Social Security benefits. Photo by Flickr user 401(K) 2013. Larry Kotlikoff's Social Security original
... » Continue reading
Ask The Headhunter: How to Ask For a Higher Job Offer
February 19, 2013 |
Photo by Ojo Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask The Headhunter,
... » Continue reading
How to Maximize Social Security If Disabled and Other SS Questions
February 18, 2013 |
Photo by Piotr Powietrzynski/Getty Images. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature "Ask Larry"
... » Continue reading
Wouldn't a Minimum Wage Hike Lower the Welfare Rolls?
February 14, 2013 |
Paul Solman answers Next Avenue readers' questions about whether a minimum wage hike would induce people to leave welfare, and whether such a hike would increase the government's tax revenue. Protesters advocate for raising the minimum wage outside the office
... » Continue reading
The Man and the Thinking Behind the Minimum Wage Hike
February 14, 2013 |
President Obama is pushing a controversial hike in the minimum wage. It is surely no coincidence that his chief economic advisor is Alan Krueger, an economist who became famous in the 1990s for research supporting minimum wage hikes. But don't
... » Continue reading
Obama Says We Must Never Default, But Would It Really Hurt Us If We Did?
February 13, 2013 |
After defaulting on their debts in the 1800s, state governments, like Pennsylvania's, learned to disallow budget shortfalls. This is the lesson that we should learn from history and never repeat. Photo by Flickr user Brendan Lynch. Paul Solman: President
... » Continue reading
Ask The Headhunter: Networking for People Afraid of Being Obnoxious
February 12, 2013 |
Photo by Flickr user Samuel Mann. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask
... » Continue reading
Ask Larry: What's the Best Age to Take Spousal or Survivor Benefits?
February 11, 2013 |
Photo by Flickr user GabeB. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature "Ask Larry"
... » Continue reading
Why We Should Kill the American Penny
February 8, 2013 |
Paul Solman answers questions from Next Avenue readers about what the U.S. Mint can learn from Canada about the penny and why Germany is pulling their gold from the New York Fed. Photo by Flickr user hto2008. Paul Solman frequently
... » Continue reading
The Youth Unemployment Crisis: A Fix that Works and Pays for Itself
February 7, 2013 |
Economist Bob Lerman proposes a solution to the youth unemployment crisis in the United States. Lerman argues the quickest way to getting unemployed kids off the streets and onto the payroll is through work apprenticeships. Unlike internships, apprenticeships train young
... » Continue reading
What Good Do Money Management Firms Have to Offer?
February 6, 2013 |
When a feline can pick stocks better than a human, money manager Jon Shayne argues there are still very good reasons to have money management firms actively pick stocks and invest your money. Photo by Tom Noser. Paul Solman: Jon
... » Continue reading
Ask The Headhunter: Should I Reject a Counter-Offer from My Employer?
February 5, 2013 |
Photo by Getty Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask The Headhunter,
... » Continue reading
How Maximizing Social Security Can Lead to Marriage or Murder
February 4, 2013 |
Image by Flickr user couscouschocolat. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature "Ask Larry"
... » Continue reading
U.S. Economy Adds 157,000 New Jobs in January, Unemployment Ticks Up Slightly
February 1, 2013 |
Photo by Nick M. Do via Getty Images. By Paul Solman and Elizabeth Shell The U.S. economy added 157,000 new jobs in January while the unemployment rate climbed slightly to 7.9 percent, new Labor Department figures show. December unemployment
... » Continue reading
More Economic Comedy Routines: The Economics of Spam and What's So Funny About Monetary Policy?
January 30, 2013 |
EmbedVideo(5558, 620, 386); In the third extract from this year's American Economic Association (AEA) Humor Session, let's hear it for Justin Rao of Microsoft Research, who talks about "The Economics of Spam." Note that the several mentions of "Varian"
... » Continue reading
Ask The Headhunter: What To Do When Your Job Offer Is Cancelled
January 29, 2013 |
Photo by Neustockimages via Getty Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask
... » Continue reading
Ask Larry: Has My Social Security Office Given Me Bad Advice?
January 28, 2013 |
Photo by Justin Sullivan/Getty Images. Today, Social Security expert Larry Kotlikoff answers readers' questions covering issues from retirement, medicare and more. _Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security
... » Continue reading
Is the National Debt Harmful to Our Children?
January 25, 2013 |
Andrew Harrer/Bloomberg via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Friday's comes from a reader at Next Avenue. The NewsHour has partnered with Next Avenue,
... » Continue reading
Rising Inequality: Don't Blame the Robots
January 25, 2013 |
Robots work on 2008 Ford Expedition and Lincoln Navigator SUV frames on the assembly line at Ford Motor Michigan Truck Plant in Wayne, Mich. Photo by Rebecca Cook/REUTERS. Paul Solman: Dean Baker thinks economic inequality is our fault. Baker,
... » Continue reading
D.C.'s Funniest Celebrity: More Economics Comedy Routines
January 23, 2013 |
Yesterday we featured the econo-comedy of stand-up economist Yoram Bauman at this year's annual convention of dismal scientists. Today we present a few more snippets from the convention's comedy session. Emceeing was University of Chicago economist Austan Goolsbee, a former
... » Continue reading
Hyperinflation in Hell: An Economics Comedy Routine
January 22, 2013 |
Video courtesy of Yoram Bauman. Known as "the dismal science" for a reason that is itself dismal, economics has a tradition of humor long reliant on a few stock, self-deprecating jokes. A physicist, chemist and economist are stranded and
... » Continue reading
What I Did When My Email Account Was Hacked (Besides Panic)
January 22, 2013 |
Photo by Epoxydude via Getty Images. The NewsHour has partnered with Next Avenue, a new PBS website that offers articles, blogs and other critical information for adults over 50. Paul Solman: What follows is of a personal nature and
... » Continue reading
Ask Larry: Is Suspend-and-Collect a Flawed Plan?
January 22, 2013 |
Photo by Jim McGuire via Getty Images. Social Security expert Larry Kotlikoff answers readers' questions covering issues from retirement, medicare and more. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security
... » Continue reading
Ask The Headhunter: What If My Job Offer Was Rescinded After I Quit My Old Job?
January 21, 2013 |
Photo by Noel Hendrickson/Getty Images. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask The
... » Continue reading
Commentary: Raising the Social Security Retirement Age Makes No Sense in Today's Economy for Older Workers
January 18, 2013 |
Photo of an artisan blacksmith by John Burke via Getty Images. Paul Solman: We write a lot about Social Security on this page. Recently, our resident expert "Ask Larry" Kotlikoff and I got into a tiff about ways to
... » Continue reading
What's the Standard of Living Like Where You Live?
January 17, 2013 |
Photo by Betsie Van Der Meer via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Paul Solman: Back in November, we featured reporter David Cay Johnston on
... » Continue reading
Solving for Solvency: A Menu for Closing Social Security's Long-Term Budget Gap
January 16, 2013 |
Photo by Spencer Platt via Getty Images. Jared Bernstein served as chief economist and adviser to Vice President Biden from 2009 to 2011. He's now a senior fellow at the Center on Budget and Policy Priorities. His last appearance
... » Continue reading
Ask The Headhunter: Is There a Substitute for a College Degree?
January 15, 2013 |
Photo by Daniel Grill. Nick Corcodilos started headhunting in Silicon Valley in 1979, and has answered over 30,000 questions from the Ask The Headhunter community over the past decade. In this special Making Sense edition of Ask The Headhunter,
... » Continue reading
Why You Should Wait Until 70
January 14, 2013 |
Photo by Tetra Images. Social Security expert Larry Kotlikoff answers reader's questions covering issues from retirement, medicare and more. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have
... » Continue reading
Are You Getting Ripped Off by Money Management Fees?
January 11, 2013 |
Photo by Cultura/yellowdog via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Friday's comes from a reader at Next Avenue. The NewsHour has partnered with Next
... » Continue reading
Economist Andrew Smithers on Labor, Capital and Increased Tax Rates
January 10, 2013 |
Today we welcome once again our friend and monetary minstrel Jon Shayne, aka Merle Hazard, a Nashville investment manager. Shayne has written and sung such classics as "H-E-D-G-E," "In the Hamptons," "The Greek Debt Crisis" and "Inflation or Deflation?" He
... » Continue reading
The LIBOR Scandal: Not that Big a Deal?
January 9, 2013 |
Former Barclays chairman Marcus Agius faced the Parliamentary Treasury Select Committee on the LIBOR scandal in London in July. Photo by Jason Alden/Bloomberg via Getty Images. One of the biggest business scandals of 2012 was the the manipulation of
... » Continue reading
How To Get Interviews Without Cold Calling
January 8, 2013 |
An unemployed banker peddles on the street for a job. Photo by Spencer Platt via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative
... » Continue reading
How to Try to Stop Your Ex from Getting Spousal Benefits
January 7, 2013 |
Whether you are married or divorced, you can potentially collect spousal benefits. Photo by William Thomas Cain/Getty Images Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so
... » Continue reading
Another Victory in the War on Our Children
January 4, 2013 |
Paul Solman: "Ask Larry" Kotlikoff is a hot commodity here on Making Sense, not only as our (and your) Social Security sherpa, but as a sometime commentator on economics, which is how he's known to the rest of the world,
... » Continue reading
December Unemployment Held Steady; U-7 Down Again
January 4, 2013 |
A job seeker looks over material during a HIREvent job fair in San Jose, Calif. Photo by David Paul Morris/Bloomberg via Getty Images. Nothing dramatic on the jobs front this month. December's unemployment rate held steady at 7.8 percent.
... » Continue reading
Life Insights from a 100-Year-Old Manufacturing Worker
January 2, 2013 |
EmbedVideo(5366, 620, 386); While reporting on needle and tubing manufacturing firm Vita Needle in Needham, Mass., the NewsHour team met Rosa Finnegan. The company is known for its elderly workforce with its average worker 74 years old. But at
... » Continue reading
Ask the Headhunter: Niche Job Boards and Job Fairs
January 1, 2013 |
This photo from 1938, pictures a transitory cooking course for unemployed men who used to work in mines, shipyards and factories in Kent, England. Photo by Fred Morley/Fox Photos/Getty Images. Nick Corcodilos is an expert on how to get
... » Continue reading
How to Delay Your Social Security and Get the Most for Your Spouse
December 31, 2012 |
Blank Social Security checks are run through a printer at the U.S. Treasury printing facility. Photo by William Thomas Cain via Getty Images Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his
... » Continue reading
Mistakes: Paul Krugman's, Greg Mankiw's (And My Own)
December 28, 2012 |
Left, Paul Krugman (Photo by NewsHour). Right, Greg Mankiw (Photo by Bloomberg via Getty Images). Paul Solman: Both Paul Krugman, of MIT, and Greg Mankiw, of Harvard, were teaching economics locally during my formative years as an economics correspondent.
... » Continue reading
Yes to Profit-Sharing, No to Layoffs for 64 Years in a Row!
December 28, 2012 |
Worker pushing a table laden with copper coils at the Lincoln Electric Company. Photo by Bob Leavitt/Pix Inc./Time Life Pictures/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e
... » Continue reading
Running Scared: Getting Out of 'World's Safest Investment'
December 27, 2012 |
Photo by Dan Brownsword via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Here is Thursday's query: Barbara Pendergrast -- Germantown, Tenn.: Mr. Solman, Do you think
... » Continue reading
Capital Wins, Labor Loses, But Andrew Smithers Says It Can't Go On
December 26, 2012 |
Warehouse manager at operations desk on computer. Photo courtesy of John McBride & Company Inc. Paul Solman: Jon Shayne is not just the world's No. 1 econo-crooner, belting out economics tunes of his own invention under the stage name
... » Continue reading
Ask the Headhunter: 'Are Headhunters Worth Talking To?'
December 25, 2012 |
Photo by Stockbyte via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post his
... » Continue reading
What Happens to Unused Social Security Earnings When Someone Dies?
December 24, 2012 |
Photo by Flikr User seen by tobfl via Getty Images. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that
... » Continue reading
James Livingston: Corporations Don't Need Our Savings
December 21, 2012 |
James Livingston loves consumption, is skeptical of private investment. Paul Solman pushes him further on positions Livingston raised in a story on the NewsHour Thursday. James Livingston makes three economic arguments in favor of consumption over private investment/greater production.
... » Continue reading
Will America Go Broke, Yes or No?
December 21, 2012 |
Photo by Marc Grimberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Ashok Rao -- Chennai, India: I recently came across
... » Continue reading
Holiday Shopping: Keynesian and Self-Actualizing Both?
December 20, 2012 |
Paul Solman: On Thursday's NewsHour, a cerebral celebration of holiday shopping, courtesy of Rutgers University economic and intellectual historian James Livingston, author of the fascinating pro-consumption book "Against Thrift." Pitted against Livingston as counter-point is an anti-spending video from old
... » Continue reading
Communism: Plato's 'Cure for Extreme Political Ambition'
December 19, 2012 |
Photo by Science Source via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Eric Forbis: In "Communism, Capitalism and the Third Thanksgiving"
... » Continue reading
Federal 'Tax Breaks' or 'It's My Money'?
December 18, 2012 |
Image by Robin Jareaux/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query, a comment sent by a viewer from Kansas: Barbara Penn: Hello
... » Continue reading
Ask the Headhunter: The Three Best Ways to Land a Job
December 18, 2012 |
Floresco Productions via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post his own
... » Continue reading
Can an Ex Collect from His Older Ex-Wife When She Hits 66?
December 17, 2012 |
Photo by CSA Images via Getty Images. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature
... » Continue reading
CDs vs. Bond Funds: Which Is Better?
December 14, 2012 |
Photo by Peter Dazeley via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Friday's query: Paul Hyland: Please discuss the merits of one- or
... » Continue reading
Tallying the Unemployed: Where in the World is U-7?
December 13, 2012 |
Job seekers wait in line to meet with recruiters during a job fair in South San Francisco, California. Photo by Justin Sullivan via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here
... » Continue reading
What's Wrong with a Municipal Bond Fund?
December 12, 2012 |
Photo by Peter Dazeley via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Peter Stratton: I'm interested in current income only. Why
... » Continue reading
Ask The Headhunter: How to Get (and Stay) Hired, Despite a Sordid Past
December 11, 2012 |
Photo by Jupiterimages via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post his
... » Continue reading
The Hysterical Economy
December 10, 2012 |
Photo by Three Lions/Getty Images. Paul Solman: "Ask Larry" Kotlikoff is best known on this page as the Social Security guru who answers your questions every Monday, as he did this morning. In the real world, though, he's a
... » Continue reading
How Would the Fiscal Cliff Affect Your Tax Bill?
December 10, 2012 |
Ettore Sottsass, Summa 19 Electronic Printing Calculator, 1970. Manufactured by Ing. C. Olivetti & C. S.p.A., Italy. Photo courtesy of the Denver Art Museum. As we all watch the folks in Washington wrangle over how to avert the fiscal
... » Continue reading
Ask Larry: Real Danger of Old Age Is Outliving Your Savings
December 10, 2012 |
Photo by Mark Bowden via Getty Images. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature
... » Continue reading
Great Jobs Numbers? U-7 Says It Ain't Necessarily So
December 7, 2012 |
Applicants meet potential employers at the Diversity Job Fair on December 6, 2012 in Manhattan, New York City. Hundreds of minorities turned out to seek jobs, a day ahead of the release of monthly national unemployment figures in Washington
... » Continue reading
My Words Are Your Bonds, But Should You Keep Buying Them?
December 6, 2012 |
There are some sobering realities to consider when betting on bonds. Photo by Cultura/Liam Norris via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is
... » Continue reading
Argument For and Against Capital Gains Tax Cuts
December 5, 2012 |
Co-chairman of the National Commission on Fiscal Responsibility and Reform former Sen. Alan Simpson, R-Wyo., left, and Erskine Bowles, former White House chief of staff recommend taxing capital gains as ordinary income. Photo by Bill Clark/Roll Call via Getty
... » Continue reading
Ask The Headhunter: How Do I Get an Employer's Attention?
December 4, 2012 |
What do you do if you want to get a headhunter's attention? Photo by YOSHIKAZU TSUNO via AFP/Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on
... » Continue reading
Ask Larry: How Do I Get More Social Security from My Ex?
December 3, 2012 |
Outliving your ex-spouse is one way to get a larger Social Security payment. Photo by Noah Clayton via Getty Images. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas
... » Continue reading
Are the French Better Off Than Americans?
November 30, 2012 |
The French might be paying less when it comes to triple play packages. Photo by Sami Sarkis via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e
... » Continue reading
Thelma and Louise Redux: Satire in Song as We Near the Fiscal Cliff
November 30, 2012 |
( {"video_url": "http://www.youtube.com/watch?v=WswgoQZ8xHI"} ) To plagiarize a prior post of mine, this page likes to feature monetary minstrel Jon Shayne, a Nashville investment manager whose nom de croon is Merle Hazard. Merle has written and sung such classics as
... » Continue reading
Which Is Better: Government or Private Spending?
November 29, 2012 |
Vice President Joe Biden checks out his purchases during a visit to a Costco store on a shopping trip in Washington recently. Photo by Saul Loeb/AFP/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic
... » Continue reading
What's 'The Fine Print' Hidden in Your Paycheck?
November 29, 2012 |
EmbedVideo(5083, 620, 386); NewsHour featured a story on the Wednesday broadcast in which economics correspondent Paul Solman talks to David Cay Johnston about his book, "The Fine Print." Here is an extra clip about a tax trick Johnston calls
... » Continue reading
Did Marvin Miller's Free Agency Spike CEO Pay?
November 28, 2012 |
In this 1970 photo, Marvin Miller (then executive director of the Major League Baseball Players Association) explains a new baseball contract agreement at a press conference in New York City. Mr. Miller died Tuesday at 95. Photo by Arthur
... » Continue reading
Why You Might Not Contribute to a 403(b)/401(k) When Nearing Retirement
November 28, 2012 |
Photo by Peter Gridley via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Jim Narloch: If close to retirement age (65), which
... » Continue reading
Ask the Headhunter: 'Where Is This Magical Place to Meet Employers?'
November 27, 2012 |
Photo by Image Source via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post
... » Continue reading
Yet Another Good Month for Housing?
November 27, 2012 |
The suburbs of Las Vegas are one of the few areas where average housing prices stayed below their January 2000 levels. Photo by Allan Baxter via Getty Images. Editor's note | This post includes a correction at the end.
... » Continue reading
Ask Larry: 'Can a Lifelong Housewife Get Social Security?'
November 26, 2012 |
Photo from Petrified Collection via Getty Images Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature
... » Continue reading
Dan Ariely: Why Our Brains Might Not Be Able to Resist Black Friday
November 23, 2012 |
People crowd the aisles inside Macy's department store November 25, 2011 in New York after the midnight opening to begin the 'Black Friday' shopping weekend. Photo by Stan Homda/AFP/Getty Images) Well, in the best tradition of bait-and-switch, this is
... » Continue reading
Communism, Capitalism and the Third Thanksgiving
November 22, 2012 |
Pilgrim leader William Bradford, later the Governor of Plymouth Colony, reading the Mayflower Compact on board the Mayflower off the coast of what became known as Massachusetts, 1620. Photo by MPI/Stringer via Getty Images. Paul Solman: It being Thanksgiving,
... » Continue reading
Why Do Analysts' Estimates Matter?
November 21, 2012 |
Photo by Andrew Rich via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Tony Merlo: If a stock earns $1 a share
... » Continue reading
Ask the Headhunter: I Didn't Hear Back After a Phone Interview, Should I Call?
November 20, 2012 |
Photo by Tooga via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post his
... » Continue reading
Ask Larry: Can I Collect Social Security After My Domestic Partner of 30 Years Passes?
November 19, 2012 |
Creative Commons photo courtesy of Flickr user 401(K) 2012 Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we
... » Continue reading
If the US Budget Were a Family's, We'd Be Hopeless
November 16, 2012 |
Photo by Frederick Bass via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Friday's query: Heena: Hi Paul, I love your explanations of various
... » Continue reading
Money Manager Jon 'Merle Hazard' Shayne Visits Athens
November 15, 2012 |
Passengers ride the German-made transit system in Athens, Greece. When Jon Shayne last commented on Greece for us, it was in song as "Merle Hazard," Jon's musical alter ego. He was actually filing from his hometown of Nashville, Tenn.,
... » Continue reading
Poor is the New Rich in Viral Video from Expat in China
November 14, 2012 |
South Korean singer Psy performs "Gangnam Style" during the 2012 MTV European Music Awards. Photo by Daniel Roland/AFP/Getty Images Paul Solman: Jesse Appell was an economics student of mine at Brandeis last fall who is spending this year in
... » Continue reading
Ask the Headhunter: The 'Dirty Little Secret' of Age Discrimination
November 13, 2012 |
Photo by STOCK4B-RF via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post his
... » Continue reading
Ask Larry: Could Marriage, Then Divorce Be Worth $60k?
November 12, 2012 |
Photo by Stephen Webster via Getty Images Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature
... » Continue reading
Income Inequality vs. Wealth Inequality
November 9, 2012 |
Photo by Katrina Charmatz via Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: David G: I keep seeing an argument that says
... » Continue reading
Greece's Former Finance Minister Defends Super Mario
November 8, 2012 |
Greece's former Finance Minister George Papaconstantinou defends European Central Bank chief Mario Draghi's Outright Monetary Transactions plan. Photo by Louisa Gouliamaki/AFP/Getty Images Earlier today, we featured Boston University economist Laurence "Ask Larry" Kotlikoff on the European crisis and his skepticism
... » Continue reading
The Greek Crisis: Why Super Mario Draghi Can't Save Europe
November 8, 2012 |
Mario Draghi, president of the European Central Bank (ECB), speaks at a conference in Berlin, Germany. Photo by Sean Gallup via Getty Images. While readers of Making Sen$e and the Rundown know Larry Kotlikoff as our resident Social Security
... » Continue reading
They All Got it Right: Polls, Markets, and Models
November 7, 2012 |
President Barack Obama's election night rally at the McCormick Place convention center in Chicago. Photo by The Washington Post via Getty Images. The polls got it mostly right. Ray Fair's economic model forecast a result well within the final
... » Continue reading
Why a Romney Win Would Shock the Markets
November 6, 2012 |
Presumptive Republican presidential nominee and former Massachusetts Gov. Mitt Romney speaks during a campaign stop. Photo by Edward Linsmier via Getty Images. As of yesterday, President Obama had already been re-elected. Or so it seemed to Paddy Power, the
... » Continue reading
Ask Larry: When Do I Get Back What I Paid to SS?
November 5, 2012 |
Blank Social Security checks are run through a printer at the U.S. Treasury printing facility. Photo by William Thomas Cain via Getty Images. Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his
... » Continue reading
Jobs Up, U-7 Down, Jack Welch Silent (Thus Far)
November 2, 2012 |
A job seeker reviews listings in the Job Finder at the Rigzone Oil & Gas Career Fair in San Antonio, Texas. Photo by Eddie Seal/Bloomberg via Getty Images. At the risk of incurring Jack Welch's wrath, I am obliged
... » Continue reading
Are You an Older Worker? Know Older Workers? Let Us Know
November 1, 2012 |
Mary Brassard, 86, Dorrace Delaney, 74, and Roger Huff, 68, work at Vita Needle in Needham, a manufacturing company whose average age of worker is 74. Photo by Joanne Rathe/The Boston Globe via Getty Images. By Elizabeth Shell The
... » Continue reading
An Economist Argues the Virtues of Free Trade
November 1, 2012 |
Photo by PublicAffairs Publishing. On Oct.16, 2012, the NewsHour interviewed Donald Bartlett and James Steele on their latest book, "The Betrayal of the American Dream". Here is a critique and question from viewer Gary Todd about this segment, which
... » Continue reading
I Own Stock but I'm No Fat Cat
October 31, 2012 |
Image by Key Wilde via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: George White: Some people would have us believe that
... » Continue reading
Is the President to Blame for Unemployment and Gas Prices?
October 31, 2012 |
Pedestrians walk past a gas station selling gas for over five dollars a gallon in Los Angeles, California. Photo by Frederic J. Brown via AFP/GettyImages Paul Solman answers questions from the NewsHour audience on business and economic news here
... » Continue reading
Ask the Headhunter: How to Search for a Job if You're an Introvert
October 30, 2012 |
Photo by Peter Dazeley via Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to post his
... » Continue reading
Yes, Housing Prices Up Yet Again
October 30, 2012 |
According to S&P/Case-Shiller Home Price Indices, home prices continued to rise in August. Photo by Kevork Djansezian/Getty Images With election day a mere week away, all economic data carry potential political significance -- for us in the media, at
... » Continue reading
Ask Larry: What Do I Do if My Ex Never Paid My Social Security Tax?
October 29, 2012 |
Photo by CSA Images via Getty Images Larry Kotlikoff's Social Security original 34 "secrets", his additional secrets, his Social Security "mistakes" and his Social Security gotchas have prompted so many of you to write in that we now feature
... » Continue reading
An Expert on 'Extreme Productivity': Boost Results, Reduce Hours
October 26, 2012 |
Work-life balance illustration by Bjorn Rune Lie in Ikon Images via Getty Images. Bob Pozen has been the vice chairman of Fidelity Investments, chairman of MFS Investment Management, a professor at Georgetown University, New York University and Harvard Law
... » Continue reading
Are Public Pensioners Safe?
October 26, 2012 |
Pensions for teachers and government employees had the highest funding level among all Arizona public retirement plans. Photo by John Elk via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on
... » Continue reading
David Wessel on Virginia, Germany and Interest on the U.S. Debt
October 25, 2012 |
Photo of David Wessel and Paul Solman by Diane Lincoln Estes. The Wall Street Journal's David Wessel recently took us on a D.C. "budget tour" for a NewsHour story on his new book "Red Ink." One stop on the
... » Continue reading
Student Loan Debt: Everything You Need to Know
October 25, 2012 |
Photo by Flikr user jeco. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tursday's query: Susan Schrank: Judy Woodruff mentioned a new student loan repayment program
... » Continue reading
Deleveraging, Like Breaking Up, Is Hard to Do
October 24, 2012 |
A pressman inspects the roll out of $20 bills at the U.S. Bureau of Engraving. Photo by PAUL J. RICHARDS/AFP/GettyImages. By Merle Hazard It's time to announce the winner of our song contest. This past summer, with Paul's help,
... » Continue reading
Can You Compete with Baxter? Yes, Says Vivek Wadhwa
October 24, 2012 |
Throughout history, technology has caused change and disruption in the workplace, as when auto workers were replaced by creatures like these. But new higher quality jobs will emerge, argues Vivek Wadhwa. Photo by Stockbyte via Getty Images. I've reported
... » Continue reading
Ask the Headhunter: The Right Way to Search for Jobs When Unemployed
October 23, 2012 |
Job applicants wait to meet potential employers at the NYC Startup Job Fair. More than 80 startup companies were represented, with some 600 job openings for the more than 1,000 applicants who attended the event. Photo by John Moore/Getty
... » Continue reading
A Few Books That Influenced Paul Solman
October 23, 2012 |
Economics correspondent Paul Solman. Photo by Elizabeth Shell. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tuesday's query: Brian Mecca: Can you cite two or
... » Continue reading
'If I Marry My Girlfriend in Let's Say Thailand, Can She Collect Survivor Benefits After I Kick?'
October 22, 2012 |
Photo by Irina Sidorenko via Getty Images Today, Social Security expert Larry Kotlikoff answers reader's questions covering issues from retirement, medicare and more. Anne:I am 65 and will turn 66 in December. I retired at 63 after being laid
... » Continue reading
Obama or Romney? How Accurate Are Economic Models?
October 19, 2012 |
Last week, Paul Solman examined how polls and election markets parse data to determine who will win an election, in this case, the 2012 presidential race between President Barack Obama and former Mass. governor Mitt Romney. One such pollster, featured
... » Continue reading
Could Legalizing and Taxing Drugs Lower the Deficit?
October 19, 2012 |
Photo by PhotoAlto/Ale Ventura via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Here is Friday's query: Meg Ford: Could legalized and taxed drugs provide enough
... » Continue reading
Do You Trust Polls? Should You?
October 18, 2012 |
Paul Solman interviews professor Doug Schwartz at Quinnipiac University's Polling Institute. Politics professor Doug Schwartz runs the well-respected CBS/New York Times poll at Quinnipiac University. We interviewed him at the university's Polling Institute for a story on presidential prediction
... » Continue reading
How to Follow the Prediction Markets in Real Time
October 18, 2012 |
Digital Vision via Getty Images We have four questions today, since they all concern our recent story on polls, professors and prediction markets and yesterday's afternoon Making Sen$e post on how to make money on presidential prediction markets. R
... » Continue reading
Why Not Spend Even More on Health Care?
October 17, 2012 |
A nurse paying a house call to an elderly patient. Photo by John Moore via Getty Images. Ed Beardsworth: If Revlon sells an extra $1 billion worth of lipstick, that's a good thing. That adds to GDP, etc. If
... » Continue reading
How to Make Money on the Presidential Prediction Markets
October 17, 2012 |
Mitt Romney and President Obama point fingers during the second presidential debate at Hofstra Univesity in New York. Photo by Charlie Neibergall/AP/New York Daily News. We first reported on presidential prediction markets in a favorite story of ours that
... » Continue reading
Ask the Headhunter: Insider Secrets to Landing the Job
October 16, 2012 |
Job search websites. Image by the PBS NewsHour. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and asked him to
... » Continue reading
Q & A: 'How Do Family-Owned Corporations Compete With Joint Stock Companies?'
October 15, 2012 |
Photo by Comstock Images via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Here is Tuesday's query: Steven Hall: How do family-owned corporations like SC Johnson
... » Continue reading
Ask Larry: 'Can I Get Medicaid Without Losing Social Security Benefits?'
October 15, 2012 |
A Doctor Examines A Senior Patient. Photo by Mario Villafuerte via Getty Images. Larry Kotlikoff's Social Security "secrets" and his answers to your questions (here, here and here) have prompted so many of you to write in that we
... » Continue reading
Why the President Is Still a Heavy Favorite on the Prediction Markets
October 12, 2012 |
Ohio -- which has remained Obama friendly -- is one of three key states where Romney needs to gain support in order to swing the election in his favor. Photo by Mandel Ngan/AFP/Getty Images On the NewsHour tonight we explore
... » Continue reading
America's Best Kept Financial Secret: I Bonds
October 11, 2012 |
Photo of Social Security Checks at the U.S. Treasury. By William Thomas Cain/Getty Images Boston University finance guru should need no introduction to readers of this page, but for those who would like one, here it is. Zvi Bodie:
... » Continue reading
American Ideology? There is No Such Thing
October 10, 2012 |
American flags at the U.S. Capitol. Photo by: Scott J. Ferrell/Congressional Quarterly/Getty Images This is the second of two consecutive Making Sen$e posts by esteemed academic colleagues at different places on the political spectrum who don't have blogs, don't
... » Continue reading
American Ideology: We Don't Practice What We Preach
October 10, 2012 |
U.S. Capitol. Photo by Jewel Samad via AFP/Getty Images This is the first of two consecutive Making Sen$e posts by esteemed academic colleagues at different places on the political spectrum who don't have blogs, don't have newspaper columns, don't
... » Continue reading
If Job Boards Don't Work, Why Do Companies Screen by Computer?
October 9, 2012 |
Warehouse manager at operations desk on computer Photo by: John McBride & Company Inc. I first heard Wharton Business School Professor Peter Cappelli speak grim truths about today's job market at a conference in 2009. We then featured him
... » Continue reading
How Can Starting Your Own Business Help You Find Employment?
October 9, 2012 |
Small business owners at work. Photo by Rod Lamkey Jr./AFP/Getty Images. Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards and
... » Continue reading
Ask Larry: Can a Thirty-Something in Good Health Collect Social Security?
October 8, 2012 |
Creative Commons Photo Courtesy of Flickr user Fabricator of Useless Articles Larry Kotlikoff's Social Security "secrets" and his answers to your questions (here, here and here) have prompted so many of you to write in that we now feature
... » Continue reading
'Have I Managed My Finances Properly For a Long Retirement?'
October 5, 2012 |
Creative Commons photo courtesy flickr user Zadi Diaz. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Friday's comes from a reader at Next Avenue. The NewsHour has partnered
... » Continue reading
Unemployment Ticks Down to 7.8%, U-7 Down to 16.87%
October 5, 2012 |
Construction jobs grew by 5,000 in August, according to the Bureau of Labor Statistics. Photo by Sam Hodgson/Bloomberg via Getty Images. A rare banner day on the jobs front, at least at first glance. The official unemployment rate --
... » Continue reading
Spanish Dumpster Diving
October 4, 2012 |
Night skyline of Madrid. Photo by: Angel Navarrete/Bloomberg via Getty Images A post from Madrid today on last week's sensational New York Times story and slide show on hunger rising in Spain. The post is courtesy of one of
... » Continue reading
Can Candidates Get Tax Breaks for Contributing to Their Own Campaigns?
October 4, 2012 |
Photo of Republican candidate Mitt Romney via Getty Images Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Thursday's query: Harvey Weldon: If Romney were to contribute
... » Continue reading
While Candidates Debate, 27 Million Still Can't Get a Full-Time Job
October 3, 2012 |
Photo of Job Seekers by Emile Wamsteker/Bloomberg via Getty Images Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Steven: Please explain your U-7
... » Continue reading
Excerpt from a Newly Minted MacArthur 'Genius'
October 2, 2012 |
Photo by the MacArthur Foundation. For a 33-year-old, Harvard economist Raj Chetty has a distressingly high number of accomplishments, to which he adds, today, the status of MacArthur "genius" Fellow. But in fact, people of good will should be
... » Continue reading
'Talk Shop, Not Jobs': The Right Way to Network and More
October 2, 2012 |
Photo by Bloom Productions via Getty Images Nick Corcodilos is an expert on how to get a job. We ran into him while doing a story on the relative futility of Internet job boards for landing a position and
... » Continue reading
Larry Answers Social Security Queries on the Divorced, Disabled, Deceased
October 1, 2012 |
Creative Commons photo courtesy flickr user 26354. Larry Kotlikoff's Social Security "secrets" and his answers to your questions (here, here and here) have prompted so many of you to write in that we now feature "Ask Larry" every Monday.
... » Continue reading
Do We Now Know Enough About Mitt Romney's Taxes?
September 28, 2012 |
US Republican presidential candidate Mitt Romney speaks at a town hall meeting at Central High School in Grand Junction, Colorado, on July 10, 2012. Romney said he has 'nothing hidden' in his taxes. Photo by: Nicholas Kamm/AFP/Getty Images It's
... » Continue reading
Do Lower Taxes Goose Growth?
September 27, 2012 |
Tax Day Photo by Joe Raedle/Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Mike Beaver: I listened to your discussion of tax
... » Continue reading
More Job Search Secrets: Show Potential Employers the Money
September 27, 2012 |
Photo of Job Seeker by Jonathan Alcorn/Bloomberg via Getty Images We're pleased to report that we may have found the Larry Kotlikoff of job secrets, professional headhunter Nick Corcodilos. Larry, as readers of Making Sen$e no doubt know, has
... » Continue reading
Why Stocks Aren't Safe in the Long Run
September 26, 2012 |
Image by photosindia via Getty Images. Boston University economist, pension guru and longtime friend of Making Sen$e Zvi Bodie has been featured often here, most recently on I-bonds, and TIPS. You can see him on Making Sen$e here and
... » Continue reading
$16 Trillion and Deeper In Debt: How to Profit from a Dying Dollar
September 26, 2012 |
Photo of Gold Bars and Coins by Chris Ratcliffe/Bloomberg/Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: William McDonald: I don't want to
... » Continue reading
A Tale of Two Job Seekers
September 25, 2012 |
Image of John Franklin by the PBS NewsHour. Editor's Note | For our broadcast story about the frustrations of online job hunting -- which will air on the NewsHour Tuesday evening -- we interviewed headhunter Nick Corcodilos. He wrote
... » Continue reading
No News is Good News; Good News is Better
September 25, 2012 |
Photo by Phillip Spears via Getty Images The Case-Shiller index is out this morning, and housing prices continued to rise last month. Except perhaps for those shopping for homes, this is unambiguously good news. The more housing wealth, the
... » Continue reading
Ask Larry: 'Do I Need to Sell My Home So I Can Retire?'
September 24, 2012 |
Social Security Cards via Creative Commons Larry Kotlikoff's Social Security "secrets" and his answers to your questions (here, here and here) have prompted so many of you to write in that we now feature "Ask Larry" every Monday. We
... » Continue reading
Six Secrets To Beat the Job Market
September 21, 2012 |
Unemployed Americans line up as they wait to gain entry to meet prospective employers at a Los Angeles Career Fair. Photo by: MARK RALSTON/AFP/Getty Images Recently, in doing interviews for an upcoming piece on the frustrations of online job
... » Continue reading
A Look at Taxes and Retirement Savings
September 21, 2012 |
Photo by: Kick Images via Getty Images Angie Stehr: Calculations I see for retirement planning all seem to be based on income rather than expenses. But if I'm saving 20 percent for retirement, shouldn't I base my planning on
... » Continue reading
QE3: What it Really Means
September 20, 2012 |
A pressman inspects the roll out of $20 bills. Photo by: PAUL J. RICHARDS/AFP/GettyImages Last week was a momentous one for world markets and the world economy. Since thousands of you now read this page daily, I feel some
... » Continue reading
QE3: What it Really Means
September 20, 2012 |
A pressman inspects the roll out of $20 bills. Photo by: PAUL J. RICHARDS/AFP/GettyImages Last week was a momentous one for world markets and the world economy. Since thousands of you now read this page daily, I feel some
... » Continue reading
A Healthy Middle Class for a Healthy Economy?
September 20, 2012 |
Photo by Michael Melford via Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Jeff Tuttle: I have always heard a healthy economy
... » Continue reading
Why, With Unemployment So High, Do So Many Jobs Go Begging?
September 19, 2012 |
An applicant speaks with a prospective employer at a New York job fair. Photo by: Getty Images/John Moore As former President Bill Clinton put it in his speech earlier this month at the Democratic National Convention, "there are already
... » Continue reading
Trillions of Dollars in Bank Bailouts: Socialism for the Rich?
September 19, 2012 |
Photo of the Federal Reserve by: Andrew Harrer/Bloomberg via Getty Images Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Here is Wednesday's query: Bill Harshaw: Sen. Bernie Sanders
... » Continue reading
Ten of the Worst Social Security 'Gotchas'
September 18, 2012 |
Creative Commons photo courtesy flickr user 401(K) 2012 . By Larry Kotlikoff, with an introduction by Paul Solman Paul Solman: Boston University economist Laurence Kotlikoff has become our Social Security expert here at the Online NewsHour. Some of his
... » Continue reading
A Tax that Creates Jobs Instead of Just Enriching Owners?
September 18, 2012 |
Photo by Bob Travaglione FoToEdge via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tuesday's query: Name: Frank T. Manheim Question: I'm INTENSELY
... » Continue reading
When Will the Unemployed Riot?
September 17, 2012 |
A man resists two arresting officers during a 1977 demonstration concerning unemployment in America. Photo by Brian Alpert/Keystone/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here
... » Continue reading
Larry Kotlikoff Answers Your Social Security Questions
September 17, 2012 |
Two men hold hands with their marriage license after their wedding ceremony at the Manhattan City Clerk's office in New York. Photo by Jin Lee/Bloomberg via Getty Images. Larry Kotlikoff's Social Security "secrets" and his answers to your questions
... » Continue reading
Reporting on the Bank Fallouts: A Guide to the Past Four Years
September 14, 2012 |
A pedestrian walks by the American International Group Inc. building in New York, on March 24, 2009. Photo by Gino Domenico/ Bloomberg via Getty Images. On Friday's show, the NewsHour takes a look at the state of the bank
... » Continue reading
$1 Billion a Year in Military Aid to Egypt for 40 Years: Just Keep Giving?
September 14, 2012 |
Yemeni protesters gather around fire during a demonstration outside the U.S. Embassy in Sanaa over a film mocking Islam. Yemeni forces managed to drive out angry protesters who stormed the embassy with police firing warning shots. Photo by Mohammed
... » Continue reading
Should You Not Pay Down Loans These Days?
September 14, 2012 |
Creative Commons image courtesy flickr user nikcname. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Friday's query is being posted today since it was bumped by the Democratic
... » Continue reading
American Seniors: Poor No More
September 13, 2012 |
Photo by Nick Dolding via Getty images. Wednesday's post on the release of 2011 census economic data brought the predictably downbeat news that inequality continued to increase in America last year, as it has for decades. But in poring
... » Continue reading
A Million Dollars for an Extra Year of Life? 'It's my tax dollars!'
September 12, 2012 |
Tracy Morgan with her husband Mark before he died of brain cancer in 2011. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Name: Nancy
... » Continue reading
It's Official: Inequality Still on the Rise
September 12, 2012 |
Dominick Aldridga, 8, stands with his family at a mobile food pantry distribution point in Deposit, New York. According to the 2010 Census, 15.72 percent the population serviced by this mobile pantry live at or below the federal poverty
... » Continue reading
How Safe Are Bonds? Warnings for a Mom Who May Be Getting Bad Investment Advice
September 12, 2012 |
Stacks of one hundred dollar bills pass through a circulator machine at the Bureau of Engraving and Printing in Washington, D.C. Photo by Andrew Harrer/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and
... » Continue reading
Merle Hazard Hurtles Over the Fiscal Cliff
September 11, 2012 |
( {"video_url": "http://www.youtube.com/watch?v=WswgoQZ8xHI"} ) On this page, we like to feature monetary minstrel Jon Shayne, a Nashville investment manager whose nom de croon is Merle Hazard. Merle has written and sung such classics as H-E-D-G-E, In the Hamptons, The
... » Continue reading
What Does the Solman Scale Say about Unemployment?
September 11, 2012 |
An applicant speaks with a prospective employer at a New York job fair. Photo by Getty Images/John Moore. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here
... » Continue reading
Can Newly-Minted U.S. Citizens Receive Social Security?
September 10, 2012 |
A man takes the oath of allegiance at a citizenship ceremony at Saratoga National Historic Park. Creative Commons photo courtesy of flickr user Samantha Decker. Larry Kotlikoff's Social Security "secrets" and his answers to your questions (Answers to Benign
... » Continue reading
How to Invest $100,000 if You're 45
September 9, 2012 |
Photo by Kick Images via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Friday's query is being posted today since it was bumped by the Democratic
... » Continue reading
A Bad Jobs Report: Unemployment Down but U7 Total Still Above 27 Million
September 7, 2012 |
Job seekers wait for a career fair to open in Denver, Colo. Photo by John Moore/Getty Images. The delegates at the Democratic convention greeted President Obama enthusiastically Thursday night. Friday morning's job numbers did not. Quite the opposite. Job
... » Continue reading
What Deductions Might Romney Cut? Two Eminent Economists Duke it Out
September 6, 2012 |
Bill Clinton blistered the Republicans on a variety of points last night but prominent among them, to an economics correspondent, was his attack on the Romney/Ryan budget plan and its tax cut for the upper crust. "That makes the
... » Continue reading
Keynes or Say? How Do I Vote?
September 6, 2012 |
Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on the Making Sen$e page. Here is Thursday's query: Name: Brian Christopher Question: Hi, Paul. Just read your post on Keynes vs. Say's Law.
... » Continue reading
Is Academia Becoming an "Idea Graveyard?"
September 5, 2012 |
Photo credit: j.gresham via Flickr Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on the Making Sen$e page. Here is Wednesday's query: Name: Michael Shinder Question: Science and technology don't seem to
... » Continue reading
Which Economists Can See the Future?
September 4, 2012 |
Nassim Taleb and Nouriel Roubini predicted the last collapse. But even they don't think that means they'll be able to predict the next one. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here
... » Continue reading
Ask Larry: Can Social Security Disability Cover Care for Children with Down Syndrome?
September 3, 2012 |
Retirement expert Laurence Kotlikoff advises readers on various Social Security subjects, including disability benefits for disabled children. Creative commons photo by Daniel Rivas Pacheco, via Wikimedia Commons. Larry Kotlikoff's Social Security "secrets" and his answers to your questions (Answers
... » Continue reading
Better Off than Four Years Ago? Compared to What?
August 31, 2012 |
Prior to the Democratic National convention, Paul Solman talked with Jared Bernstein to get the party's economic platform. Bernstein was the chief economic advisor to Vice President Biden from 2009 -- 2011. Photo by the PBS NewsHour. While the
... » Continue reading
How Best to Leverage Small Savings? Buy, Fix Up, Rent Out?
August 31, 2012 |
Creative Commons photo of a 'fixer-upper' home in Boone County, Ill. courtesy flickr user minolta102. Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Friday's query comes from a
... » Continue reading
We Spend How Much on Egypt's Military?
August 30, 2012 |
Soldiers stand guard along the route of the funeral of Omar Suleiman, former chief of intelligence in Egypt as well as a presidential candidate, on Saturday, July 21, 2012, in Cairo, Egypt. Photo by James Lawler Duggan/MCT via Getty
... » Continue reading
Whatever Happened to 'Discover Economics with Paul Solman'?
August 30, 2012 |
Paul Solman produced a set of videos to teach the basics of economics in 2004 to accompany McGraw-Hill's introductory textbooks. This comes from "The Basics of Graphing." Paul Solman frequently answers questions from the NewsHour audience on business and
... » Continue reading
Should "Old" People Get Mortgages? (Second Time Around)
August 29, 2012 |
Homes at the intersection of 18th and S St. NW in the Dupont Circle neighborhood of Washington, D.C. Creative Commons photo courtesy flickr user NCinDC. After posting and then reposting an answer about "old" people and mortgages on Making
... » Continue reading
Where in the World is ESPlanner Basic?
August 29, 2012 |
A view of ESPlanner Basic. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is today's query: Name: Ervin Question: You're a lone beacon of hope (intelligence)
... » Continue reading
Latest Case-Shiller Numbers Suggest "Firming" Housing Market
August 28, 2012 |
The Case-Shiller housing index came out this morning (August 28), and as expected, the numbers for June are reassuring. For the last few months, prices have been rising in the 20 metropolitan areas covered by the index and with June's
... » Continue reading
Economists Debate: Keynes v. Say
August 28, 2012 |
Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page.Here is Tuesday's query: Name: Peter Eggenberger Question: Most of the disagreements between Keynesians and anti-Keynesians about current economic problems seem
... » Continue reading
Ask Larry: How Do I Estimate Social Security Benefits If I Don't Know My Ex's Earnings?
August 27, 2012 |
Retirement plan image by Kick Images via Getty Images. Retirement expert Laurence Kotlikoff advises Making Sen$e readers on various Social Security subjects, including how to determine what benefits one might receive even if they don't know their ex's entire
... » Continue reading
Days Before the Republican National Convention, 'Hurricane' Isaac Marks Tampa's Excitement
August 24, 2012 |
Paul Solman interviews Douglas Holtz-Eakin, left, former chief economic policy advisor to John McCain in 2008 in Tampa, Fla. before the Republican National Convention gets underway. Just leaving Tampa today as the bulk of the Republican Party arrives. The
... » Continue reading
How Safe are Government Bonds in Cyberspace?
August 24, 2012 |
Photo by the PBS NewsHour. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Friday's query comes from a reader at Next Avenue. The NewsHour has partnered with
... » Continue reading
Stash the 'stache? And the Verdict Is...
August 23, 2012 |
America has spoken. Or, to be more accurate, 80 percent of my grandchildren have (the fifth was born in March) and a slightly smaller portion of the population as a whole. The question my colleagues posted on Making Sen$e: Should
... » Continue reading
Is a Progressive Flat Tax an Oxymoron?
August 23, 2012 |
A protestor wears stickers on his face during a tax day demonstration April 17, 2012 in New York City. Photo by Justin Sullivan/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here
... » Continue reading
On the QT: A Few More Social Security Secrets
August 22, 2012 |
Why this picture? Because our Social Security expert, Laurence Kotlikoff, sometimes advises older couples to get married only after age 60 in order to collect maximum benefits. Photo by Annie Griffiths Belt, National Geographic collection via Getty Images. Boston
... » Continue reading
Revisiting Bernini, Master of Marble
August 21, 2012 |
The trigger for this post is the publication of a new book on Baroque sculptor Gian Lorenzo Bernini, "Bernini's Beloved: A Portrait of Costanza Piccolomini." The author, Emory University art historian Sarah McPhee, is the daughter of New Yorker writer
... » Continue reading
Can Families with Small Kids Cut the Boarding Line?
August 21, 2012 |
United Airlines planes parked at the terminal at San Francisco International Airport. Photo by Justin Sullivan/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is
... » Continue reading
Your Social Security Questions, Answered
August 20, 2012 |
Retirement expert Laurence Kotlikoff answers more of your Social Security questions, including what to do before reaching 70, the full retirement age. Photo by Purestock via Getty Images. Editor's Note | This post was updated after publishing. Larry Kotlikoff's
... » Continue reading
What Student Loan "Crisis"?
August 20, 2012 |
We reported on student loan debt in a pair of stories earlier this year: "The State Of Student Loans: More Debt, More Defaults, More Problems" and "Student Loan Debt: To Pay or Not to Pay?" Paul Solman frequently answers
... » Continue reading
Where Are All These Summer Workers Coming From?
August 17, 2012 |
Maeve O'Brien serves ice cream from the Original Boston Frosty truck, on July 10, 2012 in Boston, Massachusetts. O'Brien is from Cork, Ireland, working in Boston for the summer. Photo by Ann Hermes/ The Christian Science Monitor via Getty
... » Continue reading
Does It Make Sense To Get a 30-Year Mortgage at Age 66?
August 17, 2012 |
A view of the Trump Tower on 5th Avenue in New York. Photo by Timothy A. Clary/AFP/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Friday's
... » Continue reading
Money and Ethics
August 16, 2012 |
EmbedVideo(4167, 620, 386); Name: Michelle Westermann-Behaylo, J.D. Ph.D. Question: Each semester for the past few years, I have showed my students a clip from Paul Solman on ethics in business education, and the oath that many MBA students were
... » Continue reading
Has Goldman Sachs Bought Off Making Sen$e?
August 16, 2012 |
People are reflected in glass as they walk past Goldman Sachs headquarters. Photo by Mario Tama/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here are
... » Continue reading
Purple Squirrels and the Reserve Army of the Unemployed
August 15, 2012 |
Creative Commons photo courtesy flickr user Todd Mecklem. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Name: Frances Barbuto Question: Many times you
... » Continue reading
Social Security: Absurdly Complex? Not that Hard to Fix?
August 15, 2012 |
Members of the 'supercommittee' participate in a Joint Deficit Reduction Committee hearing October 26, 2011 in Washington, D.C. Although a resolution was never reached, Social Security was on the table. Photo by Mark Wilson/Getty Images. Larry Kotlikoff's "34 Social
... » Continue reading
Economic Inequality and Fakery in Art
August 14, 2012 |
This statue of an Etruscan warrior in the Metropolitan Museum of Art collection was proven to be a fake in 1961. Photo by Alfred Eisenstaedt/Time & Life Pictures/Getty Images. Today's post is a departure for Making Sen$e: one of
... » Continue reading
Does the Fed Feed the Treasury? What's their Relationship Really Like?
August 14, 2012 |
A pressman inspects the roll out of $20 bills at the U.S. Bureau of Engraving in Washington, D.C. The BEP is a government agency within the Department of the Treasury that designs and produces a variety of security products,
... » Continue reading
Readers Weigh In: Stash the 'Stache?
August 13, 2012 |
Editor's Note | Now for something up close and personal. After an intimate relationship that began during the first Nixon Administration, Paul Solman is considering calling it quits. With his mustache, that is. During a Midwest vacation, he mustered
... » Continue reading
Social Security Questions? Just Ask Larry
August 13, 2012 |
Herm and Flo Dorion celebrated their 70th wedding anniversary on July 11. Social Security expert Larry Kotlikoff answers readers' questions on retirement, including when to take spousal benefits. Photo by Autumn Cruz/Sacramento Bee/MCT via Getty Images. Larry Kotlikoff's Social
... » Continue reading
Neil Barofsky Lauds Barney, Blasts Dodd-Frank
August 10, 2012 |
EmbedVideo(4119, 620, 386); Our final outtake from our Aug. 2 interview with SIGTARP Neil Barofsky: Special Inspector General for the Troubled Asset Relief Program. (Note that the full title runs 59 letters, which the acronym pares down to a
... » Continue reading
What's the Best Way to Fund a College Fund?
August 10, 2012 |
The 2012 Vassar College Commencement in Poughkeepsie, New York. Photo by Paul Zimmerman/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Friday's query comes from a
... » Continue reading
Neil Barofsky on 'Foaming the Landing' for Banks
August 9, 2012 |
EmbedVideo(4107, 620, 384); On Making Sen$e this week we've been featuring outtakes from my interview with top TARP cop Neil Barofsky, appointed by President Bush and retained by President Obama to prevent fraud in the $700 billion Troubled Asset
... » Continue reading
When Will the Deficit Hit $10 Trillion? 2036? 2057? But So What?
August 9, 2012 |
Digital composite by Travel Images/UIG via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Name: Jack Doyle Question: How long will
... » Continue reading
Neil Barofsky on the Corrupting 'Elixir of Power'
August 8, 2012 |
EmbedVideo(4091, 620, 386) Wednesday we present the second installment of outtakes from my encounters with Neil Barofsky, Special Inspector General for the $700 billion Troubled Asset Relief Program, known in Washington, D.C. as the SIGTARP. (I'm not making this
... » Continue reading
When a Bank Loses Billions, Who Wins?
August 8, 2012 |
President and CEO of JPMorgan Chase Co. Jamie Dimon testifies before a Senate Banking Committee hearing in June. The committee was hearing testimony from Dimon on how JPMorgan Chase lost billions in stock market trades. Photo by Mark Wilson/Getty
... » Continue reading
TARP Top Cop Neil Barofsky on Drug Lords and Mortgage Fraud
August 7, 2012 |
EmbedVideo(4082, 620, 386); On Making Sen$e lately we've been featuring outtakes from my encounters with especially intriguing interviewees. The most recent was Neil Barofsky, appointed by President Bush and retained by President Obama to prevent fraud in the $700
... » Continue reading
Is $850,000 Enough To Retire On?
August 7, 2012 |
A pedestrian passes a Fidelity Investments branch in New York. Photo by Victor J. Blue/Bloomberg via Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here
... » Continue reading
Larry Kotlikoff on Social Security: 'We're Not in Kansas Anymore'
August 6, 2012 |
From left to right, Jack Haley as the Tin Man, Ray Bolger as the Scarecrow, Judy Garland as Dorothy and Bert Lahr as the Cowardly Lion in the MGM film "The Wizard of Oz," 1939. MGM Studios/Archive Photos/Getty Images.
... » Continue reading
Should You Own the Banks? Should the Public Own Everything?
August 6, 2012 |
Branch office of BB&T bank in Lexington, N.C. Creative Commons photo by Dennis Brown via Wikimedia Commons. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's
... » Continue reading
11 Social Security Mistakes People Make
August 3, 2012 |
Photo by Jim McGuire via Getty Images. The hits just keep on coming. The Internet hits for Larry Kotlikoff and his Social Security Secrets, that is. We're still getting tens of thousands a day and wave after wave of
... » Continue reading
U7 Unemployment Rises Again: How Little We Know
August 3, 2012 |
Viewed on a computer screen, jobless veterans take a class at the new Workforce1 Veterans Career Center on July 31 in New York City. According to the Bureau of Labor Statistics, the unemployment rate for all veterans in June
... » Continue reading
Social Security Confusion: Our Expert Dispels Some More
August 2, 2012 |
Creative Commons photo courtesy Flickr user Fabricator of Useless Articles. The Social Security tsunami continues with more queries for retirement authority Larry Kotlikoff. Larry's Making Sen$e post earlier this week, 34 Social Security Secrets You Need to Know Now,
... » Continue reading
Young Spaniards: Move Out or Resign Yourself to Sex in the Car
August 2, 2012 |
Vacant apartment homes in Spain, from Paul Solman's 2010 story Spain's Housing Market Slide Adds to Europe's Economic Troubles. This story at Bloomberg the other day caught our attention: the lengths to which Spanish real estate owners are going
... » Continue reading
Answers to Benign and Scary Social Security Questions
August 1, 2012 |
Ron Hillyer, who was a custodian in the D.C. public schools for 32 years before retiring, gets a group hug from students who remember him. Photo by Jahi Chikwendiu/The Washington Post via Getty Images. Boston University economist Larry Kotlikoff's
... » Continue reading
What Impact Would Eliminating the Payroll Cap Have on Social Security?
July 31, 2012 |
Creative Commons photo courtesy flickr user 401(K) 2012. Monday's post featuring Boston University economist Larry Kotlikoff and his "34 Social Security Secrets" is attracting viewers like a new Lady Gaga video -- at least by Making Sen$e standards. Tens
... » Continue reading
Optimism in Latest U.S. Home Prices
July 31, 2012 |
Real estate agent Diane Olson opens the sliding glass door of a model home in Gilbert, Ariz. "[Phoenix] was one of the hardest hit cities in the collapse, and prices are still more than 50 percent below their June
... » Continue reading
34 Social Security Secrets You Need to Know Now
July 30, 2012 |
Treasury employee Linda Tarkenton of Philadelphia holds a blank U.S. Treasury check before it's run through a printer at the U.S. Treasury printing facility. Photo by William Thomas Cain/Getty Images. Update: | Laurence Kotlikoff has agreed to answer your
... » Continue reading
Why Do Some Get Preferential Treatment?
July 30, 2012 |
A TSA agent instructs travelers on traveling through security lines at Pittsburgh International Airport. Photo by Jeff Swensen/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page.
... » Continue reading
What Charles Murray Thinks of Your Bubble Score
July 27, 2012 |
Paul Solman interviews author Charles Murray about his book "Coming Apart" at a local diner near Murray's hometown of Burkittsville, Md. Within just a few days, more than 2000 of you have responded to the "Do I Live In
... » Continue reading
Is It Ever a Good Idea to Throw Money at Insurance Companies?
July 27, 2012 |
Registered nurse Susan Eager discusses medication with patient Helen Ricci, 96 during a house call in Denver, Colo. Photo by John Moore/Getty Images. The NewsHour has partnered with NextAvenue, a new PBS website that offers articles, blogs and other critical
... » Continue reading
Will Technology Help or Hinder the Gap Between the Haves and Have-Nots?
July 26, 2012 |
Potential customers try various models of smartphones at a mobile telecommunication fair in Bangkok. Photo by Christophe Archambault/AFP/Getty Images. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page.
... » Continue reading
Grains of Hope Amid Pain in Spain: A Far-Flung Hotelier Reports
July 26, 2012 |
Government employees demonstrate in the center of Madrid after conservative Prime Minister Mariano Rajoy announced the latest measures to lower Spain's deficit: an $80 billion austerity package involving cuts in unemployment benefits. Photo by Dominique Faget/AFP/GettyImages. Earlier this week
... » Continue reading
Who Will Gain From Technology's Advances? Who Will Be Left Behind?
July 25, 2012 |
Creative Commons photo courtesy flickr user o5com. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Name: Manuel Avila Question: This is in response
... » Continue reading
Should We Worry About Mercenary Occupiers?
July 24, 2012 |
A photo of the Occupy Wall Street protests in October, 2011 by Jackie Weir. See more. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tuesday's
... » Continue reading
You Tell Us: Do You Live in a Bubble?
July 24, 2012 |
Creative Commons photo by Marceltheshell via Wikimedia Commons. The "Do You Live in a Bubble?" quiz, concocted by Charles Murray and first published here on Making Sen$e back in March, has generated more than 200,000 views thus far, and
... » Continue reading
Do Other Countries Piggyback On U.S. Healthcare Spending?
July 23, 2012 |
Photo by John Moore/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Name: Andrew Mungai Question: As a Kenyan (with a business degree
... » Continue reading
Spain's Death Spiral
July 23, 2012 |
The interior of the Madrid Stock Exchange, or Bolsa y Mercado, on Monday, July 23, 2012. Spanish bonds slumped, with 10-year yields climbing to a euro-era high, after the Spainish newspaper El Pais said six regions may ask the
... » Continue reading
Environmental Stand-up Economist: 'We're Going to Find Out How Bad Climate Change Really Is'
July 20, 2012 |
EmbedVideo(3942, 620, 386); Stand-up economist Yoram Bauman spent five months in China recently, studying climate change at a university and sending occasional video dispatches to us at Making Sen$e. I myself spent some time in China in 2005, reporting
... » Continue reading
The Biggest Mistake You Need to Stop Making About Retirement
July 20, 2012 |
Photo by Kick Images via Getty Images. The NewsHour has partnered with Next Avenue, a new PBS website that offers information and resources for adults over 50. Friday's question is another from our baby boom finance friends at PBS's
... » Continue reading
Is Campaign Spending a Lousy Idea, or Does it Help the Economy?
July 19, 2012 |
President Barack Obama and Republican presidential candidate Mitt Romney were both campaigning in the swing state of Ohio earlier this summer. Both sides are poised to spend $1 billion each in the race to the White House. Paul Solman
... » Continue reading
A Flaw in Our College Costs vs. Income Calculator?
July 18, 2012 |
Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Name: Carol Christen Question: Paul, the calculator is great. But it has a serious flaw.
... » Continue reading
The U.S. as the New Saudi Arabia: An Environmentalist's Nightmare?
July 17, 2012 |
A flame from a Saudi Aramco (the national oil company) oil installation known as 'Pump 3' burns brightly during sunset in the Saudi Arabian desert. According to Forbes, Saudi Aramco generates more than $1 billion a day in revenues
... » Continue reading
Chinese Identity Amid an Economic Slowdown
July 16, 2012 |
A security guard patrols outside the headquarters of the Bank of China in the Xidan shopping area of Beijing. Photo by Mark Ralston/AFP/Getty Images. With all the talk of a Chinese economic slowdown there, I have a suggestion: Read
... » Continue reading
Where is a Safe Place to Invest?
July 13, 2012 |
Today we add a new wrinkle to Making Sen$e. The NewsHour has partnered with Next Avenue, a PBS site "that provides in-depth information, perspective and inspiration to help those 50 years old and older navigate their next life stage."
... » Continue reading
Ray Kurzweil on Bringing Back the Dead and a Viewer Question: When Is Paul Solman Going to Retire?
July 12, 2012 |
EmbedVideo(3873, 620, 386); We round out "Ray Kurzweil Online" with the third and final installment of our miniseries. Thursday's outtake with Mr. Immortality: Does Kurzweil believe that an avatar of his dead father -- created with artificial intelligence and
... » Continue reading
Ray Kurweil's Immortality Cocktail; And a Student Loan Skeptic
July 11, 2012 |
EmbedVideo(3861, 620, 386); Wednesday we feature the second of our interview outtakes with inventor/author/futurist Ray Kurzweil. (Tuesday's installment: the melding of man and machine.) In our broadcast story, which debuted on Making Sen$e Monday, Kurzweil explained that his recipe
... » Continue reading
Buying Gold and Futurist Ray Kurzweil on Melding of Man and Machine
July 10, 2012 |
EmbedVideo(3851, 620, 386); Author, inventor and futurist Ray Kurzweil has been a key voice in our occasional series on the future of technology. The latest installment on the advent of immortality debuted here on Making Sen$e July 9. As
... » Continue reading
Disappearing Dead: Economic Optimism about Immortality
July 9, 2012 |
EmbedVideo(3842, 620, 386); Will we one day be able to live forever? Interesting question, especially for a page where I usually take your financial, rather than science, questions. But what is the goal of economics if not the greatest
... » Continue reading
Are Student Loans Forgiven for the Peace Corps or Disability?
July 9, 2012 |
Peace Corp volunteer Scott Wilhelm, right, worked as an agroforestry volunteer in El Salvador, assisting local farmers in growing fruit trees after a volcanic eruption destroyed their crops. Photo by the Peace Corps via a U.S. Government Work license.
... » Continue reading
U7 Unemployment Rises Again
July 6, 2012 |
An applicant speaks with a prospective employer at a New York job fair. Photo by John Moore/Getty Images Distressing. That's our verdict after studying this morning's unemployment data for June.
... » Continue reading
Compared to Europe, Does the U.S. Really Have Its Act Together?
July 5, 2012 |
A euro coin rests on top of a dollar bill. Photo by: Dan Kitwood/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Name:
... » Continue reading
All That Glisters Is Not Gold (When It Comes to the Gold Standard)
July 4, 2012 |
Gold bars and coins at a gold dealer in London. Photo by Chris Ratcliffe/ Bloomberg/ Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's
... » Continue reading
If We Could Time Travel with Krugman, Would He Still Recommend Stimulus?
July 3, 2012 |
A Metropolitan Transit Authority engineer walks through a tunnel at the Long Island Rail Road East Side Access project, which received economic stimulus money. Photo by: Scott Eells/Bloomberg/Getty Images Paul Solman frequently answers questions from the NewsHour audience on
... » Continue reading
In Choosing Assets, What's Safer than U.S. Bonds?
July 2, 2012 |
Silver coins and bullion bars sit on display in the window of a bank in Vienna, Austria. Photo by Akos Stiller/Bloomberg/Getty Images Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making
... » Continue reading
Is Workplace Marijuana Testing a Boondoggle or Money Saver?
June 29, 2012 |
Photo of a small marijuana plant in Oakland, Calif. by Tony Avelar/The Christian Science Monitor via Getty Images. Name: Patricia Schwarz Question: Has pre-employment urine screening for marijuana actually helped businesses save money? According to studies done for the
... » Continue reading
Using a Retirement Account to Buy a Home, Plus a Paul Krugman Round-Up
June 28, 2012 |
Economists Robin Wells and Paul Krugman. Photo by PBS NewsHour. Our web-exclusive interviews with Paul Krugman, accompanied by conservative critiques, and one with his wife, Robin Wells, have garnered so much attention that all five ranked among the nine
... » Continue reading
A Q-and-A, Plus a Ditty and Contest as U.S. Races Toward the 'Fiscal Cliff'
June 27, 2012 |
Wednesday we debut a new song by the superstar of C&E music (Country & Eastern), Merle Hazard. We have featured Merle, who bears an uncanny resemblance to Nashville money manager Jon Shayne, proudly and often here on Making Sen$e.
... » Continue reading
U.S. Housing Prices on the Rise -- Except in Detroit
June 26, 2012 |
Shuttered and repossessed homes line the streets of a middle class neighborhood on the East side of Detroit. Photo by Charles Ommanney/Getty Images. Only in Detroit. That's the punchline from the monthly S&P/Case-Shiller housing survey, published Tuesday morning with
... » Continue reading
Is Google Scared? Submit Your Questions on the Future of Social Media
June 25, 2012 |
EmbedVideo(3715, 620, 386); On Friday's show, I interviewed Rory O'Connor, longtime video journalist, blogger and author of the new book, "Friends, Followers and the Future," about the power and perils of social networks. O'Connor has agreed to answer Making
... » Continue reading
Robin Wells on Universal Coverage, Europe Unwinding and Husband Paul Krugman
June 22, 2012 |
In the last installment of our extended profile of Paul Krugman, we turn to his wife Robin Wells. An economist who also co-authors textbooks with him, Wells talked with us at their home on a particularly rainy day --
... » Continue reading
Paul Krugman on the 'Cartoon Physics' of the 2008 Crash
June 21, 2012 |
EmbedVideo(3695, 620, 386); Thursday marks the penultimate installment of our extended profile of economist and New York Times columnist Paul Krugman here on Making Sen$e. The topic: What happened in the great crash of '08? Are we in danger
... » Continue reading
Paul Krugman on Ben Bernanke's 'Green Shoots'
June 20, 2012 |
EmbedVideo(3686, 620, 386); Continuing our profile of economist Paul Krugman, we turn to a topic in the news today: the Federal Reserve. On Monday, remember, we featured Krugman on European austerity, with a response from Jacob Kirekegaard of the
... » Continue reading
Paul Krugman on Europe 'Doing the Unthinkable'
June 19, 2012 |
EmbedVideo(3671, 620, 386); This week we're profiling one of the more prolific, public and controversial economists -- Paul Krugman. We couldn't fit everything of interest into one piece, so over the next few days we're rescuing some of his
... » Continue reading
Economist Paul Krugman on Germany's 'Whips and Scourges'
June 18, 2012 |
EmbedVideo(3660, 620, 386); Welcome to "Paul Krugman Week" here on Making Sen$e. We'll be devoting the next five days to excerpts from our extensive interview with him a few weeks ago at his home in Princeton, N.J., plus parts
... » Continue reading
In Defense of Borrowed Money
June 15, 2012 |
Photo by Philip Taylor PT via Flickr Creative Commons. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Friday's query: Name: Jason Copping Question: Has the U.S.
... » Continue reading
Breaking Down the Finer Points of Jamie Dimon's Testimony
June 13, 2012 |
President and CEO of JPMorgan Chase, Jamie Dimon testifies before a Senate Banking Committee hearing on Capitol Hill Wednesday. The committee is hearing testimony from Dimon on how JPMorgan Chase lost over $2 billion in stock market trades. Photo
... » Continue reading
Betting on Death: Creepy or Not?
June 12, 2012 |
EmbedVideo(3617, 620, 386); Monday night the NewsHour featured my discussion with Harvard professor Michael Sandel about his new book, "What Money Can't Buy," born from his famed, regularly mobbed Harvard course, "Justice," most of which is online and hugely
... » Continue reading
Saddled with Student Debt? Where To Find Help
June 11, 2012 |
By Elizabeth Shell Here's a running debt clock tracking total student loans in America (the mechanics of which are at finaid.org, one of the sites run by financial aid expert Mark Kantrowitz.). If you're like one of the debt-saddled folks
... » Continue reading
A 'Lord's Prayer' for Spain's Economic Troubles
June 11, 2012 |
Banco de Espana (Bank of Spain). Photo by Two Steps Behind via Flickr Creative Commons. Today, in the last of our pain-in-Spain posts, a viral version of the Lord's Prayer, as tweeted by Paul Solman over the weekend. Our
... » Continue reading
In Spain, a Disturbing Lack of Confidence
June 8, 2012 |
Bank of Spain in Madrid. Photo by Dominique Faget/AFP/Getty Images. It's "Pain in Spain" week here at Making Sen$e. Thus far we've featured a two-part dispatch from former New York Times correspondent Ana Westley. Today, her husband takes center
... » Continue reading
Is Everyone Sharing the Pain in Spain?
June 7, 2012 |
Church of Our Lady of Incarnation in Spain. Photo by SantiMB via Flickr Creative Commons. In the second part of her dispatch from Spain, former New York Times correspondent and friend of Making Sen$e, Ana Westley describes the privileges
... » Continue reading
More Pain in Spain
June 6, 2012 |
People take part in a protest in front of a BBVA bank office in Barcelona. Photo by Josep Lago AFP/Getty Images This week here at Making Sen$e, we'll be featuring dispatches from Europe's financial front lines - mainly and
... » Continue reading
Who Benefited from JP Morgan's Losses?
June 5, 2012 |
JPMorgan Chase World Headquarters on Park Avenue in New York City. Photo by Timothy A. Clary/AFP/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tuesday's
... » Continue reading
The Heavy Load of Student Debt
June 4, 2012 |
EmbedVideo(3554, 482, 304); We first set out to cover the student-debt story last year when we read David Graeber's book, "Debt: The First 5000 Years" and listened to him speak (online). Graeber was pushing a proposal for mass repudiation
... » Continue reading
Unemployment Rate Rises to 8.2% as 69,000 New Jobs Are Added in April
June 1, 2012 |
Unemployed veterans search for work at a job fair in Utica, N.Y., last month. Photo by Spencer Platt/Getty Images. Uh -- not so good. Not so good at all. That's the verdict for Friday's unemployment numbers. Not only did
... » Continue reading
Can You Still Work Your Way Through College?
May 30, 2012 |
Vassar College Commencement on May 20 in Poughkeepsie, New York. Photo by Paul Zimmerman/Getty Images. By Paul Solman and Elizabeth Shell In researching the growing amount of college loan debt that students are taking on as academic sticker prices
... » Continue reading
With Digital Currency, Are Bank Runs Possible Anymore?
May 30, 2012 |
James Stewart standing in the cashier cubicle in a bank run scene from the 1946 film "It's a Wonderful Life." Photo by RKO Radio Picture/Getty Images. Monday's Making Sen$e post asked you a question: Would you keep your euro
... » Continue reading
'At Least the Rate of Decline Has Slowed' in U.S. Housing Prices
May 29, 2012 |
Highrise condominiums line Chicago's Lake Shore Drive. Chicago, along with Atlanta, Las Vegas, New York and Portland, saw average home prices hit new lows according to the May S&P/Case-Shiller Home Price Indices report. Photo by George Rose/Getty Images. The
... » Continue reading
A Run on Greek Banks? Today?
May 28, 2012 |
A woman asks for money in Athens next to a newsstand as journalists staged a 24-hour strike to protest cuts to jobs and salaries prompted by the country's financial recession on May 28. Photo by Louisa Gouliamaki/AFP/Getty Images. Paul
... » Continue reading
Is Long-Term Care Insurance a Good Idea?
May 25, 2012 |
Registered nurse Susan Eager pays a house call visit to a patient in Denver, Colo. Photo by John Moore/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page.
... » Continue reading
Do You Get Back All Your Money From a U.S. Bond?
May 24, 2012 |
A trader works at the New York Stock Exchange. Photo by Scott Eells/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query:
... » Continue reading
If Greece Were a Binge Drinker
May 23, 2012 |
A Greek flag flies next to a statue of Socrates in Athens. IMF chief Christine Lagarde on Wednesday warned of the risk of "contamination" if Greece quits the euro and said the eurozone might therefore see the value of
... » Continue reading
Does It Ever Make Sense to Dip Into Your 401(k)?
May 22, 2012 |
Creative Commons photo by Flickr user Thomas Hawk. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Tuesday's question comes from an in-house NewsHour staffer who wishes to remain
... » Continue reading
Is It Better to Save or to Spend?
May 21, 2012 |
Banner protesting austerity measures in Brussels, Belgium. Photo by Morgan Till/PBS NewsHour. Restricted as this page usually is to questions (and answers), its posts can, I realize, seem more than a bit off the news. This is especially true
... » Continue reading
Why Not Raise Taxes Instead of Interest Rates to Reduce the Deficit?
May 18, 2012 |
Image by Spark Studio via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Friday's query: Name: Phil Webb Question: When the economy starts to
... » Continue reading
Aren't We All Better Off if Fannie, Freddie Forgive and Forget?
May 17, 2012 |
Fannie Mae headquarters in Washington, D.C. Photo by Flickr user futureatlas.com via a Creative Commons license. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query:
... » Continue reading
Why Isn't There a Single World Currency?
May 16, 2012 |
A pile of money from around the world -- currencies of the U.S. (dollar), U.K. (pound), and Europe (euro). Creative Commons photo courtesy flickr user Images_of_Money. Paul Solman answers questions from the NewsHour audience on business and economic news
... » Continue reading
Are U.S. Wages Enough to Live On?
May 15, 2012 |
A waitress carries a pizza to customers at Gino's East restaurant in Chicago. Wait staff in Illinois earn $2.13 an hour, before tips. Photo by Daniel Acker/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on
... » Continue reading
Worried About Retirement? An Excellent Free Video Tool Debuts
May 14, 2012 |
Image of "Curious Behaviors" used with permission of the Financial Security Project at Boston College. A suggestion for those pondering retirement: a [new interactive video tool](http://fsp.bc.edu/curious/) introduced by old friend Alicia Munnell, professor of management, director of the Center
... » Continue reading
The 'Safest Investment' for Americans
May 11, 2012 |
Finance professor Zvi Bodie talks to Paul Solman in 2011 about pension woes. In response to our post of May 9 on the benefits of Treasury Inflation-Protected Securities, this arrived from the eminent finance guru from Boston University, FoM¢*
... » Continue reading
'The Scream': For Love or Money?
May 10, 2012 |
"The Scream," painted by Edvard Munch in 1895, sold at a record price of $119.9 million on May 2. A few belated thoughts on the economics of art in the wake of the $120 million price fetched by Edvard
... » Continue reading
Hot TIPS on Where To Invest
May 9, 2012 |
Photo by Kick Images via Getty Images. Readers of this page regularly ask about Treasury Inflation-Protected Securities (see note below), which I've long said are my own preferred investment vehicle. Do TIPS still make up more than half the
... » Continue reading
Is the IRS Sexist When It Comes to Child Care?
May 8, 2012 |
Photo by Subactive_Photo via Flickr Creative Commons Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tuesday's query: Name: JJ Question: What's with the inequitable treatment of
... » Continue reading
Stand-Up Comedian Baratunde Thurston on 'How To Be Black'
May 7, 2012 |
EmbedVideo(3331, 482, 304); By Paul Solman and Elizabeth Shell Baratunde Thurston seemed like something of a wonder: a stand-up comedian via Sidwell Friends and Harvard. I note, however, that there is now something called The Harvard College Stand-Up Comic
... » Continue reading
Slim Job Growth in April, But Fewer Americans Reporting They Worked
May 4, 2012 |
People wait in line at a job fair in the Queens borough of New York City. Photo by Spencer Platt/Getty Images. It's time for the unemployment news, and our monthly U-7, the most inclusive stat on un- and underemployment
... » Continue reading
Measuring Worth, $1 at a Time
May 3, 2012 |
Photo by Flickr user borman818 Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Thursday's query: Name: Ed Question: Exactly how much is $1 worth today? Paul
... » Continue reading
Nobel Laureate Robert Merton: Is U.S. Job Growth Happening in Vietnam?
May 2, 2012 |
An International Paper Co. employee works on the floor of the company's factory in Mt. Carmel, Pa. The company was one of 35 big U.S.-based multinational companies to add jobs faster than other U.S. employers in the past two
... » Continue reading
From the Subprime to the Ridiculous
May 1, 2012 |
Wells Fargo & Co., the largest U.S. home lender, reported a 13 percent rise in its first-quarter profit in April, setting a record as the bank made more money on new mortgages and curbed losses from old ones. Photo
... » Continue reading
How Do Speculators Affect Gas Prices?
April 26, 2012 |
An attendant displays a fuel pump at a gas station in the Brooklyn borough of New York. Photo by Victor J. Blue/Bloomberg via Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here
... » Continue reading
Do We Need Government Intervention to Create More Jobs?
April 25, 2012 |
Civilian Conservation Corps workers in 1933 construct a road. Public domain photograph from the Franklin D. Roosevelt Library and Museum via Wikimedia Commons. Paul Solman answers questions from the NewsHour audience on business and economic news here on his
... » Continue reading
Latest U.S. Home Prices Show Your Largest Asset May Be Withering Away
April 24, 2012 |
Homes in the Georgetown neighborhood of Washington, D.C. The nation's capital saw the highest price index level of all 20 areas the S&P/Case-Shiller report covers. Creative Commons photo courtesy of flickr user NCinDC. By Paul Solman and Elizabeth Shell
... » Continue reading
Sunshine, Composting Toilets and Rainwater: Recipe for a 'Top 10' Green Building
April 23, 2012 |
The campus of University of California, Merced, was one of the top 10 green buildings in 2012, according to the American Institute of Architects. Photo by Tim Griffith. A classroom in the back woods of the University of Minnesota
... » Continue reading
The Gap Between Tax Revenues and Government Spending
April 20, 2012 |
A bicyclist rides through the plaza on the east side of the U.S. Capitol. Photo by Chip Somodevilla/Getty Images Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here
... » Continue reading
Why Do Oil Speculators Cause So Much Grief at the Pump?
April 19, 2012 |
Larry Bessler purchases gasoline at a Shell station. Photo by Scott Olson/Getty Images Paul Solman frequently answers questions from the NewsHour audience on business and economic news on his Making Sen$e page. Here is Thursday's query: Name: Jim Question:
... » Continue reading
Does the Fed Create Money Out of Thin Air?
April 18, 2012 |
Creative Commons photo courtesy flickr user 401K. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesay's query: Name: Jen Question: Here is my dilemma: I took
... » Continue reading
Getting the Laffer Curve Right
April 17, 2012 |
EmbedVideo(2417, 620, 386); Watch Arthur Laffer explain the Laffer Curve in "Taxes: How High is Too High?" Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Tuesday's query:
... » Continue reading
Tax Day Tips: iPhone Apps and Your 'Buffett Number'
April 16, 2012 |
Photo by Jon Boyes/Getty Images. By Christina Bellantoni and Elizabeth Shell Tuesday is Tax Day, the deadline for sending your financial self-portrait to the Internal Revenue Service to determine if a refund is headed your way or if you
... » Continue reading
The President's 2011 Tax Return
April 13, 2012 |
By Elizabeth Shell The Obama administration released the president's tax return Friday morning, four days ahead of the Tuesday filing date deadline. We've spent the day poring over the numbers and highlighted some of the interesting bits in our second-annual
... » Continue reading
More on Charles Murray and the Jobless Future
April 12, 2012 |
A man participates in the Occupy Wall Street protests on Oct. 4, 2011. See more, including a slideshow, with "A Day With the Occupiers of Wall Street." Photo by Jackie Weir. Paul Solman answers questions from the NewsHour audience
... » Continue reading
The IRS Versus a New Yacht: Will Raising Taxes on the Rich Cost Jobs?
April 11, 2012 |
Standing with millionaires and their assistants, President Obama made a statement about the 'Buffett Rule' on April 11, 2012. Named after the billionaire investor Warren Buffet, the 'Buffet Rule' would ensure that the wealthiest Americans pay at least 30
... » Continue reading
Is Better Education the Answer to Dwindling Job Creation?
April 10, 2012 |
Students participate in a science lab at the University of Illinois-Springfield. Creative Commons photo courtesy of Flickr user jeremy.wilburn. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here
... » Continue reading
Mind the Gap: Why Adding 120,000 Jobs Isn't Good News
April 9, 2012 |
By Elizabeth Shell After three months of 200,000-plus jobs gains, the employment situation for March was worse than expected: a mere 120,000 new jobs added. While the government estimated an unemployment rate of 8.2 percent -- down from 8.3 percent
... » Continue reading
Unemployment Rate Dips to 8.2% as 120,000 New Jobs Are Added in March
April 6, 2012 |
A job seeker holds a job application during the San Francisco Hirevent job fair last month. Photo by Justin Sullivan/Getty Images. The online headlines sum up the just-released March unemployment numbers: "Job Growth Loses Steam," announced the Wall Street
... » Continue reading
A 'Bubble' Media Diet: The Daily Show, M*A*S*H and the PBS NewsHour?
April 5, 2012 |
Jon Stewart interviews Adm. Mike Mullen during a 2010 "Daily Show" taping. Public domain photo via the U.S. Navy In Tuesday's post, which featured viewer emails responding to Charles Murray's bubble quiz, we published one from a 61-year-old "denizen
... » Continue reading
Are Strategic Defaults the Housing Crisis' Culprit?
April 4, 2012 |
Creative commons image courtesy of flickr user truliavisuals. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Name: Tuba Gokcek Question: Strategic defaults are a
... » Continue reading
Your Thoughts on the Bubble Quiz
April 3, 2012 |
Creative commons photo courtesy flickr user Smaku. A bevy of emails have inundated our inbox since we first posted Charles Murray's popular quiz, "Do You Live In a Bubble?" and its attempt to ascertain users' socio-economic status (and that
... » Continue reading
Where to Find Our Economic Inequality Coverage
April 2, 2012 |
Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Name: Bill Grisolia Question: Did you do the report examining the connections between the growing wealth
... » Continue reading
Economic Inequality Series: A Guide
April 2, 2012 |
Illustration by Alberto Ruggieri via Getty Images. Paul Solman has been covering economic inequality for nearly 25 years as part of his business and economics reporting for the PBS NewsHour. His recent series has looked at the shrinking middle
... » Continue reading
The Mega Millions Lottery: to Play or Not to Play?
March 30, 2012 |
Tammy Redlen and Sierra Luchien walk into Bluebird liquor store in Hawthorne, Calif., after waiting in line for nearly three hours to purchase their Mega Millions ticket. Photo by Kevork Djansezian/Getty Images. When a lottery pot gets as big
... » Continue reading
Where Does Temp Work Fit Into Underemployment?
March 29, 2012 |
Unemployed and underemployed workers and supporters at the American Dream Movement Rally in October 2011. Creative Commons photo by David Sachs/SEIU lnternational. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making
... » Continue reading
Does Europe Face a Corporate Takeover?
March 28, 2012 |
European flags in front of the Berlaymont building, headquarters of the European Commission -- the executive of the European Union -- in Brussels, Belgium. Creative Commons photo courtesy Flickr user TPCOM. Paul Solman answers questions from the NewsHour audience
... » Continue reading
U.S. Home Prices Still Going Down
March 27, 2012 |
San Francisco saw one of the sharpest declines in home sales from December 2011 to January 2012, according to the S&P/Case-Shiller Home Price Indices. Photo by Chip Chipman/Bloomberg via Getty Images. By Paul Solman and Elizabeth Shell This post
... » Continue reading
Does the Federal Reserve Have Too Much Power?
March 26, 2012 |
Photo by Andrew Harrer/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Name: Lon Jones Question: My wife and I have
... » Continue reading
Charles Murray: U.S. 'Class Society' Is Losing its 'Exceptional' Characteristics
March 22, 2012 |
Updated March 23 | Since our coverage of Charles Murray and his new book, "Coming Apart," received a strong reception from viewers and online constituents who took Murray's "Do You Live in a Bubble?" quiz, we felt obliged to
... » Continue reading
Charles Murray on Downton Abbey, Smoking During Pregnancy
March 21, 2012 |
By Paul Solman and Elizabeth Shell Recently, the Making Sen$e team traveled to tiny and picturesque Burkittsville, Md., to interview author Charles Murray at home about why he thinks America is coming apart. We interviewed him for hours in
... » Continue reading
Author Charles Murray on Bubbles, Marriage and 'Coming Apart'
March 20, 2012 |
EmbedVideo(2960, 620, 386); By Paul Solman and Elizabeth Shell Last week, we previewed our interview with libertarian author and think-tanker Charles Murray by publishing his quiz: How Thick Is Your Bubble? Featured in "Coming Apart," his new book about
... » Continue reading
Greg Smith Isn't the First to Leave Goldman Sachs Over Morals
March 19, 2012 |
People are reflected in glass as they walk past Goldman Sachs headquarters in New York City. Photo by Mario Tama via Getty Images. In last week's New York Times, a Goldman Sachs "executive director" named Greg Smith wrote what
... » Continue reading
So You Live in a Bubble, Now What?
March 16, 2012 |
Image by Marceltheshell via Wikimedia Commons. Watch the full piece: Author Charles Murray on Bubbles, Marriage and 'Coming Apart' We saw a lot of responses in comments, on Facebook, Twitter and Reddit to the quiz "Do You Live in
... » Continue reading
What You Need to Know About Goldman Sachs
March 15, 2012 |
Photo by Getty Images. By Elizabeth Shell In the scathing "I quit" letter heard round the world, Greg Smith wrote in the New York Times that after 12 years he was fed up with Goldman Sachs' practices. "I attend
... » Continue reading
Pew Study: Young Adults OK with Moving Back Home
March 15, 2012 |
Photo by Getty Images. By Elizabeth Shell Photo by Getty Images. Returning to the nest with mom and dad after college and even into the thirties is becoming increasingly more common, but also less stigmatized. Young adults who live
... » Continue reading
Do You Live in a Bubble? A Quiz
March 14, 2012 |
Paul Solman interviews author Charles Murray about his book "Coming Apart" at a local diner near Murray's hometown of Burkittsville, Md. By Paul Solman and Elizabeth Shell Editor's Note: | This post has been updated to include the 'share
... » Continue reading
How Does the U.S. Deficit Affect Me?
March 13, 2012 |
Stacks of $100 bills pass through a circulator machine at the Bureau of Engraving and Printing in Washington, D.C. Photo by Andrew Harrer/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news
... » Continue reading
Why Am I Paying So Much at the Pump?
March 12, 2012 |
A gas station in Brooklyn, N.Y. Photo by Victor J. Blue/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Name: Linda
... » Continue reading
227,000 New Jobs Added While Unemployment Holds at 8.3%
March 9, 2012 |
Steve Chock uses a plasma welder to cut metal during a class at Hennepin Technical College in Brooklyn Park, Minn. Photo by Ariana Lindquist/Bloomberg via Getty Images. By Paul Solman and Elizabeth Shell Healthy job numbers arrived Friday, and,
... » Continue reading
How are Small Businesses Affected by Changing Taxes on the Wealthy?
March 8, 2012 |
Kim Chauvin and her husband Dave, co-owners of the Mariah Jade Shrimp Company, prepare a small load of shrimp to be delivered to a client at their shrimp processing plant in Chauvin, La. This husband and wife team have
... » Continue reading
What Do Fewer Workers Mean for the U.S. Economy?
March 7, 2012 |
Photo by Scott Eells/Bloomberg via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Name: Taylor Vincent Question: Surprised by the significant change
... » Continue reading
Are Credit Default Swaps Casinos in Disguise?
March 6, 2012 |
Photo of the inside of the Venetian hotel and casino in Las Vegas by Flickr user kris.hoet. Update | 1 p.m. ET This post has been edited from its original posting. Update | 1:50 p.m. ET This post has
... » Continue reading
What Is Bernanke Doing About the Fed's Stockpile of U.S. Debt?
March 5, 2012 |
Photo of Federal Reserve Chairman Ben Bernanke by Peter Larson/Medill News Service. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Name: Enrique G. Palacio
... » Continue reading
Can Family-Owned Firms Compete?
March 2, 2012 |
Hundreds of Marshmallow Peeps move down the conveyor belt to be boxed up at Just Born, Inc., a family-owned and operated confections business. Photo by Don Emmert/AFP/Getty Images. Paul Solman answers questions from the NewsHour audience on business and
... » Continue reading
Bein' Green: Easier Than You Think
March 1, 2012 |
EmbedVideo(2825, 620, 386); By Elizabeth Shell "It's not that easy, bein' green," Kermit the Frog first lamented in 1970. "It seems you blend in with so many other ordinary things." We became interested in greenness during research for a
... » Continue reading
Rich Shopper, Poor Shopper and the End of Economic Mobility
February 29, 2012 |
Photo by Tobias Helbig via Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Wednesday's query: Alvera Pritchard: I found the Rich/Poor Shopper segment quite
... » Continue reading
New Lows in U.S. Housing Prices Bode Ill for Economic Recovery
February 28, 2012 |
A sign in a neighborhood outside of Greensboro, N.C. Photo by Victor J. Blue/Bloomberg via Getty Images. By Elizabeth Shell Tuesday's house price numbers are bad -- real bad. Not only have overall indicators dropped to their lowest levels
... » Continue reading
What Would Happen if the U.S. Government Collapsed?
February 27, 2012 |
U.S. Capitol at night; file photo Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Name: Teri Question: In the event of a total collapse
... » Continue reading
Viewer Gives Paul Solman a 'Hat Tip'
February 24, 2012 |
Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Friday's "query": Name: Bob Comment: Ditch the stupid hat -- spoils your serious image! Paul Solman: Tell it
... » Continue reading
The Financial Answer Man: Carl Richards Takes Your Questions
February 23, 2012 |
EmbedVideo(2772, 620, 386); By Paul Solman and Elizabeth Shell A while back we asked you to submit your most pressing personal finance questions so that I could put them to Carl Richards, the napkin-sketching, New York Times-blogging, financial literacy-teaching
... » Continue reading
Why Banks Are Getting Haircuts
February 22, 2012 |
Home foreclosure in Greeley, Colo. Photo by Flickr user david_shankbone under a Creative Commons license. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Wednesday's query: Name: Gordon
... » Continue reading
Boomer Babies 'Boomerang': Happy Homecoming? Or Are Grads Giving Up?
February 21, 2012 |
Image by the PBS NewsHour. The boomerang business is booming. Ever since our story on "accordion families" and "boomerang kids" ran last week, personal testimony has been coming in over the transom. We'll share a sample of it with
... » Continue reading
What Do 'Mama's Boys' Have to Do With the Euro Debt Crisis?
February 17, 2012 |
This isn't just a candidate for chart of the day or even chart of the week. Hedge fund manager Boaz Weinstein, founder of Saba Capital and former co-head of credit trading at Deutsche Bank, presented this at a conference
... » Continue reading
A Spanish Love Story of Family, Work and Emigration
February 16, 2012 |
From left to right: Paul Solman, Jose Antonio Martinez and Ana Westley in Spain, 2010. Image by the PBS NewsHour. Today, an email from old friend Ana Westley, an American ex-pat journalist who has written for the New York
... » Continue reading
The Astonishing Trend in Income Gains for the Very Rich
February 15, 2012 |
Chart via a report from the Center for Budget and Policy Priorities based on data from the Congressional Budget Office. The chart above comes to you courtesy of the Center for Budget and Policy Priorities -- based on Congressional
... » Continue reading
Boomerang Kids: When College Grads Move Back Home
February 14, 2012 |
By Elizabeth Shell EmbedVideo(2700, 482, 304); A new college grad's guide for what to do after earning that higher education degree: Buy a suit Find a job Start saving for retirement Move back home with mom and dad Wait, move
... » Continue reading
Covering the Eurozone's Financial Crisis
February 13, 2012 |
A euro sign sculpture stands in front of European Central Bank (ECB) headquarters in Frankfurt, Germany. Photo via Getty Images. By Paul Solman and Elizabeth Shell. Follow all of NewsHour's coverage of the eurozone financial crisis here. The 17-country
... » Continue reading
Is Social Security a Ponzi Scheme?
February 10, 2012 |
Social Security cards. Photo via Wikimedia Commons. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Friday's query: Gwynn Pealer: I thought I understood Social Security, but all
... » Continue reading
Does Greater Equality Make Societies Stronger?
February 9, 2012 |
Graphic by the PBS NewsHour, based on the cover of "The Spirit Level." Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Thursday's query: John Naghshineh: Mr. Solman,
... » Continue reading
Is Our Economy Basically Just a Game of Monopoly?
February 8, 2012 |
Photo by foreverdigital via Flickr. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Wednesday's query: John Feuille: Most of us have played Monopoly. You set up the
... » Continue reading
Does the U.S. Tax Imports?
February 7, 2012 |
The Arsos container ship is unloaded at the Port of Miami in Florida; Photo by Andrew Harrer/Bloomberg via Getty Images. Marc Whitehead sends the follow-up question below after reading Paul's thoughts on tariffs from early January: If we put
... » Continue reading
Rate Raters, Casino Traders and the Greek Debt Problem
February 6, 2012 |
Standard & Poor's Headquarters in Lower Manhattan. Photo by B64 via Wikimedia Commons. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here are a trio of queries for
... » Continue reading
Unemployment Dips to 8.3%, Lowest Rate in Three Years
February 3, 2012 |
Recruiter Esther Aranza reviews job seeker Andrew Jack Jr.'s resume during a career fair in Texas. Photo by Aaron M. Sprecher/Bloomberg via Getty Images. By Paul Solman and Elizabeth Shell. The unemployment rate continued to trend downward Friday, reaching
... » Continue reading
Widening the Underemployment Pool - And Those Who Calculate It
February 2, 2012 |
Photo by Matthew Staver/Bloomberg via Getty Images. More signs that the U.S. economy may not be headed into a strong recovery just yet: unemployment was at 8.6 percent in January, with underemployment up to 18.7 percent. But wait a
... » Continue reading
How Much Does Uncle Sam Spend on Foreign Aid?
February 1, 2012 |
NewsHour image by Vanessa Dennis. Sources: State Department, USAID. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here's Wednesdays query: John E. Tucker asks: Could reducing U.S foreign
... » Continue reading
No Recovery in Latest U.S. Housing Data
January 31, 2012 |
Photo by Ethan Miller/Getty Images. By Paul Solman and Elizabeth Shell The monthly housing data released Tuesday by Standard and Poor's Case-Shiller Index came with sparse good news. Home prices have declined yet again, continuing their wobbly down-up-down decline
... » Continue reading
Does the U.S. Actually Benefit From Free Trade?
January 30, 2012 |
Image by Yagi Studio/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Monday's query: Doug Clymer asks: What is the benefit -- if any --
... » Continue reading
Is All Government Spending 'Stimulus'?
January 27, 2012 |
Photo by Chip Somodevilla/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Friday's query: William Carr: I discovered your page following a reference from the
... » Continue reading
Could Greece Fire Off a Global Credit Freeze?
January 26, 2012 |
Pedestrians pass an entrance to the Greek finance ministry in Athens. European stocks declined from a five-month high as the region's finance ministers failed to agree on a debt-swap deal for Greece and called for a greater contribution from
... » Continue reading
Is There a Big Relief Rally Under Way?
January 25, 2012 |
The European Central Bank's new headquarters, still under construction, right, are seen alongside other buildings within the city, across from the River Main in Frankfurt, Germany. Photo by Hannelore Foerster/Bloomberg via Getty Images. Some might be expecting comment on
... » Continue reading
Is 'Hot Money' Responsible for the Financial Crises?
January 24, 2012 |
Photo by flickr user Mike Poresky and used under a Creative Commons / Attribution 2.0 Generic license. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here is Tuesdays
... » Continue reading
Why Are Banks Ditching Foreclosed Homes, and What's the Euro Worth?
January 23, 2012 |
Renzo Salazar places a sign in front of a foreclosed home in Miami. Photo by Joe Raedle/Getty Images. Paul Solman answers questions from the NewsHour audience on business and economic news here on his Making Sen$e page. Here are
... » Continue reading
Stand-up Economist Signs Off From China and Thinks About Its Future
January 20, 2012 |
EmbedVideo(2491, 620, 386); In this final edition of our "Man in Beijing", stand-up economist Yoram Bauman ties up his China miniseries with thoughts on the future for the so-called "Communist" country. Five months doesn't make him an expert, Bauman
... » Continue reading
Richard Cordray: From 'Jeopardy!' to Controversial Presidential Appointment
January 18, 2012 |
Paul Solman interviews Consumer Financial Protection Bureau head Richard Cordray Wednesday in Washington, D.C. In the spring of 1987, a law clerk from Ohio, having taken a friend's advice, made it onto the TV trivia show, "Jeopardy!" A quarter-century
... » Continue reading
The Rich are Getting Richer and the Poor, Poorer...'We Know!'
January 17, 2012 |
A cardboard poster on display at Occupy D.C. on Nov. 19, 2011. Photo by Elizabeth Shell. Paul Solman frequently answers questions from the NewsHour audience on business and economic news here on Making Sen$e page. Here are Tuesday's queries:
... » Continue reading
Submit Your Personal Finance Questions, Get 'Simple' Answers
January 16, 2012 |
By Elizabeth Shell Investments, trading, retirement planning, high-level finance and dealings: complicated, mathematically intense stuff best left to the pros, right? Not necessarily, according to financial planner-turned-New York Times blogger Carl Richards, who is taking personal finance questions from
... » Continue reading
The Strange, Animal-Killing Side Effects of Tax Policy Changes
January 13, 2012 |
"I don't want to jeopardize my family because I tried to make the country a better place." Arthur Laffer, economist to Ronald Reagan and famous for the Laffer Curve theory, which we explored on Wednesday's NewsHour in 'Taxes: How High
... » Continue reading
How Are Tax-Rate Adjustments and Government Revenues Related?
January 11, 2012 |
Image by Jon Boyes/Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Wednesday's query: Elke from Roswell, N.M. asks: If tax rate adjustments did
... » Continue reading
Does the Desire to Make More Money Increase Economic Inequality?
January 10, 2012 |
Photo of Steve Jobs in 2010 by Justin Sullivan/Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Tuesday's query: Name: John Livingston Question: Income
... » Continue reading
Could the U.S. Follow in the Eurozone's Footsteps?
January 9, 2012 |
German Chancellor Angela Merkel welcomes French President Nicolas Sarkozy Monday at the Chancellery in Berlin. The two leaders discussed the ongoing Eurozone debt crisis. Photo by Sean Gallup/Getty Images. Paul Solman answers questions from NewsHour viewers and web users
... » Continue reading
Unemployment Dips to 8.5%, Lowest Rate in 2 Years
January 6, 2012 |
A jobs sign hangs above the entrance to the U.S. Chamber of Commerce building in Washington, D.C. Photo by Karen Bleier/AFP/Getty Images. By Paul Solman and Elizabeth Shell Friday's unemployment figures are positive all around: The official unemployment number
... » Continue reading
Could a Higher Import Tariff Pay for Medicare and Get the US Out of Debt?
January 5, 2012 |
Cargo containers sit stacked on a ship at the Port of New Orleans in Louisiana. Photo by Paul Taggart/Bloomberg via Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on
... » Continue reading
Laughing at Macroeconomics: A Cartoon Introduction
January 4, 2012 |
By Paul Solman and Elizabeth ShellUnemployment rates, inflation, poverty, exchange rates -- all familiar topics for readers who frequent this page. Normally, these are no laughing matter. But cartoonist Grady Klein and stand-up comedian Yoram Bauman (who should also be
... » Continue reading
Should Our Economy Run Like a Cardiovascular System?
January 3, 2012 |
Photo by RunPhoto via Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Tuesday's query: Name: Paul Johnson, Ph.D., cardiovascular physiologist and adjunct professor
... » Continue reading
Instead of 'Fairness' in the Tax System, Why Not Emphasize Results?
January 2, 2012 |
Image by Spark Studio via Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Monday's query: Name: Ben Sands Question: Instead of discussing "fairness"
... » Continue reading
Economics Comedy in Beijing: Part Two
December 28, 2011 |
EmbedVideo(2296, 620, 386); This penultimate post from Our Man in Beijing, standup economist Yoram Bauman, chronicles a true test: doing jokes in front of a Chinese audience. The responses are instructive, as are Yoram's responses during the Q&A. His
... » Continue reading
Latest U.S. Home Sales Price Reading a 'Distinct Downer'
December 27, 2011 |
Photo by Justin Sullivan/Getty Images. It's the monthly moment for Case-Shiller/S&P, the most widely followed index of U.S. housing prices, and Tuesday's numbers are a distinct downer, prices dropping at an annual rate of over 1 percent, though only
... » Continue reading
Bargain Basement and Top Shelf: What's Driving Growth for Retailers?
December 23, 2011 |
Photo by flickr user Ian Britton, post by Elizabeth Shell. "We're all peacocks. We all like to show off." That's what Milton Pedraza, CEO of the Luxury Institute, told us recently in a conversation about changes in spending trends
... » Continue reading
When Did the Great Depression Start? - And Why That Matters
December 21, 2011 |
A crowd of depositors gather in the rain outside Bank of United States after its failure in 1931 during the Great Depression. Photo by World Telegram staff photographer from the Library of Congress via Wikimedia Commons. Last week's story
... » Continue reading
Why the Euro Might Not Be Good For Greece
December 20, 2011 |
A Greek 500 drachma banknote sits atop euros. Photo by Peter Phipp via Getty Images. Today's post tries to answer a number of questions that have come in over the past few weeks along the lines of, "What's going
... » Continue reading
What Investment Products Help Protect Against Market Bumps?
December 15, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Thursday's query: Name: Don Kruger Question: I lost half of my 401k savings in the last big bump
... » Continue reading
'Record Inequality Between Rich and Poor,' According to OECD
December 13, 2011 |
Today we feature a short, simple, surprising inequality video that sums up a lot of recent research from the Organization for Economic Cooperation and Development, the 34-member OECD. Take a look. Here's a sampling of our own reporting on inequality
... » Continue reading
What's a 'Top Marginal Tax Rate'?
December 12, 2011 |
By Elizabeth Shell This blog has been updated to clarify that the top table refers to single household incomes in 2012, and the interactive tax calculator below reflects 2010 data for most countries. The amount taxpayers owe Uncle Sam every
... » Continue reading
Do Policies that Slash Spending Drag the Economy Down?
December 12, 2011 |
Photo by Jewel Samad/AFP/Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Monday's query: Name: Roy Pettis Question: Aren't these steps of cutting spending,
... » Continue reading
Weather's Dozen: 2011 Breaks U.S. Billion-Dollar Disaster Record
December 9, 2011 |
An evacuation sign asks residents to leave Eagar, Ariz. as the Wallow Fire swept through Arizona, New Mexico and Texas. Photo by Eric Thayer/Getty Images. Between fires, twisters, hurricanes, droughts and floods, 2011 has been Mother Nature's most continuously
... » Continue reading
What Happens To China if the U.S. Defaults on Its Debt?
December 8, 2011 |
A security guard patrols outside the headquarters of the Bank of China in the Xidan shopping area of Beijing. Photo by Mark Ralston/AFP/Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news
... » Continue reading
Economic Comedian Compares China-U.S. Relations to Teen...Romance
December 6, 2011 |
Getting back to his roots, Standup Economist Yoram Bauman begins his latest dispatch from Beijing by testing just how far you can apply the First Amendment in modern-day China. He's humored audiences twice in China thus far: one, an
... » Continue reading
Unemployment Falls To 8.6 Percent
December 2, 2011 |
Photo by Tim Boyle/Getty Images. Editor's note, 11:22 am EST: all figures have been checked and confirmed against the now-available BLS data. It seems we aren't the only ones hanging on every number from the Bureau of Labor Statistics
... » Continue reading
An SEC 'Smackdown'
December 1, 2011 |
Peter Steiner is the New Yorker cartoonist best known for his 1993 cartoon of two dogs looking at a computer monitor as one says to the other: "On the Internet, nobody knows you're a dog." He sent us an economics
... » Continue reading
Occupy DC's 'Roving Kabaret'
November 30, 2011 |
Photo and post by Elizabeth Shell. Recently, Puppet Underground and Occupy DC hosted a 'Roving Kabaret' ('K' as in K St., which is one of the locations where the organization has set up tent) of various theatrical troupes that
... » Continue reading
Falling U.S. House Prices Not a Good Sign
November 29, 2011 |
Image by Fusion via Getty Images. Making Sen$e reporter/producer Elizabeth Shell files most of this post on Tuesday's Case-Shiller housing index. The punchline: housing prices declined in September -- not a good sign. Here's her summary of the data
... » Continue reading
Is America Addicted to War?
November 28, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Monday's query: Name: Godwin Ohiwerei Question: Are we addicted to war? How come we never actually bother
... » Continue reading
If Bank Deposits Pay So Little, Why Do Mortgages Cost So Much?
November 25, 2011 |
Photo by Justin Sullivan/Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Friday's query: Name: Jack McBroom Question: My first mortgage in 1970 was
... » Continue reading
European Bond Scare: Germany Edition
November 24, 2011 |
Trader at the Frankfurt Stock Exchange in Germany. Photo by Ralph Orlowski/Getty Images. The U.S. markets lie as still today as the birds on America's platters, but the same cannot be said for fluttering Europe, or anywhere else in
... » Continue reading
Economic Inequality and the New Mommy Divide
November 23, 2011 |
Paul Solman: Today's Making Sen$e post comes courtesy of the page's web chief, Elizabeth Shell. A majority of first-time working mothers are now receiving paid maternity leave -- a first since the government started tracking the data in the
... » Continue reading
Mainstream Economic Media Cry Wolf
November 22, 2011 |
I've been saying the following to friends and colleagues for months now: In all my many years as a business and economics reporter, I have never seen a greater cognitive dissonance than in the current coverage of the U.S.
... » Continue reading
How Do Tax Changes Affect Spending?
November 21, 2011 |
Paul Solman frequently answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Monday's query: Name: Aime Casavant Question: How does raising or lowering taxes affect the economy? What
... » Continue reading
Liberal Economist Bob Frank: Current Congress Will Be Guilty of 'Gross Political Malpractice'
November 18, 2011 |
"Bob Frank and PJ O'Rourke AGREE," Paul Solman tweeted recently, referring to the political differences of liberal economist Frank and conservative satirist O'Rourke. "Build the damn bridges. Now." Frank and O'Rourke recently partnered to author an opinion piece on
... » Continue reading
Who's Happier: Conservatives or Liberals?
November 17, 2011 |
By Diane Lincoln Estes. Just a quick note on a story we're working on about the link between one's political beliefs, attitudes towards inequality, and personal happiness. Studies by the Pew Research Center and the General Social Survey, among
... » Continue reading
Is America a Loan Shark or a Borrowing Walrus?
November 16, 2011 |
Paul Solman frequently answers questions from NewsHour viewers and web users here on his Making Sen$e page. Wednesday's query is answered first by Paul, and further down by Yoram Bauman, our frequent economist contributor from China: Name: Rob Griffith
... » Continue reading
The Allure of Fool's Arbitrage
November 15, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Tuesday's query: Name: Eriks Blaschka Question: My smart colleague told me that he would be happy to
... » Continue reading
Why a Lesson in Money Plus Math Equals Financial Stability
November 14, 2011 |
EmbedVideo(1971, 620, 386); By Elizabeth Shell. Video: Sheila Bair and Paul Solman talk about how simple math and financial education, like the savings lessons in her children's book 'Rock, Brock, and the Savings Shock,' might have helped avert the
... » Continue reading
New Google-Powered Jobs Bank Aims to Lower Veteran Unemployment Rate
November 11, 2011 |
A homeless U.S. military veteran stands in line for free winter clothing at a 'Stand Down' event hosted by the Department of Veterans Affairs. Organizers say the homeless veteran population has surged in recent years along with the high
... » Continue reading
Why Are Medical Costs So High?
November 10, 2011 |
Photo by Lilli Day / Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Thursday's query: Name: Curt Carpenter Question: I would really like
... » Continue reading
For the Love of Chinese Bread
November 9, 2011 |
EmbedVideo(1942, 514, 320); Economic analysis of a local, family-run bread bakery is the topic of the latest dispatch from Yoram Bauman, our temporary economist-in-residence in China. Using his improving (but still a bit limited) language skills and a visit
... » Continue reading
Politics, Democracy, Anarchy - Does the World Owe Greece?
November 8, 2011 |
A national flag of Greece flies outside the Greek stock exchange in Athens. Photo by Kostas Tsironis/Bloomberg via Getty Images. In Greece last summer for the NewsHour, we interviewed a plain-spoken, candid economist named Manos Matsaganis. As the Parthenon
... » Continue reading
'The Buyout of America' Author on Occupy Wall Street Protests
November 7, 2011 |
EmbedVideo(1924, 514, 320); A year ago July, we did a story on "private equity" featuring journalist Josh Kosman, who'd written a book, "The Buyout of America." In it, Kosman blamed private equity firms for buying companies with borrowed money,
... » Continue reading
Unemployment Drops to 9 Percent, but Jobless Frustrations Continue
November 4, 2011 |
Khalifah Varnado reads a help wanted post card during the Arizona Workforce Connection Career Expo at the Arizona State Fair Grounds in Phoenix, Ariz. Photo by Joshua Lott/Getty Images. As expected, unemployment in the U.S. was little changed in
... » Continue reading
Are Americans Getting Angrier?
November 2, 2011 |
Photo of Occupy Wall Street by Getty Images. While shooting at the end of day recently at Zuccotti Park, I was heckled twice while "re-asking" several questions. That is, with only one camera, it's impossible to create a dialogue
... » Continue reading
A Recap of Paul Solman's Inequality Chat
November 1, 2011 |
Each week, Paul Solman gets dozens of questions from the audience, ranging from whether one should refinance a mortgage, if Stephen Colbert is coming after his job to where he buys his signature hats. Generally, we post a few of
... » Continue reading
The Inequality Dilemma
October 31, 2011 |
Political cartoon satirizing U.S. economic equality and mobility by David Fitzsimmons. Reproduced with permission from Daryl Cagle's PoliticalCartoons.com. It's a welcome moment when we TV reporters get mail, since we usually talk to an invisible, mute audience. It's more
... » Continue reading
Ala.'s Sen. Beason on Aborigines, 'the Clip'
October 28, 2011 |
EmbedVideo(1862, 514, 320); By Elizabeth Shell Scott Beason, one of Alabama's Republican state senators, is no newcomer to controversy. Earlier this year, he helped author what many consider to be the nation's strictest immigration law, which we examine in
... » Continue reading
Should We All Buy Savings Bonds?
October 27, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Thursday's query: Name: Sue Pruner Question: In this debt crisis, what would the effect be if many citizens
... » Continue reading
Join Paul Solman for a Chat about Economic Inequality in America
October 26, 2011 |
Join Paul on Twitter using #inequalitychat. Editor's Note: Wednesday night on the NewsHour, libertarian law professor Richard Epstein sits down with Paul Solman for a frank discussion on a topic that's been front-and-center on many of our pages as
... » Continue reading
Dwelling on the Good and Bad: U.S. Housing Prices at the Moment
October 25, 2011 |
A construction worker gestures on the roof of a home in Phoenix, Ariz. Home prices inched up in August from the previous month according to the Case-Shiller Index. Photo by Joshua Lott/Bloomberg via Getty Images. Paul Solman answers questions
... » Continue reading
Will Alabama's Immigration Law Cause Short-term Hiccup or Long-term Heartache?
October 24, 2011 |
By Diane Lincoln Estes Editor's note: We just got back from several days in Alabama to report on the impact of the state's new immigration law. Passed by the Republican-controlled state legislature in June, HB56 went into effect last
... » Continue reading
The Role of Salesmen in the Subprime Mortage Mess
October 21, 2011 |
A foreclosure sign stands outside a home in Winchester, Va. Photo by Jay Mallin/Bloomberg via Getty Images. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's
... » Continue reading
What Happens to Bank Holdings if the Government Shuts Down?
October 20, 2011 |
FDIC offices in Arlington, Va. Photo by Coolcaesar via Wikimedia Commons. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Thursday's query: Name: E.T. Question: If
... » Continue reading
The Ballad of a Would-Be, Too-Big-to-Fail Banker
October 19, 2011 |
Our favorite country-western money manager, Harvard-trained Nashville econo-crooner Merle Hazard, has collaborated with brilliant lyricist Marcy Shaffer to produce his slickest video to date: the tuneful tale of a would-be banker who travels to Charlotte, N.C., to meet up
... » Continue reading
Economics: The Study of Us
October 18, 2011 |
A market trader in Kota Bharu, Malaysia. Flickr Creative Commons photo courtesy jamesmellor. Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Tuesday's query: Name: Christian Kontoh
... » Continue reading
Protecting Lifetime Income
October 17, 2011 |
Flickr Creative Commons photo courtesy Images_of_Money Paul Solman answers questions from NewsHour viewers and readers on business and economic news here on his Making Sen$e page. Here's Monday's query: Name: Karen Lepere Question: OK, no millions in $20s under
... » Continue reading
Chinese Housing Bubble: A Troubling Update from Beijing
October 14, 2011 |
EmbedVideo(1753, 514, 320); In this latest dispatch from China, stand-up economist Yoram Bauman explores the possibility of a Beijing housing bubble. We first reported on this threat in our "China on the Rise" series back in 2005, when MIT
... » Continue reading
How Happy Are Americans?
October 13, 2011 |
Photo by flickr user CaptPiper. The 40-nation Organization for Economic Co-operation and Development has just released the published version of its study of well-being, reported on Making Sen$e some months ago. We thought the OECD's summary of the highlights
... » Continue reading
What is Georgia Works and Why Does the President Consider it a Model?
October 12, 2011 |
Editor's Note: On Wednesday's program we examine Georgia Works, a state program that's been touted for helping unemployed residents get back to work by pairing job seekers with employers who are willing to promise on-the-job training. The trainees are not
... » Continue reading
Should I Refinance My Mortgage to a Fixed Rate?
October 11, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Tuesday's query: Name: Gene H. Question: Do you have a current opinion about the direction of the six-month
... » Continue reading
Leather Muppet to Stephen Colbert: You Are What You Eat
October 10, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Monday's query. Update: the 'Colbert Report Retort' was named a 2012 Webby Award Nominee for online film
... » Continue reading
Latest Unemployment Figures Show More Americans Working Part-Time, Looking for Full-Time Jobs
October 7, 2011 |
Well, interestingly good news on the jobs front, it would appear. Again, the proviso: Don't take any given month's unemployment numbers too seriously. But that said, according to the "establishment survey" of places that hire, the economy added more
... » Continue reading
A Day with the Occupiers of Wall Street
October 5, 2011 |
We spent Tuesday at the Occupy Wall Street site in lower Manhattan, a stone's throw from ground zero. For those of us old enough to remember such gatherings in the so-called Sixties ('64-'74), the similarities were striking: spontaneity, solidarity,
... » Continue reading
Does Oil Speculation Cause Price Spikes?
October 4, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Tuesday's query: Name: KR Question: Aren't the regulations removed by the Bush administration on oil commodities the
... » Continue reading
If Banks Don't Fail, How Will They Learn?
October 3, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Monday's query: Name: Matyas Question: There was no real real estate crisis where I live: Texas. Why
... » Continue reading
Case on the Latest Case-Shiller Housing Numbers - In Verse!
September 30, 2011 |
Karl 'Chip' Case of the Case-Shiller Housing Index has long been among our most treasured sources. Today, he graces us with more of his music -- the muse of poetry having inspired him to write on the occasion of
... » Continue reading
World Inequality: Trot the Globe Without Leaving Your Seat
September 29, 2011 |
To accompany our ongoing NewsHour series on economic inequality, we present today an interactive world inequality map based on data from the World Bank. We confess; this isn't exactly "Where in the World is Carmen Sandiego?" But this quiz will
... » Continue reading
Can Social Security, Medicare Be Considered Wealth?
September 28, 2011 |
Editor's note: In our recent program Do Social Safety Net Programs Shrink Gap in U.S. Economic Inequality? - above - Paul Solman interviewed economist Robert Lerman about his take on wealth inequality in the United States. Lerman argued that
... » Continue reading
Housing Prices Are Moving On Up
September 27, 2011 |
A home for sale in Tempe, Ariz. Flickr photo by 'Nick Bastian Tempe, AZ.' Moving on up. Or more like "creeping." That's one way of wording the latest Case-Shiller housing price numbers, up 3.6 percent since their 20-city index
... » Continue reading
Is the Conventional Wisdom on Social Security Correct?
September 26, 2011 |
From "Why Social Security?" (1937). Social Security Administration pamphlet explaining need for the new system in terms of the transition from rural to urban-industrial society. Illustration by Hendrik Willem Van Loon, photo via flickr user Tobias Higbie. Paul Solman
... » Continue reading
Which Makes a Better Investment: Gold or Canned Soup?
September 23, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Friday's query: Name: Charles Meyrick Question: What good is gold? In your article on John Williams, you
... » Continue reading
A Clarification of Medicare and Medicaid From Our Last Inequality Report
September 22, 2011 |
EmbedVideo(1575, 514, 320); Editor's Note: Many viewers took us to task for failing to acknowledge in our report on Wednesday's program that custodial nursing home care is usually paid for by Medicaid, rather than Medicare. They are correct: Medicare
... » Continue reading
A Broader View of America's Wealth Inequality
September 22, 2011 |
EmbedVideo(1575, 514, 320); Editor's Note: Wednesday's story, featuring economist Robert Lerman's take on the distribution of wealth in the United States, has generated a flood of comments. Lerman has agreed to respond to many of the points made by
... » Continue reading
Easy As Pie: Inequality In Downloadable Charts
September 21, 2011 |
EmbedVideo(1266, 482, 304); Editor's Note: We've been looking at inequality quite a bit lately. In the piece 'Land of the Free, Home of the Poor,' we used a trio of pie charts broken down into five quintiles to illustrate
... » Continue reading
Newly Retired and Looking for Advice to Protect Investments
September 20, 2011 |
Name: D.K. Mitchell: Question: HELP!!! My husband and I abruptly retired at 57 and 59 in the last six months. We had both planned on working another six years or so. My husband is convinced the economy is about
... » Continue reading
Gauging America's Economic Mood
September 19, 2011 |
EmbedVideo(568, 514, 320); Watch 'Tracking Inflation: How Fast Are Prices Rising?' The email tale below refers to a story of ours on inflation from a while back in which MIT economics professor Roberto Rigobon explained that inflation was on
... » Continue reading
Does the U.S. Need Full Employment? And Other Questions
September 16, 2011 |
EmbedVideo(1393, 514, 320); Watch 'Can America's Jobless Fill America's Jobs?' Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here's Friday's query: The flood of responses to
... » Continue reading
How Badly are Fear, Finite Resources Hurting the U.S.?
September 15, 2011 |
Image of hazard symbols for weapons of mass destruction -- radiation, biological and deadly -- by Wikimedia user Fastfission via Wikimedia Commons. Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days
... » Continue reading
Is There Anything Funny About America's Jobs Problem?
September 14, 2011 |
Political cartoon of "Job Creators" by Bob Englehart. Reproduced with permission from Daryl Cagle's PoliticalCartoons.com. Editor's Note: Definitely not. We've been reporting on jobs (and the lack of them) quite a bit lately -- why technology hasn't created more
... » Continue reading
Why Hasn't Technology Created More American Jobs?
September 13, 2011 |
A woman from Argonne National Laboratory discusses science and technology careers with 350 Chicago-area high schoolers. Photo by Argonne National Laboratory via Flickr Creative Commons. Paul Solman answers questions from NewsHour viewers and web users on business and economic
... » Continue reading
Will the American Jobs Act Create Jobs?
September 12, 2011 |
President Obama holds up a copy of the American Jobs Act with Vice President Joseph Biden surrounded by teachers, police officers, construction workers and small business owners in the Rose Garden of the White House on Monday, Sept. 12,
... » Continue reading
Job Seekers React to President Obama's Speech
September 9, 2011 |
President Obama addresses a joint session of Congress Thursday to preview his jobs plan. A day after President Obama's big jobs speech, we checked back in with a group of unemployed Chicago-area workers to get their reaction to his
... » Continue reading
What Job Seekers Are Hoping to Hear in Obama's Jobs Speech
September 8, 2011 |
When President Obama outlines his jobs plan Thursday evening before a joint session of Congress, many of America's unemployed will be listening for specifics that will help them out of the unemployment line and into a job. We interviewed folks
... » Continue reading
More and More Job Openings Going Unfilled
September 8, 2011 |
A number of viewers were struck by our story last Friday on the question over current U.S. unemployment: is it more nearly structural or cyclical in nature? That is, are we simply in a down cycle, a recession from which
... » Continue reading
Why Alan Krueger Is An Interesting Fit for White House
September 7, 2011 |
Photo of Alan Krueger by Ralph Alswang via flickr user Center for American Progress on April 30, 2010. Alan Krueger of Princeton is President Obama's choice for head of the Council of Economic Advisors. That doesn't mean he gets
... » Continue reading
Is Unemployment Caused by a Skills Mismatch?
September 6, 2011 |
EmbedVideo(1406, 514, 320); Editor's Note: Friday's story, "Can America's Jobless Fill American Jobs?" looked at the extent to which high unemployment is structural, and the extent to which it is cyclical. Zachary Karabell of economic research and consulting firm
... » Continue reading
August Jobs Numbers Spell Bad News for Long-Term Growth
September 2, 2011 |
Not good. Friday's job numbers, that is. Yes, there was an extenuating event: 48,000 or so Verizon workers walked off the job during August, and they're in the data as job losses, it seems. But the consensus forecast, even
... » Continue reading
Is Fed Policy of Interest on Excess Reserves 'Outrageous'?
September 1, 2011 |
Name: Fred McEwan Question: [A] Huffington Post article states that one huge reason for banks not lending is that the Fed pays them a quarter cent interest on all their held cash assets. If this is true, why would they
... » Continue reading
Stand-Up Economist: Always Bring Your Own Toilet Paper
August 31, 2011 |
Another vlog today from Our Man in Beijing, Stand-up Economist Yoram Bauman. He's not in China as a comedian, of course, but as an environmental economist, which this post explains. (It also explains why he keeps a roll of
... » Continue reading
Why U.S. Housing Prices Aren't Falling Off a Cliff
August 30, 2011 |
Click on the cities above to see how housing prices have changed from June, 2003 to June, 2011 according to the S&P/Case-Shiller Housing Index. Data are in Tuesday morning from what may be the one reliable product coming out
... » Continue reading
Who's Got the Bigger Economy: China or the U.S.?
August 29, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news on his Making Sen$e page. Here is Monday's query. Name: David Abramowitz Question: It was recently reported that the U.S. has the largest economy in
... » Continue reading
Same Old Bad News, But No New News From Bernanke
August 26, 2011 |
Photo of Ben Bernanke Feb. 9, 2011 by Peter Larson/Medill News Service via Flickr user Medill DC via Creative Commons. Fed Chairman Ben Bernanke's breathlessly anticipated speech in Jackson Hole, Wyo. Friday morning was, in essence, a rehash of
... » Continue reading
Who Saves in China, the People or the State?
August 25, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days on his Making Sen$e page. Here's Thursday's query. Name: Betty Sue Carroll Question: I'd like to know the source of the money that
... » Continue reading
Are Public Pensions a 'Gravy Train' and Other Answers To Your Questions
August 24, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here are Wednesday's queries. Name: Ava Stanton Question: The rating agencies that sold us down the river and rated
... » Continue reading
Is 'Rent Now, Buy Later' a Good Idea? And Other Answers to Your Questions
August 23, 2011 |
Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his Making Sen$e page. Here are Tuesday's queries. Name: Dale Myers Question: Given the free-fall in home prices, what do your experts think
... » Continue reading
Responses to 'Bard Behind Bars'
August 22, 2011 |
EmbedVideo(1112, 482, 304); Paul Solman answers questions from NewsHour viewers and web users on business and economic on his Making Sen$e page. Here are Monday's queries. Our recent stories on Bard Behind Bars, the prison BA program of Bard
... » Continue reading
Is Economic Inequality a Big Deal?
August 19, 2011 |
EmbedVideo(1290, 514, 320); With our inequality coverage (watch Land of the Free, Home of the Poor and Americans Facing More Inequality, More Debt and Now More Trouble?) topping the "Most Watched" chart here at the Online NewsHour, we thought
... » Continue reading
Getting High for Less: Easier Access to Better, Cheaper Heroin Cripples Small Towns
August 18, 2011 |
By Paul Solman, Kelly Chen and Sarah Svoboda Black tar heroin. Photo via the City of Wichita police department. Note: We've been exploring economic inequality in America this week, and thought it an opportune moment to share something we had
... » Continue reading
Send Us Your Questions on Wealth, Inequality
August 17, 2011 |
Update: Thanks for all your questions! We'll post some of the answers here soon. Editor's Note: Our story on Tuesday's program has certainly struck a chord. In the first in a series on economic inequality in the United States (the
... » Continue reading
Sweden's Super-Duper Rich
August 17, 2011 |
EmbedVideo(1266, 514, 320); Update: Watch Land of the Free, Home of the Poor and Americans Facing More Inequality, More Debt and Now More Trouble? to see the first two parts of Paul Solman's ongoing series of reports on U.S.
... » Continue reading
Europe's Stuttering Economy
August 16, 2011 |
With the eurozone in such obvious economic turmoil, we turn to former chief IMF economist and longtime friend and favorite of Making Sen$e, Simon Johnson (Peterson Institute, MIT). We asked him a series of pressing questions: Paul Solman: Is
... » Continue reading
In Defense of Flogging: Controversial Conversation on Prisons, Punishment
August 15, 2011 |
EmbedVideo(1247, 514, 320); We were curious: is flogging -- beating someone solidly on the behind with a wooden cane -- a reasonable, effective alternative to sending that person to jail for two, five, 10 years? That's exactly what Peter
... » Continue reading
Wealth: How Does the U.S. Slice the Pie? continued
August 12, 2011 |
Editor's Note | Aug. 17, 2011: The middle pie represents the income distribution of Sweden. For more, see 'Building a Better America--One Wealth Quintile at a Time' by Dan Ariely and Michael I. Norton. The correct answer was 'Freedonia' (an
... » Continue reading
Wealth: How Does the U.S. Slice the Pie?
August 12, 2011 |
Photo by flickr user sciondriver. Update: Watch Land of the Free, Home of the Poor and Americans Facing More Inequality, More Debt and Now More Trouble? to see the first two parts of Paul Solman's ongoing series of reports
... » Continue reading
How Bad Is the Current Stock Crash?
August 11, 2011 |
Traders work on the floor of the New York Stock Exchange on Thursday. Photo by Jin Lee/Bloomberg via Getty Images Editor's Note: Given the rollercoaster behavior of the stock market over the past few weeks, we checked in with
... » Continue reading
Another Take on a Volatile Market
August 10, 2011 |
Financial professionals work the phones on the floor of the New York Stock Exchange in New York City. Photo by Chris Hondros/Getty Images. Sorry I didn't post Tuesday, amidst all the turmoil. I was giving a speech at Chautauqua,
... » Continue reading
Markets Jittery as Fed Announces Near-Zero Interest Rate Freeze
August 9, 2011 |
Federal Reserve officials announced they would keep interest rates unchanged after a faltering economic recovery and a U.S. credit-rating cut provoked a rout in global stocks. Photo by Andrew Harrer/Bloomberg via Getty Images. Editor's note: Following a 634-point fall
... » Continue reading
How to Not Let Mistakes Define You
August 8, 2011 |
EmbedVideo(1190, 514, 320); We recently reported on the prison initiative of Bard College, a selective school currently running degree programs in five New York prisons. Skeptics of prison reform should take note of one Anthony Cardenales, a former inmate
... » Continue reading
With 117,00 New Jobs in July, a Slight Improvement in the Solman Unemployment Scale
August 5, 2011 |
"Employment Report Damned with Faint Praise: It Could Have Been Worse." Thus does Nigel Gault, Chief U.S. Economist of IHS Global Insight, sum up the consensus view of Friday's unemployment numbers. Jobs added in July; upward revision for June.
... » Continue reading
On Dow's Worst Day Since '08, Running for Cover
August 4, 2011 |
A trader bows his head on the floor of the New York Stock Exchange after the closing bell Thursday; photo by Mario Tama/Getty Images. Just back from lunch, at which Brandeis classicists Ann Olga Koloski-Ostrow and Cheryl Walker schooled
... » Continue reading
After the Debt Deal, Where's the Market Rally?
August 3, 2011 |
Traders work on the floor of the New York Stock Exchange during afternoon trading on August 3, 2011 in New York City. The Dow closed 29 points up after a late afternoon rally, recovering from an eight day slump.
... » Continue reading
No Cylons, No Caprica, But Still Pretty Fracking Cool
August 2, 2011 |
Pretty fracking cool, if you'll pardon our Battlestar Galactica reaction to this video from Studio 20 at New York University. Whether or not the method of natural gas extraction known as "fracking" is more costly than beneficial is the
... » Continue reading
Default by Debt Ceiling? 'Complete Nonsense'
August 1, 2011 |
EmbedVideo(1145, 514, 320); Editor's Note: On Monday's NewsHour Paul Solman reports from the trading floor of Natixis CIB Americas to see how the stock market was reacting to news of the debt ceiling deal. Turns out the market is
... » Continue reading
How Did the U.S. Get $14 Trillion in Debt?
July 29, 2011 |
A fascinating set of graphic debt data, courtesy of the New York Times. Meanwhile, amidst all the scare talk of a bond rate crisis, has anyone noticed that the bond market is rallying mightily today? As of 4 pm,
... » Continue reading
Fancy a Pint? Brew Throughout the World
July 29, 2011 |
Photo by Flickr user hakaider. Has all the talk about the debt ceiling left you wanting to reach for a cold one? Or several? How are they likely to be drowning their sorrows elsewhere in the world? You might
... » Continue reading
China's Communism and Capitalism: The New Yin Yang?
July 27, 2011 |
The short third installment of Yoram Bauman's vlog from China is well worth the watching, highlighting the tension between the "official" China and what's really going on there. Communist Party founder Mao AND $300,000 Porsche's? Yoram asks. "Do hen
... » Continue reading
The 'Bond Vigilantes' and the Debt Ceiling Crisis: No Need to Panic or Lying in Wait?
July 26, 2011 |
Harvard's eminent trade economist, Robert Lawrence, gave a talk in Greece this month. Among his slides was this image with the headline: "The Vigilantes are Asleep!" Slide image courtesy of Robert Lawrence. That would be the so-called "bond vigilantes" -
... » Continue reading
Should You Stash Cash if the Debt Ceiling Isn't Lifted?
July 25, 2011 |
Speaker of the House John Boehner (R-OH) and President Barack Obama wait before a meeting in the Cabinet Room of the White House July 10, 2011 in Washington, D.C. to negotiate increasing the debt ceiling in order to avoid
... » Continue reading
Is Flogging a Better Option Than Prison?
July 20, 2011 |
German soldiers flog a Russian villager while fellow villagers are forced to watch. This photograph was found on a dead German soldier. Photo by Hulton Archive/Getty Images. A new book by Peter Moskos is as provocative in name as
... » Continue reading
Lincoln Electric Story Sparks Debate, Frank Koller Responds
July 19, 2011 |
One more day's worth of reaction to our Lincoln Electric story, which has generated so much comment on PBS' Facebook page. It comes from Frank Koller, the Canadian journalist we interviewed, author of the book on Lincoln, "Spark." Frank read
... » Continue reading
Were We Too Easy on Lincoln Electric?
July 18, 2011 |
EmbedVideo(1006, 514, 320); Watch 'Cleveland Manufacturer Welds Together Job Security, Profits.' We received a flurry of worried responses to our Lincoln Electric story from Wednesday night. They deserve an airing and a reply. First, from Dean Brown in New
... » Continue reading
Is the 'Pain At the Pump' Fair?
July 15, 2011 |
Larry Bessler purchases gasoline at a Shell station in Chicago, Illinois. Photo by Scott Olson/Getty Images. Name: Stephen Sohasky Jr. Question: Adjusted for inflation, I believe gasoline should be about $4.53 per gallon. The local news stations are making
... » Continue reading
The People's Choice: Australia
July 15, 2011 |
Once again, the Making Sen$e audience has spoken. Once again, the results are lopsided. Recently, we polled you on my hat(s): "great" or "goofy"? You accentuated the positive, latched onto the affirmative, and chose "great" over "goofy" by a
... » Continue reading
Stand-up Economist: Is China Asia's Ecuador?
July 15, 2011 |
EmbedVideo(1024, 514, 320); Standup economist Yoram Bauman has now made it to China and filed the second of his vlogs for us from Beijing. We found his comparison of China to Ecuador fascinating. For those who crave a heavier
... » Continue reading
The Not-So-Golden Years: Are You Better Off Than Other Americans?
July 14, 2011 |
This is a compendium of retirement shortfall facts, presented in graphic form by Making Sen$e reporter/producer Elizabeth Shell. As should always be your habit with poll data, don't try to take the actual numbers to the bank. But as
... » Continue reading
The No-Layoff Company -- in Ohio
July 13, 2011 |
EmbedVideo(976, 514, 320); Editor's Note: On Wednesday's program, a look at an improbable Rust Belt success story. With a guaranteed no-layoff policy and average pay of almost $70,000 this year, Lincoln Electric is atypical of U.S. companies. We last
... » Continue reading
Smacking Into the Debt Ceiling: the Day-by-Day Consequences
July 12, 2011 |
Daily U.S. Government Income and Expenditures: Use the slide bar to see how Treasury's cash deficit is projected to grow if the debt ceiling is reached, starting with Aug. 3. Mouse over the red points to see the running
... » Continue reading
'Have Wit, Will Travel'
July 11, 2011 |
Economics was dubbed "the dismal science" by 19th century English intellectual Thomas Carlyle. The reason: the Reverend Thomas Malthus' grim prediction, around 1800, that population would inevitably outstrip food supply, since the former grows geometrically (1,2,4,8...), the latter, arithmetically
... » Continue reading
Jobs: the Dreary Data, a Desperate Viewer, a Pessimistic Professor
July 8, 2011 |
Goodness! U-7, our own measure of under-and unemployment, shot up to 18.6 percent this morning, a rise that gets us back near the number when we first inaugurated the Solman Scale last December. This morning's job numbers: only 18,000 added
... » Continue reading
How an English Investor Dabbled in Cleveland Real Estate...and Got Burned
July 7, 2011 |
EmbedVideo(944, 482, 304); Video edited by Elizabeth Shell. As a follow-up to Tuesday's story on abandoned housing demolition in Cleveland, we're posting a short video. A show-and-tell about one vacant property, it covers all the bases - from the
... » Continue reading
Fannie Mae: What's Politics Got To Do With It?
July 5, 2011 |
EmbedVideo(906, 514, 320); 'Protecting Its Fannie: How Mortgage Giant Primed the Bubble, Covered Its Assets.' Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days. Here's Tuesday's query: Name: B Wilds Question:
... » Continue reading
Fannie Mae: What's Politics Got To Do With It?
July 5, 2011 |
EmbedVideo(906, 482, 304); 'Protecting Its Fannie: How Mortgage Giant Primed the Bubble, Covered Its Assets.' Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days. Here's Monday's query: Name: B Wilds Question:
... » Continue reading
Fannie Mae: What's Politics Got To Do With It?
July 5, 2011 |
EmbedVideo(906, 482, 304); 'Protecting Its Fannie: How Mortgage Giant Primed the Bubble, Covered Its Assets.' Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days. Here's Monday's query: Name: B Wilds Question:
... » Continue reading
Joseph Stiglitz, Barney Frank Respond to 'Reckless Endangerment' Allegations
July 1, 2011 |
Friday on the NewsHour, New York Times finance specialist Gretchen Morgenson and co-author Josh Rosner, a longtime housing analyst, talk about their new bestseller, "Reckless Endangerment" (no. 17 on the Times list this week). The book is a sustained indictment
... » Continue reading
Troubled By Our Pension Post? Here's Our Response
June 30, 2011 |
EmbedVideo(846, 514, 320); Watch Paul Solman's report, 'Is Your Pension Safe? States Struggle With Pricey Challenges.' Our blog post on pension contributions received a supposed "correction" which itself generated some reaction. We reproduce "DougMartin10th's" original comment and my response
... » Continue reading
As IMF's New Chief, Will Lagarde 'Keep Smiling'?
June 29, 2011 |
Christine Lagarde was nominated Wednesday to head the IMF. Photo by Dominique Charriau/Getty Images. So the synchronized French swim champ with accent-free English whom we interviewed last summer in Paris, Christine Lagarde, will run the IMF. What did we
... » Continue reading
Latest Housing Prices More Than 30% Below Peak
June 28, 2011 |
This month's Case-Shiller index is out and, rather than paraphrase or plagiarize Phil Izzo's succinct account on the Wall Street Journal blog, Real Time Economics, how about we reproduce it? "S&P/Case-Shiller home-price data showed a gain for most cities
... » Continue reading
Sneak Peek At a Rust Belt Success Story
June 24, 2011 |
A welder at Lincoln Electric. Photo by Jared Manders. We shot footage for an upcoming piece recently at arc welding manufacturer Lincoln Electric. The company, which we last visited back in 1992, is an improbable Rust Belt success story.
... » Continue reading
Is China's Economic Progress in Trouble?
June 23, 2011 |
Stephen Roach, of Morgan Stanley and now Yale and author of the book "The Next Asia," has long been among the most astute and independent of economic forecasters. He has also spent much of the past decade in the Far
... » Continue reading
Can Investment Assumptions Worsen the State Pension Fund Crisis?
June 22, 2011 |
By Diane Lincoln Estes Well, no. Investment assumptions themselves don't worsen the crisis but as we explain in our story on Rhode Island on Wednesday's broadcast, decisions about pension fund investment assumptions can mean higher taxes, lower pensions and bitter
... » Continue reading
Mad Hatter v. Baaad Hatter: You Voted and the Winner Is...
June 21, 2011 |
...that Hero of Haberdashery, Champ of Chapeaux, el Senor de Sombreros and Fliest of Fedoras -- my hat!
... » Continue reading
PBS NewsHour Blogs Back in Business After Hacker Attack
June 17, 2011 |
If you've been looking for The Rundown news blog, Art Beat or Paul Solman's Business Desk blog since our hack attack on May 29, you've likely been pointed instead to the NewsHour's Tumblr page, or our homepage. Now, after repair
... » Continue reading
'Hey Paul: Do Something Useful For Once'
May 27, 2011 |
Name: Jerrold Jones Question: Hey Paul, Do something useful for once. Prove you're a "real" journalist and interview CEOs who already manufacture here in the U.S. and do so in the face of conventional wisdom. You could start by picking
... » Continue reading
Mortgage Form Makeover: What Do You Think?
May 26, 2011 |
The new Consumer Financial Protection Bureau recently announced plans to simplify the mortgage paperwork that has long confused potential homebuyers. "The current forms can be complicated and difficult for consumers to use. They are also redundant and can be costly
... » Continue reading
Obama's European Trip: Comparing Countries' Debt Troubles
May 25, 2011 |
Editor's Note: President Obama addressed the British Parliament on Wednesday as part of his six-day, four-country tour of Europe. Dubbed as one of the key events of his trip, the president talked about the "essential relationship" between the U.S. and
... » Continue reading
The Rising Price of Oil
May 24, 2011 |
Name: William Bair Question: What, if anything, is be done on the rise of oil? For me, I ride a bicycle for six months and go to Guatemala for three which leaves three months for gasoline use.
... » Continue reading
Is It Dumb to Play the Lottery?
May 23, 2011 |
We received a fascinating email in response to last week's installment of Tuesday's Tool$, an online 'game' called "Spent." Yan wrote: That wasn't a game, that was more like a questionnaire. (Note: I live in Asia) I still have little
... » Continue reading
Furry Robots, Foldable Cars and More Innovations from MIT's Media Lab
May 20, 2011 |
By Diane Lincoln-Estes and Elizabeth Shell We recently visited the Media Lab at the Massachusetts Institute of Technology for our story on George Mason University economist Tyler Cowen's ebook, "The Great Stagnation." Cowen argues that our economy is slowing down
... » Continue reading
Foodie Economist: How To Find Great Eats
May 19, 2011 |
By Elizabeth Shell When economist Tyler Cowen finishes his day job at George Mason University and dinner time rolls around, he gets to sink his teeth into his hobby: blogging about -- and eating -- ethnic food in and around
... » Continue reading
The Two Faces of Dominique Strauss-Kahn
May 18, 2011 |
Dominique Strauss-Kahn was as urbane and well-mannered an interviewee as ever you'll meet. Sensible and clear, as in a NewsHour interview during the heat of the Crash of '08. Candid, as in another interview, one I did with him a
... » Continue reading
Can You Make it Through the Month? Financial Decisions of the Poor
May 17, 2011 |
Here's an online "game" found for us by one of our most trusted advisors, Boston University Finance Professor Zvi Bodie. It gives a sense of what it means to be poor in America these days. Eye-opening, if dispiriting:
... » Continue reading
'Demand' Driving Inflation? A Viewer Begs to Differ
May 16, 2011 |
A complaint lodged with the PBS Ombudsman was passed along after Friday's broadcast and seemed worth answering in a public forum. "I do not understand why Paul Solman did not challenge Roberto Rigobon when he said rising prices were due
... » Continue reading
Inflation, Extremist Economics and Printing Dollars
May 13, 2011 |
John Williams is an economic extremist. He thinks a collapse of the U.S. dollar and hyperinflation are just around the corner and that gold is therefore the best bet around. He thinks the government manipulates the economic data to make
... » Continue reading
Are Taxes Lower Now Than the 1950s?
May 12, 2011 |
Name: Peter Anderheggen Question: I recently heard that in 2011, the nation, on the whole, is paying substantially less in taxes than it did in the nineteen fifties. I do not know if this is true or just a spin.
... » Continue reading
'Inside Job': an Oscar Winner Answers Your Questions
May 11, 2011 |
Editor's Note: Today we hand over question-and-answer duties to Charles Ferguson, former MIT academic and dot.com entrepreneur who is now a documentary filmmaker, and created the Academy Award-winning analysis of the Crash of '08, 'Inside Job.' Last week, we aired
... » Continue reading
Old Folks at Home and the Curse of Internet Investing
May 10, 2011 |
Name: Chris Curry Question: The Bureau of the Public Debt sent a letter to account holders of Legacy Treasury Direct notifying them that the program was being phased out (in favor of the online TreasuryDirect system) beginning May 1, 2011.
... » Continue reading
My Least-Favorite Investment Vehicle (Except For All the Other Ones)
May 9, 2011 |
Name: Will G. Knox Question: Safety of TIPs? Paul Solman: The shortest question ever received on the Business Desk demands a rather more discursive answer. As longtime readers of this page may recall, my own family's retirement fund is heavily
... » Continue reading
Dueling April Jobs Numbers Cloud Some Good News for Economy
May 6, 2011 |
Once again, the monthly unemployment data give occasion for those who have hair to lose more of it. The Household Survey, from which the much-trumpeted "Unemployment number" comes, brings us a rise in official unemployment to 9 percent, due to
... » Continue reading
Ask Oscar-Winning 'Inside Job' Director Your Questions on the Financial Crisis
May 4, 2011 |
Producer and director Charles Ferguson won an Academy Award earlier this year for "Inside Job", his documentary about the financial crisis. On Wednesday night's broadcast we'll speak to Ferguson about one of the major focuses of the film: alleged conflicts
... » Continue reading
A Dark Abyss of Blessing or Curse
May 4, 2011 |
Name: Hillhopper Question: I just listened to a business executive on TV say that the investment he made would return in three years based on fuel savings. Why is it that people that make financial decisions are not math savvy?
... » Continue reading
Keynes vs. Hayek, the Rematch: Keynes Responds
May 2, 2011 |
Late last week the makers of the 2009 rap video "'Fear the Boom and Bust' a Hayek vs. Keynes Rap Anthem" came out with a follow-up: "Fight of the Century: Keynes vs. Hayek Round Two". John Maynard Keynes died in
... » Continue reading
The Budget Battle: WWHD? (What Would Hayek Do?) AK? (And Keynes?)
April 29, 2011 |
Cut taxes? Hike them? Cut government? Save the safety net? These economic questions are dominating debate in DC. So we thought we'd consult two of the greatest economists of all time: What would YOU do about today's budget deficit? Friedrich
... » Continue reading
Keynes vs. Hayek Round Two
April 28, 2011 |
"We've been going back and forth for a century." So began an economics rap between two long-dead English economists, interventionist John Maynard Keynes and governmentophobe Friedrich Hayek that went viral. The rap's dress rehearsal debuted on the NewsHour back in
... » Continue reading
Coming Soon: Keynes vs. Hayek, Round Two
April 28, 2011 |
Today marks the release of a second Keynes versus Hayek video. We'll be linking to it and channeling Lord Keynes on the subject of the budget later this afternoon. Stay tuned.
... » Continue reading
The Obamas Gave $131,000 to the Fisher House Foundation Last Year. What Is It?
April 27, 2011 |
Editor's Note: The Obama document du jour may be the President's birth certificate but here on the Business Desk we've been looking into another document: the First Family's tax return. Last week we ran an infographic illustrating their 2010 filing.
... » Continue reading
Suppose You Want to Pay Down the National Debt All by Yourself?
April 26, 2011 |
Slate, the online magazine, has a fascinating explainer of an oft-asked question: can individuals help pay down the debt and if so, how?
... » Continue reading
Should Banks Modify Home Loans to Today's Home Values?
April 25, 2011 |
Name: Charles Robertson Question: The media estimates 5 to 8 million houses are currently underwater or at some point in the foreclosure process, and housing values have declined 25 percent. If one million homes were put on the market in
... » Continue reading
Our National Debt: Political Gamesmanship or a Game of Chicken?
April 22, 2011 |
A graphic chronicle of debt ceiling hikes from Bloomberg Businessweek. For the record, it doesn't seem like either 'political gamesmanship' or a game of chicken, so much as a vivid illustration of how and why the national debt has grown.
... » Continue reading
Budget Showdown: What's In the Obama and Ryan Plans?
April 21, 2011 |
Editor's Note: This week President Obama has been crisscrossing the country selling his budget plan to the American people. Meanwhile, Republican Representative Paul Ryan has been pitching his budget proposal to constituents in Wisconsin. We wanted to take a step
... » Continue reading
What Happens to Us Codgers if the Debt Limit Isn't Raised?
April 20, 2011 |
We reported last week on the fear and trembling of bond vigilantism, real or imagined -- that the bond market would punish the country for profligacy by raising the interest it demanded to lend us money, thus making everything from
... » Continue reading
S&P's Dire Warning: Of Any Significance At All?
April 19, 2011 |
Call me a contrarian -- or just your garden-variety journalist/skeptic -- but when I read the much-ballyhooed Standard & Poor's announcement yesterday, I shook my shiny head. "Because the U.S. has, relative to its AAA peers, what we consider to
... » Continue reading
How Much Did President Obama Make in 2010?
April 18, 2011 |
Editor's Note: The First Family's 2010 tax return was released today and we've pulled out some of the more interesting numbers in a graphic for you. Here's the snapshot: the Obamas reported an adjusted gross income of $1,728,096, about $3.78
... » Continue reading
How Does Investing Create Jobs?
April 15, 2011 |
Name: Scott Question: If my company's stock is currently $10 and then in a month goes to $20, how does this doubling show up on a company's balance sheet? And if it does not show up on a firm's balance
... » Continue reading
The 'Real' Effects of Unemployment
April 13, 2011 |
Name: George Sacco Question: In these economic reports there never seems to be any comment and analysis about the real effects of unemployment on families: how kids are impacted at school, how families have to move in with grandparents, how
... » Continue reading
Tool$ Tuesday: Tips For Tax Day
April 12, 2011 |
Tax day is breathing down our necks: just under one week left to file. And that's including this year's three-day extension; tax day bumped from the traditional April 15th to the 18th since DC government workers are off Friday (the
... » Continue reading
Could 'Financial Weather Observers' Prevent Another Economic Crisis?
April 11, 2011 |
Name: Michael Cassady Question: As I read deeper into the details about the financial crisis, it seems the root condition that capital is 'capitalizing upon,' excuse the pun, is the transitional inefficiencies affecting the integration of formerly hegemonic national economies
... » Continue reading
Weekonomics: Budget Negotiations Edition
April 8, 2011 |
Just hours away from a potential government shutdown, Paul Solman Skypes with two economists on the financial implications of the budget impasse in this week's edition of 'Weekonomics: Our Friday Roundup'.
... » Continue reading
The Need for a Long-Term Budget Fix
April 7, 2011 |
I wrote yesterday about a chat with the former head of President Clinton's Council of Economic Advisers, Martin Baily, now of the Brookings Institution. Most striking to me, was his suggestion that there could conceivably be an upside to the
... » Continue reading
Government Shutdown: Rx of the Devil or Just What the Doctor Ordered?
April 6, 2011 |
A conversation this morning with a centrist Democrat from the Brookings Institution who lived through the shutdown of 1995, economist Martin Baily. "In terms of the economy, it had a surprisingly small effect," he said. "On the other hand, when
... » Continue reading
A Young Vet and His Dog
April 5, 2011 |
Returning from tours in Iraq or Afghanistan (and sometimes both), American veterans struggle to adjust to civilian life: many are still grappling with what they experienced in combat and, as we recently reported, 11 percent were unemployed in March.
... » Continue reading
Can U.S. Product Makers Manufacture a Profit?
April 4, 2011 |
Name: Paul Menzel Question: I understand that it is more profitable for hi-tech companies to have their devices manufactured overseas (primarily Asia) than to manufacture them domestically. Could these companies manufacture their products in the U.S. and still make a
... » Continue reading
Weekonomics: Our Friday Roundup
April 1, 2011 |
Today we initiate "Weekonomics," a Friday roundup of the week's economics news. No fooling. Simon Johnson starts us off with "lightning round" answers to questions on the banks, Europe, Japan and, because the monthly jobs data came out this morning,
... » Continue reading
March Unemployment: Barely Budging
April 1, 2011 |
One brief comment on the jobs numbers. The net addition of 216,000 jobs, from the so-called payroll survey, is respectable. But the "household survey" reports roughly the same number of unemployed Americans: 13.5 million. You can't tell a lot from
... » Continue reading
The Madness of Sports Betting
March 30, 2011 |
Editor's Note | If you're one of the millions of Americans who filled out a college basketball national championship bracket this year, odds are you're out of luck. ESPN reports that only two brackets out of over 5.9 million submissions
... » Continue reading
Are American Workers Overpaid?
March 30, 2011 |
Name: Alex Question: Maybe it's my background as a college instructor (and union member), but Paul Solman's tone in his inquiry into GM workers' wages raised my hackles. It may be that the intent was didactic -- to instruct viewers
... » Continue reading
Tool$ Tuesday: How States Size Up
March 29, 2011 |
According to the U.S. Census Bureau the nation grew almost ten percent over the last decade -- from 281.4 million in 2000 to 308.7 million in 2010. The country's racial mix has shifted too. The number of people that identify
... » Continue reading
Economic Forecasters: Crow or Eat Crow
March 28, 2011 |
Name: Dr. Gene Audette Question: Every year it's prognostications, prognostications. But seldom do "columns" like yours do a retrospective to compare what was predicted to what actually occurred, and to get the same prognosticator to have to defend his/her predictions
... » Continue reading
100 Years After the Shirtwaist Factory Fire
March 25, 2011 |
Name: Richard R. Palmer, MD Question: I hope that prior to the 25th of March you will note on the show that March 25 is the 100th anniversary of the Triangle Shirtwaist Fire. (Perhaps you agree with me that after
... » Continue reading
Income Inequality: Where Do You Fall?
March 24, 2011 |
Updated March 25, 2011 at 1:33 p.m. with a fixed link to the Slate interactive. Income inequality has changed over time: today the richest one percent of Americans hold about 24 percent of U.S. wealth. But almost a century ago
... » Continue reading
The Effects of Production Turmoil: What We Pay For At The Pump
March 23, 2011 |
By Paul Solman and Grace Lamb-Atkinson Ever wonder why a gallon of gas will cost $3.21 today, $3.12 yesterday and maybe $3.79 next week? The price of the gas at the pump fluctuates mainly with the price of crude oil,
... » Continue reading
Tool$ Tuesday: How the Government Spends Your Money
March 22, 2011 |
By Elizabeth Shell Just in time for tax season: a tax receipt calculator that shows you how the U.S. federal government spends your taxes. It's easy to use: just enter your federal tax amount for 2010 and press 'calculate receipt.'
... » Continue reading
Why Weaken the Japanese Yen? The Conflicting Claims of Economics
March 21, 2011 |
From Thursday's NewsHour: "The Japanese yen settled near record highs against the U.S. dollar today, which make Japanese exports more expensive. Banks and finance ministers of the G7 are considering measures to decrease its value in order to help with
... » Continue reading
Deflation: Inflation's Evil Twin
March 18, 2011 |
Name: Doug Shoaf Question: Given the harm that inflation does to the personal finances of almost every individual in the country, and its tendency to encourage spending and discourage saving, why do so many of our public officials and business
... » Continue reading
Live Chat: Economic Inequality
March 16, 2011 |
EDITOR'S NOTE: Join us live right here on Thursday, March 17 at 3p.m. ET for a chat between Paul Solman, Dante Chinni of Patchwork Nation and Derek Thompson of The Atlantic. The discussion will be moderated by PBS NewsHour Correspondent
... » Continue reading
The Financial Blame Game: Who's At Fault?
March 16, 2011 |
Name: Michael Cassady Question: With the suffering from the financial crisis falling mostly on masses of people who were not responsible for causing it, why has there not been a healthy postmortem and acceptance of responsibility before the victims are
... » Continue reading
Paul Solman and Dante Chinni Talk Economic Inequality in Ohio
March 15, 2011 |
EDITOR'S NOTE: Paul Solman and Dante Chinni of Patchwork Nation recently traveled to two counties in Ohio - Crawford and Delaware. Thirty years ago they had similar average incomes but today, they've grown apart. The town of Galion in Crawford
... » Continue reading
A Snapshot of Economic Inequality Across our 'Patchwork Nation'
March 14, 2011 |
EDITOR'S NOTE: Paul Solman and Dante Chinni of Patchwork Nation recently traveled to Ohio's Crawford and Delaware counties to examine economic inequality. In a preview of the upcoming story, which is slated to air on Tuesday's broadcast, we're cross-posting a
... » Continue reading
What We're Reading: Economic Impact of the Earthquake and Tsunami in Japan
March 11, 2011 |
EDITOR'S NOTE: Paul Solman is traveling today but we here at Making Sen$e wanted to share a list of reports we've been following on the financial impact of the earthquake and tsunami in Japan. Though it's too soon to say
... » Continue reading
ProPublica's Mortgage Mod Squad: HAMP'S a Flop
March 10, 2011 |
By Diane Lincoln Estes and Paul Solman As you've probably heard by now either on our program or elsewhere, the administration's Home Affordable Modification Program (HAMP for short) has been a disappointment -- to put it generously. The program, announced
... » Continue reading
The Public Worker Battle, Cartoonified
March 9, 2011 |
With all the strife over public sector unions, including irate e-mails in response to our pension coverage on the program, we thought we'd lighten the mood today by sharing some recent political cartoons.
... » Continue reading
Tool$ Tuesday: Tips For Lessening the Pinch at the Pump
March 8, 2011 |
You may have noticed that gas prices are up rather dramatically, in tandem with the drama in the Middle East and North Africa. No coincidence, obviously. The fear of supply disruptions, sabotaged wells, turmoil in general, has driven up the
... » Continue reading
Further Thoughts on Friday's Job Numbers
March 7, 2011 |
February's 192,000 net new jobs breaks down into 222,000 jobs added in the private sector, 30,000 jobs dropped by government. This provides evidence for one side of the economic policy debate of the moment, you could even say "of our
... » Continue reading
February Unemployment Numbers: Good, But Don't Pop the Champagne
March 4, 2011 |
The unemployment numbers for February are in and though economist Peter Morici says " Don't Break Out the Champagne Just Yet," the data are encouraging. There are two separate surveys, remember - of "establishments" (places that employ folks) and "households"
... » Continue reading
Feelin' Lousy- Financially Groovy In Song
March 3, 2011 |
EDITOR'S NOTE: Last month, we featured a week-long series of songs by our country crooning friend Merle Hazard about the Euro-debt crisis: Spain, Ireland, Italy and Germany, and an encore of the infamous Greek Debt song. We invited you to
... » Continue reading
Earth to Paul: Wisconsin is Not Rhode Island!
March 2, 2011 |
EDITOR'S NOTE: Paul has spent the past few days responding to some of the many questions and comments we received regarding last week's broadcast story, "In Tiny Rhode Island, a Massive Public Pension Crisis Looms" and the Making Sen$e web
... » Continue reading
Tool$ Tuesday and How States Have Responded to the Pension Crunch
March 1, 2011 |
EDITOR'S NOTE: We received a number of responses from viewers like you regarding last week's broadcast story, "In Tiny Rhode Island, a Massive Public Pension Crisis Looms" and the Making Sen$e web piece, "Paying For Public Pensions." So, over the
... » Continue reading
Save the Pensions: Tax the Rich
February 28, 2011 |
EDITOR'S NOTE: We received a number of responses from viewers like you regarding last week's broadcast story, "In Tiny Rhode Island, a Massive Public Pension Crisis Looms" and the Making Sen$e web piece, "Paying For Public Pensions." So, over the
... » Continue reading
The Economics of a World Run Riot
February 25, 2011 |
Is there an economic explanation for the world running riot, especially in North Africa? Maybe, says investment advisor Ed Yardeni, an otherwise pretty consistently conservative economist. He cites distinguished Brandeis University, historian David Hackett Fischer and Fischer's 1996 book, "The
... » Continue reading
Paying For Public Pensions
February 24, 2011 |
Editor's Note: As the fire over collective bargaining and public worker benefits burns across the country, on Thursday's broadcast we're looking at perhaps the issue behind it all: public pensions and how to pay for them. Our story takes place
... » Continue reading
The Pain in Spain: Hard Rain Gonna Fall?
February 23, 2011 |
The specter of Euro-debt default is again roiling the markets. "Worries Over Europe Pose Risks for Euro," read a headline in Monday's Wall Street Journal. "Spain Pegs Cajas' Possible Problem Debt," warned another. (Cajas are the regional Spanish banks the
... » Continue reading
Tool$ Tuesday: YOU Cut the Deficit
February 22, 2011 |
As the President and Congress wrestle over the particulars of a trimmed-down federal budget, the non-partisan Committee for a Responsible Federal Budget, funded by longtime budget nudge Pete Peterson, offers this tool for lowering the debt load -- all by
... » Continue reading
What Do Wisconsin Protests Say About Organized Labor?
February 21, 2011 |
Having begun my journalism career in college in the '60s, I figure I've been covering the labor movement for nearly half a century - a half century of relative decline. It's easy to understand in retrospect. After World War II,
... » Continue reading
NIIP'ing International Investment Confusion in the Bud
February 18, 2011 |
The epic e-epistle from one Jane Maier comes to an end today with her fourth and final point, and my response. "Oh, and one more thing," she wrote. "I think the public needs some awareness of the NIIP (net international
... » Continue reading
The Machine Breakers We Have Always With Us
February 17, 2011 |
A long and interesting email arrived recently from one Jean Maier. I've been responding to its various points, a post at a time. Today, it's time for item three. Here is the relevant excerpt from Ms. Maier's massive missive: I
... » Continue reading
Merle Hazard and You: And the Winner Is...
February 16, 2011 |
Today, an update on our country-country lyric contest, inspired by the econo-crooner Merle Hazard. Those of you who frequent these pages often will remember our series late last month where Merle lyricized about the financial crises in Spain, Ireland, Italy
... » Continue reading
How-To Economics: Irrational Assurance Tips for Valentine's Day, Part II
February 15, 2011 |
In our efforts to maximize your utility in this 'Material World' via behavioral economics, we're unilaterally extending Valentine's Day for 24 hours with a second video tip from Duke's Dan Ariely, who joined us on Making Sen$e as a regular
... » Continue reading
How-To Economics: Irrational Assurance Tips for Valentine's Day
February 14, 2011 |
Our friend Dan Ariely, of behavioral psychology and economics fame, returns to Making Sen$e as a regular presence, starting today. The book that made him famous is called "Predictably Irrational," but we think of Dan as 'positively rational.' That's because
... » Continue reading
Introducing How-To Economics: Living in a Material World
February 11, 2011 |
Today, we inaugurate a new feature here on Making Sen$e: How-to Economics: Living in a Material World. And to explain the good works we're up to, I talked to Duke's Dan Ariely, who'll be one of our prime contributors.
... » Continue reading
Degrowth?!
February 10, 2011 |
Paul Solman: The last post began to answer Jane Maier's epic email by discussing "heterodoxy" in economics. Today's takes up her second issue: "degrowth." Following her point about the disinclination of economics to invite alternative views, Ms. Maier wrote: "...
... » Continue reading
Holy Email, Batwoman! Is Economics Stuck in the Mud?
February 9, 2011 |
Name: Jean Maier Question: Hello Mr. Solman, I enjoy your economic reports on the NewsHour often. I imagine that you will be attending the AEA meeting this January. I'll have to say that I question a lot of what I
... » Continue reading
Tool$ Tuesday: Currency Conversion and Haydn's Messiah
February 8, 2011 |
Name: Roland Weiser Question: I would appreciate the name of the site where you can obtain today's value for currency in the past. I'm writing a family memoir: my father worked in Cairo, Egypt as a pharmacist in 1906 and
... » Continue reading
How Can My Family Protect Itself in Case of Total Economic Meltdown?
February 7, 2011 |
Name: Kimberly Foster Question: I am scared. My impression of our country's economic situation now is that we are bumping along the bottom of the ocean. Neither my husband nor I have any faith in this economy. What is also
... » Continue reading
A Disjointed Jobs Report and U-7, Month Two
February 4, 2011 |
Today's unemployment data are a muddle. The two surveys - of individuals and of employers - seem to say very different things. Unemployment dropped - to 9 percent, according to the "household survey." Three cheers. But the "payroll survey" reports
... » Continue reading
AIG and Credit Default Swaps: A Clarification
February 3, 2011 |
Name: Merritt Dunn Question: Since the Treasury Department bailed out AIG and AIG had underwritten a large number of credit default swaps (that I understand pay up if a certain percentage of mortgages in a portfolio go into foreclosure), then
... » Continue reading
One-Million Car March?
February 2, 2011 |
A warning to those expecting EVs (electric vehicles) to clog the roadways anytime soon, or even to meet President Obama's stated goal of one million by 2015: it's not likely to happen, despite the fact that the U.S. has as
... » Continue reading
Tool$ Tuesday: What's Your Vehicle's Carbon 'Tire-Print'?
February 1, 2011 |
Today's Tool$ We Use features three on the carbon emissions you generate by driving, with a bonus Global Warming video attached for your viewing discomfort. On the broadcast Monday: a story about electric cars, with a focus on GM's Chevy
... » Continue reading
'Revenge of the Electric Car' Director Paine Discusses Renewed Optimism for Vehicle
January 31, 2011 |
Filmmaker Chris Paine achieved notoriety with his 2006 documentary, "Who Killed the Electric Car?" Now he's back -- with a more sanguine sequel, "The Revenge of the Electric Car." Producing two stories about the electric car myself, the second of
... » Continue reading
How Funny is the Chevy Volt? The Washington Post's Professional Skeptic Gives It a Going Over
January 30, 2011 |
As a preview to our Tool$ Tuesday feature (spoiler alert: we'll be looking at your car's carbon emissions), here's a truly surprising "review" of the Chevy Volt, the electric darling of the Detroit Auto Show earlier this month and the
... » Continue reading
From the Pain in Spain to Taxes in Naxos: Merle Hazard's Euro-Serenades
January 28, 2011 |
All this week we've featured investment advisor Jon Shayne, aka Country-and-Western economist Merle Hazard, warbling his way through the European debt debacle. He started with the pain in Spain and moved on through Erin Go Broke to the tune of
... » Continue reading
Ode to Germany: Merle Hazard, Backed by Beethoven
January 27, 2011 |
Today's post introduces the fourth of country singer Merle Hazard's Euro-shanties, this one taking off on the Ode to Joy from Beethoven's 9th. Teutonic C&W. Merle (if not Beethoven) will do anything to educationally amuse. So will we.
... » Continue reading
Paul Solman on the Economics of the Union
January 26, 2011 |
What a relief: a SOTU address without the traditional partisan whack-a-mole standing ovations. "Date night's" civility - or, if you prefer, lack of passion - had the virtue of keeping Democrats and Republicans mostly in their seats. (Sitting cheek by
... » Continue reading
The Hits Just Keep On Coming
January 26, 2011 |
By "hits," I mean Merle Hazard's Golden Newbie Euro-crisis Euro-tunes, as well as the Internet views that they've been garnering. Monday's post: The Pain in Spain Falls Plainly from Merle's Brain. Yesterday's: Erin Go Broke. And today, the world debut
... » Continue reading
Erin Go Broke
January 25, 2011 |
Today's post puts the economic woes of the Emerald Isle to music. The lyrics are Hazard's, though I confess to have taken crack at them myself and then, at some risk to my ego, sent both sets of lyrics --
... » Continue reading
The Pain in Spain Falls Plainly from Merle's Brain
January 24, 2011 |
The first of this week's series of posts from the ever-melodic, ever-economic Merle Hazard debuts today: a ditty on the plight of Spain.
... » Continue reading
Merle Hazard Makes Sen$e: The Country Crooner Goes Global
January 21, 2011 |
Friday's post consists of a Web chat with the Elvis of economics, the Ferlin Husky of finance, the Charlie McCoy of micro, the Jimmy Dean of the dismal science -- star of the country-and-western macrocosm, investment advisor Jon Shayne who
... » Continue reading
Desolate Detroit: The Forsaken City
January 20, 2011 |
In its heyday it boasted nearly two million people; the world's premier industry (autos); the world's most popular music (Motown); and perhaps the country's most prosperous black middle class. But Detroit's population is down 50 percent; so are wages in
... » Continue reading
Buzz Words in 2020 Will Be Same as in 18th Century. At Least Economically-Speaking.
January 19, 2011 |
Name: Sam Question: I immensely enjoy your segments on PBS. I am intrigued by the concept of trade, and the argument presented by many economists that it raises the standard of living in a country's economy even if it appears
... » Continue reading
The Answer to the Exchange Rate Debate: Chinese Inflation
January 18, 2011 |
The Chinese currency debate has developed a new twist in recent months: Chinese inflation. The argument, made by Columbia University economics professor Geng Xiao in an updated story of ours running on Tuesday's broadcast, is that the rise in Chinese
... » Continue reading
Promises, Promises: The Public Pension Pinch
January 17, 2011 |
Name: Sharon McDonnell Question: I am so very sorry we do not have a larger serious discussion about the role of government and what our priority needs are for spending. In fact I am completely baffled how people that want
... » Continue reading
What Worries Economists in 2011: From Lower Housing Prices To a Crisis in Europe
January 14, 2011 |
This will not come as news to our Twitter followers (tweetees?), but we spent last weekend at the annual economics convention, held this year in Denver. Every January we buttonhole economists of various stripes and political persuasions to pose a
... » Continue reading
More Than One Million Homes Foreclosed on in 2010
January 13, 2011 |
We've devoted a fair portion of our reporting over the past year to home ownership and foreclosure. Some of those stories ran again, with updates, during the last week of the year. Today comes the official tally for 2010: more
... » Continue reading
Is the Fed a Scam?
January 12, 2011 |
Name: Charles, San Francisco Question:The Fed Chairman and President Obama often complain that the banks are just not making enough private loans, while at the same time offering banks a strong incentive to buy risk-free T-Bonds with money borrowed from
... » Continue reading
What IF the Banking System Failed?
January 11, 2011 |
Name: Paul, El Cerrito, Calif. Question: I have been a dedicated viewer of your segments on the NewsHour for years. Unfortunately, even with your fine reporting, I am still confused about the ramifications of the financial meltdown in 2008. I
... » Continue reading
Moral AND Ethical to Strategically Default?
January 10, 2011 |
Rounding out our series today, those of you considering strategic default might find particular encouragement from the web chat with law professor Brent White of the University of Arizona, who thinks it both legally and morally okay. "It's interesting that
... » Continue reading
Today's Job Numbers
January 7, 2011 |
I was all set to label our monthly post on the unemployment data "Hold Your Horses" or "Not So Fast," a warning not to overplay the apparently sizable drop in the official unemployment rate from 9.8 percent to 9.4. But
... » Continue reading
Who Do You Hurt When You Walk Away?
January 6, 2011 |
More from the strategic default debate today. Economist Luigi Zingales of the University of Chicago, also in our original story, argues there are damaging spillover effects ("negative externalities") when homeowners strategically default. "By walking away, not only do you damage
... » Continue reading
Strategic Default: Right or Wrong?
January 5, 2011 |
We've been concentrating on the housing crisis over the past several days here on the Business Desk. For the rest of the week we'll be focusing on the issue of strategic default. If you're an underwater homeowner who can afford
... » Continue reading
Paul Solman As You've Never Seen Him Before
January 5, 2011 |
Paul gets even more animated than usual -- with a new crib, new specs, new accent -- to tell you about our latest story, So You Have a Liberal Arts Degree and Want a Job?
... » Continue reading
A Mortgage-Backed Security Map: The Fantastic Fate of One Man's Loan
January 4, 2011 |
The complexities of getting or refinancing a mortgage: the broker you can or can't trust; the screening of your income and credit; the appraisal; the fear that rates will rise before approval; the title search; the paperwork at closing. That's
... » Continue reading
Happy New Year? Job Market Looking Up for College Grads?
January 3, 2011 |
Editor's Note: A poor economy does not bode well for college grads trying to enter the job market. "The last couple of years have been a very, very tough time to be coming out of college," said Richard White in
... » Continue reading
Should You Swim Away From an Underwater Mortgage?
January 3, 2011 |
Your mortgage is underwater. Making the payments is both difficult and demoralizing. Is it ethical for you to walk away? As we've reported, there are arguments both ways. Here's a feature to help you make up your mind. Public broadcasting
... » Continue reading
Alyssa Katz: How Government Is Failing the Homeowner
December 31, 2010 |
We last spoke with journalist and author Alyssa Katz back in October 2009. She had just finished writing "Our Lot," a book on the history of America's housing market. "The issue is that the investors and investment banks that finance
... » Continue reading
Foreclosure Fight? Bankruptcy Is Best, Says the Dean
December 30, 2010 |
Name: Laura Hanson Question: Like so many others, I have an unaffordable mortgage getting worse every day. Eventually I will have to foreclose or sell. Is there only help for people who are already foreclosing or is it possible to
... » Continue reading
The American Dream Deferred: What Befell our Strategic Defaulters?
December 30, 2010 |
We've devoted a lot of attention to the foreclosure crisis threatening the homes of so many Americans, and to various ways they've sought help: non-profit third parties; the government's loan modification program, HAMP. But you may remember that some of
... » Continue reading
The Loan Mod Squad: A Request to Business Desk Readers
December 30, 2010 |
Name: Toby Hanna Question: I purchased a house in 2006. A year ago I tried to get the loan modified with the help of a modification company that cost me $2,000. Bank of America sent modification papers in September and
... » Continue reading
Robert the Robot, the Mechanical Man
December 29, 2010 |
Name: Jose Question: In Virginia we have a non-judicial foreclosure process. The servicers and their attorneys refuse to provide information as to who the true creditor is, they refuse to answer qualified written requests -- they apparently have a license
... » Continue reading
Editor's Note: Technical Difficulties
December 23, 2010 |
EDITOR'S UPDATE | DEC. 30, 2010 As of Dec. 29, Making Sen$e and the Business Desk are fully functional. Many of you have undoubtedly noticed our absence on these pages in this last week. No, we haven't been away on
... » Continue reading
Why Doesn't the U.S. Just Print More Money, Rather Than Borrow?
December 15, 2010 |
Name: Bill Turner Question: Why does the U.S. borrow so much instead of printing as much money as we need? Paul Solman: Superb question. Two responses. Response 1: First, mightn't you borrow if you could get today's rate: a 30-year
... » Continue reading
Tool$ Tuesday: Interactive Tax Cut Graphic
December 14, 2010 |
Today's tool concerns the extension of the Bush tax cuts and comes via the Washington Post, which generated the interactive graphic some time ago. But it's as timely a tool as ever, given that the Senate voted Monday night to
... » Continue reading
What's Causing US Personal Spending to Drop- Job Loss, Fear?
December 13, 2010 |
Name: Michael Cassady Question: Paul, If the U.S. consumer market is the economic driver of the U.S. economy, and that of China too, with middle-class incomes stagnant, and consumer debt more controlled following the housing market bubble, how many jobs
... » Continue reading
Loan Modifications: A Question of Economic Injustice?
December 10, 2010 |
Three questions today, one answer. Name: James Tracey Question: On a recent program, you interviewed a lady from the New York city area, who works in the public education field. She was about to lose the house that her family
... » Continue reading
Good Ideas to Save the Economy Can Have Bad Unintended Consequences
December 9, 2010 |
Name: Fred Damato Question: Would this work to jump start the economy? Give all citizens (with incomes up to $250,000) the option to withdraw some or all of their retirement savings tax free if they pay all cash for a
... » Continue reading
Looking To the Past To See the Future: More Anxiety May Await Us
December 8, 2010 |
Name: Sophia Shelko Question: What does the future hold for people that have lost or have been victims of this economic crisis? An example: those who faced foreclosures of their homes and had their credit ruined. Paul Solman: If the
... » Continue reading
Two Retirement Planning Tool$ to Use NOW
December 7, 2010 |
Retirement tools. The questions they ask you to fill in seem designed to scare your pants off: How much do you expect to earn on your assets? When are you planning to retire? When are you going to die? Sadly,
... » Continue reading
Malemployed College Graduates Cope with Discouragement
December 6, 2010 |
Headline unemployment (U-3) was up to 9.8 percent in November, and the government's broadest indicator, U-6, which includes all who worked at all last month, even if just for an hour -- is holding steady at 17 percent. Add in
... » Continue reading
Unemployment Verdict: Worse Than it Appears
December 3, 2010 |
The verdict on today's unemployment numbers is unequivocal. Conservative economist Peter Morici writes: "Terrible! Only 39,000 new jobs created is awful. After we back out health care and social services, which are largely government funded, the private sector is not
... » Continue reading
Tips and Where to Go For Help With Your Home Loan Modification
December 2, 2010 |
Name: Ben Roman Question: I am having a problem with trying to get a modification loan for my home which may soon be going into foreclosure. Where and to whom should I go to ask for assistance? Paul Solman: For
... » Continue reading
Million Dollar Questions: Who's Bailing Who Out?
December 1, 2010 |
I'm OK, EuroK? Maybe not. Here's an Australian parody video of what you might call "EuroK thinking." It's making the rounds in Europe at the moment. (The link was sent by a friend in Spain.)
... » Continue reading
Tool$ Tuesday | The Bush Tax Cuts
November 30, 2010 |
Today's Tool$ Tuesday is another look at how the tax cuts might be implemented. This Bush Tax Cut tool comes by way of the Tax Policy Center, a much-appreciated think tank in today's hyper-polarized environment.
... » Continue reading
Doesn't Social Security Pay For Itself, Since it's Taken Out of My Paycheck?
November 29, 2010 |
The following email comes via the PBS Ombudsman: Name: Phyllis Koch Question: I am constantly frustrated as I listen to your interviewers and commentators talk about deficits/budgets/where to cut and always including Social Security. Social Security is always mentioned as
... » Continue reading
Economic Justice for Struggling Homeowners - And The Rest Of Us?
November 25, 2010 |
Editor's Note: Is it JUST to bail out homeowners? Mortgage modifications help homeowners stay put. But is that fair to those of us who bought when the market was high, and yet continue to meet our contractual obligations? Paul Solman
... » Continue reading
What Does Justice in the Foreclosure Crisis Look Like?
November 24, 2010 |
An amended answer today to a question answered imperfectly (or worse) last month. The email, from Bruce Temple, was in response to one of our stories on the foreclosure crisis and read as follows: In tonight's episode you asked one
... » Continue reading
Introducing Tool$ Tuesday: A New Feature
November 23, 2010 |
UPDATE NOV. 25, 2010 | Editor's Note: See update at end of post. Today we present Tool$ Tuesday- the first in a series of online calculators and tools that I or others on the Making Sen$e team have actually used.
... » Continue reading
Small Business Owners and the Bush Tax Cut Debate: No Easy Answers
November 22, 2010 |
Name: Howard Herbst Question: Republicans say they want to keep the Bush tax cuts for the wealthy to protect small businesses. Can't the tax code be quickly and easily redesigned to allow small business income reported on an individual (personal)
... » Continue reading
The Confidence of Ben Bernanke in Germany
November 19, 2010 |
"The Fed chairman's message, though scholarly in tone, was unusually blunt," wrote the Wall Street Journal, "laying blame for inflationary pressures in emerging markets and for tensions over currencies on countries like China." The Financial Times underscored another theme: "Mr.
... » Continue reading
Joe Nocera's Hall of Shame
November 18, 2010 |
"We titled the book 'All the Devils are Here'," said Joe Nocera's co-author, Bethany McLean, "because in the wake of the crisis there has been this search for a simplistic answer. Ah! Fannie and Freddie, they must be the villains!
... » Continue reading
Economics is Missing A Funny Bone | An Interview With 'Merle Hazard'
November 17, 2010 |
The Fed's announcement of another round of so-called "quantitative easing" (QE2) is much in the news. Basically, it's an announced commitment to create $600 billion dollars or more of new "Federal reserves" - i.e., U.S. dollars - and [pump them
... » Continue reading
Was Ireland's Financial Crisis Predictable?
November 16, 2010 |
He told you so. Ken Rogoff is one of this page's favorite economists. Long known for being ahead of the curve, Rogoff was a National Master of chess at age 14 and dropped out of high school to play in
... » Continue reading
How Would YOU Balance the U.S. Budget?
November 15, 2010 |
The Sunday Times featured an exercise that it might make sense for all Americans to try, and certainly members of Congress pressing to balance the budget- Budget Puzzle: You Fix the Budget. And if you prefer to get out your
... » Continue reading
Passing the Buck: China, Dollars and Debt
November 12, 2010 |
Editor's Note: A bit more about the interplay between Chinese currency and U.S. debt. First, a simple graphical explainer as to how the Chinese government gets so many dollars in the first place, using Ford Motor Company and China Steel
... » Continue reading
American Debt and The Chinese Government: A Match Made in Purgatory?
November 11, 2010 |
Editor's Note: The United States is in debt to the tune of $13.7 trillion. But for what, and to whom? Basically, the debt is the result of more spending that saving at every level, from individual households to businesses to
... » Continue reading
How Stimulating is Military Spending?
November 10, 2010 |
Name: Rich Tuloch Question: I learned long, long ago in school that military spending is a form of economic stimulus. If I am correct, the past administration (President Bush & co.) spent a great deal more money as stimulus than
... » Continue reading
Midterm Election Proved Don't-Tread-On-Me Individualism in WEIRD America
November 9, 2010 |
As to the midterm election last week, the following is prompted by an academic paper urged upon me by several top psychology professors, for reasons having nothing to do with the voting to come. The paper, by psychologists Joseph Henrich,
... » Continue reading
The Fed's Latest Move: Monetary Debauchery?
November 8, 2010 |
Forgive me for not answering a question today, but posting a note about the Fed. Its decision last week: to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace
... » Continue reading
October Job Numbers Raise Reader Questions
November 5, 2010 |
A flurry of questions today about the October job report from NewsHour's Facebook and Twitter. In response, a flurry of answers. ........................................................................................................................................... Janet Vetter: The economy added 150,000 jobs but the unemployment rate remained the same? What is this telling
... » Continue reading
Economic Theory -- And Jim Lehrer -- in Song
November 4, 2010 |
You know baby, in the years I've been your central banker We've done a lot of overnight repo lending And it's been good, it's been so good But the economic situation has gotten serious now And baby, one night
... » Continue reading
Midterm Election Pitted Keynesians Vs. Hayekians, Again
November 3, 2010 |
"It's the economy, stupid." Bill Clinton, 1992 "Are you better off now than you were four years ago?" Ronald Reagan, 1980 "Defeat the New Deal and its reckless spending."Alf Landon, 1936 "Hoover we trusted, now we're busted." FDR campaign,
... » Continue reading
A Side Note on Herbal Supplements
November 1, 2010 |
Name: Dick Levinson Question: While I admire your intelligence and integrity, your recent piece on herbal supplements omitted a critical piece of information that your viewers should know. It is no accident that consumers are at the mercy of the
... » Continue reading
Readers Express Doubt in Boston Community Capital
October 29, 2010 |
A trio of related emails to answer today. First: Name: James Tracy Question: Having watched your program tonight on Boston Community Capital's efforts to save homeowners from foreclosure, several conclusions seem obvious. Both the homeowner/borrower and the lender(s) would be
... » Continue reading
Foreclosure Issues Elicit Strong Debate
October 28, 2010 |
Name: John Magill Question: In response to your Oct.14 article on foreclosures and specifically the woman who may lose her New York home but had taken $500,000 out of it. I know she had a $6,000 water main break but
... » Continue reading
Your Mortgage Questions Answered: Consumer Lawyer Max Gardner
October 27, 2010 |
Editor's Note: In Show Me the Mortgage, Paul Solman talked to "the dean of the bankruptcy bar," North Carolina lawyer Max Gardner about the faulty and possibly fraudulent paperwork mess banks are being accused of. Gardner agreed to answer some
... » Continue reading
Nightmarish Stories of Mortgage Modification Woe
October 25, 2010 |
The idea that bank paperwork can weigh you down is nothing new. But the foreclosure cases we've come across lately sound downright Kafka-esque. A homeowner trying to modify her mortgage is told to fax documents to a certain department. Soon
... » Continue reading
Would Unemployment Drop If Wages Were Tied to a Firm's Profits?
October 22, 2010 |
Name: Dr. Morris Weinberger Question: Could unemployment be ameliorated by using the "short" method of reducing employee salaries instead of wholesale firings? How much of an impact would use of "shorting" have in reducing national unemployment??
... » Continue reading
A Closer Look at Herbal Supplements
October 21, 2010 |
UPDATE | Oct. 22, 2010 from Paul Solman: Apologies to all who know biology: this story identified A,C,G and T as AMINO acids. They're NUCLEIC. ................................................................................................................................................ Editor's Note: Paul Solman's Making Sen$e segment on Thursday's NewsHour looks at a new
... » Continue reading
Why Not Use Financial Revenues to Pay Down the National Debt?
October 21, 2010 |
Name: Missy Rodey Question: Paul - I understand that about 50 percent of U.S. revenues are generated through financial services. Can these revenues be used to pay down the national debt, or is such payment dependent upon industrial production? Paul
... » Continue reading
Nonprofit Bank Buys Foreclosed Homes, Then Sells Them Back to Former Owners
October 20, 2010 |
<!-- _pap_embed_small('news01s448fqf90'); //--><!]]> Editor's Note: In tonight's broadcast is the third installment of our Making Sen$e foreclosure series. We focus on Boston Community Capital, a privately and publicly funded, so-called 'community development finance institution.'
... » Continue reading
One Producer's Take on Putting a Human Face on the Foreclosure Story
October 19, 2010 |
Editor's note: Here on Making Sen$e, we like to highlight great and interesting work, tools and multimedia that are circulating the Web. While those usually involve the bylines of economists or business experts, that's not always the case. While filming
... » Continue reading
Your Religion Questions Answered: Robert Putnam of 'American Grace'
October 18, 2010 |
Editor's Note: Last week, Paul Solman talked to Harvard public policy professor Robert Putnam about religion in America and his new book, "American Grace." Professor Putnam agreed to answer some of your questions -- here are his replies. Name: corlando
... » Continue reading
Consumer Lawyer Max Gardner to Answer Your Questions
October 15, 2010 |
Editor's note: On the broadcast last night was the first in a series on the foreclosure debacle. In Show Me the Mortgage, Paul Solman looked at some of the legal issues being raised about the validity of foreclosure filings, including
... » Continue reading
Why We're Looking at Foreclosures
October 14, 2010 |
On tonight's program, we covered the foreclosure story, which is morphing as I write. A glance at the "Most Popular" list at the Wall St. Journal's online real estate page gives some sense of the shapes it's taking: Evicted Family
... » Continue reading
How Does Chinese Currency Hurt U.S. Debt?
October 14, 2010 |
Name: Brian P. Question: There has been a lot of talk recently about China's currency devaluation and how it hurts the U.S. economy's recovery by making our exports less competitive. Mostly it sounds like we simply beg China to stop.
... » Continue reading
Robert Putnam to Answer Your Questions
October 13, 2010 |
UPDATE | Oct. 18, 2010 Robert Putnam has answered some of your questions here. On Monday's NewsHour, I interviewed public policy professor Robert Putnam of 'Bowling Alone' fame about his massive new study of religion, six years in the making:
... » Continue reading
This Year's Nobel Prize Winners in Economics: Skeptics and Supporters
October 12, 2010 |
A few words about the Nobel Prize in economics and this year's winners. First, the skeptics. They are eager to point out that the prize in economics is actually the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred
... » Continue reading
September Job Losses Steeper, Worse for Economy Than Expected
October 8, 2010 |
Disturbing job numbers out today for the month of September: a net LOSS in total employment of 95,000 jobs, as the federal government dropped 76,000 positions, mainly census workers, and state and local governments, 83,000. In the private sector, jobs
... » Continue reading
Upcoming: Ways To Deal With the Foreclosure Crisis
October 7, 2010 |
The past week's revelations of bank insouciance with regard to the legal niceties of foreclosure and eviction, most notably the robo-signers who admitted they did not read what they signed off on, have led to a national push to freeze
... » Continue reading
To Visit or Not To Visit Spain?
October 6, 2010 |
Name: Walter Power Question: I very much enjoyed your recent report on the economic conditions that Spain is dealing with. My wife and I were planning to spend time in Barcelona this fall and I was wondering if the economic
... » Continue reading
With Such High Unemployment, Should the Foreign Worker Program End?
October 5, 2010 |
Name: John Carter Question: Given current employment, why is there still an H1-B program at this time? I am an engineer whom has been displaced by this program and hence am experiencing hard economic times. If this program is terminated
... » Continue reading
What's The Best "Spending Yourself Out Of Recession" Argument?
October 4, 2010 |
Name: Cassandra Good Question: You recently answered a question about why stimulus spending is the government's responsibility. I know that there's a lot of fear lately that such spending will drive up the deficit. I'm curious, then, about how you
... » Continue reading
Where Do I Find...?
October 1, 2010 |
Name: MaryAnn Question: What was the Greek quote and the correct interpretation of it at the end of your report on Aug. 11? It went by too fast and a number of friends would like to have it! Something about
... » Continue reading
Even As a Small Stockholder, Why Don't I Have Any Power?
September 30, 2010 |
Name: Frances Pearson Question: I am a small stockholder. My portfolio is all blue chip. Stockholders in every company are trying to control executive compensation- to no avail. (I vote for all stockholder proposals and do not give my proxy
... » Continue reading
Is Life Expectancy Changing Due to Our Terrible Economy?
September 29, 2010 |
Name: Curt Carpenter Two questions: 1. Does the economic disaster of the last two years show up in our demographic data yet? (Life expectancies, birth rates and so on.) 2. What would a real economic collapse in the U.S. (or
... » Continue reading
On The No-Brainer Issue of Owning a Home
September 28, 2010 |
Paul Solman: Since the 70s, it's been a no-brainer. Buy or rent? Buy, of course. You'll be making an investment instead of just paying off some landlord. And besides, you'll get an income tax break on the money you borrow
... » Continue reading
Update | Lehman Art Auctions Better Than Expected
September 27, 2010 |
Paul Solman: As a follow up to Friday's Lehman Brother's art collection video, this video looks at how some of the pieces actually fared on Sotheby's auction block.
... » Continue reading
Art Collection Could Prove Shrewd Investment for Lehman Brothers
September 24, 2010 |
Two years to the month after the titan of Wall Street declared bankruptcy, Lehman Brothers' extensive and diverse art collection is headed to the titans of the auction block: Sotheby's of New York and Christie's of London. The art was
... » Continue reading
Why Not Look to the Small Stuff as Indicators the Economy is Turning Around?
September 23, 2010 |
Question: In trying to understand how to read the signs that we might be in a more robust recovery I hear a lot about business expansion, hiring, product development and other growth oriented factors that would serve as key indicators.
... » Continue reading
Why Can't New Jobs Be Created Immediately?
September 22, 2010 |
Question: First of all, thank you for the articles on the 99ers. We need all the attention we can get. My question is this: Why can't U.S. business leaders take IMMEDIATE action, perhaps with the help of our government, and
... » Continue reading
Paul Solman Chats With Hari Sreenivasan
September 20, 2010 |
Hari Sreenivasan recently talked with Paul Solman about the emotional responses people have had when interviewed about losing their homes, their jobs or both in the economic downturn. Also, 'The Hat' makes a special appearance. <!-- _pap_embed_small('news01s43a1qf59'); //--><!]]>
... » Continue reading
Sizing Up Wall Street Critic Elizabeth Warren as Your Consumer Advocate
September 17, 2010 |
Paul Solman: Today, Elizabeth Warren was put into de facto control of the Consumer Financial Protection Bureau she helped conceive. Opposition from America's banks was the widely reported reason she wasn't formally nominated to run it. One might wonder that
... » Continue reading
Flamboyant Executive of Possibly Defective Military Body Armor Convicted of Fraud
September 16, 2010 |
Paul Solman: Another day, another update to follow the Mott's applesauce strike. This, an update to one of our rare NewsHour investigative reports -- on arguably deficient body armor for our troops, and corruption in the contracting process. A key
... » Continue reading
Update | Mott's Strike Settled: Workers Returning to Apple Sauce Factory
September 14, 2010 |
Paul Solman: There was considerable viewer interest in last week's story on increased U.S. productivity being caused by a reservoir of unemployed workers, allowing firms to pressure workers to toil longer and harder for the same or lower wages. Our
... » Continue reading
Can We Both Feed the World in a Sustainable Way and Feed it Quality Food?
September 14, 2010 |
Question: As a society, we in America seem proud of our desire to help others, and that is of course laudable. In recent years, there is a movement toward more environmentally-friendly food for a number of reasons, nutritional and otherwise.
... » Continue reading
What Would Increased Interest Rates Do to the Economy?
September 13, 2010 |
Question: If the Federal Reserve raises interest rates by the end of 2010, what effect would this have on the overall economy? Let's assume the economy is "recovering" at the rate Ben Bernanke states it is, as of today. People
... » Continue reading
How Safe is the Municipal Bond Market?
September 10, 2010 |
Question: When states like California are struggling with their fiscal budgets, how safe is the municipal bond market? Paul Solman: Not as safe as it used to be. Not nearly. You can see that reflected, to some extent, in the
... » Continue reading
What Will be the Warning Signs that Countries Will Begin to Call in U.S. Debt?
September 7, 2010 |
Question: What will be the warning signs that countries will begin to call in the U.S. debt? What should investors do to prepare for this eventually? Thank you. Paul Solman: David Stockman says the first warning sign will be if
... » Continue reading
Will Government Spending Lead to Inflation?
September 6, 2010 |
Question: Roubini and Taleb may have gotten the crash right, but they apparently believe in letting the middle class do the penitence the banks refuse. I hope you intend to rectify this exaggerated debt fear with something from Paul Krugman,
... » Continue reading
For Maryland Public Defender, Economic Crisis Means More Work
September 3, 2010 |
Editor's Note: On Friday's NewsHour, Paul Solman looks at the issue of worker burnout as a side effect of the recession. As companies have reduced their workforce, the remaining employees are having to do more with less. Below, Maryland public
... » Continue reading
How is a "Jobless Recovery" Possible?
September 3, 2010 |
Question: I have a hard time understanding "Jobless Recovery." If there are few jobs and businesses are suffering, how are the Wall Street indicators (DJIA etc.) recovering from lows just two years ago? Paul Solman: The Dow Jones Industrial Average
... » Continue reading
Which Countries are Doing a Good Job Managing Their Economies?
September 2, 2010 |
Question: Please name some countries who seem to be doing a good job of managing their economies and social programs. What are they doing right and what can we learn from them? Paul Solman: Superb question. But what does "good
... » Continue reading
A Useful Refinancing Calculator
September 1, 2010 |
Paul Solman: With all the hullabaloo about low interest rates and refinancing of mortgages, I'd been looking around for reliable refinancing calculators on the Web and have found one with an excellent pedigree. It's the product of a well-known Harvard
... » Continue reading
Is All Debt Unsustainable?
August 31, 2010 |
Question: Economists seem to agree that the debt cannot be sustained. I'm skeptical of this generality -- that is, not all debt is the same. Isn't it important to distinguish between the debt incurred to improve production and research, versus
... » Continue reading
Negotiation Expert Robert Mnookin Answers Your Questions
August 30, 2010 |
Editor's Note: Last week, Paul Solman talked to Harvard Law School professor Robert Mnookin, an expert on negotiation, about his new book Bargaining with the Devil: When to Negotiate, When to Fight. Afterward, Mnookin offered to take viewer questions. Here
... » Continue reading
The Fed Speech: Paul Solman Channels Ben Bernanke
August 27, 2010 |
Paul Solman: Years ago, Saturday Night Live's Kevin Nealon debuted a character named "Mr. Subliminal" whom he still reprises. The gimmick: Nealon talks and then occasionally, under his breath, says what he's really thinking. In October, President Obama economic adviser
... » Continue reading
Ask Negotiation Expert Robert Mnookin Your Questions
August 26, 2010 |
Editor's Note: Tonight on the NewsHour, Paul Solman talks to Harvard Law School professor Robert Mnookin, an expert on negotiation, about his new book Bargaining with the Devil: When to Negotiate and When to Fight. "My approach is always to
... » Continue reading
A Few More Thoughts on 'Rational Optimism'
August 25, 2010 |
Paul Solman: A few words of thanks for, and comments on, the ever-so-talented Mr. Ridley's online replies to viewer questions. The q-and-a is much appreciated. Especially this paragraph on economic growth: "It is the combination of atoms, electrons and thoughts
... » Continue reading
'Rational Optimist' Matt Ridley Answers Your Questions
August 25, 2010 |
Editor's Note: Last week, Paul Solman talked to "rational optimist" Matt Ridley about why he believes that life on earth for humans is getting better and better. Ridley agreed to answer some of your questions -- his replies are below.
... » Continue reading
Why Does the U.S. Government Borrow Money Instead of Just Printing More?
August 24, 2010 |
Question: Why does The U.S. government borrow money and thereby create debt when it has the sovereign and Constitutional right to create whatever money we NEED? $1,000 of debt and $1,000 of created money are both the same claim on
... » Continue reading
Does Anyone Offer Bonds Redeemable in Gold?
August 23, 2010 |
Question: Paul, since no government seems capable of dealing with paper money, is there any agency or company that issues bonds redeemable in gold? Paul Solman: Maybe, Smokey, but what kind of guarantee is THAT? I have a Russian bond
... » Continue reading
Does the Average Greek Citizen Understand the Causes of The Country's Financial Crisis?
August 20, 2010 |
Question: Does the average Greek citizen understand the causes of their dilemma? Do they know that the average American citizen also has and largely still is spending more than they bring in? Paul Solman I don't know. But the most
... » Continue reading
A 'Rational Optimist' on the Evolution of Prosperity
August 19, 2010 |
(Watch a larger version of the video.) <!-- _pap_embed_custom('news01s4054q87f',290,193); //--><!]]> Editor's Note: Tonight on the NewsHour, Paul Solman talks to Matt Ridley -- best-selling author, zoologist and one-time bank chairman. The "rational optimist" makes the case -- rare in these
... » Continue reading
Will Layoffs Cause a Double-dip Recession?
August 18, 2010 |
Question: Paul, companies have been reporting large profits on sluggish revenue growth. The profits are from cost cutting efforts by managers who have accomplished this by reducing labor costs. Could the managers of companies be the cause of a double
... » Continue reading
More on 99ers: Reactions and Stories
August 17, 2010 |
Paul Solman: With our story on the 99ers still up there among the "most watched" NewsHour stories more than a week after it ran, it seemed fitting to share another set of reactions to the story and the issue. After
... » Continue reading
We're Looking for Stories of Worker Burnout
August 17, 2010 |
Paul Solman: We're doing a story on worker burnout and are having trouble finding case studies. Can you or someone you know, or even know of, direct us to a worker or several who are suffering from being worked too
... » Continue reading
Why Can't the Fed Refuse to Loan Money to Banks That Pay Lavish Salaries?
August 16, 2010 |
Question: Why can't the Federal Reserve refuse to loan money -- at practically no interest -- to banks that give their executives lavish salaries and bonuses? Paul Solman: You tell me. I think they'd say it wasn't allowed. But as
... » Continue reading
More from 99ers: An Update on Gregg Rosen, and Why Some Companies Say They Still Can't Find Employees
August 13, 2010 |
Paul Solman: The last few days, we've been running outtakes from last Friday's long-term unemployment story, including two featuring pony-tailed 40-year-old former marketing manager and cell phone store owner Gregg Rosen. Today, a response from Mr. Rosen, after I wrote
... » Continue reading
More from 99ers: Unemployment Leads to Foreclosure
August 12, 2010 |
Paul Solman: Given today's news that foreclosures jumped 9 percent in July, we've posted the last of our 99er interview outtakes, in which Faith Phillips tells a striking story: She'll be paying off condo fees on her foreclosed house for
... » Continue reading
More from 99ers: A Life's Savings Lost to Swindle
August 12, 2010 |
For the next few days, we're sharing outtakes from our interviews with 99ers last week. In this second video, 99er Gregg Rosen recounts how he lost his savings in Bernie Madoff's Ponzi scheme just months after losing his job. (Watch
... » Continue reading
More from 99ers: How Long-term Unemployment Affects the Rest of the Economy
August 11, 2010 |
Editor's note: For the next few days, we're sharing outtakes from our interviews with 99ers last week. Here's the first -- 99er Gregg Rosen and economist Douglas Holtz-Eakin discuss how long-term unemployment affects the rest of the economy: (Watch a
... » Continue reading
'99ers' Story Elicits Viewer Reactions, Tales
August 10, 2010 |
Paul Solman: There's been quite a bit of reaction to our story last Friday on the extension (or non-extension) of unemployment insurance benefits past 99 weeks. You can read some of it here in the comments section on the Making
... » Continue reading
What Part Did Olympics Expenses Play in Greece's Financial Crisis?
August 9, 2010 |
Question: I may have missed it, but what part did the expense of the Olympics play in Greece's financial crisis? I realize that there were many benefits including infrastructure, but it all had to be paid somehow. Paul Solman: It's
... » Continue reading
The '99ers' Share Their Stories
August 6, 2010 |
Editor's Note: Last month, Congress extended federal unemployment benefits for people who had been out of work up to 99 weeks. But for the millions of Americans who have been jobless longer than that -- the "99ers" -- there will
... » Continue reading
What Would Happen if the U.S. Government Defaulted on its Debt?
August 5, 2010 |
Question: I've heard the comment that if the U.S. government were to default on its debt, "everything goes down" -- presumably banks, credit unions, etc. Would a default necessarily result in runs on retail banks and credit unions and insufficient
... » Continue reading
Why is Stimulus Spending the Government's Responsibility?
August 4, 2010 |
Question: Why does the government have to do anything in the way of a stimulus? Since many banks and corporations have more capital than at any time in recent memory (according to many accounts), why don't they invest that into
... » Continue reading
What Impact Does High-Frequency Trading Have on Market Volatility?
August 3, 2010 |
Question: There's been a lot of research and gathering of evidence for and against high-frequency trading and its impact on current market volatility and the value it adds to things like liquidity, but I've never actually seen any sensible debate
... » Continue reading
Why Can't the Government Resurrect 'Workfare' Programs Like the WPA?
August 2, 2010 |
Question: Some of FDR's Great Depression financial recovery and unemployment strategies included the Civilian Conservation Corps and the Works Progress Administration, both of which left important legacies evident still today. There is great dignity in work. Couldn't we resurrect similar
... » Continue reading
"Socionomic" Theory Predicts Market Catastrophe
July 30, 2010 |
Question: During the financial crisis you enlightened us to the fractal geometry of Nassim Taleb and Benoit Mandelbrot. Recently the New York Times introduced the fractal geometry of the Elliott Wave and Robert Prechter's gloomy forecast. What does Nassim Taleb
... » Continue reading
Does the President's Jobs Policy Conflict With His Climate Policy?
July 29, 2010 |
Question: Is the President's jobs policy tanked by his climate policy? In Nov. 2007, you interviewed Tim Sullivan, CEO of Bucyrus, regarding his decision to keep equipment manufacturing jobs in U.S. Late last week, the U.S. Ex-Im bank denied financing
... » Continue reading
Would a Budget Surplus Bring Manufacturing Jobs Back to the U.S.?
July 28, 2010 |
Question: As I understand it, deficit spending by the federal government lowers the value of the U.S. dollar, causing a rise in cost of raw materials. Manufacturers outsource production because rising raw material costs narrow profit margins. Outsourcing of manufacturing
... » Continue reading
Why do Companies "Stretch Out Their Payables?"
July 27, 2010 |
Question: I saw the story on SRC Electrical. The loan increase paradox was a good lesson. However, let me ask this question of you. What sort of payment terms do they give their customers? Assume net 30. (Payment no sooner
... » Continue reading
Is a Stockbroker Better Than a Dart-throwing Monkey?
July 26, 2010 |
Question: I have heard that the actual return on investment (after fees) using a stock broker is usually less than investing in an index fund and about the same as amateur investors or even a monkey throwing a dart. Is
... » Continue reading
Exploring Spain's Underground Economy
July 23, 2010 |
(Watch a larger version of the video.) <!-- _pap_embed_custom('news01s41c0qf06',290,193); //--><!]]> Editor's Note: Tonight on the NewsHour, Paul Solman wraps up his reporting from Europe with another look at Spain's economic woes, which include a 20 percent unemployment rate. In the
... » Continue reading
Can Individuals Lend to U.S. Companies?
July 23, 2010 |
Question: I watched your presentation on the small business credit crunch on June 21. I have funds getting less than 1 percent interest and would love to lend to a robust, expanding business that needs cash. If I can lend
... » Continue reading
Despite Economic Woes, Spain's Present Looks Brighter Than Past
July 22, 2010 |
(Watch a larger version of the video.) <!-- _pap_embed_custom('news01s41aeqf06',290,193); //--><!]]> Paul Solman: Jose Antonio Martinez Soler is a distinguished Spanish journalist who was tortured in the last year of the Franco dictatorship. (Those who read Spanish will find a not
... » Continue reading
Part II: Greek Prime Minister on the Financial Crisis, World Economy
July 21, 2010 |
(Watch a larger version of the video.) <!-- _pap_embed_custom('news01s41abqf06',290,193); //--><!]]> Editor's Note: Paul Solman is reporting from Greece this week about the country's financial crisis. Above, watch the second half of his interview with Greek Prime Minister George Papandreou about
... » Continue reading
Greek Prime Minister George Papandreou on the Financial Crisis
July 20, 2010 |
(Watch a larger version of the video.) <!-- _pap_embed_custom('news01s41a1qf06',290,193); //--><!]]> Editor's Note: Tonight on the NewsHour, Paul Solman reports on how the people of Greece are responding to the austerity measures the country has imposed to deal with its debt
... » Continue reading
Merle Hazard on the Greek Debt Crisis
July 19, 2010 |
(Watch a larger version of the video.) <!-- _pap_embed_custom('news01s4198qf06',290,193); //--><!]]> Paul Solman: We here at Making Sen$e have long been fans of Nashville investment adviser Jon Shayne, who became known to us as Merle Hazard, the singer and author of
... » Continue reading
What Lesson Should We Take From Ireland's Austerity Experience?
July 16, 2010 |
Question: What lesson should we take from the experience of Ireland in attempting to take the path of austerity to bolster its economy. Why is the world hearkening back to Herbert Hoover economics? I hope your current series on the
... » Continue reading
Senate Passes Financial Reform Bill
July 15, 2010 |
Paul Solman: The senate vote guaranteeing the adoption of the financial reform bill is either good or bad, depending on your politics. But no question it tries to address the major issues that seem to have triggered the economic crisis:
... » Continue reading
More Thoughts on Cleveland and LeBron James
July 14, 2010 |
Question: Paul, I saw your story on LeBron's economic impact on the city of Cleveland. I thought you might be interested in seeing some other efforts that are aimed at keeping Lebron in town. Here is a link to a
... » Continue reading
Are Banks Carrying Overvalued Commercial Real Estate Loans?
July 13, 2010 |
Question: I have read some comments that commercial real estate is the next bubble soon to burst. Are banks carrying overvalued loans on their books and the borrowers not being foreclosed on so that these banks will seem to be
... » Continue reading
Where Is a Safe, Conservative Place to Invest Retirement Money?
July 12, 2010 |
Question: The recent meltdown hit us hard just after I retired. About 40 percent of our money is in mutual fund stocks and we're losing. My adviser says "don't look at it." I was shocked. Where is a conservative place
... » Continue reading
What Is the Best Way to Get Control of the Credit Rating Agencies?
July 9, 2010 |
Question: What is the best way to get control of the credit rating agencies who changed this recession into a deep, deep recession (almost a depression) by their unbelievably reckless, immoral and greedy actions? Paul Solman: Ah, if only I
... » Continue reading
What Is the 'Deficit Hawks' Plan to Create Jobs and Consumer Demand?
July 8, 2010 |
Question: Paul Krugman knows something about macroeconomic theory, and his NY Times blog has lately been despairing. The "deficit hawks" around the world seem to be winning the day over Keynesian policy with their calls for LESS public spending, despite
... » Continue reading
How Can China Control the Exchange Rate for Its Currency?
July 7, 2010 |
Question: I'd like to understand the mechanics behind how China will allow their currency to appreciate against the dollar. How will they do this? What will they stop doing? There are numerous articles about the politics and impacts of this
... » Continue reading
In Greece, Underground Economy Fuels Financial Crisis
July 6, 2010 |
Editor's Note: Paul Solman is reporting from Europe this week about the economic problems there and the tough choices ahead. Paul Solman: I'm heading to France to talk with the Finance Minister Christine Lagarde -- champion synchronized swimmer back when,
... » Continue reading
How Does Executive Pay in the U.S. Compare to the Rest of the World?
July 2, 2010 |
Question: Executive pay around the world--who's included in your numbers? How does USA executve pay vs. average employee/laborer/worker pay compare relative to the average relationship worldwide? Paul Solman: Well, here's the US picture over the past half century or so,
... » Continue reading
A Chat With the Prime Minister of Greece
July 1, 2010 |
Paul Solman: Just had an extended chat with Greek Prime Minister George Papandreou here in Athens, where we've come (from Spain) on a trip to look at the European economic crisis in the last two letters of the so-called PIGS.
... » Continue reading
How Will the Unequal Distribution of Wealth in the U.S. Affect Economic Recovery?
June 30, 2010 |
Question: If the USA has the largest unequal distribution of wealth of any industrial nation, what will this do for the recovery? Paul Solman: Intriguing question. There are those who argue that the crisis was itself caused by the unequal
... » Continue reading
Web Extra: Taleb and Roubini on Government Intervention
June 29, 2010 |
Paul Solman: While we were interviewing America's two most prominent doomsters a few weeks ago, Nassim "Black Swan" Taleb and Nouriel "housing crisis" Roubini, the two got into an argument. It was friendly enough -- they admire each other --
... » Continue reading
Nassim Taleb Answers Viewer Questions
June 29, 2010 |
Editor's Note: Last week, we aired an interview with economists Nassim Taleb and Nouriel Roubini. Afterward, the two agreed to answer some viewer questions on this site. Unfortunately, due to an unexpected scheduling conflict, Nouriel Roubini was unable to participate
... » Continue reading
Are Treasury Bonds a Safe Haven?
June 28, 2010 |
Question: Re: your recent interview with Nouriel Roubini on sovereign debt and the possibility of a U.S. government bond default, would inflation linked U.S. Treasury bonds be a safe haven? Paul Solman: As I've written here before, TIPS -- Treasury
... » Continue reading
Why Don't Equity Funds and Large Companies Invest in Small Businesses?
June 25, 2010 |
Editor's Note: This post continues a conversation begun yesterday about Paul Solman's recent report on the small business credit crunch -- which included a scene of "chicken chase" that some viewers found upsetting. Question: I like chickens too and care
... » Continue reading
Viewers Respond to 'Chicken Chase' Scene
June 24, 2010 |
Paul Solman: We received a very sobering set of viewer responses to the opening sequence of our credit crunch story from Springfield, Mo., the other night, of which a few are excerpted below. I have to confess, I was so
... » Continue reading
A Letter From One of the Millions of Unemployed
June 23, 2010 |
Paul Solman: I received a remarkable message the other day from a longtime e-mail correspondent and it seems worth sharing portions of it on this page. This is what the current job picture feels like for some (many? most? all?)
... » Continue reading
A Profit Motive for BP?
June 22, 2010 |
Question: There is a fortune in oil under the gulf and BP has already put a lot of time, effort and money into getting it. They would be crazy to just cap it if they can get it to a
... » Continue reading
Credit Crunch Continues for Small Businesses
June 21, 2010 |
Editor's note: Updated on June 21: On Monday's NewsHour, we'll have a story on how small businesses in Springfield, Mo. say they are still struggling to get the credit they need -- and the manufacturing firm Springfield Remanufacturing (SRC) is
... » Continue reading
Do Federal Statistics Mask the True Unemployment Rate?
June 17, 2010 |
Question: You are already in depression territory, not approachment. The statistic from the BLS is one of the reasons the economic crisis went undetected for so long -- an economic indicator that is deceptive. The statistic is relative only to
... » Continue reading
Does Studying Economics Make You Republican?
June 16, 2010 |
Paul Solman: There's a fascinating post up on the New York Times economics blog that touches on a question explored first, as far as I know, by the great Cornell economist Robert Frank with collaborators Tom Gilovich and Dennis Regan.
... » Continue reading
Q&A: Ask Roubini and Taleb Your Questions on Stimulus Spending, U.S. Debt
June 15, 2010 |
Back in 2006, economist Nouriel Roubini and scholar Nassim Taleb shared some words of warning about the state of the financial and housing markets. On Tuesday night's NewsHour, we speak with both of them again about their pessimistic views about
... » Continue reading
Will the United States Experience a 'Jobless Recovery'?
June 14, 2010 |
Question: Paul, I have read some of your letters on a "jobless" recovery. To the point, do you think our nation will experience a jobless recovery? Right now I can't even buy one! Paul Solman: Can't buy a recovery or
... » Continue reading
Is it Time for a Resurgence of the Austrian School of Economics?
June 11, 2010 |
Question: Hello Paul! Do you ever plan to present the ideas of economists that adhere to the Austrian School of Economics (Students of Von Hayek or Von Mises)? Their understanding of the nature and causes of the business cyle enabled
... » Continue reading
Is Oil Drilling in the U.S. Necessary for 'Oil Independence'?
June 10, 2010 |
Question: I'm befuddled by the "oil independence" movement that is neatly summarized by the slogan "drill baby drill." This somehow tries to persuade the nation that foreign oil is the enemy. I believe that the vast majority of our foreign
... » Continue reading
Economics and Emily Dickinson
June 9, 2010 |
Paul Solman: As longtime viewers of the NewsHour may recall, our economics team has very occasionally ventured off the beaten beat to cover other issues. When headed to New York last week for an upcoming story, we found ourselves within
... » Continue reading
Should We Invest in Retraining American Workers Affected by Globalization?
June 9, 2010 |
Question: Paul, with all the concern about stagnant or declining wages in the U.S., has anyone pointed out that wages in other parts of the world are rising? Is there no joy for them? Isn't the relevant question in a
... » Continue reading
An Update on Out-of-work Executives
June 8, 2010 |
Paul Solman: Last summer, we did one of our favorite stories -- "favorite" in the sense that it really taught us something about the grim state of the job market in the throes of the Great Recession, and the extent
... » Continue reading
2010 Graduates Still Headed for Wall Street
June 4, 2010 |
Paul Solman: On the show tonight, Harvard economist Ben Friedman argues that schools like his are channeling graduates into finance -- at a cost of society as a whole. No, the Ivy League doesn't make crooks out of its students,
... » Continue reading
How Should I Invest If I Just Want to Preserve What I Have Now?
June 3, 2010 |
Question: I am 60 yrs old and have decided that I want to preserve exactly what I have in my 401k right now. Nearly all of my assets reside there. It has been a long up-and-down ride since first investing
... » Continue reading
What Is a Naked Short?
June 2, 2010 |
UPDATED JUNE 4: Question: Can you please explain what is meant by a "naked short"? I've heard naked shorts being referred to as counterfeit. Is that accurate? Paul Solman: First, let's define a "short" or "short position." It's when you
... » Continue reading
How Economics Affects the Oil Spill Blame Game
June 1, 2010 |
Paul Solman: The underwater gusher in the Gulf has critics pointing fingers every which way. British Petroleum is the obvious first choice, but the Obama administration is another easy target: It happened on their watch. Or you can blame the
... » Continue reading
Masters of the Underworld
May 28, 2010 |
Paul Solman: Since Friday posts stay up for the weekend, allow me to share this cartoon, sent to me this morning by a friend, on the abstrusegoose cartoon website: "The Devil Went Down to Wall Street." I'm not in a
... » Continue reading
The Ongoing Credit Crunch
May 27, 2010 |
Paul Solman: Conservative economist Ed Yardeni, whom I cited earlier this week, wrote Thursday morning about an issue that we address on the NewsHour soon: the continued "credit crunch" -- unavailability of bank loans -- in our supposedly recovering economy.
... » Continue reading
What's Going on in Europe?
May 26, 2010 |
Paul Solman: A departure from the usual Q-and-A format this morning to address an issue on the minds of many: what's going on in Greece...and Europe? Conservative economist Ed Yardeni, whom we've consulted from time to time over the years,
... » Continue reading
Are Commodity Prices in for a Decline?
May 25, 2010 |
Question: Do you think we are in a long-term commodity boom, or will the rise in commodity prices come to an end if China suffers a set-back, as Marc Faber seems to think will happen later this year? Paul Solman:
... » Continue reading
Paul and Larry Kotlikoff Debate our Economic Future
May 24, 2010 |
I was having an amiable argument the other day about our economic future with Boston University economist Larry Kotlikoff (The Coming Generational Storm; Spend 'til the End; Jimmy Stewart is Dead, which argues for what he calls limited-purpose banking, featured
... » Continue reading
How Do Hedge Funds Work?
May 21, 2010 |
Question: How do hedge funds work? How do investors gain money from betting on losses? Paul Solman: One way is to borrow an asset like a stock from a broker and promptly sell it, betting it will go down in
... » Continue reading
Are Banks Borrowing from the Fed at Low Interest and Making Money Buying U.S. Treasuries?
May 20, 2010 |
Question: I read recently that the "big banks" are borrowing from the Fed at 0.1 percent and buying U.S. Treasuries with the borrowed funds, thereby collecting around 3 percent. Can this possibly be true? Paul Solman: They have been doing
... » Continue reading
How Soon Will the Greek Scenario Occur in the U.S.?
May 18, 2010 |
Question: How far in the future will the Greek tragedy scenario arrive at U.S. shores?? Paul Solman: A week? A decade? Never? The world of finance is too complex to predict, but here, to bolster collective confidence, are a few
... » Continue reading
What's the Motivation of Strategic Defaulters?
May 17, 2010 |
Question: Your pieces are my favorites, and I never miss one. You recently did one on real estate in Florida that raised a question At one point, you say, "Welsh says he stopped making payments six months ago, and has
... » Continue reading
Simon Johnson on Misleading Messages in the Fight for Financial Reform
May 13, 2010 |
<!-- _pap_embed_custom('news01s3f81q87f',290,193); //--><!]]> (Watch a larger version of the video.) Paul Solman: On Thursday's NewsHour, we speak to Simon Johnson about his new book, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. A great benefit of this
... » Continue reading
Is It Cheaper to Give Money Directly to Hurting Home Owners?
May 12, 2010 |
Question: I know hindsight is 20-20, but I wonder. Would we have been better off providing mortgage payment assistance directly to the homeowners? It seems to me that the banks are really interested in conserving capital right now, so there
... » Continue reading
Even in Tough Times, Realtor Offers Helping Hand
May 11, 2010 |
Editor's note: While reporting on the real estate crisis in Florida recently, Paul spoke with realtor Kevin Jarrett, who is about to lose his fourth home to foreclosure. What struck Paul was how even as Jarrett struggles with his own
... » Continue reading
Is Limited Purpose Banking Being Considered a Possible Reform?
May 10, 2010 |
Question: Is 'limited purpose banking' an idea under consideration in the new financial reform legislation? Paul Solman: I assume you're talking about Boston University economist Larry Kotlikoff's notion of turning bank accounts into mutual funds, featured here recently. If so,
... » Continue reading
Analysts See Signs of Recovery in Latest Jobs Report
May 7, 2010 |
Editor's note: According to the latest jobs numbers released Friday, the U.S. economy added 290,000 jobs in April, a welcome sign that an economic recovery may be taking root. But the unemployment rate also rose to 9.9 percent. We asked
... » Continue reading
Thursday's Wild Market Ride
May 6, 2010 |
Paul Solman: For anyone visiting the Business Desk today to find out why markets are quaking, allow me to repeat the phrase that ought to be the motto for this page, so often have I used it: Credit comes from
... » Continue reading
What Is Open Book Management?
May 5, 2010 |
Question: Love your piece on Jack Stack and SRC Holdings (watch here and here). I'm interested in the open book management policy. Is there more info somewhere on how to do that with staff -- does one share ALL financial
... » Continue reading
Foreclosure Bargains Hurt By Chinese Drywall
May 3, 2010 |
Editor's note: As part of Paul's continuing reporting on the foreclosure crisis, the report below examines a factor that is turning some foreclosed houses from bargains into liabilities. At the height of the building boom, contractors in the southern United
... » Continue reading
Making Use of Employees' Talents
April 28, 2010 |
Editor's note: On Wednesday's NewsHour, Paul revisits a Missouri manufacturer that in this era of "too big to fail" has proven small enough to succeed. Part of the secret to its success? Prizing employees' innovation alongside their efficiency. In this
... » Continue reading
Live-blogging the Goldman Hearing
April 27, 2010 |
Editor's note: Paul is live-blogging the congressional subcommittee hearing on Goldman Sachs Tuesday. Read his comments here.
... » Continue reading
Watch Paul's Series on the Foreclosure Crisis
April 23, 2010 |
<!--</p> <p>_pap_chapters('news','foreclosures');</p> <p>//--><!]]>
... » Continue reading
South Florida: From Backwaters to Boom Towns
April 22, 2010 |
Editor's note: In Paul's latest piece on strategic mortgage defaulters -- people who are walking away from underwater mortgages even though they can often still afford to pay -- he included an excerpt of a fascinating 2007 documentary produced by
... » Continue reading
When Homeowners Facing Foreclosure Want to Pay to Stay
April 21, 2010 |
Editor's note: Paul has been reporting recently on the foreclosure crisis in Florida, and particularly on homeowners walking away from their underwater mortgages. In some cases, soon-to-be-foreclosed-on homeowners who want to stay in their homes are prepared to offer the
... » Continue reading
Why Do Banks Foreclose Rather Than Negotiate With the Owner, Who Can Pay the Sale Price They Want?
April 20, 2010 |
Question: I watched your recent piece on Florida. The question that begs to be answered is WHY the banks would rather foreclose on a property and sell it someone else for 30 cents on the dollar instead of selling it
... » Continue reading
A Trip Down RAM Memory Lane
April 16, 2010 |
Editor's note: On Thursday's NewsHour, Paul Solman spoke to Dan Pink, author of a new book Drive, about what motivates behavior and innovation in the modern workplace. PAUL SOLMAN: Executive pay and Wall Street bonuses,... might not enhance, but actually
... » Continue reading
Should We 'Delink' the Economics Nobel from the Other Nobel Prizes?
April 14, 2010 |
Question: Can you do a story on the fact that many Nobel Prize winners and other scientists are trying, along with Peter Nobel, descendant of Alfred Nobel, to get the Nobel Committee to delink the prize in economics from the
... » Continue reading
Follow-Up on Florida Unemployment Report
April 13, 2010 |
Question: In a recent segment, you interviewed a man from Florida whose unemployment benefits were denied, I believe, because he failed to submit a form in a timely manner. His only notification was a letter from the unemployment office. My
... » Continue reading
Is It Fair to Describe Corporations as Sociopaths?
April 12, 2010 |
Question: You recently said that someone's referring to big banks as 'sociopathic' was perhaps 'over the top'. But have you seen the excellent 2004 Canadian documentary, The Corporation? If not, you should. Doesn't it make a convincing case that corporate
... » Continue reading
Who is Making Money in Our Health Care System?
April 9, 2010 |
Question: Everyone is constantly saying that "health care costs are rising," but besides the health insurance companies, I don't see anyone making any money. Everything costs more and more, but who's keeping it all? I hope you could do a
... » Continue reading
Will Health Care Reform Increase the National Debt?
April 8, 2010 |
Question: I'm concerned that in the long term, the U.S. health care plan will ultimately increase the national debt. Is this true? It's hard to know the truth when you live in a house filled with smoke and mirrors! Paul
... » Continue reading
What Do You Think of Credit Unions?
April 7, 2010 |
Question: Just saw your piece on moving money to the "George Bailey Banks" (GBB) and the "Too-Big-To-Fail" (TBTF) banks. I really like my credit union -- I'd like to hear what you think about credit unions versus GBB and TBTF
... » Continue reading
Removing Risk Taking from the Banking Industry
April 6, 2010 |
Editor's Note: On the NewsHour tonight, leaders of the Move Your Money movement explain why they think Americans should move their money from large "too-big-to-fail" banks to small community institutions. "I hope it sends a warning to the big banks
... » Continue reading
How Do Our Current Economic Troubles Compare to the 1970s?
April 1, 2010 |
Question: It seems that comparisons of our current economic troubles to the Great Depression are exaggerated. How would you compare today to the recession of the 1970s? Paul Solman: Pretty close to the worst previous post-WWII recession: '74-'75. Different worry,
... » Continue reading
How Do Other Countries Afford Universal Health Care?
March 31, 2010 |
Question: I have heard repeatedly that every major economy, besides the U.S., has universal health care. I have also heard that the Medicare program, which obviously doesn't cover everyone, is headed for bankruptcy. How do these other countries afford to
... » Continue reading
Economic Insight for Millenials
March 30, 2010 |
Question: What are the top three bits of economic insight that Millennials should take note of as we face the world post-college during this period of economic recession? Paul Solman: 1. Internalize the basic message of economics: Decision-making is the
... » Continue reading
Who Is to Blame for the Meltdown?
March 26, 2010 |
Question: I keep hearing conservatives like Amity Shlaes blaming the meltdown on Fannie and Freddie and CRA, and liberals like Dean Baker and John Cassidy minimizing the role of Fannie/Freddie/CRA. They say it was only 10 percent of the problem,
... » Continue reading
How Were Off-Balance-Sheet Transactions Allowed to Continue?
March 25, 2010 |
Question: In this current financial crisis, I keep hearing about "off balance sheet" transactions. I'm old enough to remember Enron's collapse, which also entailed "off balance sheet" transactions. What are these (I think they are also referred to as structured
... » Continue reading
What's the Difference Between Quantitative Easing and the Fed Buying Securities?
March 24, 2010 |
Question: What's the distinction between "quantitative easing" and the Federal Reserve simply buying and selling government securities to affect the nation's money supply? Paul Solman: The distinction is that when the Fed is selling, it's sopping up money from the
... » Continue reading
Why Haven't Agricultural Land Prices Also Crashed?
March 23, 2010 |
Question: I have a question about agricultural land prices. I have seen my home, apartment building, and stock values drop. In addition, there are rumors in the press about potential drops in commercial office and retail space. But agricultural lands
... » Continue reading
Why Don't We Have More Tech Education Programs in Schools?
March 22, 2010 |
Question: As a nation of technology, why do public schools continue to eliminate technology education programs? Doesn't this curriculum (see iteaconnect.org for standards) lead to more high-knowledge-high-skills jobs? Paul Solman: I don't know the answer, so I asked my longtime
... » Continue reading
Reimagining Nanotechnology
March 19, 2010 |
Editor's note: On Friday's NewsHour, Paul speaks to Felice Frankel and George Whitesides, authors of an extraordinary new book, No Small Matter: Science on the Nanoscale. Frankel and Whitesides bring the virtually invisible world of nanotech to life through bold
... » Continue reading
Miller Center Debate: Does the U.S. Need More Grads?
March 17, 2010 |
Editor's note: Paul recently moderated a Miller Center debate on whether the United States must dramatically increase its number of college-educated citizens to remain a leading economic power. Former Secretary of Education Margaret Spellings and Michael Lomax, president of the
... » Continue reading
From the Archive: The Fed and the Financial Crisis
March 17, 2010 |
Editor's note: Over at the Rundown, we're watching Fed Chairman Ben Bernanke's appearance on the Hill today to defend the Fed's ability to oversee banks of all sizes -- a role that could be altered significantly under financial reform legislation
... » Continue reading
From the Archive: Tackling Financial Reform
March 15, 2010 |
Editor's note: With Sen. Chris Dodd unveiling a bill to overhaul the nation's financial system Monday, we're dipping into our Business Desk archives to pull out expert commentary featured here over the past few months on how sweeping the changes
... » Continue reading
Economist Andrew Lo on 'Existential Vertigo'
March 12, 2010 |
Paul Solman: MIT economist Andrew Lo, who beyond guest-blogging his favorite recent economics book here on Making Sense this week, appears on Friday's NewsHour, discussing how human frailty and bad decision-making factored into the financial crisis. I would argue that
... » Continue reading
Black: The Best Econ Books I've Read Recently
March 12, 2010 |
Bill Black: I recommend looking at three books. Two of them focus on the interplay of economics and politics. James Galbraith is a professor of economics at the LBJ School of Public Affairs at the University of Texas at Austin.
... » Continue reading
Lo: The Best Econ Book I've Read Recently
March 11, 2010 |
Andrew Lo: The best economics book I've read recently is Human: The Science Behind What Makes Us Unique by Michael Gazzaniga. Now it's true that Gazzaniga is a cognitive neuroscientist, not an economist, but the insights in this book are
... » Continue reading
Baker: The Best Econ Books I've Read Recently
March 10, 2010 |
This week, we are running guest posts from some of our favorite economists about the best economics book they've read in recent months. Dean Baker: Amidst all the tracts on health care written by policy wonks in the last couple
... » Continue reading
Shiller: The Best Econ Books I've Read Recently
March 9, 2010 |
This week, we are running guest posts from some of our favorite economists about the best economics book they've read in recent months. Robert Shiller: I have two books here, that came out in the last couple months with similar
... » Continue reading
The Best Economics Book I've Read Recently
March 8, 2010 |
Paul Solman: The most memorable book of the past month or so has been Yale historian Adam Tooze's Wages of Destruction, an economic history of the Third Reich. Many striking facts -- such as that the Volkswagen Beetle, ordered
... » Continue reading
Are Financial Institutions Exempt from Antitrust Laws?
March 5, 2010 |
Question: Given the current size and concentration of financial activities in the hands of few financial institutions, wouldn't antitrust laws apply to their activities? Are financial institutions exempt from anti-trust laws? Paul Solman: No, they're not. But remember, the government
... » Continue reading
Has the Stimulus Been Effective?
March 4, 2010 |
Question: I read Robert Barro's analysis of the net effectiveness of stimulus spending recently in the Wall Street Journal and clearly he concludes it's not. Why is there not more public debate about this? What's not being said? Paul Solman:
... » Continue reading
Should the Government Encourage More Americans to Purchases Treasuries?
March 3, 2010 |
Question: I have a question about servicing the national debt. Would it make economic sense for the federal government to encourage more Americans to purchase Treasury instruments, thereby returning huge interest payments to our economy instead of paying foreign governments?
... » Continue reading
Was Social Security Doomed From Its Inception?
March 2, 2010 |
Question: Was Social Security doomed from its inception as it began by paying benefits to a generation that had never put anything into the fund? Paul Solman: No. It is a pay-as-you-go system, meaning future generations pay for current retirees.
... » Continue reading
Why Can't We Simply Add to the U.S. Debt Indefinitely?
March 1, 2010 |
Question: I am told over and over that the federal debt will lead to inflation and that our children and grandchildren will have to pay it back. I have heard this so often that I am starting to doubt it.
... » Continue reading
Paul Solman Moderates Debate on Higher Education and the Economy
February 26, 2010 |
Editor's note: On Friday evening, Paul will moderate a Miller Center Debate on higher education and the economy. The panelists will debate whether the the U.S. workforce needs a dramatic increase in the number of college graduates in order for
... » Continue reading
Did the Government Used to Break Up Companies for Being Too Big to Fail?
February 24, 2010 |
Question: In the '50s and '60s, big companies were broken up if they became too big -- like Ma Bell into the regional baby bells. GM was on the threshold of being broken up. I guess this was the federal
... » Continue reading
Is Front-Running Considered Insider Trading?
February 23, 2010 |
Question: I've been a Paul Solman groupie for some years now, but I think your recent piece on front-running was the best ever. Why, under the law, is front-running not considered insider trading? Paul Solman: There IS a law against
... » Continue reading
Why Is There So Little Mention of Toxic Assets?
February 22, 2010 |
Question: Why is there no more mention of "toxic assets?" Does Goldman Sachs have any toxic assets on their balance sheet? Paul Solman: Well, Goldman was SELLING toxic assets like mortgage-backed securities to clients, but is proud of the fact
... » Continue reading
More Comments on the Goldman Series
February 19, 2010 |
Question: Do you really consider the Follow-up on Front-Running piece true journalism? Or, is it possibly just gossip? Do you consider using Goldman Sachs 2009 profit statements a perfect example of where that company always makes its money? [Ed. note:
... » Continue reading
A Defense of Goldman Sachs
February 18, 2010 |
Question: I must take exception to your two pieces on Goldman Sachs (Part I and Part II). Let us concede up front that Mr. Blankfein's formulation of Goldman doing "God's work" was a bit ham-handed at best, but rather than
... » Continue reading
How Can the Unemployment Rate Go Down if Jobs Are Still Lost?
February 17, 2010 |
Question: C-Span reports that in January, the unemployment rate declined by 0.3 percent, yet also that 20,000 jobs were lost. If jobs were lost how could the unemployment rate decline? Paul Solman: Technically, it actually COULD -- if the workforce
... » Continue reading
How Does the Current Deficit Compare to Past Deficits?
February 16, 2010 |
Question: How does the current deficit compare to past deficits as related to the economy as a whole? Is this really a historically large deficit when adjusted for inflation? How different is it really, especially when you consider huge executive
... » Continue reading
Is the Problem the Size of Banks or Their Interconnection?
February 15, 2010 |
Question: Is the problem the size of individual banks or their interconnection? One problem that was mentioned during the bailout was that if one bank went down, it would take the rest with it. So if the banks were smaller,
... » Continue reading
A Follow-up on Front-Running
February 12, 2010 |
Paul Solman: In the wake of considerable reaction to last night's Goldman piece in what my mother derisively called "cyberspace," a brief anecdote, before all is forgotten in the wake of tonight's Goldman II. Forgive me if I've mentioned this
... » Continue reading
Is There a Better Term for Moral Hazard?
February 12, 2010 |
Question: Paul, Thank you for your excellent explanation of moral hazard. I checked many other sources before I found your website and only found confusing definitions. The main problem is that the phrase "moral hazard" does not seem well related
... » Continue reading
Where Does Goldman Sachs Fit in the Greek Debt Crisis?
February 11, 2010 |
Question: An article in a recent edition of the NYT mentioned that Goldman Sachs had contracts with AIG in 2009 to insure its bearish position in the mortgage market. As the market fell, Goldman collected on its contracts. Another Times
... » Continue reading
Should We Transfer Accounts to Small Banks?
February 10, 2010 |
Question: Isn't the best way for "us" to give the big banks a message is to take our accounts to small banks? Is there a rating of small banks to help us make an educated choice? Paul Solman: Funny you
... » Continue reading
If EU Countries Default, How Will the U.S. Be Affected?
February 9, 2010 |
Question: If the EU PIGS (Portugal, Ireland, Greece, Spain) default, how will this affect the United States? Paul Solman: First, it should be PIIGS. Add an "I" for Italy. Or, if you want to call it PIIIGS, you can add
... » Continue reading
Stand-up Economist Yoram Bauman Makes Money Funny
February 8, 2010 |
Paul Solman: We've gotten such a great response to last week's segment on comedy at the annual economics convention that we'd like to showcase a few more outtakes from stand-up economist Yoram Bauman's routine. Enjoy. <!-- _pap_embed_custom('news01s3aadq87f',290,193); //--><!]]>
... » Continue reading
Two Takes on Unemployment
February 5, 2010 |
Paul Solman: Harry Truman may have longed for a one-handed economist, but it's probably good that he didn't get one. Economies, like weather systems, are simply too chaotic to make prediction -- much less prescription -- unambiguous. It should come
... » Continue reading
Karl Case's (Poetic) Reflections on the Housing Market
February 4, 2010 |
Paul Solman: We've been interviewing Wellesley economics professor Karl 'Chip' Case since the last housing crash here in Boston in the late '80s, and as recently as a few weeks ago with his well-known collaborator Bob Shiller. He is one
... » Continue reading
Is Bankruptcy the Best Solution for California's Budget Problems?
February 3, 2010 |
Question: I wonder if going into bankruptcy would be the best solution for California's budget deficit problems. Wouldn't bankruptcy allow for the renegotiation of contracts between the state and, say, labor unions? Pensions and entitlements seem to be a huge
... » Continue reading
What Are the Indirect Costs of the Financial Meltdown and Bailouts?
February 2, 2010 |
Question: There are endless comments in the news lately about the banks paying back "every penny" of the "costs" of the financial meltdown. In any civil proceeding that I know of, when a plaintiff asks for damages pursuant to someone's
... » Continue reading
What Effect Will a Freeze on Discretionary Spending Have on the U.S. Economy?
February 1, 2010 |
Question: What effect will a freeze on discretionary spending have on the U.S. economy? Paul Solman: There are two large points to be made here. One is that most of the U.S. budget is NON-discretionary, especially if you include defense.
... » Continue reading
Keynes-Hayek Rap Video Goes Viral! Non-economists Worldwide Infected!
January 28, 2010 |
Paul Solman: Forgive the sensationalist headline, but after the pummeling we took for debuting the Keynes v. Hayek rap smackdown in December, what harm in bringin' in more noise and funk? First came the mocking blog posts about our
... » Continue reading
Country Crooner Merle Hazard Sings the Recession Blues
January 27, 2010 |
Paul Solman: Merle Hazard, who calls himself the "first and only country singer to write about mortgage-backed securities, derivatives, and physics," provides the soundtrack to our segment Wednesday night about whether the Fed's interest rate policies will drive us
... » Continue reading
Home Prices Up Slightly in November
January 26, 2010 |
Paul Solman: Case and Shiller, the economists of the fabled Standard & Poor's/Case-Shiller Housing Index, appear together for the first time on the NewsHour Tuesday night, taking us all on a tour of Atlanta, Georgia, and its housing woes.
... » Continue reading
Who Are the Workers Who Have Stopped Looking for Jobs?
January 25, 2010 |
Question: One of society's most enigmatic and growing populations is the one referred to as "those who've given up looking for work." Who are these folks? How are they counted? What do they do after hanging it up? Such a
... » Continue reading
Would Dividing Commerical and Investment Functions Be Enough to Prevent Risky Behavior?
January 22, 2010 |
Question: Since our largest banks became large by joining together many regional banks and became rich enough to practically own Congress, it seems to me we should take them apart for our own safety, and divide commercial from investment functions
... » Continue reading
How Does Goldman Sachs Make Its Profits?
January 21, 2010 |
Question: How is it that Goldman Sachs and the other Wall Street firms are able to earn such huge profits and pay out such huge bonuses? Do the firms whose CEOs testified before Congress compete with each other or do
... » Continue reading
How Can We Base an Economy on Consumption?
January 20, 2010 |
Question: I have heard and read many times that consumer spending is a major part of our economy. Reading the paper on a recent morning, I read that consumer spending accounts for 70 percent of U.S. economic activity. It is
... » Continue reading
Richard Freeman on Changing Wall Street
January 19, 2010 |
Paul Solman: A few months ago, Harvard economist Richard Freeman took us on a recession walking tour of the Boston area. Among the many hats Freeman wears is working at the National Bureau of Economic Research, which declares when the
... » Continue reading
Paul Krugman on Values and Economics
January 15, 2010 |
<!-- _pap_embed_custom('news01s38dfq87f',290,193); //--><!]]> Paul Solman: To follow up our conversation with Paul Krugman yesterday on how to tackle financial reform, we go 'up close and personal' with the Nobel-winning economist today, kicking off with this question I pose to him:
... » Continue reading
Paul Krugman on Financial Reform
January 14, 2010 |
<!-- _pap_embed_custom('news01s38b7q87f',290,193); //--><!]]> Paul Solman: At January's annual economics meeting in Atlanta, we sat down one-on-one with a variety of intriguing economists, none of whom I've known longer than Paul Krugman. I first interviewed him in the early 1980s, back
... » Continue reading
What I'd Ask the Banking Chiefs
January 13, 2010 |
Paul Solman: As the Financial Crisis Inquiry Commission gets under way this morning and the heads of biggest U.S. banks answer questions about what caused the financial crisis - and what to do to avoid a similar crisis in the
... » Continue reading
Should We Cut Taxes in this Economic Climate?
January 12, 2010 |
Question: Since the beginning of the Reagan revolution, there has been a strong effort at state and local levels by both Republicans and Democrats to cut taxes in order to spur economic growth. Given the fact that many state governments
... » Continue reading
Which Econ Textbooks Are the Most Popular?
January 11, 2010 |
Question: How would one find out what upper division macro-econ textbooks have been used in the last decade, which are used currently or are planned for use in the coming year(s) at the big shot departments of economics in
... » Continue reading
Where Are They Now: Are the Jobless Finding Jobs?
January 8, 2010 |
Paul Solman: Given that today marked the first unemployment number of the new decade, or the last one of the old, we thought we'd contact some of the jobless we've interviewed over the past year and see how they're faring.
... » Continue reading
Why Can't We Let Too-Big-to-Fail Companies Fail?
January 6, 2010 |
Question: Paul, I want to ask you about the "bigness" issue -- "too big to fail." If the big corporations produce most of the economy's products, such as those companies listed in the Dow & S&P 500, percentage-wise, but employ
... » Continue reading
How Can We Recover if New Jobs Are Low Paying?
January 5, 2010 |
Question: How can we recover if even the few jobs out there are so low paying? Income has not kept up since the mid-'80s when so many people lost their jobs the first time. When spending was down, banks and
... » Continue reading
What Is Income Inequality Like Within Certain Industries, Such As Banking?
January 4, 2010 |
Question: I am interested in the question of income inequality or distribution in the United States. Are there any statistics that indicate the degree of inequality by industry in the U.S., like in the banking industry, higher education etc.? Paul
... » Continue reading
Reporting on the Growing Ranks of the Unemployed
January 1, 2010 |
Editor's note: Yesterday, Paul wrote a reflection for our Rundown news blog about reporting on unemployment this past year. It's been an odd year for anyone who, like your correspondent, makes a living in and around economics. Odd because,
... » Continue reading
Wasn't WWII Debt Bigger than Obama's Stimulus Package?
December 30, 2009 |
Question: According to many, especially conservative economists who wish to denigrate FDR's efforts to end the Great Depression, the spending for WWII was ultimately responsible for our recovery from that era's fiscal disaster, more than his many other stimulus strategies.
... » Continue reading
If Banks Aren't Lending, How Did They Make Recent Profits?
December 29, 2009 |
Question: I've always understood that banks made their money by lending. If they are not lending, what accounts for their recent profits? Paul Solman: They're lending all right. It's just that they're not lending much to individuals or businesses.
... » Continue reading
How Did Banks, in Dire Straits Just Last Year, Pay Back TARP Money?
December 28, 2009 |
Question: Hi, Paul. I really enjoy your attempts to make this banking mess clear to us. My big question that I don't seem to be reading anywhere: If most of the banks were in such dire straits last year
... » Continue reading
Samuelson on Economics and Behavior
December 25, 2009 |
Paul Solman: A final excerpt from my interview with Paul Samuelson about a decade ago. For this Christmas Day edition of Business Desk, Samuelson on where behavior and economics intersect.
... » Continue reading
Samuelson on Whether Economics Is a Science
December 24, 2009 |
Paul Solman: More excerpts today from an interview I did with economist Paul Samuelson nearly a decade ago. Today, his thoughts on whether economics is a science and where math fits in the discipline. Click through to read the transcript.
... » Continue reading
Samuelson on Why You Should Study Economics
December 23, 2009 |
Paul Solman: We continue this week with excerpts from an interview I did with Paul Samuelson in his office almost a decade ago, just after the dot.com collapse in the year 2000. I was helping make a series of videos
... » Continue reading
What Will It Take to Jumpstart Job Creation?
December 21, 2009 |
Question: It seems to be fairly well accepted that the military build-up for WWII was what finally brought us out of the Great Depression. Is there any movement afoot for the government to effectively replicate that kind of "ordering" of
... » Continue reading
Samuelson on Worth
December 18, 2009 |
Paul Solman: All week, we've been posting transcripts of past conversations with the late economist Paul Samuelson. Below, Samuelson on calculating worth.
... » Continue reading
The Year Ahead: What's the Economic Indicator to Watch?
December 17, 2009 |
Paul Solman: More in our look this week at The Economic Year Ahead. Today: What's the economic indicator to watch in 2010? Again, as you've come to expect from the NewsHour, a divergence of views. Not that Robert Shiller
... » Continue reading
Debating the Legacy of John Maynard Keynes
December 17, 2009 |
Editor's note: Last night on the NewsHour, we had a look at the legacy of economist John Maynard Keynes, using as our vehicle an amusing rap song about the legendary economist and thinker. We'd hoped to have the full-fledged
... » Continue reading
Samuelson on Consumer Surplus
December 17, 2009 |
Paul Solman: Today's Paul Samuelson excerpt explains the concept of "consumer surplus." See the other transcripts we posted this week on the basics of economics here and here.) To Samuelson, it was the justification for the market system.
... » Continue reading
The Year Ahead: Conventional Wisdoms that Get It Wrong
December 16, 2009 |
Paul Solman: Next up in our week-long series on The Economic Year Ahead: conventional wisdoms economists think are wrong. After asking economists to weigh in on the next crisis and what would surprise them most about the economy next
... » Continue reading
More Basics of Economics with Paul Samuelson
December 16, 2009 |
Paul Solman: On Tuesday, we posted the first transcript from a series of interviews I've done with Paul Samuelson over the years. This installment picks up where the last left off, explaining the most basic ideas of economics -- scarcity,
... » Continue reading
The Year Ahead: Economic Surprises
December 15, 2009 |
Paul Solman: Another dauntingly thought-provoking group of responses today as part of our week-long series on The Economic Year Ahead (yesterday's feature on the next crisis garnered some particularly interesting contributions). Today's question: What economic development in 2010 would
... » Continue reading
The Basics of Economics with Paul Samuelson
December 15, 2009 |
Paul Solman: I've done numerous interviews with Paul Samuelson over the years. Invariably, he was funny, imaginative and deep. Particularly memorable was a long session on the basics of economics about 10 years ago, in his office at MIT, which
... » Continue reading
The Year Ahead: The Next Crisis
December 14, 2009 |
Paul Solman: As the end of a tumultuous economic year approaches, we've asked a number of economists to weigh in on the year ahead. We'll be featuring their responses here all week. The responses to today's question - What's
... » Continue reading
Remembering Economist Paul Samuelson
December 14, 2009 |
Paul Solman: A few years ago, my father, the artist Joseph Solman, and I had a meal with Paul and Risha Samuelson at the house of mutual friends. My dad was in his ridiculously hardy '90s at the time;
... » Continue reading
Are Banks Slow-Rolling Foreclosures to Avoid Losses?
December 11, 2009 |
Question: It seems that banks are slow-rolling foreclosures to avoid recognizing losses. This would imply their balance sheets are weaker than stated. Is the FDIC concerned about this? Paul Solman: I haven't been in touch with FDIC head Sheila
... » Continue reading
Web-Exclusive Video: Is Retirement Good for You?
December 10, 2009 |
Editor's note: Tonight's NewsHour features Paul's Making Sen$e report on how older workers are struggling to find work in this tough job market, a segment we've previewed here on Making Sen$e. In a Web-exclusive video, Paul explores the debate over
... » Continue reading
Where Do Temp Workers Fit in the Latest Unemployment Figures?
December 10, 2009 |
Paul Solman: Another Twitter question, this one from a Chicago actress who goes by the handle "alipoombayay" 'could surge mean unemp ran out for lst yr`s laid off and they can finally temp wo losing benefits?' She means the surge
... » Continue reading
Is There Momentum for a Second Stimulus?
December 9, 2009 |
Paul Solman: I've been tweeting for the past few months and some "followers" have taken to asking questions directly on Twitter. I'll be posting a couple of recent ones this week, with my stenographic (haiku-like?) replies, expanded for the
... » Continue reading
Welcome to the New Making Sen$e with Paul Solman
December 8, 2009 |
Paul Solman: A belated welcome to you here at the redesigned Making Sen$e with Paul Solman Web site. We are, like the Internet through which we operate, a work in progress. Heraclitus was right in observing that you can't step
... » Continue reading
Are Credit Unions Insured by the Government?
December 7, 2009 |
Question: From the standpoint of government-backed insurance, are deposits in credit unions equally secure as those in FDIC-insured banks? Paul Solman: Yes. See my recent answer to this question in a Pocket Change feature with Boston University professor Zvi
... » Continue reading
The Story Behind the Nov. Jobs Numbers
December 4, 2009 |
Paul Solman: Good jobs data dominate the headlines this morning: Unemployment holding pretty much steady at long last; dramatic downward revision in last month's number of lost jobs; average hours up. The NYT on its website: U.S. Economy Lost
... » Continue reading
Who Cares If Wall Street Execs Quit?
December 3, 2009 |
Question: Why are so many people concerned that if there are controls put on the remuneration of top people in the financial industry, that these people will leave? Aren't they the prime causes of the financial crisis in the
... » Continue reading
How Many Board Members at Bailed-Out Wall St. Firms Kept Their Jobs?
December 2, 2009 |
Question: How many people on the Board of Directors at AIG, Citi, B of A, and Goldman Sachs kept their jobs and their salaries (in percentage terms) after receiving billions in bailout funds? Paul Solman: I don't know, but
... » Continue reading
Isn't Currency Control a Protectionist Policy?
December 1, 2009 |
Question: One of the commentators on the Newhour recently said that China does not want to devalue its currency for fear of decreasing the attractiveness of its export products and increasing unemployment in China. But the Chinese president recently
... » Continue reading
Is the UK Breaking Up Big Banks?
November 30, 2009 |
Question: Why is the United Kingdom breaking up big banks that got bailed out? Are they wrong? Paul Solman: The UK seems committed to one interesting idea in the wake of the crisis, but it doesn't appear to be
... » Continue reading
Ask Paul a Question
November 30, 2009 |
The Business Desk is about the basics of economics, and it lives on questions from readers like you. Paul's mantra: There are no stupid questions. So, please ask away on all things business and economics. Just use the form directly
... » Continue reading
Student Questions: The Gap Between Rich and Poor
November 27, 2009 |
Editor's note: This week, the Business Desk continues to feature questions from students in three high schools around the country. Question: Why is the financial gap between rich and poor continuing to get wider? -- Stephanie, senior, Carle Place
... » Continue reading
Student Questions: The Recession and the Middle Class
November 26, 2009 |
Editor's note: This week, the Business Desk continues to feature questions from students in three high schools around the country. Question: What can the average middle class person do to improve their finances during a recession? -- Melissa, senior,
... » Continue reading
Student Questions: A Global Currency and Getting Out of a Recession
November 25, 2009 |
Editor's note: This week, the Business Desk continues to feature questions from students in three high schools around the country. Question: Would the world economy be better if all countries used the same currency? -- Kevin, senior, Carle Place
... » Continue reading
Student Questions: Obama's Economic Policies
November 24, 2009 |
Editor's note: This week, the Business Desk continues to feature questions from students in three high schools around the country. Question: What changes has President Obama made to American economic policy? -- Anthony, senior, Carle Place High School, Carle
... » Continue reading
Exactly Who Is the FDIC?
November 23, 2009 |
Question: Exactly who is the FDIC? Who sits on the board? Who do they answer to? What crystal ball do they use to make their decisions? What authority, if any, do they have over banks, large or small? How
... » Continue reading
Should the Gov't Anchor Its Economic Rescue to the Middle-Class Homeowner?
November 20, 2009 |
Question: I remember a person, whom I believe was an economics professor at Columbia University, who during the financial crisis proposed that the government anchor their financial rescue strategy to the middle class homeowner, rather than government investment in 'too
... » Continue reading
Who Regulates the Student Loan Industry?
November 19, 2009 |
Question: Who regulates the student loan industry to stop the practice of gouging young people with excessive interest charges added to their principal when they "defer" payment ...the govt doesn't pay the interest and the loans mushroom. Paul Solman:
... » Continue reading
Did Tax Cuts Create U.S. Jobs?
November 18, 2009 |
Question: The Bush tax cuts put billions in the hands of corporations and other businesses with the hope that they would create U.S. jobs, especially manufacturing jobs in the United States. Did this actually happen or did much of
... » Continue reading
What's the 'Next New Thing' to Solve the Jobs Crisis?
November 17, 2009 |
Question: Hi Paul. If it's going to take a "new thing," a la the Internet, to pull us out of the unemployment funk, what do you think it is ? Paul Solman: When I receive a query like this,
... » Continue reading
Why Didn't the Gov't Bail Out People Instead of Banks?
November 16, 2009 |
Question: I have never understood why it would not have been more effective to have "bailed out" people directly, and banks indirectly, by giving money to people instead of banks. The money would have necessarily have had to move
... » Continue reading
Seven Questions for Sheila Bair
November 13, 2009 |
Editor's note: Ask and ye shall receive. We received some excellent and provocative questions for FDIC Chair Sheila Bair in response to our request here on the Business Desk. Thanks to everyone who contributed. Paul sat down with Bair this
... » Continue reading
Ask the FDIC's Sheila Bair Your Questions
November 11, 2009 |
Paul Solman: We're interviewing Sheila Bair, head of the Federal Deposit Insurance Corporation, this Friday. And she's agreed to answer your questions as well as mine. Her answers will be posted here on the Business Desk in a special
... » Continue reading
Student Questions: Measuring the Economy & Stimulus
November 11, 2009 |
Editor's note: This week, the Business Desk will feature questions from students in three high schools around the country. Question: How is the economy measured? -- Alex, senior, Judge Memorial Catholic High School, Salt Lake City, Utah (pictured right,
... » Continue reading
How Will the Downturn Affect the Gambling Economy?
November 10, 2009 |
Question: Will the downturn in the economy have a lasting effect on the Las Vegas gambling economy? I am a "low roller" and even I am receiving many free offers for rooms in Las Vegas. Paul Solman: Let's hope
... » Continue reading
Student Questions: Is the Recession Over?
November 9, 2009 |
Editor's note: This week, the Business Desk will feature questions from students in three high schools around the country. Question: Because of the current economic conditions are we going to experience deflation or inflation in the future? -- Kavion,
... » Continue reading
Freelancers Lack Safety Net When Jobs Are Scarce
November 6, 2009 |
Editor's note: Tonight on the NewsHour, Paul explores the changing nature of work in a tough economy: Companies may be shedding jobs left and right, but they are increasingly looking for short-term employees to provide work they still need to
... » Continue reading
Reinhart and Rogoff Answer Questions on the History of Financial Crises
November 5, 2009 |
Editor's note: Paul recently sat down with economists Kenneth Rogoff and Carmen Reinhart, authors of a new book chronicling an incredible eight centuries of financial crises around the world, This Time Is Different: Eight Centuries of Financial Folly. The
... » Continue reading
Student Questions: The Unemployment Outlook
November 5, 2009 |
Editor's note: This week and next, the Business Desk will feature questions from students in three high schools around the country. Question: Unemployment seems to be far worse than the government's statistics show (currently just below 10 percent). Why
... » Continue reading
Student Questions: Health Care and Education
November 4, 2009 |
Editor's note: This week and next, the Business Desk will feature questions from students in three high schools around the country. Question: If every other major economy in the world has universal health care why doesn't the United States?
... » Continue reading
Paul Solman Goes Back to School
November 3, 2009 |
Editor's note: This week and next, the Business Desk will feature questions from students in three high schools around the country. To kick off the special series, two questions from high school seniors at Central High School in Phoenix,
... » Continue reading
Ask Rogoff and Reinhart Questions About the History of Financial Failures
November 2, 2009 |
Editor's note: Tonight on the NewsHour, Paul sits down with economists Kenneth Rogoff and Carmen Reinhart, authors of a new book chronicling an incredible eight centuries of financial crises around the world, This Time Is Different: Eight Centuries of
... » Continue reading
Making Sen$e of New Credit Card Rules and More
October 30, 2009 |
Editor's note: Need a fun distraction on a fall Friday afternoon? Paul has just launched the latest edition of his financial literacy site, Making Sen$e. In the latest edition, you can listen to a podcast with Paul and credit
... » Continue reading
In Case You Missed It: AFL-CIO's Trumka Faces Dwindling Ranks
October 29, 2009 |
Editor's note: Paul recently sat down with newly elected AFL-CIO President Richard Trumka to discuss how Trumka plans to lead organized labor through a series of current challenges - from health care reform to the excesses of big business -
... » Continue reading
How Will the Fannie and Freddie Takeovers Affect U.S. Debt?
October 28, 2009 |
Question: Can you explain how the U.S. government's take over of Fannie Mae and Freddie Mac affect interest on the debt now and in coming years? Paul Solman: No. Actually, I CAN explain, but I think you want me to
... » Continue reading
Inside the AFL-CIO's Health Care Lobbying Efforts
October 27, 2009 |
Editor's note: Tonight on the NewsHour, Paul profiles Richard Trumka, the newly elected president of the AFL-CIO, the labor federation representing 57 unions and 11.5 million members across the country. Trumka, who was elected in September, hopes to expand and
... » Continue reading
Why Doesn't the Govt. Sponsor Jobs Programs Like Those During the Depression?
October 26, 2009 |
Question: Why doesn't the government sponsor jobs programs similar to those by Roosevelt during the Great Depression, such as rebuilding infrastructure, building new energy grids, alternative transportation, a decent bus system or train system? Paul Solman: But that's what
... » Continue reading
What Can We Do About "Too Big to Fail"?
October 23, 2009 |
Question: What needs to happen so that we will have no companies "too big to fail"? Paul Solman: Come up with incentives that induce big companies to slim down, or disincentives that punish them if they don't. What's startling at
... » Continue reading
Which Is Better for the Economy: Spreading Money Around or Spending It in One Place?
October 22, 2009 |
Question: I have a "nanoeconomy" question. Most of us go to the grocery store once a week. Which would be better for the economy overall if everyone did it: to go to the same store every time, or to
... » Continue reading
What's the Difference Between a Recession and a Depression?
October 21, 2009 |
Question: What is the difference between a recession and a depression? I have been out of work since last November. It seems like a depression for me. I worked for a civil/structural consulting engineering firm for the past 11
... » Continue reading
How Can the Economy Be Growing While Unemployment Is Rising?
October 20, 2009 |
Question: Your work on the economy is discussed at our dinner table, with my 15 and 16 year old sons, almost every night. You have made such a difference to our family in understanding the Global Economic Meltdown. My
... » Continue reading
Retraining Workers Sounds Great. But For What Jobs?
October 19, 2009 |
Question: Why does nobody discuss the fact that all the working and many middle class jobs have gone to China and the rest of Asia? Retrain workers -- great -- but retrain them for what? Paul Solman: You know
... » Continue reading
Frank Friday: A Bonus Economic Naturalist Post
October 16, 2009 |
Editor's note: From time to time, we get questions here at the Business Desk that feel designed for our frequent guest blogger Robert Frank, author of The Economic Naturalist: Why Economics Explains Almost Everything. Today, we're happily giving him
... » Continue reading
Are the Latest Foreclosure Numbers Good News or Bad News?
October 15, 2009 |
The Business Desk: The headline on Bloomberg's foreclosure story this morning: "U.S. Foreclosure Filings Jump 23% to Record in Third Quarter." The headline on Reuters: "Foreclosures Fall for Second Straight Month." Both it turns out, are correct. But don't mistake
... » Continue reading
Ask Alyssa Katz, Author of 'Our Lot', About Foreclosures and the Housing Crisis
October 15, 2009 |
Editor's note: The U.S. foreclosure crisis shows little sign of abating; while foreclosure filings fell last month, they remain near a record high, according to a report released today by real estate firm RealtyTrac. Journalist Alyssa Katz has written
... » Continue reading
Inner Workings at the NewsHour, or The Tale of a Keynes Rap Video
October 15, 2009 |
Paul Solman: Caveat lector: What follows may be more than you want to know. That said, a blog post about us and TV talk show booking practices, The Perils of a Talking Head, appeared yesterday. I thought it might
... » Continue reading
Can We Identify Bills that Led to Deregulation Over the Past 30 Years?
October 14, 2009 |
Question: I'm amazed that we have not seen an historical listing of the series of federal bills from Reagan's administration, as well as Clinton's and Bush II, that would identify a series of "deregulating" events that contributed to the
... » Continue reading
What Is a Jobless Recovery?
October 13, 2009 |
Question: You have talked about a jobless recovery. What does it mean? Paul Solman: Boy, have we ever! Indeed, we did a whole series on the so-called "jobless recovery" back in 2003, one of whose stories was our first
... » Continue reading
Battle of the Stand-Up Economists
October 12, 2009 |
Paul Solman: The NewsHour and then the Business Desk were, so far as we know, the first national stages for the self-professed "world's first and only stand-up economist," Yoram Bauman. We have henceforth taken what might be called a paternal
... » Continue reading
Why Is the Price of Gold So High?
October 9, 2009 |
Question: Why is the price of gold at a record high? And how does that affect the dollar? Paul Solman: Gold is denominated in dollars. So if gold goes up, it means the dollar has gone down, because it
... » Continue reading
Will the New G-20 Eclipse the United Nations?
October 8, 2009 |
Question: Your exuberance the other day in discussing the addition of several countries to the G-8 -- now G-20 -- led me to speculate whether the new G-20 could, in a real sense, eclipse the United Nations. Can the
... » Continue reading
How Does Global Financial Regulation Affect the Doha Round?
October 7, 2009 |
Question: World leaders at the G-20 Summit issued plans for reregulating the financial industry to help solve the economic crisis. Yet, bizarrely those same leaders will push for completion of the current WTO negotiations - called the Doha Round -
... » Continue reading
Is the High Jobless Rate Due to the Return of Discouraged Workers to the Pool?
October 6, 2009 |
Question: Is there any [truth to the] idea that the jobless rate might have increased due to return of discouraged workers to the pool vs actual lost jobs? Paul Solman: None. Not in the data. "Discouraged workers" come in
... » Continue reading
The Great Recession Through an Economist's Walk to Work
October 5, 2009 |
Editor's note: Harvard economist Richard Freeman recently sent us a fascinating slide show he'd created of empty storefronts around the Boston area. We liked it so much that Paul sat down with Freeman a few days ago for an audio
... » Continue reading
More Grim News in the Sept. Jobs Numbers
October 2, 2009 |
Paul Solman: Today's unemployment data are grim. I began to write "startlingly grim" but then realized that, for those of us on-the-record pessimists with regard to green shoots and recovery, the numbers aren't startling at all. Having been on
... » Continue reading
Portrait of B of A's Ken Lewis, Soon to Be Retired
October 1, 2009 |
Editor's note: You may remember artist Geoffrey Raymond from our Lehman Brothers story last month. Raymond was painting portraits of the wizards of Wall Street even before the market went into a tailspin. After the crash, he started allowing Manhattan
... » Continue reading
Paul's Full Interview with Pres. Lula da Silva
September 30, 2009 |
Editor's note: We were only able to air sections of Paul's wide-ranging interview with Brazilian President Lula da Silva at the G-20 late last week. In the interest of letting viewers see Lula's complete takes on global warming, the situation
... » Continue reading
Jeffrey Sachs on the New World Economic Order
September 29, 2009 |
Paul Solman: When in Pittsburgh last week for the G-20 meetings, we interviewed Columbia University economist Jeffrey Sachs, 23 years after our first interview with him. In all these years, Sachs has been a champion of both the verities of
... » Continue reading
Back Home From Pittsburgh (and the G-20)
September 28, 2009 |
Paul Solman: Meetings like the G-20 can be astonishingly ungratifying to cover. Top officials are, for the most part, intent on talking to one another and impossible to buttonhole. Legions of subalterns try to protect their bosses (and bosses'
... » Continue reading
Paul Interviews Brazilian President Lula da Silva
September 25, 2009 |
Editor's note: On last night's NewsHour, Paul spoke with Brazilian President Luiz Inacio Lula da Silva on the sidelines of the G-20 meeting in Pittsburgh. Lula weighed in not only on the legitimacy of meetings like the G-20 and where
... » Continue reading
In Case You Missed It: Ahead of the G-20, How Are World Economies Faring?
September 24, 2009 |
Editor's note: In anticipation of the G-20 summit that begins today in Pittsburgh, Paul's segment last night took a look at how the world's economies are faring a year into the financial crisis. Along the way, he gets some global
... » Continue reading
Joe Stiglitz on How the G-20 Should Tackle Global Financial Reform
September 23, 2009 |
Editor's note: Paul recently sat down with economist and Nobel laureate Joseph Stiglitz to talk about the financial reform agenda at the G-20 meetings that begin tomorrow in Pittsburgh. Beyond offering thoughts on just what the G-20 countries can and
... » Continue reading
Are Older Workers More Vulnerable in this Recession?
September 22, 2009 |
Question: I lost my job in April. I have yet to find any new position. I get this feeling that age plays a big part in the hiring process. I am 48 ...soon to be 49 years old. Are
... » Continue reading
Reflections on the Week of 'Almost Armageddon'
September 21, 2009 |
Paul Solman: Now that so many of our favorite economists have spiritedly weighed in here on the Business Desk on the first anniversary of "Almost Armageddon Day," I thought I'd comment on theirs. First Simon Johnson. Simon says his
... » Continue reading
Lehman's Lawyer on the Decision to Let It Fail
September 18, 2009 |
Editor's note: Paul also recently sat down with Harvey Miller, lawyer for Lehman Brothers during its descent into bankruptcy, for an insider's look at what it was like meeting with government regulators as Lehman faced collapsed. <!-- _pap_embed_small('news01s30c0q87f'); //--><!]]>
... » Continue reading
Former Regulator on Lehman's Collapse
September 18, 2009 |
Editor's note: Paul recently sat down with Robert Glauber, former Treasury undersecretary under George H.W. Bush and the leader of the taskforce under Reagan charged with reporting on the 1987 stock market crash, to discuss what Glauber would have done
... » Continue reading
What Has Been the Most Surprising Effect of the Financial Crisis?
September 17, 2009 |
Editor's note: All this week on the Business Desk, we have been featuring contributions from economists, financial journalists, and other experts on the origins and impact of the financial crisis. Today, we asked a few of our favorite experts
... » Continue reading
What Financial Reforms Do We Still Need?
September 16, 2009 |
Editor's note: All this week on the Business Desk, we are featuring contributions from economists, financial journalists, and other experts on the origins and impact of the financial crisis. Today, we asked several experts to weigh in on the
... » Continue reading
In Case You Missed It: Losing Lehman Brothers
September 15, 2009 |
Editor's note: Last night on the NewsHour, Paul filed a compelling report on the fall of Lehman Brothers one year after the firm's descent into bankruptcy. He traces Lehman's fall from storied Wall Street investment bank to catalyst for the
... » Continue reading
A Year Later: Which Reforms Have Made a Difference?
September 15, 2009 |
Editor's note: All this week on the Business Desk, we'll be featuring contributions from economists, financial journalists, and other experts on the origins and impact of the financial crisis. We asked several experts to weigh in on the single
... » Continue reading
A Year After Lehman: Lessons Learned
September 14, 2009 |
Editor's note: All this week on the Business Desk, we'll be featuring contributions from economists, financial journalists, and other experts on the origins and impact of the financial crisis. Today, nearly a year after the collapse of Lehman Brothers
... » Continue reading
Reporting the Crisis
September 14, 2009 |
Paul Solman: This week marks the anniversary of the collapse of Lehman Brothers and one of the most extraordinarily tumultuous weeks Wall Street has ever had. So, in reflecting on those events and the subsequent year, I thought I'd
... » Continue reading
If the FDIC Asks for More Credit from Treasury, What Happens to Inflation?
September 11, 2009 |
Question: With the FDIC's funds diminishing, what are the chances it will tap its credit line to the Treasury? And what does that mean for inflation? Paul Solman: The more the FDIC borrows from Treasury, the more Treasury must
... » Continue reading
How Can I Preserve, Protect, and Grow My Savings?
September 10, 2009 |
Question: How should 65-year-olds be preserving their finances in order to make it to 90 without going into the poor house? We've lost a big chunk in the market; the savings we have is getting no interest. How can
... » Continue reading
What Has Been Done to Insulate the U.S. From Systemic Risks Overseas?
September 9, 2009 |
Question: Chairman Bernanke mentioned in the News Hour forum back in July that the key trigger to Depression 1.0 was the failure of a large central European bank. With Austrian and other banks in deep distress (I believe Austrian banks
... » Continue reading
In Case You Missed It: The Realities of the Recession
September 8, 2009 |
Editor's note: Yesterday on the NewsHour, Paul looked at a few of the faces and places that illustrate the realities of the recession. With 15 million Americans out of work, the report drives explains why many Americans don't see the
... » Continue reading
How Do We Compare Unemployment Across Decades If More People in a Household Are Working Now?
September 4, 2009 |
Question: Economic reports routinely compare current unemployment statistics against historical unemployment statistics. However, I haven't seen any discussion of the significant increase in the number of household members who are employed or looking for employment and its impact on
... » Continue reading
In a Difficult Job Market, Settling for Less
September 4, 2009 |
Editor's note: In a report that aired earlier this week about a Manhattan job fair, Paul spoke at length with Philip Mereday, a former executive who had been out of work for about a year. Mereday, a college graduate and
... » Continue reading
Can the Economy Truly Recover With So Many States in the Red?
September 3, 2009 |
Question: We keep hearing phrases such as "when the recession/depression is over," but none of the analysis (that I've read or heard, anyway) addresses the relationship of the current and impending government insolvencies. Surely our economy can't recover while
... » Continue reading
If Big Banks Were Allowed to Fail, Would the FDIC Need a Bailout?
September 2, 2009 |
Question: Some have said that big banks, like Citi or Bank of America, should have been allowed to fail. Given their size, could the FDIC really have covered the insured deposits? Or would the FDIC have to have been
... » Continue reading
What Sectors Will Keep America an Economic Superpower?
September 1, 2009 |
Question: I'd love to see a discussion on future growth in the American economy. As we've witnessed, the financial services sector clearly has a limits to what it can yield. What are the sectors that can keep America an
... » Continue reading
Sudhir Venkatesh on the New Meaning of Recovery
August 31, 2009 |
Editor's note: On tonight's NewsHour, Paul visits a New York City job fair to get a sense of how many Americans who have been out of work for extended periods of time are coping with their job searches. There's been
... » Continue reading
Would Shortening the Workweek Stimulate the Economy?
August 28, 2009 |
Question: Why doesn't the federal government stimulate the economy by reducing the length of the workweek (the number of hours after which employees receive time-and-a-half pay)? Employers would respond by spreading the work load, which means more hiring and
... » Continue reading
Simon Johnson Previews Next Month's G20 Meeting in Pittsburgh
August 27, 2009 |
Editor's note: Next month, on September 24 and 25, world leaders will convene in Pittsburgh for the annual G20 summit. Atop the agenda: how to get the world economy firmly on the path to recovery. In today's video conversation, economist
... » Continue reading
Simon Johnson on Consumer Protection
August 26, 2009 |
Editor's note: Today's segment in our continuing series of video conversations with economist Simon Johnson, author of the popular Baseline Scenario blog, focuses on the Obama administration's plan to reform consumer protections for financial products. At one point, Simon and
... » Continue reading
Why Isn't Single Payer on the Table in the Health Care Debate?
August 26, 2009 |
Question: I am the slightly nervous person who you interviewed recently on Broadway and 30th Street. We spoke briefly about jobs, the economy, and when and if the green shoots will sprout. I wanted to tell you that the
... » Continue reading
Simon Johnson on Bank Bonuses and 'Too Big to Fail'
August 25, 2009 |
Editor's note: The clip today in our continuing series of video conversations with economist Simon Johnson, author of the popular Baseline Scenario blog, which Paul Krugman calls a "must read," concerns whether bank bonuses are deserved and whether anything can
... » Continue reading
Simon Johnson on Jobs in the Recovery
August 24, 2009 |
Editor's note: As part of our continuing series of video conversations with economist Simon Johnson, author of the popular Baseline Scenario blog, which Paul Krugman calls a "must read," today's clip features a discussion between Paul and Simon over whether
... » Continue reading
More on Our Correction to Friday's Segment
August 24, 2009 |
Paul Solman: There's more to add to our earlier correction to Friday's segment: We have heard from Social Security and it is indeed the case that benefits do NOT go DOWN, as I reported Friday, even if inflation does. The
... » Continue reading
Author of 'Cheap' Answers (More of) Your Questions
August 24, 2009 |
Editor's note: Paul recently sat down with author and professor Ellen Ruppel Shell to discuss her new book, Cheap: The High Cost of Discount Culture. At the heart of Shell's premise is the idea that our love of discount
... » Continue reading
Correction to Friday's Segment on Inflation
August 23, 2009 |
Paul Solman: On Friday night's program, in a story on inflation (you can see the clip below), I reported the following: "The traditional measure of inflation, the Consumer Price Index, is DOWN over the last year, which may have seniors
... » Continue reading
Simon Johnson on the Falling Dollar
August 21, 2009 |
Editor's Note: This week, we're featuring video conversations with Simon Johnson, former chief economist at the IMF, now at the Peterson Institute and MIT, and author of the must-read blog on the global economy, The Baseline Scenario. In today's clip,
... » Continue reading
Taking a Lesson from Cash for Clunkers, Why Don't We Recycle Old Cars?
August 21, 2009 |
Question: With the success of the cash for clunkers program coupled with all of the auto plants that had to close this past year, why doesn't the auto industry, the government, or some young entrepreneur reopen some of these
... » Continue reading
Simon Johnson on Economic Green Shoots
August 20, 2009 |
Editor's Note: For the next week, we'll be featuring video conversations here on the Business Desk with one of our favorite economists, Simon Johnson, former chief economist at the IMF, now at the Peterson Institute and MIT, and author of
... » Continue reading
Is GDP a Good Metric for Gauging Economic Health?
August 20, 2009 |
Question: Do you consider GDP a realistic metric for gauging economic health and prosperity? I have some skepticism because two of the three main factors are consumer and government spending, and both can be artificially manipulated or stimulated by
... » Continue reading
Is the Stimulus Working?
August 19, 2009 |
Question: Is the stimulus working? Paul Solman: Hard to argue otherwise, if what you mean is: Would things be worse right now if there were no stimulus? In the long run, maybe the stimulus will be seen as just having
... » Continue reading
Why Do Medical Costs Vary So Much Across the Country?
August 18, 2009 |
Question: Why do medical procedure costs vary so much by region of the country? Paul Solman: I think the best answer I've come across is a piece in the June 1 New Yorker by the ever-excellent Atul Gawande, The
... » Continue reading
Have the Wars in Iraq and Afghanistan Hurt the Economy?
August 17, 2009 |
Question: I often hear that WWII finally ended the Great Depression. How can it be that a relatively short war (WWII) was so helpful to the economy but our current wars (Iraq and Afghanistan) are hurting the economy? Paul
... » Continue reading
Who Gets the Interest on U.S. Government Debt?
August 14, 2009 |
Question: We have a $12 trillion dollar debt and add to it pretty much every year. How does that work? I take on debt to buy, say, a car and I pay interest to the bank that loaned me
... » Continue reading
When Did Formerly Safe Bonds Become Unsafe?
August 13, 2009 |
Question: My question is: What about U.S. bond holders? I've seen bailouts of incompetent banks and businesses and some selective shareholder groups. Investment grade bonds were considered to be the safest investment next to FDIC-insured CDs, but the bondholders
... » Continue reading
Where Are Toxic Assets Now?
August 12, 2009 |
Question: TARP was originally proposed to deal with "toxic assets" to unclog the books of financial institutions and prevent them from becoming insolvent. The toxic assets to date have not been bought up, so where are the toxic assets
... » Continue reading
Did Hank Paulson Just Want to Save Goldman Sachs?
August 11, 2009 |
Question: [In the Bernanke on the Record forum hosted by the NewsHour,] Chairman Bernanke did not mention the bailout of Goldman Sachs -- the first bank to receive such funds. Was it more critical to the survival of the
... » Continue reading
Ask Ellen Ruppel Shell, Author of 'Cheap', Your Questions About the High Cost of Discounts
August 10, 2009 |
Paul Solman: Tonight's NewsHour will feature an interview with Ellen Ruppel Shell about her new book, Cheap: The High Cost of Discount Culture. Our brains are practically hard-wired to love a bargain. But do we then end up with
... » Continue reading
What Are Warrants Issued by Financial Institutions?
August 10, 2009 |
Question: If you have not already done so, would you please explain the warrants that seem to be troubling the financial institutions at the moment? If you've already done so, I apologize for asking unnecessarily. Paul Solman: Hey, even
... » Continue reading
Is the "Perfect Storm" Metaphor Appropriate for the Economic Crisis?
August 7, 2009 |
"The metaphor of the perfect storm is inapt. The captain's action does not influence the height of the waves. Fed Chairman Bernanke, in contrast, participated in making and implementing interventions that worsened the financial crisis last year." - from
... » Continue reading
Are Credit Card Companies Raising Rates to Repay the Government?
August 6, 2009 |
Question: I received a call from my sister this morning asking me for help regarding her credit card debt. According to her bank and credit card issuers, they are raising their credit card interest rates because they have to
... » Continue reading
If Banks Just Changed Their Accounting Rules, Why Do They Need Bailout Money?
August 6, 2009 |
Question: If the banks are doing just hunky-dory due to the change in accounting rules, then why do they need any bailout money? Paul Solman: Hunky-dory? You might find this online etymology of the term amusing. I have to
... » Continue reading
Should We Have Dealt With 'Too Big to Fail' in the 1980s?
August 5, 2009 |
Question: If you go back and look at the recession of 1982, you will see that the Fed bailed out large banks mainly due to bad LDC loans. I think the precedent of moral hazard was established then. I know
... » Continue reading
Why Does the Govt. Pay Farmers to Not Grow Crops?
August 4, 2009 |
Editor's Note: Robert Frank, who recently guest-blogged for several weeks here at the Business Desk with answers to some of life's economic ironies, once again answers questions posed by viewers. Question: Why does the government pay farmers not to
... » Continue reading
Why Do Cars Have Fuel Doors on Different Sides?
August 3, 2009 |
Editor's Note: Robert Frank, author of The Economic Naturalist's Field Guide: Common Sense Principles for Troubled Times, recently guest-blogged for several weeks here at the Business Desk with answers to some of life's economic ironies: why brides buy dresses
... » Continue reading
What's the Basic Function of the Stock Market?
August 3, 2009 |
Question: I would like to ask you two simple (some might say "simple-minded") questions, which may be variants of a single question. No one has yet given me a clear, straightforward answer. Perhaps you can and will. 1) Why
... » Continue reading
Tales From the Fed: Blinder on Greenspan
July 31, 2009 |
Paul Solman: The last in our extended interviews on the Fed: Alan Blinder, who served as the vice chairman of the Fed Board of Governors between 1994 and 1996, weighing in on Alan Greenspan's legacy and what it was like
... » Continue reading
Tales From the Fed: Blinder on Fed Transparency
July 30, 2009 |
Paul Solman: The Federal Reserve has long had a reputation for being secretive. Its closed-door policy has fueled suspicions and countless conspiracy theories since the central bank was established nearly a century ago. And since the Fed has moved rapidly
... » Continue reading
Tales From the Fed: Rivlin on Fed Independence
July 30, 2009 |
Paul Solman: Tonight on the NewsHour, we're airing a piece exploring the suspicions some people have about the Federal Reserve and the the Fed's efforts to be more transparent. Amid all the talk of auditing the Fed or having Congress
... » Continue reading
How Can the Repaid TARP Money Be Used?
July 30, 2009 |
Question: Is the $68 billion that big banks are paying back in TARP money going back to the taxpayer or can it be reused by the Treasury in some of its other schemes (e.g. subsidizing hedge funds into buying
... » Continue reading
Tales From the Fed: Rivlin on Popular Misunderstandings of the Fed
July 29, 2009 |
Paul Solman: The Federal Reserve is one of the least understood government entities in the United States. When I spoke to Alice Rivlin, former vice chair of the Fed Board and now a senior fellow at Brookings, about what people
... » Continue reading
What About Banks That Didn't Take TARP Money?
July 29, 2009 |
Question: Thank you for your illuminating illustration of the fiasco involving our banks on PBS. How many banks in this country did not take TARP money and why is so little attention given to them? Shouldn't they be some
... » Continue reading
Making Sen$e of the Federal Reserve
July 28, 2009 |
Paul Solman: The newest edition of Making Sen$e, our site devoted to demystifying economics, is now up. As cutting-edge cyberspace cadets, we're calling it "Making Sense 3.0," but it really could be termed Making Sen$e of the Fed, as
... » Continue reading
Tales From the Fed: Blinder on the Fallout from Lehman's Failure
July 28, 2009 |
Paul Solman: All this week, we're posting excerpts of interviews we did with former Fed officials on the economic crisis and the Fed's evolving role in the economy. The series is in conjunction with the NewsHour's hour-long public forum with
... » Continue reading
Thaler Responds to Posner on Consumer Protection
July 28, 2009 |
Paul Solman: Earlier this month, I was pleased to learn that one of the most intriguing economists of my career span, the University of Chicago's Richard Thaler, had entered the rotation of the NYT's weekly "Economic Scene" column. His
... » Continue reading
Tales From the Fed: Rivlin on the Perfect Storm
July 27, 2009 |
Paul Solman: In preparation for our NewsHour event with Ben Bernanke in Kansas City last night, we interviewed a variety of former Fed officials to discuss the past, present, and future of the central bank. Two especially intriguing interviewees were
... » Continue reading
Should the Government Set Up a National Lottery?
July 24, 2009 |
Question: No one wants to pay higher taxes. But at the same time, many people don't think twice about spending a few dollars a week on a lottery ticket. Why doesn't the government set up a National Lottery to
... » Continue reading
Is Unemployment Any Guide to Future Growth?
July 23, 2009 |
Question: How reliable is unemployment data as a guide to future economic growth? Paul Solman: Not much at all, I wouldn't think. For one thing, employment tends to FOLLOW growth -- for the obvious reason that as spending and
... » Continue reading
Are Geithner and Summers Too Close to Wall Street?
July 22, 2009 |
Question: Are Timothy Geithner and Larry Summers too close to the players that produced this economic crisis -- so close that they will not have the vision, values, or mindset that will allow them to take the difficult steps
... » Continue reading
Why Do CEOs Make So Much Money?
July 21, 2009 |
Question: Why do CEOs make so much money? The answer must be supply and demand, but I would like to hear a good analysis of the cost benefit. I do realize too however: Would I really entrust billions of
... » Continue reading
Is Madoff's Sentence a Deterrent for Future Swindlers?
July 20, 2009 |
Question: I wonder whether the Madoff sentence is a sufficient deterrent for future potential criminals. If he is rumored to have stolen approximately $60 billion, then $60billion/150 years comes out to about $400 million per year. That figure is
... » Continue reading
Ask Fed Chief Ben Bernanke About the Economy
July 20, 2009 |
Paul Solman: My longtime motto: There is no big time. But if there were, this might be your chance to become part of it. You can pose an economic question here -- not to me or even one of
... » Continue reading
A Little Poetry for California's Crisis
July 17, 2009 |
Paul Solman: Questions keep coming in about the likelihood and consequences of a California default on its bonds. One unexpected result might be anger for the ages. Here's Lake Poet William Wordsworth on the 1842 bond default of Pennsylvania,
... » Continue reading
Simon Johnson on the Future of the U.S. Auto Industry
July 16, 2009 |
Paul Solman: The fourth in this week's series of conversations with economist Simon Johnson concerns the future of the suffering American auto industry. Johnson weighs in on whether the new GM will make it and responds to the idea, offered
... » Continue reading
How is the U.S. Savings Rate Determined?
July 16, 2009 |
Question: How is the U.S. savings rate, which has gone from near zero percent in the past to 6.9 percent recently, determined? And a more elaborate question: Is it truly the difference between what is earned and what is
... » Continue reading
Simon Johnson on Cap and Trade
July 15, 2009 |
Paul Solman: The third in this week's series of conversations with economist Simon Johnson has to do with the cap and trade debate -- whether cap and trade is a good idea, the feasibility of a carbon tax, and the
... » Continue reading
Reader Response: What Will Drive America's Future Growth?
July 15, 2009 |
Paul Solman: Viewer John David wrote these questions in an email back in April, responding positively to an interview with marketing expert Paco Underhill, which aired again last night. I only just got around to answering him, which began the
... » Continue reading
Simon Johnson on China and the U.S. Economy
July 14, 2009 |
Paul Solman: The second in this week's series of video exchanges with Simon Johnson of the Peterson Institute of Economics, MIT, and (formerly) the IMF, concerns China. We talked last month, on the occasion of Treasury Secretary Tim Geithner's visit
... » Continue reading
Simon Johnson on Whether Wall Street Has Changed
July 13, 2009 |
Paul Solman: MIT's Simon Johnson, former chief economist at the IMF, is a frequent contributor to the NewsHour and this page. He's also coauthor of a blog on the financial crisis, The Baseline Scenario, which has, in the words of
... » Continue reading
Is California Printing Its Own Money?
July 13, 2009 |
Question: Is California printing its own money? Paul Solman: Funny you should ask. The State of California Franchise Tax Board website currently features this statement: "We will accept registered warrants...towards the payment of tax liabilities." State taxes, of course,
... » Continue reading
Staying Positive in a Down Job Market
July 10, 2009 |
Yesterday, we posted the latest segment from Paul's Making Sen$e series. In it, he spoke to two very distinct groups -- laid-off white collar executives and ex-cons looking for work -- and was struck by what he heard from both
... » Continue reading
By Saving on Cheap Goods and Services, Do We Pay More in the End?
July 10, 2009 |
Question: During a recent story about the demise of the auto industry, there was clip of a Model T Ford driving through the Ford Museum. The narration made the point that one of the things that made Henry Ford
... » Continue reading
Why Do Tube Drivers Earn More than Bus Drivers in the UK?
July 9, 2009 |
Robert Frank: A British reader posted the following query on my UK publisher's web site: "Why do tube drivers get paid so much more than bus drivers?" An American economist trying to field questions about markets in the UK
... » Continue reading
In Case You Missed It: Finding Work in a Down Market
July 9, 2009 |
On last night's NewsHour, Paul Solman got some perspective on the difficult job market from two very distinct groups: former executives and former prison inmates. What was striking when he met with the two groups of job seekers was just
... » Continue reading
Why Does the London Tube Charge More If You Use a Paper Ticket?
July 8, 2009 |
Robert Frank: Why does the public transport system in London charge significantly more for a tube or bus journey if you buy a paper ticket than it does if you use their Oyster prepaid card? In most cities around
... » Continue reading
The Cap & Trade Debate
July 8, 2009 |
Paul Solman: Sometimes described as a "centrist" Democrat, Congressman Eric Massa, a former Republican, represents a district of New York state that includes Rochester. Recently, this press release of his came our way. Since part of what we're trying
... » Continue reading
Send Robert Frank Your Questions
July 7, 2009 |
Whether it's tackling why brides buy outfits and grooms rent to explaining why drive-up ATMs have Braille dots and freezers don't have lights, Robert Frank has been guest blogging fascinating answers to the world's economic ironies for the past
... » Continue reading
Why Is the iPhone on a Single Network?
July 7, 2009 |
Robert Frank: Why has Apple restricted its popular iPhone to just a single wireless network in both the United States and the United Kingdom? Apple was shrewd to take this step. When it first hit the market in the
... » Continue reading
Why Are Christmas Tree Stands Different in NYC?
July 6, 2009 |
Robert Frank: Economic naturalists often find that many interesting new questions are stimulated by the experience of living in an unfamiliar environment. That's always been my experience during sabbaticals spent away from Ithaca. One Saturday last December during my
... » Continue reading
Reader Response: The Uncounted Unemployed
July 5, 2009 |
Paul Solman: A provocative response, via the PBS Ombudsman, to Thursday's story about undercounting unemployment. The emailer said it was okay if her name was posted. I assume that means it's okay to post her email here and use it
... » Continue reading
Why Are Newspapers Sold in Vending Machines That Allow You to Take More Than One?
July 3, 2009 |
Robert Frank: Here's another product-design question, this one posed by my former student Brendan Quigley. "Why," he asked, "are newspapers, but not soft drinks, sold in vending machines that allow customers to take more units than they paid for?"
... » Continue reading
Why Does Your Refrigerator Have a Light, But Not Your Freezer?
July 2, 2009 |
Robert Frank: Today's question was posed by my former student Karim Abdallah. "Why," he asked, "does a light come on when you open the refrigerator but not when you open the freezer?" The cost-benefit principle offers a promising framework
... » Continue reading
Why Do Brides Buy Dresses While Grooms Rent Tuxes?
July 1, 2009 |
Robert Frank: Jennifer Dulski had been married for six months when she enrolled in my introductory economics course in 1997, which may explain the topic she chose for one of her two economic naturalist papers: "Why," she asked, "do
... » Continue reading
Why Do Drive-Up ATM Machines Have Braille Dots?
June 30, 2009 |
Robert Frank: As promised yesterday, today's economic naturalist question is one of my two all-time favorites from among the many thousands submitted over the years by former students. "Why," Bill Tjoa wanted to know, "do the keypad buttons on
... » Continue reading
What Do You Make of the Madoff Sentence?
June 29, 2009 |
Question: What do you make of the Madoff sentence? Paul Solman: I'm tempted to say that, at 150 years, he may have gotten off lightly. In today's email came the regular newsletter of one of the world's most provocative
... » Continue reading
Guest Host: Robert Frank as the Economic Naturalist
June 29, 2009 |
Paul Solman: As many NewsHour viewers and Business Desk readers know, Cornell's Bob Frank is a great favorite of ours. I'll spare you the usual economiums (encomia?) and links: if you're intent on "drilling down," just Google our names
... » Continue reading
Did U.S. Tax Policy Contribute to the Housing Bubble?
June 26, 2009 |
Question: How much does (did) federal tax policy contribute to the housing bubble? If it was a contributing factor, how should that policy be reformed? Paul Solman: Not much, I wouldn't think. Tax deductibility of mortgage interest has been
... » Continue reading
How Regulatory Reforms Will Affect Consumers (Cont.)
June 25, 2009 |
Paul Solman: Last week, we featured a number of economists (and a journalist) responding to the new financial regulations proposed by the Obama administration. But no economic historians were among them. We've remedied that omission by asking Eugene White of
... » Continue reading
Will the Actions of the Fed and Treasury Keep Asset Prices Artificially High?
June 25, 2009 |
Question: It seems to me like the Fed and the Treasury are trying very hard to keep asset prices high. The Fed has vastly increased the money supply, partly by lowering interest rates to zero, and partially through quantitative
... » Continue reading
In Case You Missed It: The Shape of the Recovery
June 24, 2009 |
On last night's NewsHour, Paul examined the debate raging over which shape the economic recovery might take. Some economists are predicting a V-shaped recovery -- a steep period of decline followed by an equally steep period of growth. Others are
... » Continue reading
What's the Relationship Between Inflation and Interest Rates?
June 23, 2009 |
Question: I am confused about the cause/effect relationship between inflation and interest rates. Many economic talking heads claim that interest rates will rise if present monetary policy produces inflation. But the principle of supply and demand suggests that if
... » Continue reading
Making Sen$e 2.0
June 19, 2009 |
Attention all teachers, viewers, readers, skimmers, and occasional passersby: The second edition of our Economics-for-Everyone Web site, Making Sen$e, is now up and running. Please visit and please, please respond with suggestions as to what you'd like to see
... » Continue reading
Instead of Capping Pay, Could the Government Police Banks' Risk Models?
June 19, 2009 |
Question: Instead of the government trying to prevent risky behavior by limiting bonuses and other compensation for the best performers in the finance industry, would it be possible for the government to review risk models that banks use? Paul
... » Continue reading
How Will the Regulatory Reforms Affect Consumers?
June 18, 2009 |
Paul Solman: We asked a number of people in the personal finance business and others close to the credit crisis to weigh in on the Obama administration's new consumer protection proposal. I'm struck by Doug Elliott's admonitions, especially his
... » Continue reading
Will the Administration's Regulatory Overhaul Work?
June 17, 2009 |
Question: How serious is the administration about true reform of the financial system? Are its plans likely to work? Or is regulation a can of worms, a Pandora's box, and every other cliche that might be subsumed under the
... » Continue reading
Why Doesn't the Government Simply Give Households Lots of Money to Stimulate the Economy?
June 16, 2009 |
Question: One of the most popular suggestions I've heard for stimulating the economy is the federal government should give every household one or two million dollars. Would that work or would it create hyperinflation? Paul Solman: Let's not be
... » Continue reading
Why Is the Cost of Gasoline Increasing?
June 15, 2009 |
Question: With U.S. oil stocks high and refiners at a low production rate, why is the cost of gasoline increasing at such a high rate? It makes you think that there is more to it than supply and demand.
... » Continue reading
Could the Government Limit the Number of Layoffs a Profitable Company Could Make?
June 12, 2009 |
Question: Obama and Geithner said they would act aggressively to fix the economy. So, why hasn't the administration limited the number of employees that profitable companies may lay off? That could help significantly by keeping the unemployment rate down,
... » Continue reading
What Happens to California State Bonds if the State Goes Bankrupt?
June 11, 2009 |
Question: I live in California and own California State Bonds. What happens to state bonds if the state goes bankrupt? Paul Solman: They stop paying, both interest and principal. That's what a default IS. Last September 15, Lehman Brothers
... » Continue reading
If China Pulls Away From the Dollar, What Happens to the U.S. Economy?
June 10, 2009 |
Question: There's been speculation that China will lessen its ties to the U.S. dollar and U.S. debt. Some countries would also like oil to be priced in something other than dollars. If these events were to happen, what might
... » Continue reading
If Banks Still Followed Mark-to-Market Rules, What Would Their Losses Look Like?
June 9, 2009 |
Question: What is the actual amount that banks have "lost" if banks still had to follow mark-to-market rules? My understanding is that our large banks would be insolvent by almost a trillion dollars if they had to declare what
... » Continue reading
How Do the Social Security and Medicare Trust Funds Work?
June 8, 2009 |
Question: How do the Social Security and Medicare trust funds work? My understanding is that there is no money there, so that general government revenues have to be tapped to answer calls on them. Thus they are insolvent now?
... » Continue reading
What's Your Take on the New Unemployment Numbers?
June 5, 2009 |
Question: What's your take on the new unemployment numbers? Paul Solman: First Friday: That time of the month again. Time for the official unemployment number, that is. Today's is being trumpeted as yet another "green shoot." A net job
... » Continue reading
Which Taxes Offer an Opportunity to Be Progressive?
June 4, 2009 |
Question: What other taxes offer an opportunity to be progressive besides income and inheritance taxes? Paul Solman: Great question. I hope school is still in session. One alternative tax would be a progressive CONSUMPTION tax, as advocated by economist
... » Continue reading
What's the Collateral Damage of GM's Bankruptcy?
June 3, 2009 |
Question: What's the collateral damage or ripple effects of GM's bankruptcy? Paul Solman: Funny you should ask. We're in the process of scripting a brief story for tonight's NewsHour addressing this very question. (Brief for us, that is: For
... » Continue reading
Geithner in China: How Is China Weathering the Economic Crisis?
June 2, 2009 |
Question: How is China weathering the economic crisis? And does China want to remain the United States' largest creditor? Paul Solman: With Treasury Secretary Tim Geithner in Beijing for the past few days, the financial world has been watching
... » Continue reading
Viewer Responses: Slamming Gettelfinger (And Us)
June 2, 2009 |
Paul Solman: Thursday's interview with UAW president Ron Gettelfinger elicited some strong reactions from viewers, of which these email excerpts are but a sample: Viewer 1: I have respected The NewsHour for years. I watched McNeil/Lehrer before that. To
... » Continue reading
Retired Auto Workers Ask Union Chief Ron Gettelfinger Their Questions
June 1, 2009 |
In shooting a story on the GM bankruptcy that will air tonight, we asked a group of United Auto Worker retirees to put their questions directly to UAW President Ron Gettelfinger. Here are their questions and his responses, which we
... » Continue reading
How Might GM's Bankruptcy Work?
May 29, 2009 |
Question: How might GM's bankruptcy work? Paul Solman: For answers, I can't improve upon this exchange with Wayne State law professor Laura Bartell, whose interview we'll feature in our GM bankruptcy story, slated to run on Monday's NewsHour. This
... » Continue reading
What Led to the High Interest Rates of the 1980s?
May 29, 2009 |
Question: What were the causes and circumstances that led to the high interest rates in the 80's? Was it inability to effect a change or inaction in addressing the issue? Paul Solman: If by "interest rates" you mean the
... » Continue reading
Preview: UAW Chief Ron Gettelfinger on the GM Deal
May 28, 2009 |
Editor's note: Paul Solman sat down today with United Auto Workers chief Ron Gettelfinger for a wide-ranging interview about the future of the GM, how the union may fare in any reorganization deal, and how Gettelfinger responds to critics who
... » Continue reading
Which New Deal Projects Have Ended Up Costing a Bundle Down the Road?
May 28, 2009 |
Question: I recently watched your report on the Newshour about New Deal infrastructure projects in St. Louis. You mentioned the New Deal brought us the Triborough Bridge in New York, but you didn't mention that it is currently one
... » Continue reading
A Final Thought on the Andrews-McArdle Affair
May 27, 2009 |
Paul Solman: The blizzard of response to the Andrews/McArdle affair has thinned to a flurry, but flakes keep coming, affording me an opportunity to respond to the persistent inclemency and continue the multi-logue, a first for this page. The problem
... » Continue reading
Do Mutual Funds Count as Savings?
May 27, 2009 |
Question: You recently did a piece on savings, and it made me wonder. Every month, I shunt some money automatically into mutual funds (nothing to do with an official retirement account). The portion that is in a money market
... » Continue reading
Is There Any Talk of Reinstating Glass-Steagall?
May 26, 2009 |
Question: Is there any talk of reinstating the Glass-Steagall Act? Paul Solman: For those who can't remember as far back as 1933, Glass-Steagall was an act of Congress passed only three months after President Roosevelt took office and declared
... » Continue reading
Response to Andrews-McArdle
May 25, 2009 |
Question: How do you react to the unseasonal blizzard of emails in response to the Megan McArdle post/the Ed Andrews parry/the McArdle riposte? Paul Solman: Fascinating to see the strength of sentiment -- on both sides. Enough of the facts
... » Continue reading
Ed Andrews Responds to Criticism in the Blogosphere
May 22, 2009 |
Paul Solman: Yesterday, free-market enthusiast Megan McArdle, who describes herself as "the tallest female econoblogger" but is more often identified in the blogosphere as a libertarian, devoted a post on theAtlantic.com to Ed Andrews, the NYT reporter whose story
... » Continue reading
What Are the Chances the Government Will Profit on the Bank Bailouts?
May 22, 2009 |
Question: It seems that almost all of the news we hear about the government's bailout of the banks is negative, as if the American taxpayer will never see another dime of the bailout money again. But isn't it true
... » Continue reading
How One Economics Reporter Experienced His Own Mortgage Meltdown
May 21, 2009 |
Paul Solman: Who knew? I've been reading Ed Andrews since he took over the New York Times patents column back in the late 1980s, and I followed him following the housing crisis. But until the NYT magazine excerpted his
... » Continue reading
Ask Behavioral Economist Dan Ariely Your Questions About the Economic Crisis and Human Behavior
May 20, 2009 |
Editor's Note: Dan Ariely, a noted behavioral economist at Duke University and author of Predictably Irrational, is different from many of his economist colleagues. Ariely studies irrationality in economic behavior -- despite the fact that economics is largely premised on
... » Continue reading
Why Were Banks Allowed to Bet on Derivatives?
May 20, 2009 |
Question: How did the dollar volume of U.S. mortgages get to be such a huge dollar problem? Did derivatives do that? Why are investment banks allowed to bet 34 dollars for only one they have? Paul Solman: First, a
... » Continue reading
Why Are Credit Card Companies Raising Rates on Good Borrowers?
May 19, 2009 |
Question: My wife's credit card has been paid off in full, every month, for at least 10 years running (since we have been married). In fact, there usually is a 2-3 dollar "credit" balance every month. (I always round
... » Continue reading
How Does Cutting Dealers Save the Automakers Money?
May 18, 2009 |
Question: I keep hearing that GM has to shed brands and cut dealerships, but I don't understand it. Is the logic simply that GM makes too many distinct carlines to be profitable given its total sales volume? Economies of
... » Continue reading
How Does Executive Pay Compare Around the World?
May 15, 2009 |
Question: How does U.S. executive compensation compare to their counterparts around the world, such as Japan, Europe, Russia, Turkey? Paul Solman: I don't know what constitutes executive compensation in Russia, but compared to Japan, Europe, Turkey (Turkey?) and pretty
... » Continue reading
What's the Story With Regulating Derivatives?
May 14, 2009 |
Question: What's going on with the just-announced regulatory reform of derivatives? Paul Solman: Plenty. And you could say it's about time. One of the leading scandals of recent years (and that's no easy feat, considering how crooked a track
... » Continue reading
Why Doesn't the Government Set Up a New Bank to Get the Economy Moving Again?
May 13, 2009 |
Question: I've been watching the difficulties the government has had propping up the banks -- the lack of control, the salaries, the fact that they're trying to fix entities with a lot of toxicity on their balance sheets. The
... » Continue reading
What's the Real Madoff Math?
May 12, 2009 |
Tonight, FRONTLINE tackles the Bernard Madoff affair, attempting to decipher the puzzle of the financier's multi-billion dollar Ponzi scheme. The program delves into the cast of characters involved in the case, including the story of Michael Bienes, one of
... » Continue reading
Who Owns the Credit Card Companies?
May 12, 2009 |
Question: Who owns the credit card companies? Once upon a time, Bank of America owned Visa, but I'm not sure if it's been spun off. So, if the stress tests have shown that the banks are not as healthy
... » Continue reading
What's the Argument FOR Tax Havens?
May 11, 2009 |
Question: I understand that President Obama is going after the use of offshore tax havens by U.S. corporations. My gut feeling is that he's right to do this, but I've never really heard both sides of the argument. Is
... » Continue reading
In Case You Missed It: A Racial Divide in Unemployment in East St. Louis
May 8, 2009 |
Tonight on the NewsHour, Paul Solman traveled to East St. Louis, Illinois, to report on the racial disparity in unemployment. East St. Louis is a case study in African-American unemployment -- 16 percent for men there, as it is nationwide
... » Continue reading
Making Sen$e of Business, Finance, and Economics
May 8, 2009 |
No more posts for today or the weekend as we debut (drum roll here, even trumpets, perhaps, or maybe a French overture)...our new Making Sen$e Web site, made possible by a grant from the Alfred P. Sloan Foundation, which
... » Continue reading
What Is a Stress Test? Why Are They Being Done?
May 7, 2009 |
Question: What are the stress tests? And why are they being done? Paul Solman: A stress tests is simply an analysis of a bank's balance sheet. To determine what? Whether the bank is viable as a business. Or likely
... » Continue reading
Are Examiners Preventing Banks from Lending?
May 6, 2009 |
Question: I am a commercial mortgage broker in California. I have had nearly every bank recently advise that their examiners are preventing them from lending. How can we get out of this mess if the examiners, in effect, prevent
... » Continue reading
Reader Response: Robert McElvaine on the Great Depression
May 5, 2009 |
Comment: The coverage of the Great Depression by Robert McElvaine was so one sided it was unbelievable. [Editor's note: You can watch the segment below.] Yes, the Great Depression was horrible, millions of people were out of work and
... » Continue reading
How Are Banks Profiting on Mortgage Refinancing?
May 4, 2009 |
Question: Banks like Wells Fargo and JP Morgan recently announced better-than-expected profits. The given reason is that they are making money on the refinancing of mortgages. Doesn't mortgage refinancing imply lower rates of interest and repayment? How can they
... » Continue reading
Is the Auto Crisis Just a Lack of Demand?
May 1, 2009 |
Question: I don't understand the auto industry crisis. I infer that it is because we're in a recession, and not many people are buying cars. Is that all of it, or is there something more? Paul Solman: Are you
... » Continue reading
How Do We Regulate Credit Rating Agencies?
May 1, 2009 |
Question: How do we supervise and regulate the credit rating agencies which, so poorly and perhaps illegally overrated so many derivatives? Paul Solman: I don't know. One proposed reform has been that the investors pay the ratings agencies for
... » Continue reading
Why Is the Gold Standard a Bad Idea?
April 30, 2009 |
Question: Why is the gold standard such a bad idea? I know it is a discredited system, but having never studied economics, I don't understand why. Right now, is our money just some arbitrary amount issued by the Federal
... » Continue reading
Reader Responses: The Paradox of Thrift
April 30, 2009 |
You can watch one of Paul's recent Making $ense pieces, The Paradox of Thrift, below. Here are a few reader reactions and Paul's responses. Question: I have a question related to your recent segment, Paradox of Thrift: Aren't the
... » Continue reading
What Are Quants?
April 29, 2009 |
Question: What are 'quants'? Paul Solman: Quantitative experts, or if you prefer, "number jocks" or "math whizzes" who have gone to "Wall St." (ie, the world of finance). They construct formulas for investing and packaging investments. Take their prescriptions
... » Continue reading
Reader Responses: In St. Louis, Comparing the Stimulus to the New Deal
April 29, 2009 |
On Monday, Paul's segment comparing the New Deal and the stimulus in St. Louis aired (you can watch it below), and as usual, a number of viewers wrote in. The topics ranged from okapi to jaywalking. Here are a
... » Continue reading
Paul Hosts St. Louis Economic Forum
April 28, 2009 |
As part of the NewsHour's Spotlight City series on St. Louis this week, Paul traveled to the Gateway City for his piece on how today's stimulus compares to the legacy of New Deal projects. While he was there, he
... » Continue reading
In Case You Missed It: St. Louis, the Stimulus, and the New Deal
April 28, 2009 |
On last night's NewsHour, Paul investigated how stimulus funds are being spent in St. Louis and compared today's projects with those funded by the New Deal during the Depression. Don't miss a special slide show showcasing iconic New Deal investments
... » Continue reading
When Will Any Housing Recovery Reach Small Businesses and Contractors?
April 27, 2009 |
Question: The housing downturn has affected not only large builders, but also small businesses and contractors that support and supply them. How long will any recovery take for these sort of businesses? Paul Solman: I'm sort of a broken
... » Continue reading
How Does InBev's Purchase of Anheuser-Busch Affect St. Louis?
April 27, 2009 |
Question: For nearly 150 years, Anheuser-Busch was locally owned here in St. Louis. Now, it's owned by someone in Belgium. Does this really mean anything for St. Louis beyond those who work for Anheuser-Busch/InBev? Paul Solman: It certainly might.
... » Continue reading
What Role Do Cultural Institutions Play During the Downturn?
April 24, 2009 |
Question: St. Louis has a long-standing tradition of support for and pride in its cultural institutions such as the St. Louis Botanical Gardens and the Saint Louis Zoo. What role, if any, do these sort of institutions play in
... » Continue reading
How Does the Downturn Affect Urban Renewal?
April 24, 2009 |
Editor's Note: As Barack Obama's presidency reaches the 100-day mark, the NewsHour is examining how the president's policies and the economic crisis are affecting one city - St. Louis, where Obama will mark the milestone April 29. Paul's segment
... » Continue reading
If GM Is Restructured, What Happens to Shareholders?
April 23, 2009 |
Question: If General Motors is "restructured" (either through the bankruptcy courts or outside the bankruptcy courts), will the shareholders lose all of the stocks they currently own? Or, as long as GM is a viable company traded on the
... » Continue reading
Where Can I Find Updates on the U.S. Money Supply?
April 22, 2009 |
Question: The money supply of the United States is such a key economic indicator, why don't we get a reading of it on a daily basis? It seems like it would be a lot more valuable gauge of the
... » Continue reading
How Significant Are the Latest Earnings from Wells Fargo?
April 21, 2009 |
Question: Wells Fargo just announced quarterly financials in very positive position. Do you think this is a really significant event? How should we evaluate the latest numbers? Paul Solman: Your guess is as good as mine, Sheldon. I'll quote
... » Continue reading
If AIG Uses Its Bailout to Pay Off Other Debts, Is That a Ponzi Scheme?
April 21, 2009 |
Question: If we are shoveling money into AIG and they are pushing it out the back door to pay off bad debts and then banks announce profits, does this mean we are in a new kind of Ponzi scheme?
... » Continue reading
How Should We Interpret the String of Positive Earnings Reports from U.S. Banks?
April 20, 2009 |
Question: After three major banks - Citigroup, JP Morgan, and Goldman Sachs - announced better-than-expected earnings last week, Bank of America announced more than $4 billion in first-quarter profits today. How should we interpret this string of good earnings
... » Continue reading
Who Pays the Rating Agencies?
April 20, 2009 |
Question: Who pays the rating agencies, like Moody's? What is the source of their income? Paul Solman: That's been the scandal. They're paid by the issuers of the bonds and stocks they rate. They thus have a huge incentive
... » Continue reading
Why Doesn't the Yuan Trade Like Other Currencies?
April 17, 2009 |
Question: Why don't we let the yuan trade like other currencies? Even now, the yuan has an 20 percent or higher edge on other currencies because of the existing rules. Paul Solman: Now, now, Maya, as my dad used
... » Continue reading
Is Congress to Blame for Failing to Regulate the Financial Sector?
April 16, 2009 |
Question: On the Newshour a few weeks ago, there was a piece about the bonuses being paid to AIG's Financial Products Division. In that coverage, one guest mentioned regulators were blocked from overseeing derivatives. I assume that was done
... » Continue reading
In Case You Missed It: The Paradox of Thrift
April 16, 2009 |
Editor's Note: On last night's NewsHour, Paul examined the paradox of thrift. Here's MIT's Simon Johnson explaining the phenomenon in the segment: SIMON JOHNSON, MIT Sloan School of Management: Paradox of thrift is the idea that you try -- everyone
... » Continue reading
Are Americans Becoming Savers?
April 15, 2009 |
Tonight's NewsHour features a piece called "The Paradox of Thrift." The phrase refers to the potential downsides of squirreling money away, especially if all of us do it at once. While saving is often a good thing - and something
... » Continue reading
Can We Prepare for Inflation?
April 15, 2009 |
Editor's Note: The government reported Wednesday that consumer prices fell in March, indicating a weakened demand for goods and services. But while this price drop raises the specter of deflation, many economists contend that the real risk to the
... » Continue reading
Why Don't We Tax the Buying and Selling of Stocks?
April 14, 2009 |
Question: How much revenue would a 1 percent federal tax on the buying and selling of stocks produce? We have federal taxes on gasoline, so why not the selling of stocks? Surely, someone who is spending $1,000 can afford
... » Continue reading
Where Is the Bailout Money Hiding?
April 13, 2009 |
Question: You did a great job explaining where the money for the bailouts comes from. Can you now tell us where, exactly, it is going? If there are so many trillions of dollars sloshing about, how come the banks
... » Continue reading
In Case You Missed It: Clawbacks and CEO Pay
April 11, 2009 |
On Friday's NewsHour, Paul Solman reported on the continued anger over extravagant CEO pay at companies receiving billions in bailout dollars and the options being explored to regain some of the money. <!-- _pap_embed_small('news01s241eq87e'); //--><!]]> And don't miss the related
... » Continue reading
"We Want Our Money Back"
April 10, 2009 |
A story about clawbacks slated to run on the NewsHour tonight features a protest disrupting a speech by Goldman Sachs CEO Lloyd Blankfein. Yesterday, the protesters struck again during a session with Larry Summers, unfurling a big pink banner behind
... » Continue reading
Why Doesn't the Treasury Turn Over Banks to the FDIC for Inspection?
April 10, 2009 |
Question: Why didn't the U.S. Treasury turn over the banks to the FDIC and let the FDIC do an audit and dispose of the rotten assets? Paul Solman: "Turn over"? You mean TAKE over. This is the question being
... » Continue reading
What Is the Rate of Hidden Unemployment?
April 9, 2009 |
Question: What is the current rate of hidden unemployment in the United States, and is it trending upwards? Paul Solman: It's not very hidden. Every month, the U.S. government reports a range of unemployment measures. The most inclusive is
... » Continue reading
As the Amount of Money in Circulation Increases Rapidly, How Does the Fed Prevent Hyperinflation?
April 8, 2009 |
Question: If the Fed and Treasury have increased the amount of money in circulation by $1.6 trillion in an effort to stave off deflation in the near term, how does the Fed take this money back out of circulation
... » Continue reading
Why Is Deflation Bad?
April 7, 2009 |
Question: Why is deflation so bad? I have certainly benefited from the drop in gas prices, so I wonder what is wrong with things becoming cheaper in general? And wouldn't that make up for previous inflation? Paul Solman: Another
... » Continue reading
Why Does the United States Have to Borrow Money From Other Countries?
April 7, 2009 |
Question: If the federal government (and/or Treasury) can just create money, why does it have to borrow it from other countries? Paul Solman: Great question. Because it's so cheap to do so right now, the thinking goes, why NOT
... » Continue reading
Where Does Money Go When It's Taken Out of the Stock Market?
April 6, 2009 |
Question: As the Dow continues to fall, I keep wondering where the money is going. Obviously, money is being pulled out of the stock market, even though we all are still buying and using products, and companies are still
... » Continue reading
How Are You Sharing the Pain at Work During This Economic Downturn?
April 3, 2009 |
The economic downturn has left few industries untouched, and companies across the country are resorting to drastic cutbacks in jobs and spending. But many organizations are also encouraging workers to "share the pain" of the downturn -- by accepting lower
... » Continue reading
The Share Economy at Work
April 3, 2009 |
The U.S. economy has lost millions of jobs over the past year. And in order to avoid further layoffs, many organizations are asking employees to make painful sacrifices - wage cuts, fewer benefits, and unpaid leave. We'll explore this in
... » Continue reading
How Does the Student Loan Landscape Look?
April 2, 2009 |
Question: With the way things are right now, how does it look in the future for taking out student loans? For instance, if I take out a student loan in the next two years, how much is that going
... » Continue reading
If a Bank Has Toxic Assets, Can Another Division of That Bank Invest in the Toxic Asset Program?
April 1, 2009 |
Question: Is it possible for a division of the bank holding toxic assets to participate in the [toxic asset] program? Paul Solman: Supposedly not, but there's lots of buzz about how banks might in practice get around the obstacle
... » Continue reading
What's the Purpose of the G20 Meeting?
March 31, 2009 |
Question: What scenarios are associated with the G20 conference for the U.S. and global economy? Paul Solman: We want the rest of the world to spend more money stimulating their economies. Except for China, most countries seem to be
... » Continue reading
Why Is the Trade Deficit Important?
March 30, 2009 |
Question: Please explain the trade deficit. What is it? Why is it important? Is it an indicator like taking someone's temperature or is it a debt that has to be paid? Does it relate directly to our national debt?
... » Continue reading
Will We Still Reject Materialism After the Downturn?
March 30, 2009 |
Question: I enjoyed your recent interview with Robert McElvaine. (Editor's note: Watch the interview below.) His thesis that the downturn will lead us away from consumption as a way of life to what really matters is interesting. Am I
... » Continue reading
Was Depression-Era Debt as High as It Is Now?
March 27, 2009 |
Question: When we hear comparisons between today's economy and that of the Great Depression, I wonder: Had as many people and institutions been as highly leveraged then as now? Were personal and institutional debt as high then as they
... » Continue reading
How Can Assets Be Toxic If They Were Insured?
March 27, 2009 |
Question: Why does everyone avoid discussions about PMI (Personal Mortgage Insurance), which protects the lenders from loss and is required on all loans with less than 20 percent down (except VA & Federal Housing Administration loans)? How can there
... » Continue reading
Can Individual Investors Participate in the New Toxic Asset Plan?
March 26, 2009 |
Question: Is there an opportunity for individual investors who are not super-rich to participate in the new Toxic Asset plan? Maybe something like a mutual fund, or the Treasury's non-competitive bid process? Paul Solman: Supposedly yes. From an AP
... » Continue reading
Who Was Buying Stocks as the Market Crashed?
March 26, 2009 |
Question: At the stock exchange, every time someone sells stock, someone else is buying it. Last fall, when the Dow dropped from 16,000 to 8,000, mutual funds, retirement funds, insurance companies, etc. were selling. Who was buying? Who owns
... » Continue reading
Can We Bring Back Jobs by Retooling Factories?
March 25, 2009 |
Question: You recently had a segment about the loss of jobs in Elkhart, Ind. I was watching it on KRCB, a station that was not having a pledge drive that day. To fill in, there was a report on
... » Continue reading
Can the Dow Fall Into Negative Numbers?
March 25, 2009 |
Question: My high school daughter asked me a question I can't answer. Can the Dow fall to zero or into negative numbers? Paul Solman: Ah, at last. A question I can definitively answer: ABSOLUTELY NOT! (Those capital letters feel
... » Continue reading
Who Qualifies as Middle Class These Days?
March 24, 2009 |
Question: What dollar figure or income is in mind when all the politicians and news media speak of the middle class? Who is the middle class at this point in time? Paul Solman: "Middle class" has long been a
... » Continue reading
The Toxic Asset Plan Explained
March 23, 2009 |
After the Treasury Department released its plan today to rid banks of so-called "toxic assets" by enticing private investors to partner with the government, Paul Solman answered questions on the basics of the plan. What exactly are toxic assets
... » Continue reading
Should the Government Break Up Big Banks Into Smaller Ones?
March 23, 2009 |
Question: Can the government loan the FDIC money (which banks will pay back through the FDIC) to take over Citibank and Bank of America, et al., pay off the customers, and break up the banks into regional banks that
... » Continue reading
How Worried Are You About the National Debt?
March 20, 2009 |
Question: How concerned should we be about (1) our level of national debt and (2) China holding a large portion of our national debt? Paul Solman: These are among the great debates of our time, of course. Short-term, if we're
... » Continue reading
Should the U.S. Adopt the German Auto Plan?
March 20, 2009 |
Question: I am curious how you believe we should balance helping big companies with also helping their customers. The number one basic business principle is: Businesses don't do well without customers. Solution: Provide customers. Here's a case in point.
... » Continue reading
Interest Rates on Credit Cards Are Going Up. Won't That Further Hurt Average Joes?
March 19, 2009 |
Question: About four weeks ago, my Chase credit card informed me that the interest rate on my current balance was changing from 5.99 fixed to 10.99 variable so that Chase could "maintain profitability" on my account. I knew that
... » Continue reading
Is the Federal Reserve Public or Private?
March 19, 2009 |
Question: Is the Federal Reserve "federal" as the name implies, or is it as "federal as Federal Express," meaning a private, for-profit corporation? I've heard it both ways and would like the answer clarified by a hard-hitting reporter whose
... » Continue reading
How and Why Is the Fed Creating $1 Trillion?
March 18, 2009 |
Question: How and why is the Fed creating $1 trillion in new funds to buy securities? Paul Solman: They've been calling Fed chairman Bernanke "Helicopter Ben" since he told conservative economics icon Milton Friedman, in a speech a few years
... » Continue reading
Why Are Pension Funds Investing in Hedge Funds?
March 18, 2009 |
Question: Why were pension funds allowed to "invest" in a hedge fund? Hedge funds are nothing more than gambling. Paul Solman: Because pension funds are supposedly big enough and therefore sophisticated enough to know what they're doing and take
... » Continue reading
How Do We Get Banks Lending Again?
March 17, 2009 |
Question: Given our collective financial plight and our need for credit to survive, how do we get banks to be banks again (read: lend)? Can it be legislated - and if not, how can we surmount our impasse? Paul
... » Continue reading
Should the Stimulus Be Spent on R&D Instead?
March 16, 2009 |
Question: What is the approximate rate of return on investment in the National Institutes of Health, National Science Foundation, and other agencies that sponsor research in this country? At one time, I read that it was something like 1:17
... » Continue reading
How Much Responsibility Do Boards of Directors Bear?
March 16, 2009 |
Question: It seems the press is ignoring the elephant in the banking bath tub: Members of each board of directors had responsibility to their shareholders, yet I never hear that being discussed. And I've only had a whiff of
... » Continue reading
If China Is Worried About U.S. Debt, How Worried Should We Be?
March 13, 2009 |
Question: China's Premier Wen Jiabao said today he was "worried" about China's $1 trillion investment in U.S. securities. So, should the United States be worried about his worry? Paul Solman: In response to any economic problem these days, I'm
... » Continue reading
Why Are So Many Companies Collapsing So Suddenly?
March 13, 2009 |
Question: Can you explain why, when these huge companies collapse, the bleeding isn't slow and steady? Is it that they cannot forecast months ahead of time and see the end approaching? Or, have they just been operating with leveraged
... » Continue reading
How Are Losses on Mortgage Derivatives Calculated?
March 12, 2009 |
Question: If there is no way to currently value the mortgages on which the value of derivatives (collateralized mortgage obligations, etc.) depend, how are losses on those derivatives -- such as AIG $62 billion loss -- calculated? If you
... » Continue reading
What Are Mark-to-Market Rules?
March 11, 2009 |
Question: What are mark-to-market rules? And should they be changed? Paul Solman: When it comes to the current crisis, this is the question (or one major question): To "mark to market" or not to "mark to market"? Consider a
... » Continue reading
What's Happening to Manufacturers Who Don't Lower Their Prices?
March 11, 2009 |
Question: How did that guy who owns Not Your Daughter's Blue Jeans (Editor's Note: Here's Paul's segment profiling the company in March 2008) wind up after the holiday purchase time? I saw a pair of the blue jeans in a
... » Continue reading
Is It Realistic for the President to Cut the Deficit in Half?
March 10, 2009 |
Question: Is it realistic for the president to cut the deficit in half in four years, even while spending on the war [in Iraq] and moving [troops] to Afghanistan? Paul Solman: The skepticism seems clear and well-taken. The most
... » Continue reading
What Are the Benefits of the Stock Market?
March 9, 2009 |
Question: How does having a stock market benefit the entire country? To the extent that IPOs represent a mechanism for gaining funds for projects that increase profits, it is very useful. But don't stocks also represent debt that now
... » Continue reading
What's the Total Wealth of the United States?
March 9, 2009 |
Question: With all this economic turmoil and talk of trillions of dollars, my question is: What is the total wealth of the United States? If the total U.S. wealth is, say, $100,000 trillion, then spending $1 trillion to help
... » Continue reading
Does Negative News Contribute to the Downturn?
March 6, 2009 |
Question: I would love to see you do a story on the impact of media coverage on the recession. Over the last two years, there has been a steady drumbeat of "the recession is coming, the recession is coming!"
... » Continue reading
Do We Need a Kinder, Gentler Bubble?
March 6, 2009 |
Question: Is the answer to the crisis a kinder, gentler bubble? Paul Solman: I'm posing this question to myself, but let me pass the buck from the outset on this one - to the eerily astute Adam Smith --
... » Continue reading
Is Anyone Still Hiring?
March 6, 2009 |
Question: Is anyone still hiring? Paul Solman: The number is now in: 651,000 jobs shed in February. Also, from the Bloomberg story this morning: "The payroll drop in January was revised up to 655,000 from 598,000 and December now
... » Continue reading
What Would Happen if Washington Let Big Banks Fail?
March 5, 2009 |
Question: What would happen if the government let Citibank and Bank of America, et al., just fail? Paul Solman: The possibilities are various, intriguing, and terrifying. Let's say Citi goes under. The government has to honor all of the
... » Continue reading
Does the FDIC Really Protect My Deposits?
March 4, 2009 |
Question: With as much debt as our government is in, does the FDIC really make my bank deposits safe? And if the FDIC had to pay millions of people $100,000 all at the same time, where would the money
... » Continue reading
What's the Significance of the Dow Dropping Below 7,000 Points?
March 3, 2009 |
Question: What's the significance of the Dow dropping below 7,000? Paul Solman: Just another number. To the extent that people focus on it, however, it can have the effect of increasing the anxiety over stock prices, and lead to
... » Continue reading
Why Does AIG Need Yet Another Bailout?
March 3, 2009 |
Question: Why does AIG need yet another bailout? Paul Solman: As Joe Nocera and Frank Partnoy explained on Monday's show, it's all about the "counterparties." These are the large financial institutions with whom AIG has contractual arrangements. The fear
... » Continue reading
Do Slum Kids Stand a Chance in Our Global Economy?
March 2, 2009 |
Question/Comment: A few years back, I made a documentary about an Indian high-tech firm that was offering free Internet access to semi-literate slum children in Delhi, The Hole in the Wall. Now it turns out that project was the
... » Continue reading
Why Don't We Offer Earlier Retirement Incentives to Open Up Jobs for the Unemployed?
March 2, 2009 |
Question/Comment: Someone must have already considered this idea for the economic stimulus, but I haven't heard anything about it: Why don't we offer earlier retirement incentives for people still working at retirement age because they want to get their
... » Continue reading
What is the Process for Reprivatization of Banks?
February 27, 2009 |
Question/Comment: If the banks are nationalized and become healthy again, what is the process for reprivatization? Do stockholders on record as of the date of nationalization have any priorities when the banks are reprivatized? How did Sweden manage this
... » Continue reading
What Are "Targeted Jobs"?
February 27, 2009 |
Question/Comment: Paul, can you explain what "targeted jobs" are? Are these something different from the type of jobs that people are losing now? It seems to me that $30,000 spent on retaining a librarian would have the same economic
... » Continue reading
What About the Recession's Effects on the Arts?
February 26, 2009 |
Question/Comment: Is there a possibility that you would do a piece on the Brandeis decision to close the Rose Art Museum and sell the collection? I know you're a graduate, as I am. It strikes me a bad decision in
... » Continue reading
What Would Be the Energy Cost of Electric Cars?
February 25, 2009 |
Question/Comment: Paul, I am wondering about the new restrictions that are being forced on the car manufacturers for bio-fuel/electric/ethanol cars. Why isn't there any mention about the cost of producing the electricity for the car batteries and ethanol? In
... » Continue reading
Are We Overreacting to Unemployment Numbers?
February 25, 2009 |
Question/Comment: In the early '80's unemployment was over 10 percent. I'm old enough to remember what the economy was like at that time. It wasn't pretty given interest rates, but on the other hand we weren't considering massive government
... » Continue reading
Is There a Connection Between Reducing Taxes and Creating Jobs?
February 24, 2009 |
Question/Comment: Simple question. President Obama and all members of Congress say the "stimulus bill must contain only monies targeted directly for job creation". Given that the stimulus bill now has 60 percent allocated for tax reductions, please explain the
... » Continue reading
What Would My Investments Look Like if the Government Nationalized Banks?
February 23, 2009 |
Question/Comment: I'm retired and considering investing in Citigroup and BAC. However, I keep hearing the word "nationalization." Would my prospective investment be lost should the Government nationalize Citigroup and BAC? What is the likelihood that the Government will nationalize?
... » Continue reading
Will the Next Generation Be Better Off?
February 23, 2009 |
Question/Comment: Will the next generation be better off? Paul Solman: Who knows? But an interesting skeptic is Dallas Salisbury, head of the Employee Benefits Research Institute. I interviewed him recently for a story on what's known as "the paradox
... » Continue reading
In Case You Missed It: The Upside of the Downturn
February 20, 2009 |
On Friday's NewsHour, Paul Solman examined how some are finding the bright side of the economic downturn. You can listen to the audio or read the transcript of the segment here. <!-- _pap_embed_small('news01s1fecq772'); //--><!]]>
... » Continue reading
Web Extras: Upside of the Downturn
February 20, 2009 |
Editor's Note: On Friday's NewsHour, we aired another in our series of reports on making sense of the recession. The segment is about the "upside of the downturn," which looks at the silver lining of the economic slump. Paul Solman:
... » Continue reading
Why Can't We Make Better Economic Predictions?
February 20, 2009 |
Question/Comment: Why isn't economics more of a science? I've seen pundits on TV say the Great Lesson of the Great Depression is to have jobs programs and get people back to work, but other pundits say the Depression would've
... » Continue reading
In Case You Missed It: The Amazing Adventures of 'Savings Man'
February 19, 2009 |
Paul Solman speaks to the founder of an organization funding creative public service ads on saving money. You can listen to the audio or read the transcript of the segment here. <!-- _pap_embed_small('news01s1fd2q76c'); //--><!]]>
... » Continue reading
Web Extra: Finland's Unusual Take on the Recession
February 19, 2009 |
And now for something almost completely different: an advertising campaign that urges consumers to SPEND their way out of the recession, instead of save their way through it. We ran a snippet of it in our story on "$avingsman" Thursday,
... » Continue reading
Why Should We Save Big Banks?
February 19, 2009 |
Question/Comment: I am a traditional liberal democrat who is in favor of a large stimulus package that focuses on job creation and helping out states. I can not understand the need for further bank bailouts. I do not understand the
... » Continue reading
What Causes Mortgage Rates to Rise and Fall?
February 18, 2009 |
Question/Comment: What causes mortgage rates to rise and fall? Will the stimulus or the remaining TARP money have any affect on mortgage rates? I heard of an attempt to temporarily lower rates to four percent but nothing since. Paul
... » Continue reading
At What Point Does Increasing Productivity Damage a Consumption-Based Economy?
February 18, 2009 |
Question/Comment: At what point does increasing Productivity damage a consumption-based economy? Can this be discussed with respect to the recent historically high levels of productivity in "modern industrialized" economies with relatively inelastic labor pools? Paul Solman: Most economists will
... » Continue reading
Should the Government Spend or Give Out Tax Cuts?
February 17, 2009 |
Editor's Note: Paul recently answered "Five Good Questions" on the economy for the PBS Engage blog. You will also be able to find those answers here on the Business Desk all week. Question/Comment: There seems to be two dominant
... » Continue reading
Why Won't Banks Lend Money?
February 16, 2009 |
Editor's Note: Paul recently answered "Five Good Questions" on the economy for the PBS Engage blog. You will also be able to find those answers here on the Business Desk all week. Question/Comment: I heard on a news program
... » Continue reading
In Case You Missed It: Society's Ability to Weather Crisis Largely Depends on Leaders' Positions
February 13, 2009 |
As the country struggles through an economic crisis, Paul Solman talked to author Jared Diamond about his book "Collapse: How Societies Choose to Fail or Succeed" on Friday's NewsHour. Read the transcript here. <!-- _pap_embed_small('news01s1f56q74d'); //--><!]]>
... » Continue reading
If Our Economy is More Global, Does That Change Our Strategies?
February 13, 2009 |
Editor's Note: Paul recently answered "Five Good Questions" on the economy for the PBS Engage blog. You will also be able to find those answers here on the Business Desk all week. Question/Comment: How does our economy being more
... » Continue reading
Should the Government Give Money to Consumers to Pay Off Credit Cards, Mortgages?
February 13, 2009 |
Editor's Note: Paul recently answered "Five Good Questions" on the economy for the PBS Engage blog. You will also be able to find those answers here on the Business Desk all week. Question/Comment: What is your response to Jon
... » Continue reading
How Do We Rebuild the Middle Class?
February 12, 2009 |
Editor's Note: Paul recently answered "Five Good Questions" on the economy for the PBS Engage blog. You will also be able to find those answers here on the Business Desk all week. Question/Comment: How do we rebuild the middle class?
... » Continue reading
What is the Worst Case Scenario if the Consumer Becomes a Saver?
February 12, 2009 |
Question/Comment: What is the worst case scenario if the consumer becomes a saver? Or if nations, including United States, raise trade barriers? Or if the financial bailout fails? Paul Solman: Hmmm. Well, the first is happening as we speak:
... » Continue reading
Will Any Plan That Puts People Back to Work Actually Stimulate the Economy?
February 11, 2009 |
Question/Comment: Everyone seems to have an opinion on what will stimulate the economy and what won't. Won't anything that puts people to work stimulate the economy, and are there entities, and their analyses, that can project stimulatory effects of
... » Continue reading
Forecasting Our Economic Future
February 11, 2009 |
Paul Solman: Historians sing of what has passed; journalists, of what is passing; economic forecasters, of what is to come. Over the years, and especially during presidential campaigns, we've featured the forecasting model of Yale economist Ray Fair here
... » Continue reading
As a Stimulus, Would it Work to Give Money to Americans to Cover Their Mortgage or Credit Debt?
February 10, 2009 |
Question/Comment: As a stimulus to the economy, would it work to give money to Americans to cover their mortgage or credit debt? Paul Solman: Any spending is a stimulus. You might take a few minutes to read, as I
... » Continue reading
Are Companies Able to Function Without Loans?
February 10, 2009 |
Note from Paul Solman: We haven't had a "guest vetter" here at the Business Desk for some months. But interviewing MIT's Simon Johnson the other day for a piece on 'good bank vs. bad bank' and being an enthusiast
... » Continue reading
More from 'Bad Bank vs. Good Bank'
February 9, 2009 |
While awaiting a response to my answers to your questions from MIT's Simon Johnson, who is about to become this quanda's newest guest vetter, perhaps it would be interesting to read a bit more of our interview with him
... » Continue reading
In a Finite World, Can We Really Have Infinite Growth?
February 9, 2009 |
Question/Comment: Given we live in a finite world, how can economists explain the viability of an economic system which demands infinite growth? Paul Solman: They'd be hard-pressed, I guess. But not necessarily stumped. I can think of three responses. 1)
... » Continue reading
In Case You Missed It: Bad Bank vs. Good Bank
February 6, 2009 |
Paul Solman explores a solution to the financial crisis that's gaining steam: creating "bad banks" and "good banks." <!-- _pap_embed_small('news01s1f78q123'); //--><!]]>
... » Continue reading
Does it Make Economic Sense for Homeowners to Immediately Pay Off Their Mortgage?
February 6, 2009 |
Question/Comment: Given that U.S. banks appear to need cash to stabilize themselves and begin extending credit, would it not make economic sense for homeowners with mortgages to pay off the balance of their loans as soon as possible if
... » Continue reading
How Can City, County and State Governments Become Fiscally Sound Again?
February 5, 2009 |
Question/Comment: Allowing for the current reduction in home valuations and thus reduced property tax revenues generated to local governments in general, what combination of revenue(s) would most likely restore city, county and state governments to fiscal solvency? I understand
... » Continue reading
Why Do We Encourage Mergers of Large Companies?
February 5, 2009 |
Question/Comment: We live in a time of unparalleled economic crisis; a time when failure of a large company such as GM or a large financial institution could have catastrophic effects throughout the county and beyond. Why does our government
... » Continue reading
Why is Credit Extended to Companies and How Do They Make Their Payments?
February 4, 2009 |
Question/Comment: Can you explain the how and why of credit that is extended to companies and how they make their payments? I understand credit to start new ventures, buy new equipment, hire a workforce, and the l |
