Dec 22 Why Ease Credit, But Not Increase Wages? Question/Comment: A basic truth in economics is that wages drive demand. Yet for the last 30 years wages have been stagnant or decreasing. Why do I hear only talk of easing credit, not increasing wages? Easy credit is what caused… Continue reading
Dec 22 Toyota Projects First Operating Loss in 71 Years By PBS News Hour Toyota Motor Corp., the world's second largest automaker, predicted its first operating loss in 71 years, based on shrinking demand for vehicles and a surging yen. Continue reading
Dec 19 Watch Impact of Recession Felt in Communities Across U.S. The economic downturn is affecting communities across the country in varied ways. Business reporters give an update on what their regions are experiencing. Continue watching
Dec 19 Watch Rescue Plan Would Force Auto Companies to Restructure President Bush has unveiled a $17 billion automaker rescue plan that will force the companies to restructure in order to remain competitive. A White House economist and a congressman debate the package. Continue watching
Dec 19 What Needs to Happen For the Recession to Be Short? Question/Comment: I have heard guests on the NewsHour say that the recession will last into 2009 or 2010. What is it that is supposed to happen in this short time period that will result in happy days being here again?… Continue reading
Dec 19 Which Is It: Spend or Save? By Business Desk Question/Comment: We’re told that lower consumer spending will make economic recovery much more difficult. We’re admonished that we don’t save nearly enough, and are among the lowest among industrialized nations. So which is it: spend or save? Paul Solman: The… Continue reading
Dec 19 White House Announces $17.4 Billion Auto Rescue By PBS News Hour The Bush administration announced a rescue plan for the sinking U.S. auto industry Friday, offering $17.4 billion in loans conditioned on concessions from carmakers and a return to viability by March 31. Continue reading
Dec 18 Watch Automakers Idle Plants While Awaiting Federal Action Faced with historically slow sales, the big three auto companies have made more cost-cutting moves, including temporarily shuttering plants, in an attempt to stay afloat while the government debates an auto industry aid package. A reporter in Detroit provides an… Continue watching
Dec 18 People Keep Spending. Has Anything Changed? Question/Comment: I have been amazed by how we’ve been told of a crisis since 9/11. It was going to ruin the U.S. economy, then it was Afghanistan, Iraq, Katrina, the Midwest floods, the fires, the hurricanes, oil prices, the… Continue reading
Dec 18 Are Banks Really Making Short Term Loans to Other Banks for Zero Interest? Question/Comment: When people speak of the Fed funds rate being zero, does that mean that banks are literally making short-term loans to other banks for NO INTEREST WHATSOEVER?… Continue reading