Feb 20 Watch Consumer Price Index Reports Unexpected Inflation Rise The Consumer Price Index, the Labor Department's yardstick of inflation, indicated greater inflation in January than had been anticipated. Paul Solman discusses how the CPI determines inflation and the meaning of this new report. Continue watching
Feb 20 Inflation Grew in Jan., Led by Food, Health Costs By PBS News Hour Inflation jumped by a bigger-than-expected amount in January, with large increases in the cost of food and health care, the government reported Wednesday. Continue reading
Feb 19 How much of the U.S. economic problems are caused by the deficit and what percentage of the deficit is the Iraq war? Question/Comment: 1. How much of the U.S. economic problems are caused by the deficit? 2. What percentage of the deficit is the Iraq war? 3. How can the U.S. ever pay off the deficit, and how… Continue reading
Feb 19 If excess liquidity has caused these investments that are now going bad, how does the Fed increasing liquidity with lower interest rates help the economy? Question/Comment: If excess liquidity has caused these investments that are now going bad, how does the Fed increasing liquidity with lower interest rates help the economy? Paul Solman: Because it prevents the system from freezing up entirely. It’s a calculated… Continue reading
Feb 15 What is better, inflation or a recession? Question/Comment: I am a saver whose income is mostly CDs. We seem to be facing both a recession and inflation. Which of those two is better for me? I assume it is recession? Paul Solman: Neither is better for you… Continue reading
Feb 15 It’s been a long time since I took Econ. 101, but as I remember, if you keep printing ever-greater amounts of currency, inflation takes on a life of its own. Question/Comment: It’s been a long time since I took Econ. 101, but as I remember, if you keep printing ever-greater amounts of currency, inflation takes on a life of its own. Isn’t that what we’ve been doing at the rate… Continue reading
Feb 14 Hurricane Victims Should Leave Toxic Trailers, CDC Says By Admin, PBS News Hour Federal officials said Thursday they will intensify efforts to move Gulf Coast hurricane victims out of some 38,000 government-issued trailers as quickly as possible after tests found toxic levels of formaldehyde fumes. Continue reading
Feb 14 If I hear one more presidential (or candidate) speech about the imperative to rescue those poor subprime home owners, I will scream. Question/Comment: Paul, If I hear one more presidential (or candidate) speech about the imperative to rescue those poor subprime home owners, I will scream. Not one economist, not one candidate, no one ever addresses the painfully unregulated and rogue rental… Continue reading
Feb 13 Watch TV Writers Vote to End Union’s 3-Month Strike Members of the Writers Guild of America returned to work Wednesday, after voting to end a 100-day strike that left many out of work and TV shows in reruns. Michael Winship, president of the WGA-East, discusses the details of the… Continue watching
Feb 13 How can such enormous debt be sustainable and what happens to the world economy if the U.S. defaults? By Business Desk Question/Comment: I am a Canadian. Unfortunately, 87 percent of our trade is with America. Consequently, U.S. recessions are felt more deeply in Canada. However, my questions are about the American debt. My understanding is that the debt could reach $10… Continue reading