In The News

McCain's Economic Plan: Tax Cuts vs. Balanced Budget

Michael Cooper July 18, 2008
Candidates for president must demonstrate they are responsible with taxpayers' money. Early on, Senator John McCain voted against Bush administration tax cuts and has long argued in favor of balancing the massive US budget deficit. But as the presumptive Republican nominee, McCain has since argued in favor of making the tax cuts permanent. US government spending is on a roll, with the war in...

Guidelines Call for Chinese Pay to Rise With Inflation

Kang Yi July 11, 2008
Chinese workers could soon receive a pay raise. To combat rising prices for food, energy and other basic goods, the government mulls proposals to address income inequality. Guidelines for salary reform mostly target private companies, report a team of authors for the Economic Observer Online, "as most of the low pay and low growth rate in salaries occurred in the private sector, especially...

Zimbabwe Can't Paper Over Its Million-Percent Inflation Anymore

Marcus Walker July 9, 2008
After losing a March election, Robert Mugabe clung to power in Zimbabwe and his supporters relied on irregularities and violence to discourage the opposition. German politicians have been among the most outspoken in rejecting Mugabe’s refusal to transfer power – and quickly pressured a Bavarian printing company to stop providing expensive blank notes used for printing money to Zimbabwe. With...

Globalized Inflation

Joachim Fels June 20, 2008
Intricate connections between global economies – including trade treaties, exchange rates and foreign investment – prevent individual nations from completely controlling how their individual economies are molded. Low US interest rates have fueled a credit crisis and inflation so drastically as to render ineffective any region’s effort to staunch inflation. The inability of other regions, like...

Hurrah! Oil Profits Are Up

Carl Mortished May 2, 2008
Climbing oil prices contribute to higher costs for food and anything else that requires transport. But the higher prices also spark debate over oil dependence and the need for alternative fuels. People who want greater conservation and a cleaner environment should celebrate the high prices, argues Carl Mortished, because those change behavior. It’s no surprise that fossil fuels are a limited...

Deadly Greed: The Role of Speculators in the Global Food Crisis

Beat Balzli April 25, 2008
Investors, sensing opportunity in climbing food prices, made record profits in the commodities markets, including wheat, corn, rice and palm oil. “Commodity speculation spread long ago from standard products like oil and gold to anything edible and available for trade on the Chicago Futures Exchange,” write Beat Balzli and Frank Hornig for Spiegel Online. The futures market allowed farmers to...

Irrational Exuberance to Bust: Financial Bubbles Demand Regulation

Kemal Dervis April 23, 2008
As the financial sector has gained dominance in the world economy, some investors have become accustomed to steady growth and double-digit profits. While the financial industry rewards efficiency and innovation among competing firms, the relentless quest for profits and a short-term mentality in some finance circles have contributed to a series of asset bubbles: the Asian-Russia financial crisis...