In The News

Competitiveness, Not Offshoring, Is EU Weakness

Natascha Gewaltig November 15, 2006
Inexpensive cheap global labor poses fewer problems for the EU than accelerating technological change and the inability to adapt, according to a study from the European Commission. The global outsourcing market grew over the previous decade, from 8 percent of the world GDP in 1990 to 11 percent in 2003. The EU outsourcing market represented almost 15 percent of its GDP in 2003. “Technical...

Good News – The World Is Getting Richer

Robert J. Shiller November 14, 2006
Among 82 nations with data from 2004, the per capita gross domestic product increased, indicating a rising standard of living throughout the world, according to the Penn World Table, from the Center for International Comparisons of Production, Income and Prices, based at the University of Pennsylvania. However, the data also show a widening gap between rich and poor countries. The average real...

A Bigger Economy Doesn't Always Buy Happiness

Eric Weiner November 14, 2006
Economists rely on the size and growth of a nation’s gross domestic product to determine the health of any economy. But the GDP covers the sale of weapons, mindless video games, excessive packaging that ends up in landfills, prescription drugs that treat anxiety or depression, and expenditures for war. Robert Kennedy once said that GDP doesn’t measure "the beauty of our poetry or the...

Relax, Democrats Might Not Be So Protectionist After All

Edward Gresser November 14, 2006
Pundits worldwide suggest that Democratic control of the US Senate and House of Representatives after the November 7 election spells doom for free trade. But the Democratic Party has a tradition of economic internationalism, beginning with presidents such as Woodrow Wilson who served from 1913 to 1921. The party’s leaders have put forward a domestic agenda that aims at calming the anxiety of...

Protectionist Stance Is Gaining Clout

Gregg Hitt November 13, 2006
With Democrats in charge of Congress, a protectionist sentiment could envelope Washington, DC, with politicians eager to prove that they are protecting US borders, firms, jobs and wages. The business community spent large sums to defeat candidates opposed to business interests: Executives identify protectionism as the biggest threat to growth after terrorism, and the US Chamber of Commerce spent...

Bad Trade-Off

Stuart Anderson November 10, 2006
Analysts anticipate that a US Congress controlled by Democrats will scrutinize and even stall free-trade agreements. Under Democrats, Congress will probably not extend the Republican president’s fast-track authority for approving trade agreements, which expires in July 2007. Democrats criticized the Bush administration for allowing manufacturing firms to invest in overseas plants, particularly...

The Al Qaeda Challenge

November 10, 2006
Intelligence officers in the UK have investigated 200 extremist networks operating in the UK and thwarted at least five terrorist attacks since the London bus bombings in summer 2005. Many suspects are British citizens, and public officials reflect on their society and its policies, trying to determine why so many British youth join extremist causes. Statistics released by MI5 Security Service...