People who wonder what America's budget problem is ultimately about should look to Europe. In the streets of Dublin, Athens, and London, angry citizens are protesting government plans to cut programs and raise taxes. The social contract is being broken. People are furious; they feel betrayed. ...
Roughly 95 percent of the world’s consumers live outside the United States, yet small merchants in the U.S. don’t pay enough attention to them. That’s the conclusion of a study conducted by PayPal, which looked at transaction data in 11 countries during the first half of 2010 to find out how much cross-border commerce is taking place on its network.
America's budget problem boils down to a simple question: how much will we let programs for the elderly displace other government functions—national defense, education, transportation and many others—and raise taxes to levels that would, almost certainly, reduce economic growth?
Despite its reputation for sluggishness, the European economy created 2 million more jobs than its American counterpart in the 13 years leading up to the Great Recession. Nevertheless, according to a recent report by the McKinsey Global Institute, per capita GDP—a key measure of living standards—is $35,000 in Europe, roughly $11,000 lower than it is in the United States.
Clean and abundant, hydrogen is the fuel of the future—and always will be. Or so the joke goes. In California, for example, Gov. Arnold Schwarzenegger envisioned 100 auto-ready hydrogen stations along the coast. After five years, however, only a few dozen are in place, and enthusiasm—not to mention funding—has waned. Without a larger network, automakers won’t commercialize hydrogen-ready cars. But without cars, few companies have been keen to invest in fueling stations—until now.
There's little consensus on which job-creation proposals would work best, how quickly they would work, or how many jobs they might create. Here are the most popular proposals, how they work, and who's calling for them.
“Locally made” is a popular term for budding entrepreneurs with romantic notions of taking a product in their community and turning it into a profitable business. But transforming a local gem into a cash cow takes more than a good idea.
LVMH’s Bernard Arnault has an insatiable appetite for luxury brands. Now the ‘wolf in cashmere’ is licking his chops over one of the last family-controlled companies in the business: Hermès. Will he win, and turn class to mass?
Extended ads that pop up in the wee hours have a fun, camp value. Some offer what appear to be panaceas for life’s important challenges, like molding Hercules-like biceps. Others offer solutions to problems you may not have even known you had. We offer some of the more notorious ones.
The recession may have forced Americans to cut back on trips to shopping malls, but it was a boon to infomercial marketers, with their late-night pitches for thinner bodies and fatter bank accounts, and butt toners and wonder drinks.
The U.S. may be still struggling with the Great Recession’s effects, but that doesn’t mean that every part of the country is struggling. In fact, many Americans are living well above the poverty line. But where exactly are they?
No one doubts there will be lots of sparring over the value of China's yuan at this week's G20 conference, where a score of prominent and developing countries are meeting in Seoul. But some say America is the country that’s manipulating currency.
The idea of "rebalancing" the world economy is simple. Before the financial crisis, some advanced countries (led by the United States) were overspending, and some poorer countries (led by China) were oversaving. The two offset each other. The big spenders ran large trade deficits, and the big savers ran large trade surpluses. Now the financial crisis has dampened the overspending. If the big savers don't increase their spending, the world economy faces prolonged slow growth. Countries may battle each other for shares of that weak demand by managing exchange rates, subsidies, or tariffs....
As leaders from the world’s 20 major economies prepare to meet in Seoul this week, tensions continue to flare over trade imbalances and currency rates, particularly when it comes to China. Some analysts even say a trade war is underway. In the meantime, Germany and Britain are creating a group of experts to promote trade liberalization across the globe. Co-heading this group will be Jagdish Bhagwati, 76, a Columbia University economist. In the lead-up to the G20, NEWSWEEK’s Joel Schectman spoke to Bhagwati about the meeting’s prospects for success.
Disney has had decades of solid experience in the logistics of how to make a product—whether it's a TV series or an animated film—how to ship related merchandise, how to price said merchandise, and how to market all of the above, anywhere in the world. The result is a series of successful projects conceived, built, and sold through Disney's various branches.
Complimentary breakfasts and bathing products are nice, but let’s be honest, with hotel prices going up and airlines adding an endless amount of new fees, travelers need some serious perks to make up for the costs.
Losing any investment is tough. Losing funds intended for a child’s education, though, is as bad as it gets. At the height of the market’s free fall in 2008, an estimated 90 percent of the college-savings accounts known as 529 plans suffered losses, with some shedding more than 40 percent.
Forget the old stereotype of pawn shops as dives that draw mostly lower-income people seeking quick cash in return for a few trinkets. Instead of accepting a boom-box and handing back $60 for gas, a new kind of pawn shop is taking in Picassos and Rolexes and doling out thousands of dollars.
The Foreign Corrupt Practices Act, a 1977 law targeting businesses that bribe foreign officials, spent the early part of this decade in a slumber. In 2000, there wasn’t a single prosecution, and in 2006, the Justice Department won just $18 million in penalties. Now the law has come roaring back to life, with more than $1 billion in fines this year alone. Recent high-profile cases include guilty pleas from fuel-concern Innospec, for paying kickbacks in Iraq to German automaker Daimler AG; and Jack Stanley, the head of energy consultancy KBR, for bribing Nigerian officials to secure billions in natural-gas contracts. With prosecutions likely to continue—the FBI has doubled the number of agents tasked to FCPA cases—business is responding in kind. Law firms are competing for top FCPA talent, banks financing international deals are insisting on anti-bribery stipulations in contracts, and a new cottage industry of experts has emerged, offering country-by-country advice on gifts and local...
A good boss is hard to find. Make that very hard, according to the annual Manpower labor survey, which listed “executive/management” slots among the five hardest positions to fill in 2009, even as unemployment topped 10 percent. Now, with an estimated 10 million baby boomers eligible to retire by the end of the year, economists seem more worried than ever about an impending “corporate-leadership crisis.” Theories abound to explain the workplace phenomenon, but Stanford business professor Jeffrey Pfeffer may have cracked the case by observing his students. “The problem,” says Pfeffer, author of the new book Power: Why Some People Have It—and Others Don’t, “is that ambition has become unfashionable in the younger segment of the workforce.” Whereas motivated young professionals used to slug it out for coveted pro-motions, many of today’s B-school graduates find such interoffice competition uncouth. Famously team--oriented, millennials would rather collaborate with their co--workers...
Most financial reforms have focused on reining in Wall Street. But a new study by the American Sociological Review highlights what could be a more important regulatory target: civil rights. Like previous research, the report found that blacks were more likely than whites to have subprime mortgages or homes in foreclosure, even among borrowers with similar incomes. But it goes further, noting that while poor whites are spread around, decades of racism in the real-estate market has clustered poor blacks. That has allowed predatory lenders to reach more people and “multiplied the effects of the crisis.”
With public anger heating up over the dubious practices mortgage lenders have been using to push through foreclosures, all 50 state attorneys general have launched a joint investigation into the matter. A housing expert explains why these foreclosure problems are only now being addressed, how a moratorium can help, and what a homeowner should do for protection.
We have entered the Age of Austerity. It's already arrived in Europe and is destined for the United States. Governments throughout Europe are cutting social spending and raising taxes—or contemplating doing so.