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  • The Age of Austerity

    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.
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    Will: The Energy Future Will Look Familiar

    There is ethanol promoted by government, which need not turn a profit. There is algae research by ExxonMobil, which does need to. Which do you think is most apt to serve the nation’s needs?
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    Made for China

    With Western markets sagging, luxury firms are tailoring products to the Middle Kingdom.
  • Connecticut's Corporate Tax Breaks Hinder Hiring

    Every year, dozens of governors, particularly Republicans, win plaudits for curbing business taxes and state expenditures. The Cato Institute, for instance, recently gave A’s and B’s to those (Rick Perry, Mitch Daniels, Tim Pawlenty) who have supported “spending cuts and pro-growth tax cuts.”
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    Why We Can't Shake High Unemployment

    Behind the jobs numbers: is high unemployment just a cycle, or is there a more serious mismatch between job openings and the unemployed? Both explanations may be true.
  • Would Raising Taxes on Rich Hurt the Economy?

    Republicans, moderate Democrats, and even members of President Obama’s economic advisory board say raising taxes on the rich will slow the economic recovery. But that’s only if you don’t do something smarter with the money.
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    Why Some Millionaires Want Their Tax Cuts to End

    Meet the millionaire cofounder of Seventh Generation who is part of a growing movement of wealthy people urging Congress to let the Bush tax cuts expire. For them, it isn’t just a moral question; they say financially the government cannot afford to let them pocket that money.
  • rich-super-rich-bloomberg

    Rich Camp: Teaching the Wealthy About Money

    A growing number of big banks and private-wealth-management firms are offering seminars for rich people to teach them how to handle their money following the global financial collapse and the Bernie Madoff scandal.
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    Currency: The Coming Money Wars

    The Japanese are doing it again. The Koreans prefer to do it when nobody’s watching. The Chinese are at it brazenly and, like everything else they do, on an enormous scale. The Swiss tried it, without much success.
  • bully-interactive-wide-slah-v3.jpg

    The Booming Anti-Bullying Industry

    As instances of school, workplace, and cyber-bullying receive greater attention, an unregulated web of consultants, therapists, and coaches have sprung up.
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    The Case for Investing in Infrastructure

    There has never been a better moment for America to rebuild. An unlikely and unwelcome array of forces has converged to match our needs and the economy’s bargains almost perfectly. The only question is if we’ll run our government like a business, alert to good opportunities, or if we’ll run it as we have been, squabbling among ourselves while things get worse.
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    My Turn: Bring the Big Banks to Justice

    It’s often argued that proving criminal-fraud cases in finance is difficult. That’s true, but when the government gets serious, it finds a way to get the information it needs.
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    BMW Brings Rolls Royce's Ghost Back From the Dead

    Ian Robertson, a member of BMW’s board of trustees and chairman of Rolls-Royce, is pleased with how the Ghost turned out. “What we didn’t want to do was have anyone say that this Rolls-Royce was just a rebadged BMW in a different form,” he says. “This is one of the greatest brands the world has ever seen, and it deserves to have its own personality and style.”
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    Robert Sutton of 'Good Boss, Bad Boss' on Leaders

    In his 2007 bestseller Stanford professor Robert Sutton explained the true cost of bad apples in the workplace. Now he puts the focus on managers, who set the office tone—for better or worse.
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    Who Won, Lost Under TARP?

    Whether the bailout helped to prevent another depression or did nothing at all, taxpayers were out a lot of money. Where did it all go and who made out the best?
  • Will Gold Keep Glittering as an Investment?

    Nothing inspires a gold rush quite like, well, gold. Since July the precious metal has spiked to more than $1,300 an ounce—a rally on top of a longer rally dating to 2002, when the price was below $300.
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    How to Be a Social Entrepreneur

    Is it possible to do good and do well? Businesspeople with a goal to better society—known as social entrepreneurs—think so. Unlike traditional nonprofits, these do-gooder companies turn a buck while pushing for environmental and social goals, like helping people out of poverty or reducing the use of harmful pesticides. And the idea seems to have caught on; the sector is currently pumping out millions of dollars in revenue each year. So how can aspiring social entrepreneurs get in on the success? Newsweek spoke to Blake Mycoskie, founder of TOMS Shoes, a company that gives away a pair for every pair it sells, and to George Siemon, a founding farmer of Organic Valley, a dairy co-op, to find out. Their advice:
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    What Does Deflation Actually Deflate?

    t’s complicated. Deflation and inflation are defined as cycles of falling and rising prices, respectively. Experts disagree on which force is more likely to overtake the economy, but either way, not every good or service will move in the same direction—creating confusing exceptions that make it hard to plan a family budget. To help make sense of it all, here are economists’ predictions—for both scenarios—about prices in five everyday areas:
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    The Makings of a Trade War With China

    No one familiar with the Smoot-Hawley tariff of 1930 should relish the prospect of a trade war with China—but that seems to be where we're headed and probably should be where we're headed. Although the Smoot-Hawley tariff did not cause the Great Depression, it contributed to its severity by provoking widespread retaliation. Confronting China's export subsidies risks a similar tit-for-tat cycle at a time when the global economic recovery is weak. This is a risk, unfortunately, that we need to take. In a decade, China has gone from a huge, poor nation to an economic colossus. Although its per capita income ($6,600 in 2009) is only one seventh that of the United States ($46,400), the sheer size of its economy gives it a growing global influence. China passed Japan this year as the second-largest national economy. In 2009, it displaced Germany as the biggest exporter and also became the world's largest energy user.
  • How Do You Measure a Complex Bank's Risk?

    Can all of a bank’s many operations be boiled down to a single measure of overall risk? And—given the ripple effect that a bank failure has on the economy—can that measure be corrected if it gets too high? The FDIC wants to find out by the end of the year. The agency is examining 105 banks with assets of more than $10 billion and creating for each a scorecard based on categories like earnings and heavy exposure to credit. The plan is to charge each institution based on the threat it poses to the global financial system—in theory, deterring future crashes. It’s a tricky task—one the American Bankers Association calls too new and subjective. “It was rolled out amid troubles in the industry. There hasn’t been a long-enough period to know what would work,” says James Chessen, the industry group’s chief economist. Then there’s the perennial question of how government regulators can ever keep up with private bankers’ complex inventions. “We all thought mortgage-backed securities were fine...
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    Bobby Flay's Tips for New Restaurant Owners

    There are a few things American chef Bobby Flay knows how to do better than most people. They include a cornmeal-crusted chile relleno, anything that requires a grill, and running a restaurant.
  • food-top-chef-coliccio-hsmall

    How to Succeed as a Top Chef

    Award-winning restaurateur and "Top Chef" lead judge Tom Colicchio knows a thing or two about running a restaurant. He shares tips on what to avoid if you want to succeed in this business.
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    New Bank Rules May Not Prevent More Meltdowns

    The world’s financial watchdogs hammered out new rules last week to stop banks from causing another financial catastrophe. But the new measures may not really prevent more financial calamity.
  • economic-failure-hirsch-tease

    Our Best Economic Minds Are Failing Us

    The most terrifying moment in modern economic history occurred two years ago this month. For several long days after the fall of Lehman Brothers on Sept. 15, 2008, the financial system was in danger of total collapse, and the United States seemed on the precipice of another Great Depression.
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    How to Build a Better Smart-Phone App

    Who says America doesn’t make things anymore? The U.S. market for smart-phone applications has soared past $1.5 billion, thanks to ingenious developers who pit vengeful birds against thieving green pigs, or help bowlers overanalyze their scores. Apple’s store currently offers about 225,000 iPhone apps, while Google’s Android Marketplace has 70,000 apps for handsets that run on the Android operating system.
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    Was the Great Panic of 2008 Preventable?

    It's been two years since Lehman Brothers failed (Sept. 15, 2008), and we still can't conclusively answer this question: what if the government had saved Lehman? Its bankruptcy was pivotal. Until then, deteriorating housing and mortgage markets had triggered what seemed a serious—but not unprecedented—recession. Once Lehman failed, the economy went into a frenzied free fall. It's hard not to wonder whether some of the ensuing turmoil could have been avoided. Consider what happened after Lehman:
  • Adobe CEO Narayen on Hiring, E-Mail, and Apple

    Software maker Adobe Systems Inc. is responsible for many of the big-name products in Web publishing, including Flash, Photoshop, and Acrobat. NEWSWEEK chairman Richard M. Smith spoke with Adobe's CEO, Shantanu Narayen.
  • bottom-basement-capitalism-FE04-wide

    Rock-Bottom Prices!

    Welcome to the lowball culture. In a world of sluggish growth, excess capacity, and depressed expectations, buyers of goods and services—labor, houses, and restaurant meals, among others—have come to believe that desperate sellers should take any offer they make. But that kind of systemic bargain hunting can create a dangerous spiral: employers short-change workers, workers buy fewer goods—and the overall economy suffers.
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    Young Adults Shying Away From Stock Market

    One byproduct of the recession has been a change in the investing habits of 18- to 34-year-olds, according to a new study by Merrill Lynch. Can you blame a generation whose financial coming-of-age was bookended by the dotcom bubble and the subprime-mortgage meltdown?
  • Study: Mom-and-Pops a Drain on the Economy

    New businesses are often tiny, of course, at least at first. But the distinction between them and small, mature firms is hardly semantic, says economist John Haltiwanger, who coauthored the study. His research suggests that the policy focus should skew young, nurturing the next big firms—which actually employ the most people—rather than tending an old crop of small ones.
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    Why Do CEOs Make So Much Money?

    One of the most startling things about the post-crisis landscape is how tone-deaf the wealthiest Americans remain to outrage over their Croesus-like pay packages.
  • most-fuel-effficent-cars-2010-fusion

    A Successful Turn

    With Ford's restructuring, and the bankruptcies of General Motors and Chrysler, the U.S. auto industry has shrunk and cut costs to the point at which it can make money on a smaller, more realistic number of sales. Is this a new normal?
  • Xinhua-FE05-wide

    Is China's Xinhua the Future of Journalism?

    It had all the trappings of a globally significant confab: big-deal appearances (by Google, the BBC), a weighty theme (“the digital age”), and speechifying by international pooh-bahs. Rupert Murdoch, the CEO of News Corp., even delivered a peppery keynote, vowing war on “content kleptomaniacs.”
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    The Many Ways Airlines Are Racking Up the Fees

    It seemed so reasonable at first—just a fee for checking more than the standard two bags. But like a slowly expanding epidemic, the charges started mounting to include everything from legroom to water.
  • the-recessions-winners-and-losers-profited-image2

    CEO Crybabies

    The newly passed financial-reform bill requires CEOs of public companies to measure and report the ratio of their pay to that of their workers. Blackstone Group CEO Stephen Schwarzman is complaining that the Obama administration is like Hitler invading Poland. With government and the media making life so difficult for CEOs, it must be nearly impossible to turn a profit. Right? Um, not really.
  • accidental-invents-mauve

    Clicking for Love

    It is not a truth universally acknowledged, but a single man in possession of no fortune may still be in want of a wife. At least that was the case for Gary Kremen, the founder of the online dating service Match.com.
  • The Saving Mentality Is Hurting the Economy's Recovery

    The logic of the economic recovery isn't working—or, at any rate, not well. By that logic, over-borrowed Americans would repay loans and replenish depleted savings, creating a temporary drop in consumer spending and economic activity. But once savings increased and debt declined, consumer buying would strengthen. It would replace the Obama stimulus program. Hiring would improve; the recovery would become self-sustaining. ...
  • New Unemployment Numbers Better Than Expected

    The number of people filing new unemployment claims dropped this week, but the four-week average remains the highest it has been since November 2009. On the heels of other bad economic data, what does this mean for the economy?
  • gal-tease-recession-proof-jobs

    Surviving Subservience

    With a national unemployment rate of 9.5 percent, many recent college graduates may have to suck it up and take jobs answering phones or opening people’s mail. A writer offers tips on making it at that first gig.