Farmer jailed in Hong Kong for burning flag

A man has been jailed in Hong Kong for burning the national flag, in the first sentence of its kind.

S Korea suspends savings banks citing weak finances

South Korea has suspended seven local savings banks citing the weak state of their finances.

Japan urges mass evacuation ahead of Typhoon Roke

More than a million people in central and western Japan have been urged to leave their homes as a powerful typhoon approaches.

Burma begins swap scheme for cars over 40 years old

Owners of some of Burma's most antiquated cars have been queuing in Rangoon to exchange their old vehicles for permits to import newer models.

Polio strain spreads to China from Pakistan

Polio has spread to China for the first time since 1999 after being imported from Pakistan, the World Health Organization (WHO) has confirmed.

Showing posts with label Economic. Show all posts
Showing posts with label Economic. Show all posts

Tuesday, March 12, 2013

Ahmadinejad: Iran's economic pressure can be controlled

Iran's President Mahmoud Ahmadinejad (REUTERS/Egyptian Presidency)

All domestic and international developments have been taken into consideration in the planning of the new fiscal year, Iran.
Tehran (Reuters)-Iran's President Mahmoud Ahmadinejad says Iran's enemies through the pressure of economics can be controlled.

"All domestic and international developments have been taken into consideration in the planning of the new fiscal year, Iran. The enemy attempted to use the currency to hit the country's economy, "said Ahmadinejad in an interview with the TV station, Iran Saturday.

He said they (Iran's enemies) must know Iran's economy is one of the largest in the world and the nation of Iran is unparalleled in resisting foreign pressure to defend its rights.

President Ahmadinejad called for Iran to protect people's solidarity in the face of the enemy and pressure plans to disintegrate.

He added the Government has a plan to assist people in obtaining their daily living needs, as quoted from the official Iran News Agency, IRNA.

"The role of oil and State expenditure in the draft calendar of upcoming Iran Government's budget has been reduced, the Government has plans to meragamkan the source of his income," he said again.

Iran officials in several occasions gave back that sanctions against United States-led Western countries have affected the economy of the Persian Iran positively.

The previous weekend, Vice Chairman of the Parliament of Iran Mohammad Hassan Aboutorabi-Fard confirmed the positive result of the sanctions and pressure on Iran's oil sector and economy. Pressure and embargo paves the way for Iran to end its reliance on oil sales results.

(C003)



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Sunday, October 23, 2011

Beige Book Says Economic Recovery Still Slow. What Now?

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One might say that the Federal Reserve's Beige Book report is aptly named. The report, issued eight times annually, uses anecdotal evidence from the nation's 12 Federal Reserve districts to summarize recent economic conditions. The latest Beige Book report may not pack many surprises, but the latest installment provides some guidance to where the nation can expect future recovery.

Overall, says the report, "economic activity continued to expand in September, although many Districts described the pace of growth as 'modest' or 'slight.'" Broadly speaking, the report indicates that one area of improvement is consumer spending, which was up slightly in September, helped by increases in auto sales in most districts. Likewise, manufacturing and transportation also saw increased activity. Meanwhile, real estate and construction remained weak nationwide, with flat or declining house prices nationwide, and the finance industry continues to flag. And the job market remains little changed, with firms in industries like manufacturing, transportation, and energy reporting a lack of adequately qualified or skilled labor.

[See how the downturn is hurting America's young adults.]

All of that affirms much of what recent jobs reports and GDP figures have seemed to indicate—the recovery continues, albeit modestly. "It's a slowed economy, but it's still growing," says Eduardo Martinez, senior economist at Moody's Analytics. "What [the Beige Book report] shows is that the last reporting period...the economy was spared a lot of the turbulence and uncertainty that affected it this summer" with events like the debt-ceiling deadlock and incidents of violent weather battering the economy.

However, some of the report's positive signs could just be the result of month-to-month fluctuations. For example, though consumer spending was up during the reporting period, consumer confidence remains abysmal, and unemployment remains high. "There's no way...that there can be a robust consumer recovery on the horizon," says James Camp, managing director of fixed income at Eagle Asset Management.

The report provides a wealth of information specific regional economic trends, but it does not provide an answer to one burning question: What more does the Fed plan to do to help bolster the recovery?

Already the Fed has undertaken a number of major steps: It has maintained near-zero interest rates, enacted two large-scale asset-buying programs known as "quantitative easing," and, most recently, lengthened the average maturity of the bonds on its balance sheet, a move known as "Operation Twist."

[See what Republican presidential candidates have said about the Fed.]

Many have wondered whether a third round of easing, also known as "QE3," is around the corner. Some opponents fear that such a program could spur inflation and be counterproductive in terms of the Fed's dual mandate: to foster both price stability and high employment.

Yet persistent unemployment might spur the Fed to "reframe" its mandate to focus more attention on solving the nation's jobs problem, says Mark Pawlak, CFA at financial services firm Keefe, Bruyette, and Woods. While monetary stimulus cannot fix the skills mismatch that many firms are facing, he says, it can stop the growth in that structural unemployment. "Cyclical unemployment can become structural," as unemployed workers lose skills, for example. "What's driving a certain amount of urgency on the part of the Fed is they're afraid if they don't reduce the unemployment rate, the structural unemployment rate will rise," says Pawlak.

Indeed, some Fed leaders are showing an openness to allowing inflation to creep higher. In a speech earlier this week, Chicago Fed President Charles Evans noted the difficulty in targeting both unemployment and inflation. When the two interests conflict, he said, "a flexible targeter does not accept a large miss in one target in order to hit the other perfectly, but instead accepts moderate misses in both in order to minimize the total loss." Likewise, Federal Reserve Chairman Ben Bernanke in a speech this week said that the Fed "does not have a formal, numerical inflation target" for price stability or employment.



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Friday, October 14, 2011

A Longer Wait for Perry's Economic Plan

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Home > Politics & Policy > Ken Walsh's Washington > A Longer Wait for Perry's Economic Plan

October 13, 2011 Print

By now, it's well-known that Texas Gov. Rick Perry thinks that increasing domestic oil and energy production is a key to turning America's economy around. He mentioned energy independence several times during Tuesday night's debate, even while discussing seemingly unrelated topics like Chinese currency manipulation.

[See how Perry ranks among rivals in job creation.]

But what else will Perry do to get people working? We'll have to wait and see. Even though Perry said Tuesday night he would unveil his economic plan within three days, so far he's only scheduled one event--to discuss energy policy--on Friday in Pittsburgh. His campaign says that Perry will unveil other aspects of his planned economic policies later this month.

Perry has faced heat from his rivals for failing to come up with an economic plan so far in the race. Last week, Former Massachusetts Gov. Mitt Romney's campaign jokingly unveiled its version of Perry's plan, 114 blank pages. During Tuesday's debate, Perry tried to deflect the criticism by noting Romney's 2008 failed presidential campaign. "Mitt has had six years to be working on a plan. I have been in this for about eight weeks," he said. But with the New Hampshire secretary of state threatening to set his state's primary as early as December, Perry had better hurry up if he wants voters to know his presidential plans before they head to the polls.

Tags:politics, Mitt Romney, Rick Perry, republican party, economy

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Thursday, October 6, 2011

Why Herman Cain's Economic Plan Has Merit

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He's a fringe candidate with controversial views on Muslims and a soft spot for the Chilean retirement system. But Herman Cain also has a few economic ideas that are arguably better than those of his GOP rivals.

Mitt Romney, Rick Perry and most other Republican presidential candidates basically follow the conservative script when it comes to economic policy: Cut taxes, cut regulations, cut government spending and watch prosperity flower. Cain's ideas are radical by comparison. There's probably no chance they'd ever pass—in a Cain administration, or anybody else's—but they shouldn't be flippantly dismissed, either. It seems obvious that we need some new ideas for how to recharge the economy, and the former pizza-chain CEO has a few clever ones.

[See 11 things wrong with Congress.]

Cain calls his program the 9 – 9 – 9 plan. In theory, it's pleasingly simple. He'd scrap the current income tax system and impose a 9 percent flat tax on everybody, while cutting the corporate income tax rate from 35 percent to 9 percent and imposing a national sales tax of – can you guess? – 9 percent on most goods. Cain says his scheme would free up capital, boost production and create jobs, while raising roughly the same amount of revenue the government takes in now. The fact-checking Web site Politifact thinks Cain's revenue estimate may be a bit low, but is generally plausible.

In practice, of course, there would be all sorts of problems with Cain's plan. Liberals would howl about working-class people paying taxes at the same rate as the wealthy and about Cain's complete exemption for capital gains. Conservatives hate the idea of a national sales tax because it would generate a huge new pool of money for the government to spend and because France has one. And upending so many entrenched tax shelters would cause paroxysms among the lobbyists who have worked so hard to ensure favored treatment for their clients. One can imagine they might resist.

Still, Cain is on to something. I can't vouch for his numbers and he's sketchy about many specifics. But he has highlighted a few principles that ought to be explored if policymakers in Washington ever get around to fixing the overcomplicated tax code or making America more competitive. Such as:

Emphasizing saving over spending. Cain's national sales tax, which would be similar to the value-added tax some economists favor, would obviously make stuff more expensive. So people would probably buy less. That might sound like a bad idea, since more than two-thirds of U.S. GDP comes from consumer spending. But if people spend less they save more, and more national savings could provide a powerful economic boost in the long run.

[See Rick Perry's 4 economic vulnerabilities.]

A bigger nest egg would obviously help many families improve their finances, pay down debt and prepare better for downturns. A higher savings rate would also generate more investment, since the money has to go somewhere; even if you put it in the bank, the bank lends most of it out. Assuming that banks learned the hard lessons of the last few years about taking appropriate risks when lending, more investment could be one of the key things that shakes the economy out of its torpor and generates the kind of growth we need. There's also a cultural element to our spending addiction, and it's not hard to imagine that American society might become a bit more productive if we shopped less.

Like any major policy shift, altering the tax code to deter spending and encourage saving would be controversial and disruptive. Cain doesn't say anything about taxing services, which are a big part of the economy that shouldn't be overlooked. With any kind of national sales tax, there would probably have to be exemptions for food and staples. Many people would argue that a national sales tax should be progressive, so that the poor don't pay a disproportionate amount. But the basic idea has strong merit and the details ought to be negotiable.

Encouraging work and industry. Lower taxes on workers and businesses would in effect raise the return on work and on the risk required to start and run a company. So more people would be likely to do both. This basic principle should not be confused with trickle-down economics, which is the dubious idea that simply cutting taxes will leave people and companies with more money to spend, which will ultimately help create jobs and boost growth. In a closed economic system it might work that way, but if your taxes go down and you use the savings to buy a Lexus made in Japan or an iPad made in China, you're helping create overseas jobs; the impact on the U.S. economy is highly diluted. And companies don't hire workers just because they have extra cash; they might be more inclined to buy equipment (which could be made anywhere), raise the dividend paid to shareholders, or simply hold the money for a rainy day, as many companies are doing now.

[See why federal government trumps the states.]

Enriching the incentive to work or run a company in the United States, however, would have a more direct impact on the U.S. economy. The problem with many tax-cut proposals isn't low taxes; it's the huge cut in government spending that would usually have to accompany them, since most advocates of tax cuts don't suggest ways to replace lost government revenue. But Cain's national sales tax would provide cover for cuts to personal and corporate income tax rates and allow expensive programs like Social Security and Medicare to keep functioning normally. Again, there are many complexities, and Cain's math probably isn't bulletproof. But the principle of higher consumption taxes paired with lower income taxes is a sound one.

Simplicity. I don't know if Cain meant to mimic dollar-store discounts by calling his plan 9 – 9 – 9, but it does have an agreeable ring—and it hints at a bargain. In fact, my brain wants to call it Nine Ninety-Nine, like the price of an off-brand pair of sneakers or last year's version of Madden Football. Sure, it's gimmicky, but everybody knows we need a far simpler tax system that's not gamed in favor of those who can afford to hire accountants, tax attorneys and lobbyists to work all the loopholes. So what's wrong with the populist appeal of a tax code that sounds like a two-for-one pizza special?

[See 8 things missing from Obama's debt plan.]

In fact, the complexity of so many things about the economy—globalization, overlapping layers of regulation, financial engineering, the new Netflix video-rental plans—must certainly be one of the factors depressing confidence and stoking cynicism. Politicians exploit the information overload of the digital era by firing barrage after barrage of maybe-true claims that are too time-consuming or convoluted to check out. Many people feel overwhelmed, powerless and angry. Meanwhile, everybody knows that complexity is often a shield for graft, deceit and other shenanigans. A tax code that ordinary people can easily understand would in itself be a confidence-booster.

Cain will probably step off the national stage soon, as Republicans choose a more prominent candidate to face off against President Obama. But whoever wins might want to study the 9 – 9 – 9 plan. There are a lot worse ideas, including some that might ultimately make it into the official GOP platform.

Twitter: @rickjnewman



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UK economic growth revised down

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5 October 2011 Last updated at 09:15 GMT Mini production line in Oxford Industrial output fell less than previously thought The UK economy grew by 0.1% between April and June, less than the 0.2% estimated previously.

Output from the service sector grew by 0.2%, compared with the previous estimate of 0.5%, the Office for National Statistics (ONS) said.

However, industrial output fell by less than previously thought.

The latest GDP revision is likely to raise further questions about the strength of the UK's fragile economic recovery.

The ONS said household consumption fell by 0.8% in the three-month period.

'Continued expansion'

Separately, figures suggested activity in the UK's service sector increased in September.

The Markit/PMI survey recorded a figure of 52.9 for the month, up from 51.1 in August. Any figure above 50 indicates growth.

Figures from the same company published earlier this week showed surprise growth in the manufacturing sector.

"While the UK cannot insulate itself from what is happening to our major trading partners, with financial turbulence in the eurozone and a weaker outlook for global growth, the economy is still growing and this week's survey data for the manufacturing and service sectors are consistent with continued expansion," said a Treasury spokesperson.

The government has been criticised in some quarters for concentrating too much on cutting the budget deficit at the expense of stimulating growth.

However, the Treasury reiterated that it did not intend to hold back on its spending cuts.

"The government will stick to the deficit reduction plan which has won the UK credibility and stability, but the most important thing for the economy now is restoring confidence, which will depend on the eurozone decisively dealing with its problems."



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Monday, October 3, 2011

Why Herman Cain's Economic Plan Has Merit

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He's a fringe candidate with controversial views on Muslims and a soft spot for the Chilean retirement system. But Herman Cain also has a few economic ideas that are arguably better than those of his GOP rivals.

Mitt Romney, Rick Perry and most other Republican presidential candidates basically follow the conservative script when it comes to economic policy: Cut taxes, cut regulations, cut government spending and watch prosperity flower. Cain's ideas are radical by comparison. There's probably no chance they'd ever pass—in a Cain administration, or anybody else's—but they shouldn't be flippantly dismissed, either. It seems obvious that we need some new ideas for how to recharge the economy, and the former pizza-chain CEO has a few clever ones.

[See 11 things wrong with Congress.]

Cain calls his program the 9 – 9 – 9 plan. In theory, it's pleasingly simple. He'd scrap the current income tax system and impose a 9 percent flat tax on everybody, while cutting the corporate income tax rate from 35 percent to 9 percent and imposing a national sales tax of – can you guess? – 9 percent on most goods. Cain says his scheme would free up capital, boost production and create jobs, while raising roughly the same amount of revenue the government takes in now. The fact-checking Web site Politifact thinks Cain's revenue estimate may be a bit low, but is generally plausible.

In practice, of course, there would be all sorts of problems with Cain's plan. Liberals would howl about working-class people paying taxes at the same rate as the wealthy and about Cain's complete exemption for capital gains. Conservatives hate the idea of a national sales tax because it would generate a huge new pool of money for the government to spend and because France has one. And upending so many entrenched tax shelters would cause paroxysms among the lobbyists who have worked so hard to ensure favored treatment for their clients. One can imagine they might resist.

Still, Cain is on to something. I can't vouch for his numbers and he's sketchy about many specifics. But he has highlighted a few principles that ought to be explored if policymakers in Washington ever get around to fixing the overcomplicated tax code or making America more competitive. Such as:

Emphasizing saving over spending. Cain's national sales tax, which would be similar to the value-added tax some economists favor, would obviously make stuff more expensive. So people would probably buy less. That might sound like a bad idea, since more than two-thirds of U.S. GDP comes from consumer spending. But if people spend less they save more, and more national savings could provide a powerful economic boost in the long run.

[See Rick Perry's 4 economic vulnerabilities.]

A bigger nest egg would obviously help many families improve their finances, pay down debt and prepare better for downturns. A higher savings rate would also generate more investment, since the money has to go somewhere; even if you put it in the bank, the bank lends most of it out. Assuming that banks learned the hard lessons of the last few years about taking appropriate risks when lending, more investment could be one of the key things that shakes the economy out of its torpor and generates the kind of growth we need. There's also a cultural element to our spending addiction, and it's not hard to imagine that American society might become a bit more productive if we shopped less.

Like any major policy shift, altering the tax code to deter spending and encourage saving would be controversial and disruptive. Cain doesn't say anything about taxing services, which are a big part of the economy that shouldn't be overlooked. With any kind of national sales tax, there would probably have to be exemptions for food and staples. Many people would argue that a national sales tax should be progressive, so that the poor don't pay a disproportionate amount. But the basic idea has strong merit and the details ought to be negotiable.

Encouraging work and industry. Lower taxes on workers and businesses would in effect raise the return on work and on the risk required to start and run a company. So more people would be likely to do both. This basic principle should not be confused with trickle-down economics, which is the dubious idea that simply cutting taxes will leave people and companies with more money to spend, which will ultimately help create jobs and boost growth. In a closed economic system it might work that way, but if your taxes go down and you use the savings to buy a Lexus made in Japan or an iPad made in China, you're helping create overseas jobs; the impact on the U.S. economy is highly diluted. And companies don't hire workers just because they have extra cash; they might be more inclined to buy equipment (which could be made anywhere), raise the dividend paid to shareholders, or simply hold the money for a rainy day, as many companies are doing now.

[See why federal government trumps the states.]

Enriching the incentive to work or run a company in the United States, however, would have a more direct impact on the U.S. economy. The problem with many tax-cut proposals isn't low taxes; it's the huge cut in government spending that would usually have to accompany them, since most advocates of tax cuts don't suggest ways to replace lost government revenue. But Cain's national sales tax would provide cover for cuts to personal and corporate income tax rates and allow expensive programs like Social Security and Medicare to keep functioning normally. Again, there are many complexities, and Cain's math probably isn't bulletproof. But the principle of higher consumption taxes paired with lower income taxes is a sound one.

Simplicity. I don't know if Cain meant to mimic dollar-store discounts by calling his plan 9 – 9 – 9, but it does have an agreeable ring—and it hints at a bargain. In fact, my brain wants to call it Nine Ninety-Nine, like the price of an off-brand pair of sneakers or last year's version of Madden Football. Sure, it's gimmicky, but everybody knows we need a far simpler tax system that's not gamed in favor of those who can afford to hire accountants, tax attorneys and lobbyists to work all the loopholes. So what's wrong with the populist appeal of a tax code that sounds like a two-for-one pizza special?

[See 8 things missing from Obama's debt plan.]

In fact, the complexity of so many things about the economy—globalization, overlapping layers of regulation, financial engineering, the new Netflix video-rental plans—must certainly be one of the factors depressing confidence and stoking cynicism. Politicians exploit the information overload of the digital era by firing barrage after barrage of maybe-true claims that are too time-consuming or convoluted to check out. Many people feel overwhelmed, powerless and angry. Meanwhile, everybody knows that complexity is often a shield for graft, deceit and other shenanigans. A tax code that ordinary people can easily understand would in itself be a confidence-booster.

Cain will probably step off the national stage soon, as Republicans choose a more prominent candidate to face off against President Obama. But whoever wins might want to study the 9 – 9 – 9 plan. There are a lot worse ideas, including some that might ultimately make it into the official GOP platform.

Twitter: @rickjnewman



View the original article here



Peliculas Online

Thursday, September 29, 2011

Country music and economic woes

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27 September 2011 Last updated at 02:53 GMT By Paul Adams BBC News, Connecticut The depth and enduring nature of US economic woes has proved fertile ground for country musicians (Video by David Botti)

It's known for tackling some of life's grittier issues, among them loss, poverty and nostalgia. But today's country music lyrics are turning to the effects of economic hardship.

Country music and hard times. A cliche perhaps, but try telling that to legions of fans across the United States, many of whom are on the frontlines of economic struggles, seeking solace in the music.

Fans like 53-year-old Jim Yocius, from Windsor, Connecticut.

"For the first time in my life, I feel very vulnerable," he says outside the Comcast Theatre in Hartford, before a concert by Country star Toby Keith.

Barbecue smoke drifts over serried ranks of pickup trucks as fans enjoy pre-concert tailgate parties.

"I feel like that older white male who did everything right, and now I feel like the next generation really wants me gone," he says.

Continue reading the main story Ronnie Dunn
I work sun-up to sun-down, Ain't too proud to sweep the floors, Bank has started calling, And the wolves are at my door”

End Quote From Cost of Livin' by Ronnie Dunn The music helps him by, especially Ronnie Dunn's latest hit, Cost of Livin', which describes an unemployed man's painful search for any kind of work.

"It gives me a spiritual lift, bizarrely enough, to hear that song and just go 'All right, pick it up, shut up, suck up and get going again'."

Hunt for work

Across the car park, it's the same message over and over.

"They know. They know what's happening," says Sandra Scavetta, a former insurance agent from Oakdale who lost her job when the recession took hold and who finds herself, on the wrong side of 50, looking in vain for work.

When Sandra first heard Ronnie Dunn's song, it brought a sharp pang of recognition.

"That's me. That's exactly me. When I first heard it, I got chills. It's exactly where we are."

When Toby Keith hits the stage, the crowd roars its appreciation for Made In America, a tale of patriotism and productivity under threat in the heartland.

The song hits back against a sense of moral and physical decline, and the audience - white, working class and proud - loves it.

American lives

Made in America and Cost of Livin' are just two of the most successful recent songs that address the country's economic woes. The past three years have thrown up a host of others, including John Rich's Shuttin' Detroit Down and Hank Williams Jr's savage Red, White and Pink Slip Blues.

Singer Toby Keith Toby Keith: 'I don't write for Donald Trump'

On the tour bus, Toby Keith doesn't philosophise about his music. But he knows exactly who it's for.

"That's the person I'm singing to; that man and woman that live in that class," he says.

"I don't sit down and write a song and think I'm going to write it for Donald Trump. I don't get out of bounds very often and write about stuff I don't know about," says the former Oklahoma oil derrick hand and semi-professional football player.

Keith says Country music is especially well-placed to describe American lives and American woes.

The only other genre which performs the same function, he says, is hip-hop.

"I write the same thing they do," he says. "I just live in a different part of town."

Voicing anger

Part of the sprawling north-east urban corridor, Hartford might not seem like typical country country, but Keith says the fans are more passionate here than anywhere.

Not surprisingly, then, the city boasts a successful country music station, 92.5 WWYZ.

Breakfast show host Cory Meyers says many of the current songs reflect her listeners' pre-occupations.

"They're voicing what we all feel," she says. "We want somebody to blame. They're voicing our anger."

It's not all anger, of course. Tune in to country music stations across the land and the playlists still mostly revel in time-honoured themes: pickup trucks, long-legged girls and drinking.

But even here, some observers detect an undercurrent of unease.

"Economic conditions are definitely showing up in the music, not just in songs that talk explicitly about unemployment, but in songs that look at a search for identity and validation," says Jocelyn Neal, who runs courses in popular music at the University of North Carolina.

Radio host Cory Meyers Radio host Cory Meyers: We want someone to blame

"It's looking for ways for these people in the song lyrics but also in the country music audience to say 'what is my purpose in life?'"

Perhaps no-one knows this better than John Howard.

A financial broker in Florida for over 20 years, making music had only ever really been a pastime. But Howard suddenly found himself depending on it when the company he worked for in Sarasota filed for bankruptcy.

He quickly penned a song called With A Little Bit Of Luck, and started playing it at his local Gulf Coast haunts.

"They love it," he says of his audiences. "First they start tapping their feet, but after they start catching the words... all of a sudden they're paying attention to it."

The song came third in a song-writing contest, got some radio airplay and finally went viral.

More Jimmy Buffett than Hank Williams, Howard is happy enough to place his song in country's tradition of story-telling.

"Country music is a genre which does seem to lend itself to these kinds of songs which hit very close to home when it comes to talking about hard times and reality," he says.



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Peliculas Online

Monday, September 26, 2011

5 Political Lessons of the Economic Downturn

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President Obama and House Speaker John Boehner have now thrown down their respective gauntlets on the issue of the economy. Last week, when the president unveiled his new jobs plan to a joint session of Congress, the fiery tone felt at times more like that of a campaign speech than a policy pitch. And when House Speaker John Boehner released his jobs plan this week, he swung back at the president's policies, broadly criticizing "a government that offers short-term gimmicks" to encourage growth and "offers confusion to entrepreneurs and job creators." Politics are inextricably bound up in the nation's grave economic situation, and while Americans learn how to live with less, politicians have carried out their duties in a new landscape marked by frustrated voters and hyperpartisanship. Below are five important lessons that lawmakers are learning from the nation's chronic economic problems.

Unemployment Is King

Even after unemployment had climbed back above 9 percent, the policy fight of the summer wasn't about how to create jobs but whether or not America would pay its bills. That fight eroded public opinion of America's political leaders and helped illustrate the point that the public sometimes holds different priorities than lawmakers in Washington. Gallup data indicates that the economy in general and unemployment were more important problems to many Americans than the federal deficit or debt throughout the summer. "Policymakers have learned just how much unemployment resonates. It is joblessness, not the budget, inflation or other wonkiness that matters," says Justin Wolfers, associate professor of business and public policy at the Wharton School of Business, in an E-mail to U.S. News.

Read about how Social Security can be reformed.

Social Issues Are a Sideshow

The race for the GOP presidential nomination has generated lot of buzz about Michele Bachmann's views on HPV vaccine and Jon Huntsman's belief in climate change. But according to Peter Morici, a professor at the University of Maryland Robert H. Smith School of Business, these sorts of concerns fall off the radar once a candidate enters the White House, particularly in times of economic troubles. "The bottom line in all this, I think, is that social issues matter if you're running for president and you're trying to get nominated. And once you become president, what really matters is economic issues, because you own the economy," he says.

Don't Overpromise

There is ample evidence that the president's stimulus plan added substantial numbers of jobs, helping to save the country from an even deeper and longer recession. But when the plan was unveiled, the White House had predicted that it would create nearly 3.7 million jobs, bringing unemployment down to well below 7 percent by now, and to around 5 percent by 2014. Clearly, those projections were overly optimistic, and the idea that the stimulus was a "failure" has by now become a matter of fact for the president's opponents. The Republicans on the House Oversight Committee, for example, have started a "Signs of a Failed Stimulus" initiative, in which constituents can send in photos of American Recovery and Reinvestment Act signs marking stimulus projects.

See what's in the president's jobs plan.

Results Are Important, but So Is Blame

In the absence of a healthy economy, politicians are trying to gain political points by blaming the other party for the nation's troubles. Republicans blame the president for having failed to fix the economy. And some Democrats, like Senate Majority Leader Harry Reid, Michigan Sen. Debbie Stabenow, and White House Communications Director Anita Dunn, have accused Republicans of rooting against economic growth in the hopes of political gain.



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