About the economy

Rico Trump asked:


I plan on buying stock very soon. I want to invest in industries that thrive with a good economy. The industries that will likely turn around when the economy bounces back in the next 2 or 3 years.

Micheal

Danna Schneider asked:


Our economy is definitely going through some “tough times”, as our President George Bush recently confirmed in a speech regarding the floundering economy of today.

A combination of factors have created a very volatile stock market, housing market, increasing inflation and cost of living, and a faltering job market, but one key component of a failing economy plays an intangible role in facilitating and perpetuating economic instability.

That component is human fear. We can’t help it, we’ve evolved with fear as one of our main emotions, and the media and our surroundings have only helped it along by declaring “the sky if falling” with it’s seemingly nonstop doomsday headlines.

Heck, you can’t read your email without seeing the headlines on the side declaring that we are headed for worse times before they get better, costs are skyrocketing, foreclosures are at an all time high, gas prices are astronomical, and basically that everything is working against us right now.

The sky looks very dim indeed if you tune in to the nightly news or happen to be bombarded with all this fearful journalism every day on the internet, which is an increasingly popular portal for getting the news. So, has the media played a part in our faltering economy, or is it really a combination of unfortunate factors, seemingly brought on by events beyond our control?

Well, most people feel the media is partly responsible for making things worse. Take the stock market for example. Fear is the stock market’s worst enemy. When consumer confidence in the economy is low and there are other headlines that are less than favorable in the financial, retail, and last but not least, housing sectors, the stock market suffers dramatic volatility.

In fact, one of the hardest hit in the subprime and credit fiasco, whom also was recently bailed out by the federal government and JP Morgan, another financial heavy, Bear Stearns, acknowledges that fear is it’s worst enemy. They insist that their financials are still intact, but rumors that were rampant about the company’s imminent collapse forced shares down to their lowest levels in almost eleven years.

Many financial institutions are experiencing nosedives in their stock prices, and have also slashed dividends to preserve working capital, a move that is said to create a domino effect in the banking industry where other banks follow suit. This only forces prices lower on stocks, and makes it harder for them, and consequently, the market, to recover.

Most financial analysts agree now that we are in a recession, but some are still reluctant to call that card, saying that a recession may still be averted, and that we are merely in an economic downturn. I for one, believe we are smack in the middle of a recession, and I believe that part of the reason for that is the fear that is being spread about the dire straits the US economy is in, and the sense of hopelessness conveyed by these doomsday headlines.

Fear perpetuates a sense of helplessness and “waiting it out”, as well as inspires investors to back their money out of stocks and other investments, and put them into cash accounts, which only puts us further into recession. For those that have iron stomachs, it’s actually a great time to be an investor, as there are some good, solid companies selling for well below their book values and their true worth right now.

That’s not to say there also aren’t a lot of stinkers too, but if you practice due diligence in researching their individual financials and balance sheets, you may be sitting pretty when this recession is over and the consumer confidence that is so key to a healthy economy has returned.

I do personally believe we have a long ways until we are out of the woods, but I also believe that we have the power to turn things around if we can just practice patience and discipline as a collective nation. Until then, it may be sage advice to ignore the doomsday headlines and make up your own mind about where this country’s economy is headed.

Crystal

Brenno asked:


Somebody told me that in NY city there’s a lack of food in markets due to the economy very low. I guess she’s wrong.

Kim

Greg McGuire asked:


Driving StrategiesThe cheapest and easiest way to improve your fuel economy is to change how you drive your existing car.

Air conditioning. As a general rule, if you are driving under 40 miles per hour (MPH), it is more fuel efficient to turn off the air conditioner and roll down the windows. Above 40 MPH, however, the drag on your car created by the open windows causes you to use more gas, so turning on the air will actually improve your fuel economy.

Acceleration. When accelerating, do so gradually. Stomping the gas pedal at every traffic light or stop sign causes your engine to suck fuel to meet the heavy load you are putting on it. A more gradual approach can significantly improve fuel economy.

Deceleration. Let off the gas well before a stop sign or traffic light and allow yourself to coast to a stop while gently applying the brake. Accelerating all the way to the stop and then slamming on the brakes not only wastes gas, it uses up your brake pads more quickly.

Speed. For every ten miles per hour you decelerate, you can save up to 5 miles per gallon (MPG). So if the speed limit is 65 MPH and you drive 55, you can increase your MPG by 5 miles.

Car MaintenanceIn addition to improving your driving strategies, use the following car maintenance tips to maximize your fuel economy:

Tire inflation. Make sure you keep your tires properly inflated at all times. This not only lengthens the life of the tire, it will help your fuel economy. By and large, the standard inflation for most car tires is 35 pounds per square inch (PSI).  Some mechanics may recommend inflating your tires to 30 PSI to improve riding comfort, which is true, but with gas prices the way they are the best thing to do is maintain proper inflation. Please make sure you check with either your tire dealer or the tire owner’s manual for proper inflation instructions.

Fuel grade. Mountain West states (New Mexico, Colorado, Montana, etc.) offer 85 octane fuel, whereas most other states offer only 87 octane and up. Check your owner’s manual, since some models have a minimum octane requirement. Using a lower octane fuel than what your vehicle has been designed for drastically reduces fuel economy. Also, it does not improve your gas mileage to use a higher octane fuel than the minimum requirement for your car.

Alignment. Most cars need an alignment every three to five years, although your mechanic will recommend you do it more often than that. A simple test of your alignment is to briefly release the steering wheel while cruising at least 55 MPH on a straight stretch of highway. Please make sure there is no oncoming traffic and that it is a calm day! If your car veers immediately to the left or right, have your mechanic check the alignment. Alignment problems affect your fuel economy and wear your tires down more quickly.

Tire rotation and balance. Have your tires rotated every 5,000 miles.  This not only improves their life span but also causes them to wear evenly, meaning improved fuel economy for you since they ride more smoothly. Your tires should be balanced when they are first installed, and in general they should not need another balancing. Regularly check for the wheel weights mounted on the rim of each tire on your vehicle. These will be oblong metal pieces clipped to the rim, one per tire. If you don’t see one on your tire, ask your mechanic to balance the tires when he rotates them. Most tire dealers that sell you your new tires will rotate and balance those tires for free.

Tune ups. Check your owner’s manual for the recommended life span of your vehicle’s spark plugs, plug wires, and coils. In general, spark plugs should be changed every 55,000 - 75,000 miles and plug wires every 100,000 - 120,000 miles. If your engine idles very rough, or cuts out easily, have your mechanic check the coils. Also make sure to change out your vehicle’s air and fuel filters regularly.  All of these parts affect your vehicle’s fuel economy.

Buying A New CarWhen considering purchasing a new car, remember that the miles per gallon estimates posted on new cars are always very optimistic. Those estimates are generated by operating the car in perfect driving conditions, as in 55 MPH on a windless day at sea level on flat ground with the windows rolled up and the air conditioner and radio off. Typically your actual miles per gallon will be two to five gallons less than the estimate.Go smaller! Technology has improved to the point where many smaller vehicles have high safety ratings and perform very well in adverse driving conditions. Remember that if you spend a little more on a smaller car with posi-traction as opposed to a bigger lunk with four-wheel drive, savings will be realized in improved fuel economy down the road. And you don’t have to put the thing in four-wheel drive, it will do so itself!Go hybrid if you can. Some very important factors to remember: hybrid and electric car technology is skyrocketing right now, so the vehicles that come out in five to ten years will show enormous improvements over the ones available today. If you have a lot of disposable income and buy a new car every three to five years anyway, go buy a hybrid today. If you are not that lucky, follow the tips above to maintain your current vehicle and tough it out until the car companies can bring to market all the technology in development right now.
 

Micheal

Justin asked:


I am curious as to what final leg(s) we are left standing on? Obviously our economy can be roughly translated as “debt”. As our ability to borrow dwindles, so goes our economy.

Obviously our economy was way overheated in the late 90’s. So now we are contracting; I saw an article comparing Japan of the late 80’s to our economy at its peak, and thought it’s not coincidental that roughly the same thing is happening in the US.

Of course our total outstanding national debt sits around $54-55 trillion(!) range.

How can we possibly function in this capacity?

Doris

Sidd S asked:


my dear economists,many says that the down fall of US economy will affect the economy of many nations, the rise in the cost of many commodities is the manifestation of declining economy of US ,But is that true? if yes how it could be so?

Susan

Samuel Martin asked:


Although many immigrants who enter this country are unskilled laborers who provide essential services in many sectors of our economy, of equal importance to the immigration debate are the highly educated foreign professionals whose skills play a vital role in the enrichment of our economy.

The U.S. economy has shifted significantly over the past 50 years. We are no longer the blue collar nation that we once were. The transformation from a manufacturing to a knowledge-based economy has created a growing demand for skilled technical workers. This demand has been accompanied by a decline in the number of native-born students seeking degrees in the fields of science, engineering and technology.

Our prestigious graduate institutions currently train more foreign nationals than U.S. citizens in these fields. To alleviate labor shortages, U.S. businesses must be able to recruit and hire additional foreign-born professionals.

We must retain the educated professionals whom we have trained internally in order to benefit from the unique skills that they possess. By sending the best and the brightest workers back to their respective countries, we only create competition for ourselves, thereby diminishing America’s economic clout.

In order to increase the number of highly skilled professionals in this country, it is necessary to reform the employment-based immigration system and provide a sufficient amount of avenues through which U.S. businesses can legally employ specialized workers. We must increase the number of specialized worker visas awarded.

H-1B visas, or temporary skilled worker visas, are currently capped at only 65,000 annually. Yet, this “cap” is reached in a couple of months, and U.S. businesses are barred from hiring foreign-born professionals for the remainder of the fiscal year.

At the same time, we must increase recruitment and training of U.S. students. H-1B visas accelerate this process; a hefty portion of the processing fees for the H-1B visas are directed to the education and training of U.S. students in science and technology.

It is important that skilled workers are not overlooked in the current debate regarding comprehensive immigration reform. Raising the H-1B visa cap is vital to maintaining our leadership in the world market. By retaining foreign nationals, we may ensure that U.S. businesses have the most highly qualified workers in their fields, helping America maintain its edge in an increasingly competitive global economy.

Deborah Notkin is president of the American Immigration Lawyers Association. - NU

Troy

SadWoman asked:


I have heard from several individuals that it is only a matter of time before the economy tanks and that we are about to enter a economic depression. I am a college student and really want to start investing some of my cash in either precious metals and stocks… is now a good time to do it? Do you think the economy will tank in the foreseeable future?

Craig

Victor V asked:


that is my question.

Was the economy solid or weak?
Was Yugoslavia “unfit” for the brutal austerity program?

With “unfit” I mean uncapable to conform to the rules of captialism?

Chester

Gordon asked:


Economy

Australia has a strong and innovative economy bolstered by solid productivity, low inflation and low interest rates. Australia has a deregulated economy which is affected somewhat by fluctuations in the US economy, but has its own resilience. With low barriers to trade and investment, there are many opportunities to invest in Australia as a private business or property investor.

Our Free Trade Agreement with the US, means that it is easier for professional Australian citizens to work in the US than ever before.

Exports are a mix of traditional commodities, services and advanced manufacturing. Some of the major exports include gold, meat & livestock, agricultural product, cars, machinery and minerals.

Transport

Australia is a relatively easy country to get around in and the closer to the city and surrounding suburbs you get, the easier it becomes.

Due to its large size, the need for sufficient and reliable transport is essential and all of the cities and most of the rural towns have an extensive and relatively cheap public transport system. The three main means of transport in Australia are:

By Car: privately owned car or by taxi (there are many extensive taxi services in place all around the country).

By Public transport: Rail, train, bus (and tram in some states).

By Air: There are a variety of Australian and International airlines around the country that operate flights between major cities (and regional or remote areas).

Public transport is becoming more popular again, as significant improvements in services over the last decade, and the high cost of fuel, has made trains (as well as trams in Melbourne) a popular alternative.

Information by Health Professionals

Gabriel