Lessons in economics

Tech industry, unions at odds over 'stimulus' plan

WASHINGTON--As a presidential candidate in 2008, Barack Obama famously courted both labor unions and Silicon Valley firms. Now President Obama is finding that two groups that have been some of his most enthusiastic supporters are at loggerheads.

The tech sector sees President Obama's call for billions of dollars in targeted tax cuts and deficit spending on a new green economy as a generous windfall. So does the labor movement, which spent at least $385 million electing Democratic candidates, and is at odds with business over investment and procurement policies in the so-called "stimulus" package, including the "… Read more

In Davos, talk of linking clean tech and economy

The World Economic Forum calculates that $515 billion in yearly investment is required between now and 2030 to transition the world to cleaner sources of energy production.

At its annual meeting in Davos, Switzerland, the World Economic Forum released a report (click for PDF) on Thursday urging policy makers to make clean-technology incentives and investments part of government stimulus plans to revive flagging economies.

Economists who authored the report said alternative-energy technologies have the potential to address two pressing global problems--energy security and climate change--while generating good financial returns.

"It is essential that this stimulus also build our capacity … Read more

Obama meets with technology CEOs

As part of his efforts to advocate for the passage of the so-called "stimulus" bill, President Obama met with a number of chief executives from the technology sector and other industries on Wednesday to discuss the economy.

Tech company leaders present at the meeting included IBM's Sam Palmisano, Google's Eric Schmidt, Applied Materials' Mike Splinter, Motorola's Greg Brown, and Micron's Steve Appleton.

Obama called it a "sober" meeting but said the economic package moving its way through Congress will create more jobs and lay a foundation for long-term growth.

"It will … Read more

Smart grid companies want stimulus cash from feds

WASHINGTON--When politicians are doling out trillions of tax dollars in bailouts and so-called stimulus spending, nobody should be surprised if the line of businesses queuing for cash snakes all the way around the Capitol building. The latest idea: more spending on smart grids.

The idea of a smart grid is an alluring one: A far more intelligent electric power system that takes advantage of technological developments to deliver power in a more optimal, energy-efficient way. A household dishwasher could decide to turn on when prices are low at off-peak times, and plug-in electric cars could feed power back into the grid … Read more

Tech lobbyists: Spend $30 billion in tax dollars, get a million jobs

With President-elect Barack Obama set to argue for urgent, massive government spending, and what is likely to be a $1.2 trillion deficit, lobbyists for technology firms are saying that any stimulus should be directed at, well, technology firms.

A report released Wednesday by the Information Technology and Innovation Foundation says that spending $30 billion in taxpayers' money in 2009 on broadband infrastructure, health IT, and electric grid technologies could create or save approximately 949,000 U.S. jobs. More than half of those jobs, the report claims, would be in small businesses.

Directing stimulus dollars toward IT infrastructure will … Read more

Obama names Internet commerce expert to new economic board

President-elect Barack Obama on Wednesday announced the formation of an Economic Recovery Advisory Board, naming an economist with expertise in Internet policy as the board's staff director and chief economist.

The newly established economic advisory board will be expected to regularly brief Obama, Vice President-elect Joe Biden, and their economic team with independent, nonpartisan information and analysis that will help the administration formulate a plan for economic recovery. Obama named former Federal Reserve Chairman Paul Volcker as the board's chairman and Austan Goolsbee as staff director and chief economist of the board.

Goolsbee is an economics professor at … Read more

Q&A: Amid bailout plans, CEA chief extols free trade

The worsening U.S. economy has elicited a range of responses from lawmakers in recent weeks.

President-elect Barack Obama officially introduced his economic team on Monday, giving more indication that reinvigorating the nation's slumping economy will be his top priority once he is sworn into office. Lawmakers are still considering whether to provide assistance to the auto industry and may put together a new, massive stimulus package.

Meanwhile, President Bush over the weekend continued to press for more free trade--a cause heartily endorsed by the consumer electronics industry.

The chance for Congress to put the Colombia free trade … Read more

Gold sales shine in dark economic times

BURLINGAME, Calif.--In the 50 years since Burt Blumert founded Camino Coin Company, a precious metals dealer in this quiet San Francisco suburb, he's never witnessed such a frenzy of interest in gold and silver coins.

"There are no gold coins available," said Blumert, who is now mostly retired after giving the business to a longtime employee last year. "This is just as true of silver, even more so."

Call it the Great Gold Rush of 2008. Or, more accurately, the Great Gold Shortage of 2008. Like many dealers with physical storefronts, the Internet accounts … Read more

Do you oppose the $700 billion Wall Street bailout? Click here

Bailout type Cost to taxpayers (Source: Reuters) Proposed Treasury Department legislation $700 billion+ Bear Stearns financing $29 billion Fannie Mae and Freddie Mac nationalization $200 billion AIG loan and nationalization $85 billion Federal Housing Administration housing rescue bill $300 billion Mortgage community grants $4 billion JPMorgan Chase repayments $87 billion Loans to banks via Fed's Term Auction Facility $200 billion+ Loans from Depression-era Exchange Stabilization Fund $50 billion Purchases of mortgage securities by Fannie Mae and Freddie Mac $144 billion TOTAL $1.8 trillion+ COST PER HOUSEHOLD $17,064+

A flurry of Web activism is channelling misgivings about the … Read more