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Wall Street Journal Articles.pdf

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CAS EC 102
Jay Zagorsky

Wall Street Journal Articles Sunday, January 19, 2014 9:30 PM "Russia Faces Stagflation" 1/16/14 ○ Stagflation: Mix of high inflation and flat economicgrowth  Hard to battle; cutting interest rates may cause prices to spiral ○ Why is Russia in this situation?  Slow and declining investment  Heavy capital outflows  Weak demand and low prices for exports  Low labor productivity  Oil-fueled growth, the foundation of Putin's rule is over and there is nothing to take its place  Aging infrastructure  Poor investmentclimate □ Investmentsfell from 2.6 billion to 1.8 billion last year ○ Slow economicgrowth  Prediction for this year is 1.4%  Consumer growth grew 6.5% last year  Economicgrowth of 7% during the early 2000s  President Putin set a 5% medium target  Central Bank targeted 5-6% ○ Future plans for Russia  Officials call for cutting of interest rates to boost growth  Central Bank wants to bring down inflation first □ Russia needs structural remedies, not monetary ○ Future predictions  Growth should pick up to 2.35 in 2014 and 2.9% in 2015  Will lag behind global growth unless structural reforms are made  Large capital outflow should slow down to 30 billion (half the level of last year) "A New Era in China-US Relations" 1/16/14 ○ Trade went from 2.5 billion in 1979 to 500 billion last year ○ China has the second largest economyin the world ○ Asia-Pacific Economic Cooperationand US relations  Trade and investmentliberalization, oppose protectionismand reduce pollution ○ Third Plenary Session of the 18th Communist Part of China Central Committee  Comprehensivesocial and economicreforms to boost economicdevelopmentfurther more  More opportunities for US involvement  Plans to import 10 trillion foreign goods and invest 500 billion overseas ○ China and US will becomeeach other's biggest trade partner by 2022  China's annual import from US will be over 450 billion and will create more than 2.5 million American jobs "How to fix the organ donor shortage? Let people sell their kidneys" 1/18/14 ○ People can again an average of 23 years of life with transplant as opposed to 8 years with dialysis ○ In 2012,almost 4,500 people died while on the waitlist for a kidney ○ Cost of dialysis is about $80,000,in a wait period, it adds up to around $350,000 ○ Transplants costs $150,000 ○ About 34% of kidney transplants come from live donors ○ Many other countries have implied donation and US has informed consent  The switch does not close the gap significantly ○ A kidney would be valued at around $15,000each (high $25,000,low $5,000) Iran's waitlist is significantly lower due to the kidney market ○ Iran's waitlist is significantly lower due to the kidney market ○ System of payment to donors who agree to donate their kidneys after death ○ Similar to surrogate mothers who get paid around $20,000 ○ The rich may be able to benefit more and the desperate poor may sell their organs EB-5 Visas for Investors See Record Demand 1/21/14 ○ Allows foreigners to live in the US if they invest in job creating ventures took in a record number of applicants  Minimum investmentis $500,000  If the investmentcreated 10 jobs within 2 years, the temporary visas can be turned into Green Cards  About 3,700 (mostlyChinese) investorswere approved ○ Launched by Congress, though it has received some criticisms, it has raised $8.6 billion and created at least 57,300jobs since 1990 NavigatingHigh Seas of RisingRates 1/21/14 ○ How to navigate the risks of managing money when interest rates are rising ○ Investmentfirms are encouraging education and research of investor risks ○ About to see a significant rate increase that is likely to last for several years and affect prices of bonds and mutual funds  Investors can experience negative returns ○ Older advisors have an advantage of experiencing high interest rate periods ○ In the past decade, bonds have produced steady positive returns unlike stock Michigan Governor Looks to ImmigrantInjection 1/23/14 ○ Michigan gov't is concerned about Detroit'srapidly shrinking population that is bankrupting the city  Looking to boost the population to boost the economy ○ Gov't Snyder requests 50,000special immigration visas over the next 5 years to attract foreign professionals to work/livein the city of Detroit  Especially auto, IT, life sciences and health care industries ○ The EB-2 visas are for professionals with advanced degrees and exceptional abilities in science, arts or business  Applicants require a job offer and proof that they are not taking a position that can be filled by an US worker ○ The visas will be staggered to about 5,000 visas in the first year and 15,000in the last ○ Plan to repopulate the city to about 700,000  Between 2000-2010,Detroit lost 25% of its population ○ Asked state legislature for $350 million over the next 20 years to help the shortfall in the pension system  Aid retired city workers affected by underfunded pensions  Financial professionals will help manage the pension system that was poorly run before ○ Detroitraised $680million by selling its art collection to a nonprofit that would keep the art public Paul Ryan: A New Direction in the War on Poverty 1/24/2014 ○ A high school graduate makes $10,000more a year than a drop out and a college graduate makes $36,000more ○ As families make more, they becomeineligible for federal programs and the high income taxes discourage the poor to get ahead ○ Gov't programs have isolated the poor by welfare, it needs to put the war of poverty back into the peoples' hands  The British has a welfare system that has a diminishing pay, but only people that either have a job or actively looking for one are eligible ○ Under new laws, teachers' pays depends on performance,not seniority Gov't job training does not put people where they want to be, instead give businesses incentives to ○ Gov't job training does not put people where they want to be, instead give businesses incentives to train Cory Booker: Building on the Success of the War on Poverty 1/24/14 ○ We are failing to invest in areas that produce great social returns and also reduce federal spending in the long run ○ Failing to maximize productivityof people; social mobility is flat ○ Facts on poverty and the government  Federal gov't efforts have cut poverty of seniors from 35% in 1960 to 9% in 2011  Brought "deep poverty"those living 50% below the poverty line to 5.3%  Cut overall poverty by a third ○ Great Societywas a failure? Obama's State of the Union Address 1/27/14 ○ Low unemployment,moreoil production and growing economy ○ Massive shifts to technologyand global competitionhas eliminated lots of middle-class jobs  Wages has not changed and inequality deepened ○ Michelle's Lets Movepartnership to decrease childhood obesity ○ Employment;hiring more and insourcing jobs from abroad  Lower tax rates so companies have an incentive to insource jobs ○ Improvementsin infrastructure ○ Encouraging research in innovation and technology ○ US lead in natural gas and solar energy ○ Immigration reformto attract skilled individuals and businesses ○ More on the job training to fill in vacant spots with available workers ○ Advancementin education; Race To The Top and high quality Pre-K ○ Glass ceiling still and unequal pay still exists for women ○ Executiveorder for $10.10 min wage ○ MyRA: Savings bond that has decent returns with no risk of losing ○ Gun control and Afghan War Attempts to Ease Siege In Syrian City Hit Snag 1/27/14 ○ Syrian governmentonly agreed to evacuate the civilians  Up to 3,000 civilians and 4,000rebels were trapped in Homs of the gov't siege  Rebels demanded food and medicine for both the rebels and civili
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