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2009/01/30

Stimulus: To Spend or Not to Spend?

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January 30, 2009
 

Insider Newsletter

A weekly summary of the best in BusinessWeek and BusinessWeek.com


NEWS  THIS WEEK'S TOP STORY

Stimulus: To
Spend or Not
to Spend?

Economists are engaged in a
fiscal feud over Obama's
spending plan and how much of a
boost it will give the
recession-wracked economy

Editor's Memo
President Barack Obama and the dismal economic picture he faces threaten to knock this year's World Economic Forum off the front of the business pages this week. In the Insider's Top Story, BW Chief Economist Michael Mandel revisits Krugman, Friedman, and even Keynes in his search for answers in "Stimulus: To Spend or Not to Spend?"

Meanwhile, back at the Forum in Davos, Switzerland, BusinessWeek's Jack Ewing takes note of the record number of CEOs in attendance. Apparently, even as their corporations squirm, they think the knowledge they'll gain is worth the trip. This year's official theme—Shaping the Post-Crisis World—at least offers some optimism.

But in case you're in danger of feeling too hopeful, check out our slide show on the world's gloomiest countries. It's a veritable travelogue of despair. And Workplace columnist Liz Ryan has a little job-hunting advice to help you find happiness as well as a paycheck.
—Katherine Davis


  FROM THIS WEEK'S ISSUE OF BUSINESSWEEK
BOOK EXCERPT
Detroit Should Get Cracking on its Googlemobile
Carmakers need to let go of their musty business models and start thinking like 21st century companies—like Google

BUSINESS OUTLOOK
How Bernanke's Policy of 'Credit Easing' Works
The Fed now has a three-pronged approach to infusing the financial system with capital

IN DEPTH
Rebuilding America's Job Machine
Industrial policy isn't dead. It's thriving in the states—and may be the start of a U.S. comeback strategy

  FROM BW.COM'S TECHNOLOGY CHANNEL
PUBLIC POLICY
Why the Stimulus Bill Discounts Broadband
Congress is concerned that technology spending may not create jobs as quickly as traditional investments

TECHNOLOGY
Soaring Cancer Drug Costs May Cripple Medicare
A new report says laws crimp Medicare's ability to control costs on cancer, leading to a 267% increase in drug spending over seven years

TECHNOLOGY
The Difficulties Bartz Faces at Yahoo
The former Autodesk boss has much to learn about how to discipline the Web company and resuscitate its online advertising revenue

  FROM BW.COM'S SMALLBIZ CHANNEL

Community Banks Increase Small Business Loans
As big banks struggle, community banks are stepping in to offer loans and lines of credit to small business owners

SMART ANSWERS
Turning Around a Struggling Business
From increasing your selling efforts to minimizing layoffs, business experts offer 11 practical tips to counteract economic uncertainty


A Guide to Self-Employment
Advice for recently laid-off workers considering going into business for themselves

  FROM BW.COM'S ASIA & EUROPE CHANNELS
WORLD_ECONOMIC_FORUM_2009
Record Attendance Expected at Davos Amid the Global Financial Crisis
CEOs and 40 heads of state assemble for informal diplomacy and off-site dealmaking; economics and Gaza will dominate conversations

ASIA
China's Recyclers: Is a Rebound Ahead?
There are signs that China's scrap dealers, hit hard by the downturn, may be recovering as prices pick up and manufacturers cautiously restock recycled products

  FROM BW.COM'S LIFESTYLE CHANNEL
REAL ESTATE NEWS
Rents Drop Nationwide as Vacancies Spike
Good news for renters as landlords are forced to offer discounts to keep their properties occupied

LIZ RYAN: THE WORKPLACE
The Accidental Career
Lots of people just stumble into a line of work. But the folks who get hired fast today are the ones who chose their particular field

REAL ESTATE NEWS
Even Once-Strong Housing Markets Stumble
Formerly resilient areas like Charlotte, N.C., and Boston are struggling, according to the latest S&P/Case-Shiller Home Price Index

  FROM BW.COM'S INNOVATION & DESIGN CHANNEL
INNOVATION
For Recession Help, an IT Innovation Tax Credit?
A group of Silicon Valley veterans thinks this tax break could be the boost the industry needs. Now they hope to get Washington to agree

THE INNOVATION ENGINE
Laugh a Little, Innovate a Lot
When looking for a big idea, you don't necessarily want to hear "Eureka!" but laughter

  FROM BW.COM'S INVESTING CHANNEL
INVESTING
Currencies: Playing a Rebound in the Pound
Is it time to buy sterling? That depends on what you make of the dangers facing the struggling British economy

GENE MARCIAL'S STOCK PICKS
Onyx, a Sweet Deal for Bayer?
The German drugmaker already has teamed up with Onyx to sell the smaller company's drug to fight kidney cancer. Could it be the next pharma to make a move?

INVESTING
M&A: Will the Recession Spark a Rebound?
Pfizer's $68 billion acquisition of Wyeth shows big deals can happen despite the brutal economy. But don't expect a full-scale merger revival just yet

 BW MALL   SPONSORED LINKS
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