More Tax Cuts?

This week, President Obama and the Democrats agreed to extend the Bush Tax cuts in an effort to prevent any further damage to the U.S. economy. Although some democrats are angry that Obama did not give up with a fight, many economists believe this may provide results for the bad economic situation,

"Forecasting firms on Tuesday upgraded their estimates for growth and job gains over the next two years. Economists at Goldman Sachs, who have been more negative and more accurate than most Wall Street forecasters lately, called the deal “significantly more positive” than they had anticipated.  "     Read more: http://www.nytimes.com/2010/12/08/business/economy/08leonhardt.html?src=me&ref=business

 Policy experts, including major leaders in Washington such as Robert Greenstein approve of the tax cuts and believe they will bring jobs to America. Although this package may offer some relief to the economic crisis, some still believe even more should have been done. The financial Crisis has caused serious unemployment issues, and may continue to threaten our economy unless kept checked and under control.

Arnold Takes a Stand for the Environment

Although Arnold Schwarzenegger will be leaving office soon, making room for Jerry Brown, he is continuing his stand for clean energy and saving the environment. At a meeting at UC Davis on tuesday, Schwrzenegger met with the Oregon Governor and British Colombia Premier to talk about environmental goals for the future.

"Action is needed now. We can't afford to wait for national and international movement," said Schwarzenegger.

Read more: http://www.sfgate.com/cgi-bin/article.cgif=/c/a/2010/11/17/BU761GD0QR.DTL#ixzz15iEMrjkd

California must continue to lead the United States in clean energy regulations and goals for saving our environment in the future. Meetings such as those in Cancun and Copenhagen, must continue to take place between the major countries of the world in order for the world to see any positive hopes for its future.

New Minority Speaker in the House

Nancy Pelosi was elected the leader of the minority group in the House of Representatives. After a 62 seat loss for her party in the previous election, there was much controversy over weather or not Pelosi would be reelected for this position. Although she did crush her competitor Heath Shuler, many moderate voters were upset with the decision.

"Angry moderates who lost their elections ripped into the soon-to-be-former speaker, but they are on their way out, leaving behind a smaller but more liberal minority."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/11/17/MN2E1GDK0A.DTL#ixzz15iADtdRa

Many believe Pelosi is dedicated to her party, and will continue to make a stand against republican leaders, just as she did as minority leader of the House during the Bush administration. With only an 8 percent popularity rating, it is obvious that people do not see what they may have seen from Nancy Pelosi in her previous years of government, but only time will tell if she will recover from it.

The Battle of Major Corporations

In Economics the past week, we have been working with the stock exchange, and becoming more familiar with trading and watching stocks. So far, it seems that major corporations offer a safe bet for investors, with a stock value that does not fluctuate as much as some small businesses. Microsoft and Facebook have recently announced their collaboration, in an attempt to challenge the major search engine Google.

 "When you add all of these (collaborations) up - and there seem to be more of them every week - then it really is a very substantial threat to Google," said Ray Valdes, an analyst with Gartner Inc.



Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/11/18/BUGL1GDJNC.DTL#ixzz15i6Mb7Aj

It will be interesting to follow the stock prices of these companies and watch the results the new software ideas have on the market. It is important for companies such as Microsoft and Facebook to challenge leaders in certain industries, and promote the development of new products and ideas.

Solar Energy for the Future

 California has finally started to build large scale solar systems. These systems, that companies such as BrightSource Energy out of Oakland, provide reliable, and renewable energy to the state of California, while reducing our reliance on foreign oil. The Ivanpah project, started by BrightSource Energy, will provide enough energy to power 140,000 homes.

"Projects like this one are helping us meet our long-term energy and environmental goals, while creating jobs and moving us toward a cleaner, more sustainable future - a future where California leads the nation and the world in a clean energy revolution," said Gov. Arnold Schwarzenegger, who attended the groundbreaking."                             Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/10/27/BUS91G2T46.DTL&type=business#ixzz13d28XZnB

The project has already received investments from companies such NRG Energy, as well as grants from the federal government. Companies must continue to develop new, more efficient ways of supplying clean energy. The government must do its part as well to support clean reliable energy that will reduce our reliance on foreign oils.

Comic Relief

Bill Gates Supports Prop 23

Bill Gates has made a $700,000 donation against proposition 23, which would cut back state requirements on green energy as well as continue California's reliance on oil. Gates made this donation from money out of his own pocket in an effort to end our reliance on foreign oil.

"Prop 23 opponents, like Gates, have given nearly $30 million to defeat the proposal, outraising supporters by almost three to one, according to Bloomberg.Prop 23 would freeze California’s stringent requirements that aim to reduce carbon emissions to 1990 levels by 2020, until the state’s unemployment rate is at or below 5.5 percent for four consecutive quarters. The state’s unemployment rate now stands at about 12 percent".

                                        Read more: Bill Gates joins California Prop 23 battle 

It is becomes more and more important to cut our reliance on limited foreign oil as we continue to see the devastating effects greenhouse gases have on our environment. Prop. 23, and the Texas oil companies supporting it,  threatens to set back all of the regulations California has imposed to stop our reliance on oil, and invest in renewable energy.

Whitman Booed off Stage

Meg Whitman refused to withdraw her attack campaign commercials in a debate last week with Jerry Brown in Long Beach. After Jerry Brown agreed that he would remove his attack commercials as long as Whitman agreed to do the same, the audience booed Whitman for reusing to agree. Whitman claims that voters must see the truth of Jerry Browns campaign, and continued to attack Jerry Brown's work as mayor of the city of Oakland. It will be interesting to see the effects this has on both candidates campaigns. Voters will decide on November 2 which candidate is better suited for Governor of California.

Is Prop 19 Good or Bad for California?

On November 2, California voters will have the opportunity to legalize marijuana for people 21 or older. Proposition 19 divides voters, some believing legalizing it is against Federal Law and will do no good for our state, while others believe it could hold answers to California's budget crisis.

Many prop. 19 supporters emphasize how legalizing marijuana in California will greatly reduce the amount of drug crimes related to marijuana, as well as take power out of the hands of the Mexican rug cartels. In addition, taxes imposed on marijuana will create an enormous amount of money that will help lift our state out of debt.

"It's impossible to predict how much Prop 19 could really change things, but perhaps the best test case would be the city of Oakland. There, commercial pot production has been taxed since 2005, sold among four licensed dispensaries operating downtown. But crime hasn't gone up in Oakland as a result; there aren't glassy-eyed potheads asleep on benches around every bend. In fact, regulation has done something of the opposite: licensed "coffee shops" have lured new business to the area, and the $2 million in taxes that's expected to come in this year, according to the city's tax administrator, will go toward things like filling potholes, renovating parks, and funding recreation centers. "The reality," says Richard Lee, a local entrepreneur (and Prop 19's primary sponsor), "is [that] we're creating jobs, improving the city, filling empty store spaces, and when people come down here to Oakland, they can see that."

http://www.newsweek.com/2010/10/25/prop-19-making-pot-legal-in-california.html#comments

Comic Relief

Is Meg Whitman Right for California?

Meg Whitman, the Republican nominee for the Governor of California, does have a lot of experience running a huge corporation, as the CEO of Ebay, but is she capable of governing California? Whitman presents herself as an expert in financials, who can lift California out of its budget crisis. Running one of the most successful large corporations, Meg Whitman is capable of this task, but she also does receive some criticism. In contrast to her opposing candidate, Jerry Brown, Meg Whitman has spent millions of dollars on her campaign and is often criticized for it, some saying she is trying to buy her way into office. Only time will tell if her efforts will pay off.

The Rise of Unemployment and Recession

As our country has fallen in to recession during the previous few years, business strategies have changed and layoffs have increased. When in times of recession, managers of companies are put in tough situations where they must always do what's best for the survival of the company. Businesses are forced to make safe choices in contrast to the uncontrolled spending of the previous years.

"It’s no surprise that business confidence has been shaken over the last few years. Executives are unwilling to take on new risks, and people in all walks of life are nervous about trusting in one another"

http://www.nytimes.com/2010/10/03/business/economy/03view.html?ref=economy

Mass layoffs in corporate companies that must eliminate jobs in order to stay competitive only continue the downward spiral of our economy. While firing workers does reduce costs for companies, it also puts a huge burden on the rest of the workforce that receives their additional work.

Can the Tea Party Win Enough Races to have an Influence?

As we near the mid-term elections, it is more and more evident that the Tea Party could win itself a greater influence in our government. The Tea Party intends to rebuild our government by cutting taxes and spending as well as repealing the healthcare legislation and financial regulations passed this year during the Democratic majority of the house and senate. Many Americans are turning to the Tea Party looking for government leaders that will act in the interest of the people.

"With a little more than two weeks till Election Day, 33 Tea Party-backed candidates are in tossup races or running in House districts that are solidly or leaning Republican, and 8 stand a good or better chance of winning Senate seats."http://www.nytimes.com/2010/10/15/us/politics/15teaparty.html?_r=1&hp

Although many Americans are turning to the Tea Party, the majority seem to be coming from the Republican party. The divide between the Tea Party and Republican party has enabled the Democratic party to take a majority control. The Tea Party has already performed better than many have expected, and continues to grow. Only the future will tell if the Tea Party will continue to rise as a governing party.

Are you a Republican or a Democrat?

 The Quiz

The following are your scores. They are based on a gradual range of 0 to 12. For instance, a Conservative/Progressive score of 3 and 0 will both yield a result of social conservative, yet 0 would be an extreme conservative and 3 a moderate conservative

Conservative/Progressive score: 9
You are a social progressive. You generally consider yourself a humanist first. You probably think that religion and patriotism go too far in society. You probably consider yourself to be a citizen of Earth first rather than a citizen of your country.

Capitalist Purist/Social Capitalist score: 10
You're a Social Capitalist, you think that, left to its own, Capitalism leaves a lot of people behind. You think that Health Care should be free to all, that the minimum wage should be raised, and that the government should provide jobs to all that are capable of having them. You likely hated the Bush tax cuts, and believe that the middle class has gotten poorer, and the rich have gotten richer over the past several years. The far extreme of social capitalism is socialism.

Libertarian/Authoritarian score: 4
You're a Moderate. You think that we all have certain inalienable rights that must be protected, but that sometimes laws need to be made to protect the majority's lives or quality of lives. You might think that the 2nd amendment isn't necessary anymore because letting everyone a gun is extremely dangerous to the community. You might also be against illegal drug use or public pornography because of its possible harmful effects to society.

Pacifist/Militarist score: 1
You're a Pacifist. You are angered that the United States thinks it should dominate the world through its military force. You think that the only time war is necessary is when we are in direct danger of being attacked. You also believe the US spends way too much of its money on defense, as we can practically cut it in half and still easily defend ourselves, and use that money to fix all our economic problems.

Overall, you would most likely fit into the category of Democrat

Ali G - Economics

Ali G talks economics with former Chief Economics Advisor for President Carter.

Could changing Chinas' currency value help the U.S. economy?

The United States is pushing China to higher the value of their currency, which is undervalued by about 20 percent. Raising the value of China's currency, the Renminbi, would support many of the low wage workers throughout Chinas factories, and help bring people out of poverty, giving them some disposable income.

"This is the path that rising economic powers, from Germany to the United States to Japan, have taken before. They start as exporters and then build up a thriving domestic economy. It’s the path China needs to take now, for the sake of its citizens and for the world."     

Read more:

http://www.nytimes.com/2010/09/22/business/global/22leonhardt.html?_r=1&ref=economy

 Although raising the value of the Renminbi would bring many low wage laborers out of poverty, that would also force big businesses'  to pay their workers more, when they rely on cheap labor for their business. In the long-run, a raise in the value of China's currency will ultimately pay off with a better economy as well as higher paid workers. China's big business's must stop corporate greed, and distribute some of the continually growing profits to their low wage workers.

Alternates to Fossil Fuels

State Regulators recently approved the Abengoa Mojave Solar Project for construction. President Obama awarded a 1.45 Billion dollar Federal Loan guarantee for this project in the spring of July, that will be used to construct a 250 megawatt solar installation in southwest Phoenix.

The Mojave plant is scheduled to start producing energy commercially by the early 2013. The installation will use technology in which the sun hits curved parabolic mirrors arranged in troughs that heat fluid. The heated fluid then generates steam that produces electricity as it expands through steam turbine generators.  

Read More: http://latimesblogs.latimes.com/technology/2010/09/california-energy-commission-approves-abengoa-mojave-solar-project.html

 Projects like Abengoa, that reduce our reliance on foreign fossil fuels need to be encouraged by our government, and should be rewarded advantages to products that increase our carbon dioxide emissions. Scientists must continue to expand their work with clean energy resources in order for the World to see a change from its current Global Crisis. The state and nation must continue to reward clean energy, passing bills that promote and encourage investment in green resources.

An Unexpected Solution to the Worlds Energy Problem

Researchers in Scotland have recently discovered that the byproducts from manufacturing whisky can be used as biofuels. Scotland's 6 billion dollar whisky industry can provides a good amount of this biofuel, and plans to be available at gas stations around Europe by 2020.

"The fuel produced is butanol, which produces 30 percent more energy per gallon than ethanol.
Best of all, the biofuel could go straight into your car's tank, with no rejiggering required. It could eventually be used as jet fuel as well."
Read more: http://www.sfgate.com/cgi-bin/blogs/green/detail?entry_id=70378&type=green#ixzz0z65UroMF

The World will need to seek out solutions such as these recycled biofuels  in order to solve the Global Warming crisis. America needs to step forward and take the initiative on this problem, as Thomas Friedman calls it, "Code Green". It is up to the young generation to solve this Global Crisis, and it will only happen by the encouragement of energy efficient solutions that will reduce our dependence on fossil fuels.

Finding a "Green" battery

Agencies such as ARPA-E (Advanced Research Projects Agency - Energy) provide the answer to Thomas Friedman's "Code Green". New sources of alternative energy must be discovered to replace the worlds current fossil fuels and oils, in order for our generation to see the decline of Global Warming.
                "Most research on renewable energy has focused on replacing the electricity that now comes from burning coal and natural gas...A lot of problems could be solved with a renewable replacement for oil-based gasoline and diesel in the fuel tank — either a new liquid fuel or a much better battery."

Agencies such as ARPA-E donating money towards research is the only way the world will overcome the problem Global Warming presents to our environment. It is vital that scientists come up with an alternative to fossil fuels, that is energy efficient, affordable, and environmentally friendly. Investments in Green technology must continue in order to find a renewable, clean resource that will not harm our environment.

Plug-in cars provide an answer to global warming

Plug-in electric cars are a perfect example of steps that need to be taken in the worlds "Green Revolution" in order to save our planet from Global Warming. The burning of fossil fuels in our current low gas mileage cars accounts for a huge amount of carbon dioxide being poured into our atmosphere. Not only do electric cars provide a solution to Global warming, they also offer car owners an opportunity to save money while saving the environment.

 "I've found something that is reliable, makes a positive impact on

my life and will save me money - a plug-in electric car."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/30/ED131F4HS9.DTL#ixzz0yRVdzzn7

These electric cars can be plugged into a standard 110-volt outlet and can be fully charged in only three hours. Along with Toyota, other car companies such as Nissan and Chevy plan to release new plug-in cars. Electric cars provide an alternative to one of the worlds greatest sources of pollution, and seem to provide hope that the world will solve the Global Warming crisis. 

The struggles of finding new "Green" technoogy

As Thomas Friedman said in his in his book, Hot, Flat and Crowded, America is in need of a "Green Revolution". Although America is already taking steps towards saving the earth from global warming, new sources of green technology seem to present new problems.

"If we told you that a poorly regulated energy facility killed thousands of birds this year, you could assume we were talking about BP's Deepwater Horizon platform in the Gulf of Mexico. But we also could be talking about the Altamont Pass wind farm east of San Francisco, which has been killing thousands of migratory birds and protected raptors since the 1980s."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/09/02/EDEG1F70QV.DTL#ixzz0yRLA4SVq

Although the wind turbines in the Altamont pass offer a huge resource of renewable energy, they also kill thousands of birds every year. Environmentalists are split on this issue, with some supporting renewable energy, while others, such as the major oil companies, stress the negative effects. The wind turbines of the Altamont Pass provide a huge amount of green energy, but the negative impacts they have on the local environment must be fixed in order to see its continual success. Alternative Energy resources such as this are the answer to the problem our generation faces, and our society must stress the importance of "Code Green" in order to see change in the future.