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	<title>Business &#38; Money &#187; Rana Foroohar &#124; TIME.com</title>
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		<title>Business &#38; Money &#187; Rana Foroohar &#124; TIME.com</title>
		<link>http://business.time.com</link>
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		<title>Why They Build Mega Yachts in Central China — an Economic Mystery Story</title>
		<link>http://business.time.com/2013/06/17/why-they-build-mega-yachts-in-central-china-an-economic-mystery-story/</link>
		<comments>http://business.time.com/2013/06/17/why-they-build-mega-yachts-in-central-china-an-economic-mystery-story/#comments</comments>
		<pubDate>Tue, 18 Jun 2013 01:00:31 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Manufacturing]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=82083</guid>
		<description><![CDATA[This article is the second in Foroohar&#8217;s series on Chinese business developments and their effects on the global economy; read the first installment here. It’s tough to feel sorry for billionaires. But even they have taken a hit over the past five years, or so says Brad Bean, the managing director of Dynasty Yachts in Wuhan, China, which is a division of the Miami-based Megayacht Group. Bean is a 35-year veteran of the yacht business, with a specialty in mega yachts — sea monsters that range in length from 50 to 120 m. With the rise in global wealth over the past two decades, the number of mega yachts, which start at about $50 million and top out at around $250 million, has been growing — as have the prices and backlog. “The order books of traditional yachtmakers in Germany, Italy and the Netherlands are filled for the next several years, and demand means the costs have just become too high,” says Bean. “And so our customers — many of whom have also become somewhat more price-conscious since the financial crisis — started coming to us and asking us to find new building areas.” Solution: yachts made in China. “It wasn’t the first place we thought of,” says Bean, who is used to people raising an eyebrow at the thought of what may be the world’s most expensive luxury good being manufactured in a country still better known for light fixtures and component electronic parts. Indeed, he looked at setting up production in Poland, Turkey, Russia and a number of other countries before finally settling on Wuhan, a city of 10 million in central China. The inland city, which sits on the Yangtze River, had the advantage of a port that wasn’t vulnerable to tsunamis and workers whose hourly rates are a fraction of those in Europe and lower even than those in China’s more developed coastal areas. No matter that they’d never built big boats there before. Bean brought in consultants from companies in Europe to manage and train<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=82083&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Manufacturing</primary_category><primary_category_link>http://business.time.com/category/companies-industries/manufacturing-companies-industries/</primary_category_link>
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		<title>Red Steel City: What China&#8217;s Oldest Steel Factory Says About the Nation&#8217;s Future</title>
		<link>http://business.time.com/2013/06/16/red-steel-city-what-chinas-oldest-steel-factory-says-about-the-nations-future/</link>
		<comments>http://business.time.com/2013/06/16/red-steel-city-what-chinas-oldest-steel-factory-says-about-the-nations-future/#comments</comments>
		<pubDate>Mon, 17 Jun 2013 01:00:30 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Asia]]></category>
		<category><![CDATA[Curious Capitalist]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=81985</guid>
		<description><![CDATA[If you want to understand the history of modern China, a good place to start is the Wuhan Iron &#38; Steel (Group) Corp., with headquarters in Wuhan, a centrally located city of 10 million that is often called the Chicago of China. At the entrance of the 27-sq-km campus is a museum that documents the history of the company, beginning with its founding after the Qing dynasty&#8217;s Opium Wars, when it was decided by the provincial governor that China should enhance its “learning of advanced technology from the West to resist the invasion of Western countries.” That meant making steel — a lot of it. WISCO is the oldest steel plant in China and has churned out the metal used to make everything from the rifle that fired the first shot in the 1899–1901 Boxer Rebellion to the rolled steel used by up-and-coming Chinese automotive makers such as BYD and Cherry, to the high-performance metal that created the stunning Bird’s Nest Stadium for the Beijing Olympics. At the entrance to the factory campus is a large statue of Mao, who famously proclaimed, “Nothing in the world can defeat us as long as we have two things — one is food; the other is iron and steel.” Of course, Mao’s willingness to put the latter before the former was the cause of the Great Famine, which killed as many as 43 million Chinese between 1958 and &#8217;61. (In a surge of nationalistic fervor, the Great Leader commanded all peasants to stop growing crops and start making steel.) But in general, the history of WISCO has been one of the rise of China. Pictures in the company museum show several decades worth of smiling Politburo members and leaders from Mao to Deng to Jiang Zemin, Hu Jintao and Xi Jinping, visiting the factory grounds, consulting with Soviet technologists, cutting new steel-trade deals with Brazilian officials and, more recently, announcing major overseas expansions (WISCO now owns and operates mines and steel facilities in places like Canada, Brazil, Liberia, Madagascar, and Australia). The company,<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=81985&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Curious Capitalist</primary_category><primary_category_link>http://business.time.com/category/curious-capitalist/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/06/1500_int_steel_0616.jpg?w=240</featured_image>
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			<media:title type="html">An employee walks past rows of steel at a steel production factory in Wuhan, Hubei province, Aug. 2, 2012.</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Grading Abenomics: After Stock Slide, Japan Economic Reforms Under Scrutiny</title>
		<link>http://business.time.com/2013/06/14/grading-abenomics-after-stock-slide-japan-economic-reforms-under-scrutiny/</link>
		<comments>http://business.time.com/2013/06/14/grading-abenomics-after-stock-slide-japan-economic-reforms-under-scrutiny/#comments</comments>
		<pubDate>Fri, 14 Jun 2013 12:13:51 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Asia]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Abenomics]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[japan]]></category>
		<category><![CDATA[Nikkei]]></category>
		<category><![CDATA[stock market]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=81940</guid>
		<description><![CDATA[Is Japan now officially in bear market? It’s a question being asked by many investors today, given that the Nikkei closed yesterday 20 percent down from a recent high on May 22nd. The market was up slightly, by 1.9%, on Friday, but mainly off the back of bargain buying. In technical terms, a 20 percent drop is often labeled a bear market. But what’s happened in Japan hasn’t happened in a vacuum – it’s part of a larger central bank inflated money bubble that I’ve been writing about for some time – one that may be starting to pop. It’s not surprising to me that the Nikkei and the emerging markets have been taking the biggest and fastest correction over the last few days. As savvy emerging market experts like Morgan Stanley’s Ruchir Sharma have been saying for some time, emerging markets have been inflated by central bank money, and given their inherent riskiness, they were always to become volatile at the first sign of a pull back from “quantitative easing,” the Fed’s asset buying strategy. But Japan is a somewhat different story &#8212; the big question there is whether this Nikkei correction (or bear market, as you prefer) heralds the early death of “Abenomics.” That’s the nickname of the policy regime launched last year by Japanese Prime Minister Shinzo Abe, which includes aggressive monetary easing of the kind we’ve already seen from the Federal Reserve in the U.S., as well as promises of major structural changes to the economy, like deregulation of protected sectors, tax reform, trade liberalization, red tape cutting, and a new push for innovation and entrepreneurship. Abe calls his monetary, fiscal and growth reforms the “three arrows” in his quill, referring to an ancient Japanese legend in which three arrows bundled together prove to be stronger than one. But as in the U.S., the only arrow that has really been deployed is the first &#8212; monetary policy. Just as the Fed’s program of asset buying led the Dow to record highs, the announcement that the Bank<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=81940&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/06/14/grading-abenomics-after-stock-slide-japan-economic-reforms-under-scrutiny/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Asia</primary_category><primary_category_link>http://business.time.com/category/economy-policy/asia/</primary_category_link>
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		<title>China, the U.S. and a Special Relationship in the Making: 5 Shared Economic Challenges</title>
		<link>http://business.time.com/2013/06/07/china-the-u-s-and-a-special-relationship-in-the-making-5-shared-economic-challenges/</link>
		<comments>http://business.time.com/2013/06/07/china-the-u-s-and-a-special-relationship-in-the-making-5-shared-economic-challenges/#comments</comments>
		<pubDate>Fri, 07 Jun 2013 15:15:07 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Asia]]></category>
		<category><![CDATA[Curious Capitalist]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Financial Reform]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Health Care]]></category>
		<category><![CDATA[Healthcare]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Labor]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=81496</guid>
		<description><![CDATA[As President Obama and Chinese President Xi Jinping settle into conversation in California for the weekend, there’s talk of a new kind of G-2 alliance between the nations, and even a “grand bargain” over issues like trade, the structure of global institutions such as the IMF and the World Bank, and security issues. The idea is to reset U.S.-China relations, which have been tense in recent years, and hopefully restart world growth, which has been lagging, in the process. It’s a wise goal. China and the U.S. are now the two strongest legs of the stool that is the global economy (Europe is faltering). They are not only the two largest economies in the world, but also represent the biggest single chunks of growth – and despite their differences, the countries&#8217; major economic challenges are actually strikingly similar. Let&#8217;s count the ways. 1. Jobs for the middle class. Both China and the U.S. have bifurcated economies. Jobs at the very low end are plentiful – 8 out of the 10 fastest-growing job categories in the U.S. are in low-wage areas like tourism and leisure. Even as coastal wages rise in China, factories are moving inland to take advantage of another 20 years&#8217; worth of low-paid workers; there are still hundreds of millions of people in China living on less than $2 a day. While both countries have a talent shortage at the very top end, workers in the middle are out in the cold. Chinese college graduates have a 40% unemployment rate; meanwhile, American graduates are facing the toughest job market in decades, which brings us to &#8230; 2. Education reform. In the U.S., globalization and technology-related job destruction have hollowed out middle-class jobs. But research shows that technology is historically a net job creator – only when the pace of education doesn’t keep up with technological change does it become a job destroyer. The U.S. needs a rethinking of STEM (science, technology, engineering and math) education, which will be required for an increasing chunk of new jobs in the future at all levels, as<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=81496&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Curious Capitalist</primary_category><primary_category_link>http://business.time.com/category/curious-capitalist/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/06/ce9bb029bc4243379ad62b996a276fb6-0.jpg?w=240</featured_image>
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			<media:title type="html">Barack Obama, Xi Jinping</media:title>
		</media:content>

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			<media:title type="html">ranaforoohar</media:title>
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		<title>China&#8217;s &#8216;Second Tier&#8217; Cities: That&#8217;s Where the Money Is</title>
		<link>http://business.time.com/2013/06/06/chinas-second-tier-cities-thats-where-the-money-is/</link>
		<comments>http://business.time.com/2013/06/06/chinas-second-tier-cities-thats-where-the-money-is/#comments</comments>
		<pubDate>Thu, 06 Jun 2013 19:00:47 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=81448</guid>
		<description><![CDATA[Airports can tell you much about the consumer development of a country. Having just landed in Shanghai on route to Chengdu, a second-tier city in the Southwest, where TIME&#8217;s sister publication is holding its Global Forum, I was struck by two things. First, the amount of smaller Western niche brands that now occupy airport retail space. The big guns like Gucci, Dior, and Coach have been here for ages, and indeed get the majority of their corporate growth from China. But they are setting up most of their new shops in the country&#8217;s western regions, in &#8220;second tier&#8221; cities &#8212; that&#8217;s an official government designation, by the way, based on economic activity and population &#8211; like Chongqing and Chengdu. The upper middle classes of Beijing and Shanghai no longer need to shop for Western luxury in China; they are rich enough to take trips to France, Italy and the US and get it direct. That&#8217;s why so many Parisian hotels are being re-kitted to accommodate Chinese tastes. And that&#8217;s why LVMH and others are counting on the newly wealthy, but less globally sophisticated, western Chinese to provide the next growth kick. Meanwhile, smaller Western brands like Kiehl&#8217;s, the cult beauty pharmacy based in NYC, and San Francisco&#8217;s Benefit cosmetics seem to be doing a brisk business in the Shanghai airport retail malls. Coastal Chinese seem as familiar and comfortable with these high end specialty brands as their peers in New York or London are, which is a mark of how rich and consumer savvy they have become. Indeed, many of the products on sale in Kiehl&#8217;s had been customized for the Chinese &#8212; skin whitening products and an emphasize on exotic herbal formulas. The second thing that struck me sitting in the Chinese domestic flight terminal is just how few Westerners there are here &#8212; most of those on my previous flight will remain here in Shanghai, while only handful sit among the hundreds of Chinese headed for Chendgu. Like the U.S., the world&#8217;s second largest economy is big enough to support<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=81448&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Asia</primary_category><primary_category_link>http://business.time.com/category/economy-policy/asia/</primary_category_link>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>The Importance of Pork in China</title>
		<link>http://business.time.com/2013/05/31/the-importance-of-pork-in-china/</link>
		<comments>http://business.time.com/2013/05/31/the-importance-of-pork-in-china/#comments</comments>
		<pubDate>Fri, 31 May 2013 11:00:12 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Curious Capitalist]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=81089</guid>
		<description><![CDATA[Chinese government statistics are a black box, but one economic indicator you can always count on to reflect reality is demand for pork.Pork is so ubiquitous in the Middle Kingdom that the word for it is the same as meat. And as the Chinese have gotten richer, they’ve eaten a lot more of it – as exemplified by this week’s $7 billion offer from China’s largest meat processor, Shuanghui International, to acquire Smithfield Foods, the world’s largest pork producer. The Chinese middle class is predicted to triple in size to 630 million people by 2022, according to a new study released by the China United States Exchange Foundation, and this new aspirational class wants meat, cars, better housing, more elaborate white goods – in short, all the things that the Western middle class wants. This presents some incredibly opportunities for direct investment into the U.S., as cash-rich Chinese firms look to ramp up acquisitions of Western companies. At less than $2 billion a year, direct investment from China to the U.S. is miniscule relative to the sizes of either economy. Part of that is due to the fact that a number of recent Chinese acquisitions of U.S. firms have been blocked due to national security or anti-trust concerns. While it’s hard to argue that bacon is a strategic asset, the Smithfield’s deal will certainly be put through the regulatory paces. Yet as Joe Nocera and I discussed on this week’s episode of WNYC’s Money Talking, it might also present an opportunity for the U.S. to force the Chinese to open up their own markets, in which state-owned firms have been playing a bigger role in recent years, and also to do their part to protect the intellectual property of American firms via a more robust legal system. These issues and many other economic challenges will surely be on table when President Obama and Chinese premier Xi Jinping meet next week in Los Angeles. Listen to this week&#8217;s episode of &#8216;Money Talking&#8217; below:<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=81089&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<title>Sorry, Paul Tudor Jones: It&#8217;s Male — Not Female — Traders We Should Be Worried About</title>
		<link>http://business.time.com/2013/05/24/sorry-paul-tudor-jones-its-male-not-female-traders-we-should-be-worried-about/</link>
		<comments>http://business.time.com/2013/05/24/sorry-paul-tudor-jones-its-male-not-female-traders-we-should-be-worried-about/#comments</comments>
		<pubDate>Fri, 24 May 2013 17:21:18 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Paul Tudor Jones]]></category>
		<category><![CDATA[traders]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80802</guid>
		<description><![CDATA[Reading hedge-fund giant Paul Tudor Jones’ recent comments that having babies makes women bad traders reminded me of a close friend of mine, a very senior investment banker at a major Wall Street firm, who once worked for someone she called the Screamer. I would regularly show up to lunches or dinners with my friend and hear stories about how the Screamer had shouted yet another round of expletives during a conference call or thrown something at his secretary. I was always amazed that a man this emotionally unhinged had been allowed to hold any position of power, let alone one in which he was running billions of dollars of other people’s money. Which is why Jones’ comments are so fascinating, and so flawed. If I’m reading his rather convoluted argument correctly, he’s saying that women can’t be good traders because they are too much at the mercy of their emotions. Actually, plenty of research has shown just the opposite. In the best-selling book, The Hour Between Dog and Wolf, John Coates, a former trader who is now a neuroscientist at Cambridge University, looks at just how emotionally influenced traders — mainly men — are. Coates finds that fluctuations in traders’ hormones play a crucial and unexamined role in the financial markets, creating major boom-and-bust cycles as vast amounts of dopamine flood the brain during a good — or bad — trade. Indeed, it’s a snowballing cycle, as traders need ever-bigger doses of dopamine to feel the buzz. London Whale anyone? What’s interesting is that female traders don’t go as much to those extremes. Research shows they tend to be more risk-adverse, yes, but that means that while they avoid the highs and lows, they can often have better returns than men. (MORE: Why We Need More Female Traders on Wall Street) I’m guessing that vast amounts of dopamine in the brain during a billion-dollar trade make you just as emotional as having a baby does. Maybe that’s one reason that regulators on both sides of the Atlantic are looking to<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80802&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/24/sorry-paul-tudor-jones-its-male-not-female-traders-we-should-be-worried-about/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Curious Capitalist</primary_category><primary_category_link>http://business.time.com/category/curious-capitalist/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/05/wp136358329.jpg?w=240</featured_image>
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			<media:title type="html">A trader works on the floor of the New York Stock Exchange in New York, U.S., on Monday, Jan. 3, 2012.</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Money Talking: Where&#8217;s the Economy Headed This Summer?</title>
		<link>http://business.time.com/2013/05/24/money-talking-wheres-the-economy-headed-this-summer/</link>
		<comments>http://business.time.com/2013/05/24/money-talking-wheres-the-economy-headed-this-summer/#comments</comments>
		<pubDate>Fri, 24 May 2013 12:40:31 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Curious Capitalist]]></category>
		<category><![CDATA[Podcast]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80752</guid>
		<description><![CDATA[Is the U.S. back? That&#8217;s the big question in the global economy right now. Earlier this week, Federal Reserve chairman Ben Bernanke suggested that he&#8217;d be tiptoeing away from the Fed&#8217;s asset buying program, perhaps as early as the fall, since the U.S. economy was showing signs of recovery. That news, along with weaker than expected Chinese growth data, helped send Japan&#8217;s Nikkei stock market index crashing. Ironically, the weakness of the U.S. economy over the last several years is one reason that asset prices have stayed high, since central bankers have been buying up bonds and other lower risk assets, and pushing other investors into risker categories like stocks, buoying prices. Now, everyone is waiting to see how the Fed&#8217;s exit from &#8220;quantitative easing&#8221; is going to play out. This week, on WNYC&#8217;s Money Talking, BlackRock Investment Institute senior director Peter Fisher and I discussed the implications of the Fed&#8217;s exit, and what&#8217;s really happening with consumers and companies in the real economy. According to Fisher, the jury is still out about whether the Fed will be able to pull back from it&#8217;s asset buying program without a major market correction. But the bigger issue is wages — at some point, in an economy that&#8217;s made up of 70% consumer spending, you&#8217;ve got to have wage growth to have a real recovery. Next week we&#8217;ll get some big news on that score, with the University of Michigan consumer confidence numbers out. For more on where the markets and the real economy are going, listen in on this week&#8217;s episode of Money Talking.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80752&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
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	<primary_category>Podcast</primary_category><primary_category_link>http://business.time.com/category/podcast-2/</primary_category_link>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Japan Market Crash: A Slow Leak in the &#8220;Central Bank Bubble&#8221;</title>
		<link>http://business.time.com/2013/05/23/japan-market-crash-a-slow-leak-in-the-central-bank-bubble/</link>
		<comments>http://business.time.com/2013/05/23/japan-market-crash-a-slow-leak-in-the-central-bank-bubble/#comments</comments>
		<pubDate>Thu, 23 May 2013 16:51:23 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Asia]]></category>
		<category><![CDATA[Curious Capitalist]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80719</guid>
		<description><![CDATA[There’s a truism in investing that the last one into a market is the first one out. And that certainly seems to be the case today, with Japan’s Nikkei index crashing off the back of two things: First, hints from the Federal Reserve that the U.S. economy is improving enough to justify a slow pull-back from the central bank&#8217;s market-goosing asset buying program known as “quantitative easing;” and second, that the Chinese economy is slowing down even more than we thought. For some time now, I’ve been writing that the global equity markets have been inflated by central banks &#8212; and that this was a bubble that would eventually pop once people realized that monetary policy, rather than the real economy, was behind the boom. (MORE: The Next Real Estate Bubble Has Already Begun (But It’s Not What You Think)) Well, folks, that time may be here. Behavioral economist Peter Atwater, whose firm Financial Insyghts focuses on the market implications of consumer sentiment, certainly thinks so. “I would offer that Abenomics&#8221; &#8212; i.e. Japanese prime minister Shinzo Abe’s plan to goose his nation&#8217;s economy with a combination of monetary policy and fiscal and structural reforms &#8212; &#8220;was the &#8216;subprime&#8217; of policy-making,” says Atwater. It’s a useful analogy: Subprime loans were the top of a real estate bubble that had been building for years in the U.S., and Japan’s version of quantitative easing is coming at the end of three years of money dumps by the U.S. Federal Reserve, each of which has had a smaller effect on the markets than those that came before. Sounds like a bubble to me. So, where do we go from here? Atwater and other folks like the smart guys at Capital Economics in London believe that the Nikkei will continue to be vulnerable and that Japan’s attempts to lower the value of it’s currency in order to boost exports and real economic activity may be at an end. In fact, you might even see the yen start to rise, especially if there’s another crisis in<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80719&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Curious Capitalist</primary_category><primary_category_link>http://business.time.com/category/curious-capitalist/</primary_category_link>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>It’s Official: Tech Has Replaced Banking as the New Corporate Bad Guy</title>
		<link>http://business.time.com/2013/05/21/its-official-tech-has-replaced-banking-as-the-new-corporate-bad-guy/</link>
		<comments>http://business.time.com/2013/05/21/its-official-tech-has-replaced-banking-as-the-new-corporate-bad-guy/#comments</comments>
		<pubDate>Tue, 21 May 2013 13:37:18 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Tim Cook]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80509</guid>
		<description><![CDATA[U.S. senators have accused Apple, the world’s most valuable company, of also being the world’s biggest tax avoider, as congressional investigators yesterday laid out how the technology giant has jumped through tax loophole after loophole in order to save some $44 billion of otherwise taxable income. Today they&#8217;ll follow up by grilling Apple CEO Tim Cook on Capitol Hill. Aside from the fact that Apple clearly has amazing tax lawyers, what does all this mean? Here are the four key things you need to know: 1. Corporate tax reform will be the big issue in Washington now that the deficit is off the front burner. As I wrote in back in January, American firms have some $2 trillion in cash on their balance sheets stashed abroad, in large part because they don’t want to bring that money home and pay America’s 35% corporate tax rate. (Ireland, where Apple apparently stashed much of its cash, has a 12.5% rate &#8212; though it appears Apple was able to negotiate an even lower one than that.) With unemployment still high, and wages still flat, the government wants companies to bring that cash back to the U.S. and put it work creating jobs at home – and the investigation into Apple’s finances is clearly a warning shot to other major U.S. multinationals. Tax reform is coming, not just in the U.S., but also in other major developed countries (more about that below). (MORE: Senate Panel Says Apple Uses Firms Outside the U.S. to Avoid Taxes) 2. Cash rich tech firms are replacing bankers as the new corporate bad guys. A year ago, I wrote a column called Learning To Hate Big Tech, which led with the investigation into Apple’s tax avoidance, but also laid out other Big Tech v. Government battles, like the push to get Amazon to pay local sales tax (which the government won) and the FTC’s anti-trust investigations into Google. The bottom line is that when you have a lot of cash and can move much of it abroad easily, as the biggest tech companies<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80509&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/21/its-official-tech-has-replaced-banking-as-the-new-corporate-bad-guy/feed/</wfw:commentRss>
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	<primary_category>Taxes</primary_category><primary_category_link>http://business.time.com/category/economy-policy/taxes-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/05/2013-05-21t161748z_1970799653_gm1e95m0.jpg?w=240</featured_image>
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			<media:title type="html">Apple CEO Tim Cook appears before a Senate homeland security and governmental affairs investigations subcommittee hearing on offshore profit shifting and the U.S. tax code, on Capitol Hill in Washington, D.C., on May 21, 2013.</media:title>
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		<media:content url="http://1.gravatar.com/avatar/1c372315300738b8325eb1812b2ba263?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">ranaforoohar</media:title>
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		<title>Republicans Seem to Be Out of Economic Ideas &#8212; Here Are Two Suggestions</title>
		<link>http://business.time.com/2013/05/20/republicans-seem-to-be-out-of-economic-ideas-here-are-two-suggestions/</link>
		<comments>http://business.time.com/2013/05/20/republicans-seem-to-be-out-of-economic-ideas-here-are-two-suggestions/#comments</comments>
		<pubDate>Mon, 20 May 2013 09:45:14 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[austerity]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80396</guid>
		<description><![CDATA[If you think about thrift as a moral quality, it’s easy to understand why Republicans have gotten things so wrong in terms of macroeconomic policy over the past few years. Austerity, after all, has a folksy and intuitive appeal, the idea being that you can’t cure debt with more debt. No household could — and why shouldn’t the government be run like a stable household, never borrowing what it can’t repay quickly and easily? Of course, we know why not: Keynes explained the reason in his General Theory, and pretty much every modern leader who has tried to fight rising debt with austerity since then, from Herbert Hoover to the modern technocrats of Greece and Italy, has failed. The Germans, like many American conservatives, are still enamored of austerity. It appeals to their sense of thrift and fairness; but having spent time recently in Germany, I can see that, as in the U.S., this approach has also become a moral issue. The fact that so many European nations are trying to cut public spending all at once is clearly the reason that Europe is now officially in the longest recession since the creation of the euro zone. But belief in austerity persists because there&#8217;s a certain grim moral justice in the idea that debtor nations should pay for their crimes with deep, painful forced cuts. (MORE: The Mystery of the Incredible Shrinking Budget Deficit) Justice aside, austerity is a failed economic concept, a realization that is having major short-term ramifications in Europe (as I’ll be exploring in more detail in an upcoming TIME magazine story). But it may also have a longer-term impact on the 2014 congressional and 2016 presidential elections in the U.S. For some time now, conservative economic policy has revolved around two ideas: the supposed need to slash government budgets in order to cut the deficit, and the notion that tax cuts will spur growth (a.k.a. trickle-down economics). But as we’ve seen in headlines over the past week, the deficit is coming down fast, not because of cuts, but<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80396&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Economy &amp; Policy</primary_category><primary_category_link>http://business.time.com/category/economy-policy/</primary_category_link>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Money Talking: Is College Worth It?</title>
		<link>http://business.time.com/2013/05/17/money-talking-is-college-worth-it/</link>
		<comments>http://business.time.com/2013/05/17/money-talking-is-college-worth-it/#comments</comments>
		<pubDate>Fri, 17 May 2013 15:16:06 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Curious Capitalist]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80259</guid>
		<description><![CDATA[Should some college-bound students opt for a two-year degree at a technical school? Will an education give you a better life? Money Talking digs into the tough questions in the debate over the high cost of higher education and the mounting student debt that&#8217;s one of its byproducts. The central question: Is college worth it?<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80259&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Curious Capitalist</primary_category><primary_category_link>http://business.time.com/category/curious-capitalist/</primary_category_link>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Investors Are Betting That Japan Is at a Tipping Point</title>
		<link>http://business.time.com/2013/05/16/investors-are-betting-that-japan-is-at-a-tipping-point/</link>
		<comments>http://business.time.com/2013/05/16/investors-are-betting-that-japan-is-at-a-tipping-point/#comments</comments>
		<pubDate>Thu, 16 May 2013 04:14:19 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Curious Capitalist]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80127</guid>
		<description><![CDATA[A few weeks ago I wrote a column titled “The Barbarians Are Back,” which looked at how cash-rich U.S. firms were drawing the attention of “activist investors” — a.k.a. corporate vultures. Well, American companies aren’t the only ones in their crosshairs — Japanese blue chips are too. Sony, one of Japan&#8217;s best-known brands, has become a target for American activist investor Daniel Loeb. His $11 billion hedge fund Third Point has taken a $1.1 billion stake in the Japanese conglomerate, and last weekend delivered a polite but firm letter pushing the company to spin off a big chunk of its entertainment businesses in order to focus more on its underperforming consumer-electronics division. (MORE: The Housing Upturn Looks Like the Real Thing) The demise of Sony, and the structural problems of Japanese firms — which include insular management, inflexible labor, overly large conglomerate structures in which various divisions don’t talk to each other, and a focus on incremental innovation at the expense of big, disruptive ideas — have been well documented in recent years. A few years back, in my previous life as international-business editor at Newsweek, I edited this story on the topic by Tokyo correspondent Christian Caryl. More recently, the Financial Times’ John Kay gave a smart explanation of why Apple, not Sony, invented the iPod. The question is whether Japanese firms, and the entire Japanese market, may be at a tipping point. Investors like Loeb are making a bet less on the potential of any one company than on the power of Abe-nomics, the new economic regime put in place by Japanese Prime Minister Shinzo Abe, which includes aggressive monetary easing of the kind we’ve already seen in the U.S., as well as structural changes to the economy, like deregulation of protected sectors, tax reform, trade liberalization and so on. It’s the Fed-style bond purchases that investors are especially banking on; already, the announcement that the Bank of Japan will ramp up purchases of Japanese government bonds has sent investors into higher-risk assets like stocks, pushing the Nikkei to a six-month rally. And today new government<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80127&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Asia</primary_category><primary_category_link>http://business.time.com/category/economy-policy/asia/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/05/sony_0516.jpg?w=240</featured_image>
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			<media:title type="html">sony_0516</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Dow 15,000: Don&#8217;t Fight the Fed, But Be Afraid</title>
		<link>http://business.time.com/2013/05/09/dow-15000-dont-fight-the-fed-but-be-afraid/</link>
		<comments>http://business.time.com/2013/05/09/dow-15000-dont-fight-the-fed-but-be-afraid/#comments</comments>
		<pubDate>Thu, 09 May 2013 09:45:53 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Curious Capitalist]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Stocks]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79588</guid>
		<description><![CDATA[It’s hard to know what to make of this week’s record Dow performance except to say, “Don’t fight the Fed.” More than four years after the peak of the financial crisis, quantitative easing—the Federal Reserve strategy of buying up assets like bonds and mortgage-backed securities in order to goose the economy – is still going strong, and so is the market. The Fed is on track to purchase $85 billion worth of assets each month for the rest of this year, and “QE3” as this third round of Fed ammo is called may last even longer than that, given the latest jobs report. The Fed has said it won’t let off the monetary gas until unemployment is at 6.5%. April’s jobs numbers were better than expected, bringing the rate down to 7.5%, but most of the growth was in low wage sectors like retail and tourism. What’s more, most of the incoming economic indicators for the second quarter of the year – like factory orders, consumer spending, corporate profit margins, and GDP growth – will likely be weaker than in the first. If the economy remains sluggish, the Fed will remain active. But what’s bad for the real economy is—or at least has been&#8211;good for stocks. As I’ve explained before, the disconnect between underlying economic data and record stock prices is largely down to the Fed and its firepower. It’s worth noting that each round of QE has slightly less of an effect on the markets than the one before. But even people like PIMCO’s Bill Gross, who has publicly fretted for over a year about the bubble making effects of QE, are advising clients to take advantage of the Fed’s largesse and stay in equities for the time being, before gradually reducing riskier positions throughout the year. (Gross has a coffee mug on his desk that reads, “Don’t fight the Fed – but Be Afraid.”) (MORE: Viewpoint: Ben Bernanke, Enabler of America&#8217;s Fiscal Dysfunction) But how afraid should we be? And how soon? That’s the magic question. Almost no<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79588&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Curious Capitalist</primary_category><primary_category_link>http://business.time.com/category/curious-capitalist/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/05/168316336.jpg?w=240</featured_image>
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			<media:title type="html">Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, on May 8, 2013.</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Bangladesh Factory Collapse Will Force Companies to Rethink Outsourced Manufacturing</title>
		<link>http://business.time.com/2013/04/30/bangladesh-factory-collapse-will-force-companies-to-rethink-outsourced-manufacturing/</link>
		<comments>http://business.time.com/2013/04/30/bangladesh-factory-collapse-will-force-companies-to-rethink-outsourced-manufacturing/#comments</comments>
		<pubDate>Tue, 30 Apr 2013 22:26:25 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Manufacturing]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=78955</guid>
		<description><![CDATA[UPDATE, May 3: On Thursday, the Walt Disney Company publicly disclosed that it is ending the production of  licensed merchandise in Bangladesh following a string of garment factory accidents in the country. A letter previously issued to licensees and vendors in March revealed that Disney is ending similar merchandise production in several countries that have been accused of fostering poor working conditions, including Pakistan, Belarus and Ecuador. Some labor rights activists are now questioning whether abandoning Bangladesh and its impoverished workers is the appropriate move, given the population&#8217;s reliance on manufacturing salaries.  Just a couple of weeks ago, my colleague Bill Saporito and I published a TIME cover story about the renaissance of American manufacturing, and the decline of the outsourcing boom to emerging markets. Among the many reasons that we listed for this trend was the sense that complex supply chains increase the risk of health, safety, labor and environmental catastrophes, which can destroy the reputation of the Western multinational firms doing the outsourcing. The news of yet another disaster in the Bangladeshi garment industry last week brings this point into stark relief. The death toll from the collapsed garment factory plaza in Savar, which housed subcontractors working with major global brands like Britain’s Primark, is at least 386, and may rise to over a thousand once authorities are done counting the bodies. This follows a devastating fire that killed 112 people at another Bangladeshi factory last year, one that was churning out goods for Wal-Mart without the company’s knowledge. Wal-Mart says it wasn’t officially using the Savar complex for outsourcing but is looking into whether any unauthorized subcontracting was done there, as the factory’s owner initially claimed. The company is also now desperately trying to repair its reputation in the region, issuing stern warnings about dropping any suppliers that violate its labor policies, and contributing $1.6 million to launch a new Environmental Health and Safety academy in Bangladesh, to provide training on workplace health and safety practices, an issue that has traditionally been handled by government. (MORE: Fast, Cheap,<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=78955&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Manufacturing</primary_category><primary_category_link>http://business.time.com/category/companies-industries/manufacturing-companies-industries/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/167638492.jpg?w=240</featured_image>
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			<media:title type="html">BANGLADESH-BUILDING-DISASTER-TEXTILE</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Stop Bemoaning the New GDP Numbers: It&#8217;s Good News</title>
		<link>http://business.time.com/2013/04/29/stop-bemoaning-the-new-gdp-numbers-its-good-news/</link>
		<comments>http://business.time.com/2013/04/29/stop-bemoaning-the-new-gdp-numbers-its-good-news/#comments</comments>
		<pubDate>Mon, 29 Apr 2013 09:45:30 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=78810</guid>
		<description><![CDATA[Economic pundits are bemoaning the fact that first quarter GDP numbers released last Friday were weaker than expected – growth was 2.5% rather than the 3% that everyone had been expecting. I actually took it as positive news. For starters, was it really possible that we’d suddenly gone back to our normal, historic 3% trend growth? The optimism in the economic forecasts always seemed to have more to do with the fact that we didn’t fall completely off the fiscal cliff a few months back. In fact, the economists and investors letting out a collective exhale a few months back made us forget about the coming effects of the sequester. But there was no denying them in the first quarter numbers – the slower than expected growth was all about the public sector slamming on the brakes. “The decline in government expenditure over the past two quarters is the biggest six month contraction since the Korean War ended,” notes Capital Economics’ chief US economist Paul Ashworth. The lack of government spending is the reason for the 2% economy – since mid 2009, GDP growth has averaged 2.1% in the U.S., but if you strip out the public sector, that average jumps up to 3.1%. In the first quarter, for example, consumer spending was the major source of growth &#8212; consumption accelerated to 3.2%, up from 1.8% at the end of the previous year. That was due in large part to the fact that American consumers have done the hard work of repairing their personal balance sheets, and are finally in the black. They can afford to dip into savings to spend a bit more, and they did – the savings rate in the first quarter was down to 2.6% from 4.7% before. But that’s unlikely to continue. There’s no sign of the unemployment rate ticking down anytime soon, and what downward movement we have seen recently is likely because the labor force participation rate in this country is at its lowest since the early 1980s, before women fully entered the<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=78810&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Economy</primary_category><primary_category_link>http://business.time.com/category/economy-policy/economy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/167567811-copy.jpg?w=240</featured_image>
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			<media:title type="html">City University Of New York Holds Job And Internship Fair</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>How &#8216;Made in the USA&#8217; is Making a Comeback</title>
		<link>http://business.time.com/2013/04/11/how-made-in-the-usa-is-making-a-comeback/</link>
		<comments>http://business.time.com/2013/04/11/how-made-in-the-usa-is-making-a-comeback/#comments</comments>
		<pubDate>Thu, 11 Apr 2013 11:15:52 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Careers & Workplace]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=77508</guid>
		<description><![CDATA[The U.S. economy continues to struggle, and the weak March jobs report — just 88,000 positions were added — briefly spooked the market. But step back and you’ll see a bright spot, perhaps the best economic news the U.S. has witnessed since the rise of Silicon Valley: Made in the USA is making a comeback. Climbing out of the recession, the U.S. has seen its manufacturing growth outpace that of other advanced nations, with some 500,000 jobs created in the past three years. It marks the first time in more than a decade that the number of factory jobs has gone up instead of down. From ExOne’s 3-D manufacturing plant near Pittsburgh to Dow Chemical’s expanding ethylene and propylene production in Louisiana and Texas, which could create 35,000 jobs, American workers are busy making things that customers around the world want to buy — and defying the narrative of the nation’s supposedly inevitable manufacturing decline. The past several months alone have seen some surprising reversals. Apple, famous for the city-size factories in China that produce its gadgets, decided to assemble one of its Mac computer lines in the U.S. Walmart, which pioneered global sourcing to find the lowest-priced goods for customers, said it would pump up spending with American suppliers by $50 billion over the next decade — and save money by doing so (for TIME&#8217;s new cover story, written by myself and Bill Saporito, and available to subscribers, click here). And Airbus will build JetBlue’s new jets in Alabama. (MORE: The Cult of Apple in China) Some economists argue that the gains are a natural part of the business cycle, rather than a sustainable recovery in the sector. But I would argue that the improvements of the last three years aren’t a blip. They are the sum of a powerful equation refiguring the global economy. U.S. factories increasingly have access to cheap energy thanks to oil and gas from the shale boom. For companies outside the U.S., it’s the opposite: high global oil prices translate into costlier fuel for<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=77508&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Careers &amp; Workplace</primary_category><primary_category_link>http://business.time.com/category/careers-workplace/</primary_category_link><letterbox>1</letterbox><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/1500_cover_0410.jpg?w=240</featured_image>
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			<media:title type="html">TIME Magazine Cover, April 22, 2013</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Was Thatcherism Good (or Bad) for the Economy?</title>
		<link>http://business.time.com/2013/04/09/was-thatcherism-good-or-bad-for-the-economy/</link>
		<comments>http://business.time.com/2013/04/09/was-thatcherism-good-or-bad-for-the-economy/#comments</comments>
		<pubDate>Tue, 09 Apr 2013 07:00:28 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=77178</guid>
		<description><![CDATA[Margaret Thatcher was known as the woman who, from 1979 to 1990, brought austerity and — at least for part of her tenure — economic growth to a stagflation-riddled Britain. She’s also known as a heedless free-market deregulator who set the stage for financial boom and bust, as well as for growing inequality. At a time when the debate over growth and austerity is front and center in the U.K., the U.S., Europe and much of the rest of the world, what is the legacy of Thatcher economics? Below, a look at some of the Iron Lady’s key economic ideas and what, if anything, they have to teach us today. A focus on inflation vs. unemployment. Perhaps it was justified back then, given that inflation in Britain in the late 1970s was heading toward 20%. But as Capital Economics managing director Roger Bootle points out in his smart look at Thatcher’s legacy in the Telegraph, the result of the government’s policy of fighting inflation by hiking interest rates fast and hard was “a cripplingly high pound, which devastated much of British industry, causing unemployment to soar.” Poverty and inequality went up radically under Thatcher, and the latter has stayed high since, a factor that many economists believe has impeded a more robust consumer recovery. While mass privatization (some of it successful, some not) did eventually create growth during the Thatcher years, GDP never rose by more than a couple of percentage points annually, even during the 1980s boom years. The verdict: in an era in which globalization and technology are keeping inflation down over the long term, and unemployment high, the Iron Lady’s policies are retro, and would be counterproductive. Public spending and tax cuts. Both Thatcher and her U.S. counterpart Ronald Reagan wanted to boost markets and shrink the state, but Reagan was a supply sider who focused almost solely on tax cuts (indeed the amount of public spending relative to GDP actually increased under Reagan). Not so the British conservatives. Thatcher was somewhat less enamored of “trickle-down economics” than Reagan and ultimately believed<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=77178&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/108108482.jpg?w=240</featured_image>
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			<media:title type="html">Margaret Thatcher</media:title>
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		<title>Is the U.S. Manufacturing Renaissance Real?</title>
		<link>http://business.time.com/2013/03/28/is-the-u-s-manufacturing-renaissance-real/</link>
		<comments>http://business.time.com/2013/03/28/is-the-u-s-manufacturing-renaissance-real/#comments</comments>
		<pubDate>Thu, 28 Mar 2013 09:45:07 +0000</pubDate>
		<dc:creator>Rana Foroohar and Bill Saporito</dc:creator>
				<category><![CDATA[Manufacturing]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=75943</guid>
		<description><![CDATA[U.S. manufacturing is back. That’s been the conventional economic wisdom now for several months, and there’s plenty of proof to back it up – rising factory output, strong manufacturing production gains, and lower labor costs that make American workers more attractive. Couple that with the natural gas boom underway in the U.S., which many experts believe will lower energy costs for U.S. manufacturers, and you’ve got a resurgence of a sector that has been shrinking as a percentage of the economy for several decades. “We are probably the most competitive, on a global basis, than we’ve been in the past 30 years,” says GE CEO Jeff Immelt. “Will U.S. manufacturing go from 9% to 30% of all jobs? That’s unlikely. But could you see a steady increase in jobs, over the next quarters and years. I think that will happen.” But at least one economic seer, Goldman Sachs’ chief economist Jan Hatzius, is throwing a bit of cold water on the idea. He recently released a report, which is getting a lot of attention on the web, arguing that the U.S. “manufacturing renaissance” is cyclical, not structural – meaning, the sector is doing as well as would have been predicted under any circumstances at this point in an economic recovery, and that the gains don’t point to a real seismic shift in U.S. manufacturing competitiveness. “Measured productivity growth has been strong,” admits Hatzius in the report, entitled “U.S. Manufacturing Renaissance: Fact or Fiction?” “But U.S. export performance – arguably a more reliable indicator of competitiveness—remains middling at best.” It’s a very interesting point, and it matters a lot to the broader economy. Nations that do better in manufacturing gain an edge in the global economy: For every $1 of manufacturing output in a community, there’s another $1.48 of wealth created. That’s why economic advisors to the President, like National Economic Council head Gene Sperling, have been pushing pro-manufacturing policies. But the Goldman report would seem to indicate that the strength in U.S. manufacturing output reflects more the relative weakness of<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=75943&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Manufacturing</primary_category><primary_category_link>http://business.time.com/category/companies-industries/manufacturing-companies-industries/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/03/welder.jpg?w=240</featured_image>
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			<media:title type="html">welder</media:title>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>Money Talking: Stock Market Rises as Sequester Looms</title>
		<link>http://business.time.com/2013/03/01/money-talking-stock-market-rises-as-sequester-looms/</link>
		<comments>http://business.time.com/2013/03/01/money-talking-stock-market-rises-as-sequester-looms/#comments</comments>
		<pubDate>Fri, 01 Mar 2013 16:45:42 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Curious Capitalist]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=73516</guid>
		<description><![CDATA[If the sequester is so bad for the economy, why are stocks nearing record highs? And, will Marissa Mayer&#8217;s edict on work at home change corporate America? For more on this, and the top stories of the week ahead, tune into Time&#8217;s Rana Foroohar on WNYC&#8217;s Money Talking.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=73516&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>1</slash:comments>
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