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Target an Industry and Stimulate Demand Cash for Clunkers - the program that paid people $4,500 to turn in their old cars and buy new ones - is one of the most demonstrably successful federal efforts at stimulating the economy so far. Over the summer, General Motors and other car companies ramped up production - adding shifts and running plants on overtime - to meet the increase in demand. Now policymakers are talking about Cash for Caulkers, a program that would give homeowners an incentive to better weatherize their houses. The goal would be to create work for a construction industry that still...
...corporate tax rates, the structure of health care - these things all have a real impact on economic growth. But Washington's tool kit doesn't work nearly as well in the short run. Right now companies aren't hiring for a very specific reason: there's not as much demand for their products and services. Callous as it may sound, high unemployment at the front end of an economic recovery is perfectly normal. (See TIME's special feature, "Out of Work in America...
...Caulkers would give building contractors a boost, but they represent a small slice of the economy. To next help out, say, bakers, policymakers would have to design a brand-new program. Plus, if such a program had an expiration date, we'd feel not just a rise in demand, but a fall later on as well. Car manufacturers and the people who work for them certainly did after the Cash for Clunkers discounts ended. (See 10 perfect jobs for the recession - and after...
Hard questions. But the answers, as we grope for them, should not be clouded by misplaced blame. A number of towns across the country have passed ordinances banning pit bulls, but what are we really seeing in the bared teeth of a snarling dog? These often terrifying animals demand pity because they have had the misfortune of meeting up with the most dangerous breed of all: the human. "Pit bulls have gotten this bad reputation because of the type of people who own them," says Humane Society investigator Tim Rickey, who led the July rescue. If these muscular terriers have...
...last big gold fever. When investors are scared - about inflation, about political turmoil, about financial breakdown - they return to the soft, shiny metal that has for millennia served as a store of value. When things calm down, as they did after the gold price peaked in 1980 at $850, demand for gold subsides and the price declines. (See pictures of modern day gold prospectors...