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...every story of swindlers and cheats, dwell for a moment on these: Someone placed an 18-karat-gold diamond ring in the Salvation Army kettle in Uniontown, Pa. A Sioux Falls, S.D., hotel manager came up with a plan to open his doors to 200 homeless people for Christmas. A Santa Clarita, Calif., family took in an 83-year-old woman left homeless by wildfires and helped rebuild her life. Food donations in Paradise, Calif., were up fivefold. "We'll take a cup of kindness yet," we sing as we welcome a new year, and never more so than this...

Author: /time Magazine | Title: The Recession's Big Test | 1/8/2009 | See Source »

Though not above spin, Jones is willing to admit things that are not to his advantage and take responsibility for his errors. At a West Wing meeting in late 2002, Bush asked each of the service chiefs whether he agreed with Donald Rumsfeld's plan for a lightly armed invasion of Iraq, and Jones said he did. When I asked him recently if, in retrospect, he should have spoken out against the plan, he said, "In hindsight, that's probably fair...

Author: /time Magazine | Title: Obama's National Security Point Man | 1/8/2009 | See Source »

...soaring; the country is in two wars; and the unmet social and environmental needs are vast. These conditions demand a fundamental realignment in strategy that ultimately comes back to taxation: Will we pay for the government we need? Obama's big domestic program, the American Recovery and Reinvestment Plan, proposes doubling renewable-energy production and making public buildings more efficient. It calls for better schools and classrooms and the rebuilding of our crumbling roadways and bridges. The President-elect wants our fill-out-the-forms health-care system to be computerized, which will save both lives and money...

Author: /time Magazine | Title: The Case for Bigger Government | 1/8/2009 | See Source »

...would help to have a budget, but state legislators have been at an impasse for weeks, haggling over various proposals - and weighing their political consequences. On New Year's Eve, the administration of Governor Arnold Schwarzenegger proposed a new budget plan that includes painfully deep spending cuts and $14 billion in tax increases. Although the proposal is not likely to be the one that finally passes, there is no doubt that few Californians will be untouched by the fiscal crisis. In December, unable to wait for a budget solution any longer, the state pre-emptively canceled $3.8 billion...

Author: /time Magazine | Title: The Great California Fiscal Earthquake | 1/8/2009 | See Source »

...assembly, 51 to 29. (There is one vacancy in the senate.) With such deep cuts on the line, Republicans and Democrats have squared off, arguing whether raising taxes or reducing welfare programs is the best way to go. In December the Democrats engineered a plan that could bypass the Republican vote and, with a combination of spending cuts and tax hikes on sales, gas and income, melt the deficit by $18 billion. However, this week Schwarzenegger rejected the plan, saying his demands, like limiting environmental protections on public-works construction, were not met, and the Republicans filed a suit...

Author: /time Magazine | Title: The Great California Fiscal Earthquake | 1/8/2009 | See Source »

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