economy

Hope and Resolution

Donial Dastgir — Sat, 15 Nov 2008 11:54:35 -0500

It's been over one week now.

One week since Barack Obama became president.

One week since he surmounted all obstacles and shattered many boundaries to reach the highest office in the country.

The euphoria on Tuesday night at his victory, at the collapse of one more racial barrier, and at the imminent expulsion of President Bush was tremendous. That night, Washington D.C. was ablaze. Cars raced down the avenues, horns blaring, radios loudly blasting the voice of Obama as he gave his victory speech. People were heard shouting in their homes, in the bars, even in the local CVS.

Wegmans Supermarket Vows to Lower Prices

Cara Sprunk — Fri, 14 Nov 2008 00:00:00 -0500

Excitement is slowly starting to build in anticipation of the holidays, but at Wegmans, that time of year seems to have already arrived. Last week, Wegmans issued a statement on their website saying, “Wegmans is lowering prices — just in time for the holidays!”

Danny and Colleen Wegman, the two owners of the grocery store chain wrote in a letter that because of anticipated cost decreases, the company had decided to bring the prices down as soon as they could. The CEO and President of Wegmans, Danny Wegman said, “It’s ok with us if we make a little less money.”

Jo Natale, director of media relations for Wegmans, explained some of the reasons for the price decreases.

Big Red Bear Market

Dmitri Koustas — Thu, 13 Nov 2008 00:00:00 -0500

According to Robert Massa of Dickson College, “What we’ve done in higher education is let our dreams and aspirations dictate our cost structure.” Due to the financial crisis, this prodigal era of “dreams and aspirations” may finally be over.

This past Tuesday, Cornell implemented a hiring pause, a delay on new construction, and other cost-saving measures. The contract colleges are especially hard hit. According to a dean in the ILR School, administrators — rather than tenured faculty — may have to teach some classes, while existing faculty may be allotted fewer teaching assistants.

Tuition Rate Expected To Rise Less Than Usual

Sam Cross — Thu, 06 Nov 2008 00:00:00 -0500

In the midst of a national financial crisis, college students must face the additional burden of increased tuition costs. Tuition for the current academic year for private institutions increased by 5.9 percent and by 6.4 percent for in-state public colleges, according to College Board’s most recent pricing report. The inflation rate for the same period was less, at 5.6 percent.

Though average tuition outpaced inflation for another year, most colleges decided not to increase tuition relative to inflation as much as in past years, acting “socially responsible,” according to Prof. Ronald Ehrenberg, industrial and labor relations and economics.

Skorton Hosts Forum About Economic Plan

Michelle Honor — Thu, 06 Nov 2008 00:00:00 -0500

Yesterday afternoon, President David Skorton spoke to faculty, staff and students in Bailey Hall about the effect of the current economic crisis on the University.

“After looking at the situation, I still can not be exactly sure of what the downturn in the economy is going to do to Cornell,” he said. Still, he stressed that “we need to approach this calmly.”Looking ahead: President David Skorton speaks about C.U.’s response to financial troubles and fielded questions from the audience.

Skorton Responds to Budget Cuts

Willimina Bromer — Fri, 31 Oct 2008 00:00:00 -0400

President David Skorton outlined several measures the University will take to combat state budget cuts and revenue losses resulting from the Wall Street crisis in a e-mail sent to the Cornell community yesterday. Though the long-term effects of the current state of the economy will not be known for several years, actions will be taken immediately in anticipation of further cuts and continued losses.

“While we cannot be certain about the dimensions, depth and duration of the difficulty, we are confident Cornell is in a good position to adjust operations and budget to address a loss in revenue in the wake of the financial crisis, relying on the institutional expertise and commitment of faculty, staff, alumni, students and friends,” Skorton stated.

Skorton Promises Job Safety to University Staff

Brendan Doyle — Tue, 28 Oct 2008 02:36:07 -0400

President David J. Skorton gave his annual address to staff yesterday at Barton Hall. The speech came in the middle of the Energy Fair, whose organizers took a lunch break while University personnel gathered to hear Skorton discuss the state of the University and how staff will be affected by the recent economic crisis. The address was sponsored by the Employee Assembly, an elected body that represents Cornell staff.

Kicking off the staff meeting was Brian Cornell, chair of the Employee Assembly, who welcomed the audience and introduced Mary George Opperman, vice president of human resources. Opperman discussed her personal concerns over how staff and the University will fare amidst the financial turmoil.

Impending N.Y. State Budget Cuts May Affect University

Seth Shapiro — Tue, 28 Oct 2008 00:00:00 -0400

Correction appended. See below.

While the national government is taking measures to deal with the recent economic crisis, state governments are also forced to deal with the issues. The state of New York has a huge budget deficit, according to The Wall Street Journal, that Gov. David Paterson (D) and the state legislature are being forced to deal with.

In order to minimize the deficit, the state has to limit its funding to different institutions including schools. According to The Ithaca Journal, the state will force the State University of New York (SUNY) to absorb an estimated $70 to $96.3 million of the losses and Cornell will feel the effects of the cuts.

What’s This ‘Absentee Ballot’ For, Again?

Yevgeniy Feldman — Mon, 20 Oct 2008 00:00:00 -0400

Before I begin this, I would first like to respond to all my detractors from two weeks ago. Yes, the Ron Paul folks sent me countless emails and left countless more comments on cornellsun.com. Although I was tempted to just print the same column again, to drive home a point, I instead decided to do some research and “oil my gears with the truth.” The conclusion? They have an agenda and I don’t. And who was that guy who wrote to me that, “as a senior citizen and an observer of economic trends over the last 45 years … [more libertarian agenda]”? Was that you, Dr. Paul? I looked it up and 45 years is actually about how long Ron Paul has been claiming to understand the economy. Ron Paulites, you made this personal.

Financial Crisis Sends World Reeling in Its Wake

Therese Lahlouh — Fri, 17 Oct 2008 00:00:00 -0400

Over the last three months, Wall Street has taken America on a wild ride, dragging the world along with it. Setting records for the lowest drops and highest rises, the unstable market has left the economy in disarray and many are wondering what will come next. From an imploded housing market, to the collapse of multi-national corporations like Merrill Lynch, the effects are being felt across the globe.

Origin

While Wall Street has been left reeling in the wake of plunging stock indexes, what caused the recession? Many have traced the collapse of banks and the subsequent economic decline to the stagnant credit markets generated by subprime loans.

Retail Sales Plunge 1.2 Percent in September

The Associated Press — Wed, 15 Oct 2008 14:47:30 -0400

WASHINGTON (AP) — Retail sales fell off a cliff in September, plunging by the largest amount in three years as worried consumers shunned the malls and auto showrooms in the midst of the country's financial meltdown.

The Commerce Department reported Wednesday retail sales decreased 1.2 percent last month, nearly double the 0.7 percent drop that had been expected. It was the biggest decline since retail sales fell by 1.4 percent in August 2005.

The bigger-than-expected decline significantly increased the risks of a recession because consumer spending is two-thirds of total economic activity.

The weakness was led by a 3.8 percent drop in auto sales. Sales dropped below 1 million units as consumers struggled to find financing.

Demanding a Re-bate

Laura Temel — Wed, 15 Oct 2008 00:00:00 -0400

We are less than three weeks away from Election Day. In the longest presidential campaign in American history, 15 primary candidates became two presidential hopefuls: Sen. Barack Obama and Sen. John McCain. At this point in time, a typical campaign analyst would presume both platforms would have been well articulated, challenged, and disseminated in the presidential debates. But this is not a typical campaign, and that does not seem to be the case. In the midst of bemused moderators and citizens it is important to ask, what have we learned from Obama and McCain in the debates?

Nat’l Student Default Loan Rate Rises

Sam Zarnegar — Tue, 07 Oct 2008 00:00:00 -0400

The national student-loan default rate increased by 13 percent in 2006, leaving many concerned about the effects the current financial crisis will have on borrowers over the next two years.

The cohort default rate measured the number of borrowers who were due to enter repayment in 2006 but failed to make any payments on their loan, and defaulted after two fiscal years.

The rate, which was 4.6 percent in 2005, increased to 5.2 percent in 2006, according to a report released by the Department of Education in September.

With the meltdown of some of Wall Street’s largest investment banks and the current choked state of the credit market, the future of the student-loan default rate remains unclear.

Future Wall Streeters of the World, Unite!

Yevgeniy Feldman — Mon, 06 Oct 2008 00:00:00 -0400

You know what really grinds my gears? People. People who say, “Do you hear me, local representative?! I will not re-elect you. Be afraid. Be very afraid.”

First off, saying, “local representative” instead of, “Kucinich” or whomever is generally a good indication that you don’t know who your local representative is. Second off, who votes for local representatives? Did you vote for your local representative last year? Do you know whether or not he voted for the bailout bill? Were there actually local elections last year? Did he hear your voice? If you did not have a representative, would you even know the difference? All valid questions.

Beating a Dead Horse, and by Horse I Mean Economy

Shaun Werbelow — Wed, 01 Oct 2008 00:00:00 -0400

Hoping to read something exhilarating, enchanting, or provocative? Unfortunately, or fortunately, depending on how you look at it, I have little to no experience when it comes to sex, drugs, or even rock ‘n’ roll. In searching for a column topic this week, I thought long and hard about which unique, intriguing, and fresh topics I could discuss. However, amongst prelims, the return of stereotypical Ithaca weather, and the statistical elimination of both the Mets and the Yankees, I came up void of creativity. If you are looking for a mystical story or a revealing memoir, I encourage you to pick up a daily horoscope, or simply take a trip to the Ithaca Commons.

Demystifying Health Insurance

Laura Temel — Wed, 01 Oct 2008 00:00:00 -0400

While healthy young adults may appear to be the least at risk for health problems, make no mistake — many young adults are uninsured. The current system of health insurance in the United States has placed college students in an incredible bind. Over 13.7 million young adults in the U.S. today do not have health insurance specifically, those between the ages of 19 and 29, according to the Commonwealth Fund, a healthcare think tank. With young adults comprise one of the largest segments of America’s uninsured, we can be certain this is a serious domestic issue.

The Vocabulary of the Economy

Donial Dastgir and Elizabeth Manapsal — Tue, 30 Sep 2008 22:05:10 -0400

Stick and stones may break my bones, but words can never hurt me. So goes the tune we were all taught as 7-year-olds to make ourselves feel better after getting mercilessly teased by the school bully. But flash forward to 2008 and it seems like the pen has come back with a mighty vengeance.

The Sound of Silence

Mon, 29 Sep 2008 00:00:00 -0400

The most shocking moment of Friday’s presidential debate wasn’t when Barack Obama mocked John McCain for refusing diplomatic contact with Spain or even when the candidates compared bracelets they had received on the campaign trail. For the most part, the candidates reiterated their well-known positions on Iraq, Afghanistan and taxes without much error. Instead, the most shocking part of Friday’s debate was how little the candidates talked about the massive economic bailout plan that fell apart on Thursday.

Obama, McCain to Attend White House Meeting

The Associated Press — Thu, 25 Sep 2008 08:12:54 -0400

WASHINGTON (AP) — John McCain and Barack Obama say presidential politics should have no role in the government's efforts to save the crippled financial system. Yet, each is playing his own politics toward the same goals — showing leadership during crisis, getting credit for any solutions, and, ultimately, winning the presidency.

The latest example: a debate over whether the candidates should debate Friday.

McCain called for his Democratic rival to agree to a postponement until Congress agrees on a $700 billion government plan to rescue banks from enormous debt, saying, "We are running out of time."

Obama rebuffed his GOP rival, saying the next president needs to "deal with more than one thing at once."

Economists Find Government Bailout Plan Necessary

The Associated Press — Sat, 20 Sep 2008 19:45:46 -0400

WASHINGTON (AP) — The economy could suffer a massive hangover from the government's efforts to rescue the financial system in the form of a soaring debt burden. But the alternatives look infinitely worse.

The $700 billion the administration is seeking from Congress as the upper bounds of what it will need to take a mountain of bad loans off the books of financial firms is certainly an eye-popping figure.

To get the funds to buy up the bad mortgage loans that have threatened to bring the financial system to its knees, the government will have to borrow. And that borrowing will come at a time when the federal budget deficit is already soaring.