Big picture economics : how to navigate the new global economy

**Navigate the economy with this insightful new book** The world is awash with economic information. Governments release reports. Pundits give their interpretation on television. And the stock market may go its own way, confusing everyone. How can you better understand what it means for you? __Big Picture Economics__, a new book by award-winning columnist and futurist Joel Naroff and veteran journalist Ron Scherer, says the thread that ties everything together is "context." The authors show how consumers, business, the Federal Reserve, and government take into account what's going on around them to make critical decisions like buying new products, building new factories, changing interest rates, or setting budget goals. The book provides a clear roadmap to understanding the whole story behind the global economy. __Big Picture Economics__ helps readers understand how context impacts decisions and decision makers. - The Federal Reserve and Congress in formulating economic policy - Consumers in a shopper nation and what makes us buy or not buy - Corporations making decisions on whether to build new factories and buy other companies - The federal budget that must deal with complex issues, including the reduction of health care spending - A simple test for tax cuts or increases: will they help the economy grow? - Where to produce and where to sell in a global economy that is more like a Mobius strip than a flat world - International events that can ripple through the economy and ultimately affect workers in the Midwest - Technology, such as intelligent drones to wearable computers, are changing the future Experts laud the book for its perceptive insights: "It all sounds like common sense, but it is actually based on a close, expert reading of economic history and what that history implies for the future. Read this book to become a more educated judge of economic policy." **—Robert Moffitt**, Krieger-Eisenhower Professor of Economics at Johns Hopkins University "Naroff and Scherer show how seemingly unrelated things like an upgrade of the Panama Canal, a Tex-Mex restaurant's menu change, or how many Americans are overweight turn out to be intricately linked to our daily experiences. What brings the book to life is the authors' focus on these hidden interconnections." **—Brendan Conway**, blogger and columnist, __Barron's__ Big Picture Economics: How to Navigate the New Global Economy 5 Copyright 6 Contents 9 Preface 11 Acknowledgments 15 Chapter 1: Introduction to the Economics of Context 21 Adapting to the Economy—View from the Cab of a Truck 22 Bottom of the Recession 23 What the Business Cycle Meant to the Business 24 The Service Sector—The Enchilada Stops Here 25 The Cash Register Stops Singing 27 Celebrate for 15 Minutes 29 What Does Economics Teach Us about Context? 29 Economic Theory and Fiscal and Monetary Policy 32 Notes 34 Chapter 2: The Federal Reserve, Congress, and the Use of Context in Economic Policy 35 Public Policy Spreads a Wide Ripple 36 The View from the Hill 40 Why the Economic Forecast Matters 41 Economic Assumptions Matter: The Rosy Scenario 42 Does One Policy Fit All? 44 A Bank Loaded with Economists 48 The Importance of the Beige Book 48 From Beige to Blue and Green 49 Fed Policy 50 From Bubbles to Fed Meetings 52 The Fed Goofs 53 Notes 54 Chapter 3: We Are All Economists and Don’t Know It 55 Context Tells Us What We Can Afford 56 Frugal in Arizona 58 The Economy Gets Worse 59 Public Officials as Economic Forecasters 60 A Mayor as Economist 62 Tampa’s Faulty Economic Model 63 Changing the Economic DNA 64 How an Educator Put on an Economist’s Hat 66 A Fiscal Grand Canyon 67 Crow Solutions 68 The Business Owner as Economist 71 Greg Parker: From Fast Food to Economics 73 Convenience Store Economics 74 Things Are Bad, So Expand 75 Notes 76 Chapter 4: How a Perfect World Would Work 77 How We Got Here 78 Building the U.S. Economy: A Journey through Time 79 The Very Beginning: Hunting, Fishing, and Doing Your Own Thing 79 Evolution Phase 1: Specialization 81 Government: Benevolent Dictators and Other Fun Ways to Distribute Goods 83 We Are Not Alone! 84 Barter Can Only Get You So Far 85 Money Makes the World Go ’Round 87 Money Is Not Enough (Don’t We Know That!) 88 The Banking System Made Simple 90 Big Brother Is Watching Over Us 93 The World Is Our Oyster 95 Chapter 5: Shopper Nation: Why We Buy or Don’t Buy 99 What Causes the Itch to Spend? 100 Seniors Get the Jobs but the Pay Leaves Many Cold 102 “Charg-It” 106 Why Debt Is Good—or Bad 109 The Rich Worry, Too 110 Economic Theory of Wealth 113 Feeling Good? Buy a Car 115 Notes 119 Chapter 6: How Is a Can of Tuna Like a Smartphone? Yes, Context! 121 A Company Decides to Build Chips 122 The Urge to Merge Depends on Context 128 The Corporate Tax Conundrum 133 Corporations Are People, Too, and They React Accordingly 134 To Regulate or Not Regulate, That Is the Question! 136 Notes 140 Chapter 7: When to Spend, When to Cut, and When to Scratch Your Head Over the Federal Budget 143 Impact of Health Care on the Budget 144 Doubts from a Doctor 148 What If Lower Health Care Spending Continues? 150 How the Budget Interacts with the Economy 152 It’s Not the Deficit but the Interest That Matters 157 Notes 165 Chapter 8: Tax Policy: Does Cutting Taxes Cure All Ills? 169 There Is No Such Thing as a Free Tax Cut 170 How Much Do Americans Make and What Are They Taxed? 173 While the Distribution of Income Is Good or Inevitable, It Still Matters When It Comes to Tax Policy 174 Is the Answer to Every Economy Ill to Cut Corporate Taxes? 181 Notes 188 Chapter 9: Monetary Policy: Money, or Maybe the Federal Reserve, Makes the World Go ’Round 189 How Monetary Policy Works 190 Problems Facing the Fed 194 Meltdown of the U.S. Financial System 198 The Correct Way to Evaluate the Policies 201 Notes 206 Chapter 10: The Panama Canal Widens and the Middle Class Grows in China—How Does That Affect Indiana? 207 Ports Get Ready for Change 208 The View from the West Coast 211 Trade beyond the Canal 213 History: The Moat around Fortress America Has Dried Up 215 Even Small Countries Can Crash the World Economy 219 Free Trade Is a Goal, but Fair Trade Is a Necessity 220 Currency Manipulation Has Negative Implications beyond the Obvious 222 Notes 224 Chapter 11: What Do We Do Now? 227 “The Future Ain’t What It Used to Be” 228 Flying Robots, 3D Printers, and the Future 228 Will the Consumer Continue to Reign? Maybe, Maybe Not 233 Fracking: Controversial but Changing the Future 236 Can We Squeeze More Out of the Ground? 238 The Economics of More Energy 240 The Aging of Boomers Will Change the Economy Once Again 242 Notes 245 About the Authors 247 Index 249 Content: Big Picture Economics: How to Navigate the New Global Economy Copyright Contents Preface Acknowledgments Chapter 1: Introduction to the Economics of Context Adapting to the Economy-View from the Cab of a Truck Bottom of the Recession What the Business Cycle Meant to the Business The Service Sector-The Enchilada Stops Here The Cash Register Stops Singing Celebrate for 15 Minutes What Does Economics Teach Us about Context? Economic Theory and Fiscal and Monetary Policy Notes Chapter 2: The Federal Reserve, Congress, and the Use of Context in Economic Policy. Public Policy Spreads a Wide RippleThe View from the Hill Why the Economic Forecast Matters Economic Assumptions Matter: The Rosy Scenario Does One Policy Fit All? A Bank Loaded with Economists The Importance of the Beige Book From Beige to Blue and Green Fed Policy From Bubbles to Fed Meetings The Fed Goofs Notes Chapter 3: We Are All Economists and Don't Know It Context Tells Us What We Can Afford Frugal in Arizona The Economy Gets Worse Public Officials as Economic Forecasters A Mayor as Economist Tampa's Faulty Economic Model Changing the Economic DNA. How an Educator Put on an Economist's HatA Fiscal Grand Canyon Crow Solutions The Business Owner as Economist Greg Parker: From Fast Food to Economics Convenience Store Economics Things Are Bad, So Expand Notes Chapter 4: How a Perfect World Would Work How We Got Here Building the U.S. Economy: A Journey through Time The Very Beginning: Hunting, Fishing, and Doing Your Own Thing Evolution Phase 1: Specialization Government: Benevolent Dictators and Other Fun Ways to Distribute Goods We Are Not Alone! Barter Can Only Get You So Far Money Makes the World Go 'Round. Money Is Not Enough (Don't We Know That!)The Banking System Made Simple Big Brother Is Watching Over Us The World Is Our Oyster Chapter 5: Shopper Nation: Why We Buy or Don't Buy What Causes the Itch to Spend? Seniors Get the Jobs but the Pay Leaves Many Cold "Charg-It" Why Debt Is Good-or Bad The Rich Worry, Too Economic Theory of Wealth Feeling Good? Buy a Car Notes Chapter 6: How Is a Can of Tuna Like a Smartphone? Yes, Context! A Company Decides to Build Chips The Urge to Merge Depends on Context The Corporate Tax Conundrum. Corporations Are People, Too, and They React AccordinglyTo Regulate or Not Regulate, That Is the Question! Notes Chapter 7: When to Spend, When to Cut, and When to Scratch Your Head Over the Federal Budget Impact of Health Care on the Budget Doubts from a Doctor What If Lower Health Care Spending Continues? How the Budget Interacts with the Economy It's Not the Deficit but the Interest That Matters Notes Chapter 8: Tax Policy: Does Cutting Taxes Cure All Ills? There Is No Such Thing as a Free Tax Cut How Much Do Americans Make and What Are They Taxed?

Navigate the economy with this insightful new book

The world is awash with economic information. Governments release reports. Pundits give their interpretation on television. And the stock market may go its own way, confusing everyone. How can you better understand what it means for you?

Big Picture Economics, a new book by award-winning columnist and futurist Joel Naroff and veteran journalist Ron Scherer, says the thread that ties everything together is "context."

The authors show how consumers, business, the Federal Reserve, and government take into account what's going on around them to make critical decisions like buying new products, building new factories, changing interest rates, or setting budget goals. The book provides a clear roadmap to understanding the whole story behind the global economy.

Big Picture Economics helps readers understand how context impacts decisions and decision makers. - The Federal Reserve and Congress in formulating economic policy
- Consumers in a shopper nation and what makes us buy or not buy
- Corporations making decisions on whether to build new factories and buy other companies
- The federal budget that must deal with complex issues, including the reduction of health care spending
- A simple test for tax cuts or increases: will they help the economy grow?
- Where to produce and where to sell in a global economy that is more like a Mobius strip than a flat world
- International events that can ripple through the economy and ultimately affect workers in the Midwest
- Technology, such as intelligent drones to wearable computers, are changing the future

Experts laud the book for its perceptive insights: "It all sounds like common sense, but it is actually based on a close, expert reading of economic history and what that history implies for the future. Read this book to become a more educated judge of economic policy."
—Robert Moffitt, Krieger-Eisenhower Professor of Economics at Johns Hopkins University "Naroff and Scherer show how seemingly unrelated things like an upgrade of the Panama Canal, a Tex-Mex restaurant's menu change, or how many Americans are overweight turn out to be intricately linked to our daily experiences. What brings the book to life is the authors' focus on these hidden interconnections."
—Brendan Conway, blogger and columnist, Barron's

Interpret the future of the economy with this ""crash course"" resource Economics may be known in some circles as the ""dismal science, "" but that doesn't mean those interested in economics should have a dismal outlook. By adopting an approach to economics that accounts for the past, present, and the future, individuals can gain a greater sense of the whole story behind today's global economy. Big Picture Economics provides a roadmap for this new system, and is a crash course in economics that empowers readers to deepen their perspectives, fully understand the state of the econ