The News

ft.com — Is Barack Obama really a free-trader? According to much recent commentary, we will find out on September 17, when the US president has to decide whether or not to accept the recommendation of the independent, bipartisan US International Trade Commission to impose tariffs on imports of Chinese tyres.

The orthodox free-trade view of most pundits holds that if Mr Obama accepts the recommendation he will fail the free-trade test. In fact, the truth is just the opposite. Not to accept the tariff recommendation would be a severe blow to open trade and globalisation as well as to America’s future economic health.

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online.wsj.com — Government efforts to funnel hundreds of billions of dollars into the U.S. economy appear to be helping the U.S. climb out of the worst recession in decades. Much of the stimulus spending is just beginning to trickle through the economy, with spending expected to peak sometime later this year or in early 2010. The government has funneled about $60 billion of the $288 billion in promised tax cuts to U.S. households, while about $84 billion of the $499 billion in spending has been paid. About $200 billion has been promised to certain projects, such as infrastructure and energy projects. Economists say the money out the door — combined with the expectation of additional funds flowing soon — is fueling growth above where it would have been without any government action.

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truthout.org — America has some of the industrial world's worst rates of infant mortality, teenage pregnancy and child poverty, even though it spends more per child than better-performing countries such as Switzerland, Japan and the Netherlands, a new survey indicates. The OECD, a Paris-based watchdog of industrialized nations, urged the United States to shift more of its public spending to its youngest children, under the age of six, to improve their health and educational performance. The report, "Doing Better for Children," marks the first time the Organization for Economic Cooperation and Development has reported on child well-being within its 30 member countries.

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washingtonpost.com — As states across the country grapple with the worst economy in decades, most have cut services, forced workers to take unpaid days off, shut offices several days a month and scrambled to find new sources of revenue. The good news is that much of the pain this year has been cushioned by billions of dollars of federal stimulus money, which has allowed states and localities to avoid laying off teachers, prison guards, police officers and firefighters. The bad news is that for the next fiscal year, beginning in July, the picture looks even bleaker. Revenue is expected to remain depressed, even if the national economy improves. There will be only half as much federal stimulus aid available, and many states have already used up their emergency reserves.

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reuters.com — The U.S. House of Representatives approved $7 billion on to temporarily shore up a nearly empty federal trust that pays for road, bridge and transit projects. Supporters garnered the necessary two-thirds support to push through the stop-gap measure intended to keep the Highway Trust Fund solvent through September 30, the end of the fiscal year. The vote was 363 to 68. The government estimates the account could run dry within several weeks without an emergency infusion of cash. The fund provides states with about $40 billion per year in transportation construction funding. Trust fund disbursements are separate from the billions in economic stimulus money dedicated to states for transportation projects.

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washingtonpost.com — The Energy Department is getting ready to hand out about $2 billion in grants to create a domestic industry for electric-car batteries, and 122 companies are scrambling to get pieces. The companies range from small niche firms to giants such as Dow Chemical and Johnson Controls. All are promising a combination of innovation and ability to deliver new products on a commercial scale to prevent the United States from trading dependence on foreign oil or reliance on foreign-made batteries. Now policymakers hope that helping domestic battery manufacturers will produce economic savings that often come with large-scale production and which are needed to make electric cars affordable. With funds provided by the stimulus bill in February, the Energy Department can cover up to half the cost of a battery-related project.

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