KANW-FM

Robert Smith

How much is a baby worth?

Let's set aside for a moment all those goo-goo feeelings about that big ball of cute chubba-chubba. A baby is also an economic investment.

Businesses get a new worker and a new consumer for products. Parents get someone who will support them in their old age. Governments get a taxpayer — and a guarantee that the country lives on.

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SCOTT SIMON, HOST:

Why GDP Is Like GPA

Oct 28, 2011

GDP contains multitudes. Everything we manufacture. Every plumber who fixed a sink, every accountant who carried the one and divided by five — all the goods and services we produced.

It was invented by a guy named Simon Kuznets during the the Great Depression, when everybody wanted to know just how bad things were.

Now the number is put out by Steve Landefeld at the government's Bureau of Economic Analysis.

If you've ever thought that most of politics is game-playing, you're right. Political scientists often use mathematical game theory to describe how Congress works. And when they look at the current battle over how to handle the deficit, the game that comes to mind is chicken.

Steven Smith is a professor of political science at Washington University, and he says yes, Republicans and Democrats sometimes remind him of two cars driving as fast as they can toward a cliff.

It's October, which means the country's supply of fake cobwebs is getting dangerously low.

The reason, of course, are the commercial haunted houses opening for business, filling the night with the screams of terrified teenage girls.

Wait. That scream was actually coming from me — at Blood Manor in New York City. From the name, you would never guess it's on the second floor of a downtown office building. It probably used to be a hedge fund.

Ten years ago Friday morning, the men who would become the Sept. 11 hijackers were ready. They woke up on Sept. 9, 2001, in small motels along the East Coast. Their leader, Mohammed Atta, was one of the last ones on the move. He was checking in with the teams on his way to Boston.

The White House counterterrorism chief, Richard Clarke, was also at work that day. He was watching something happening in al-Qaida email chatter — he just didn't know what.

The U.S. economy is spooking investors. But every day, all around the world, foreign businesses are still eager to use U.S. dollars — even when their business has nothing to do with the U.S.

When South Koreans buy Chilean wine, they convert their Korean won to U.S. dollars, and send those dollars to the winery in Chile. The winery then converts the dollars into Chilean pesos. This kind of thing is routine in global trade, according to Barry Eichengreen, an economist at U.C. Berkeley.

Why not just go from won to pesos?

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