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This is the VOA Special English Economics Report.

President Obama is proposing rules to limit the size of banks and the risks they can take. He wants to prevent banks from using government-insured deposits to make risky investments. He also wants to keep them from owning hedge funds or private equity funds.

Banks took big losses as they traded mortgage-related securities that went bad. That helped create the financial crisis.

Bank shares fell after the president's announcement Thursday. His earlier efforts at financial reform have faced strong opposition from financial companies and some members of Congress.

Scott Brown, a Republican state senator, celebrates in Boston after a special election for U.S. senator from Massachusetts. He won the remaining three years in the term of Ted Kennedy, a Democrat who had held his seat for almost 50 years.

Scott Brown opposes the health care legislation in Congress. His election could also affect other areas, like climate change legislation and reforms in the financial system.

And at the same time a separate development could affect elections around the country. The United States Supreme Court has cleared the way for businesses to spend more in political campaigns. The ruling is expected to apply to labor unions as well.

The court decided Thursday to ease campaign finance restrictions that were in place for many years. The vote was five to four. The decision overturned rulings that barred corporations from using their own money to pay for campaign ads for or against candidates. The conservative majority on the court said the restrictions on political speech violate the free speech guarantee in the Constitution.

President Obama called it a "major victory" for powerful interests like big oil companies, Wall Street banks and health insurance companies. He directed his administration to talk with congressional leaders from both parties to develop a "forceful response."

Elections for Congress are this November. The next presidential election is in two thousand twelve.

Wednesday marked Barack Obama's first anniversary in office. But the Republican victory in liberal Massachusetts was seen in large part as a sign of voter anger across the country about the economy.

Unemployment has doubled in two years to ten percent. Many people are angry that they struggle while the government rescued big banks. Some banks took losses last year but others earned record profits.

And that's the VOA Special English Economics Report. I'm Mario Ritter.

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This is the VOA Special English Economics Report.

China says it has passed Germany and become the world's top exporter. Exports totaled more than one trillion dollars last year. That was down from two thousand eight, but about thirty billion more than Germany.

China's influence in the world has increased with its fast-growing economy. The United States remains the largest economy. China is third and gaining on Japan.

A Chinese flag waves beside Google headquarters in Beijing

And now there is a new dispute. China is the world's largest Internet market, but Google says it may leave. The company said it was targeted last month by a major Internet attack launched from China.

It says "intellectual property" was stolen and the attackers sought access to Gmail accounts of Chinese human rights activists. At least twenty other large companies in different industries were also targeted.

Also, the company said it is no longer willing to censor search results as required by Chinese law. Google says it is still observing censorship laws, but it will hold talks with the government in the coming weeks.

Google.cn launched four years ago this month. Google is estimated to have around a thirty percent share of the search market in China. But that is only about half the share of the Chinese search engine Baidu. Baidu also reported an attack on its Web site earlier this week.

Online advertising sales in China are estimated to bring Google only a few hundred million dollars a year. Not much for such a big company, notes business expert Fariborz Ghadar at Penn State University.

FARIBORZ GHADAR: "Google has to make a decision whether they want to basically deviate from their vision mission statement that they 'do no harm' and stay in China. Or whether they have just had enough and they don't like the restrictions, and they don't like the cyber attacks, and they're going to move out so as to preserve their name and brand."

Online activity in China is closely watched and the government tries to limit access to many sites, including VOA.

On Thursday a Foreign Ministry spokeswoman said "China's Internet is open" and that Chinese law bars cyber attacks. Another government official said China itself is the victim of a growing number of foreign attacks.

Secretary of State Hillary Clinton said she would like an explanation from the Chinese about Google's accusations. She is giving a speech next week about Internet freedom.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

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This is the VOA Special English Economics Report.

This year's Consumer Electronics Show opened Thursday in Las Vegas. The event is the world's biggest technology trade show.

More than three hundred companies are presenting more than twenty thousand new products. The goal is to build excitement, make deals -- and hopefully get good reviews in the media. Industry sales dropped eight percent last year during the recession.

Gary Shapiro, president of the Consumer Electronics Association, predicted that one area of strong sales this year will be mobile phones. That includes fifty-two million smartphones expected to be sold in the United States. Smartphones run applications and access the Internet.

Google is launching the Nexus One -- which it calls a "superphone." This is its first attempt to sell its own device. The Nexus One will compete with Apple's popular iPhone.

Apple is reportedly about to introduce a new digital tablet. Tablets are easy-to-hold screens that let you read and watch media or search the Web. An example is the Amazon Kindle. Like netbooks, tablets cost less than traditional laptop computers. But that can also mean smaller profits for manufacturers and sellers.

A 3-D movie is shown at the Consumer Electronics Show in Las Vegas, Nevada

The Consumer Electronics Show has an area for companies to demonstrate products that save energy, reduce waste and use recycled materials. Show spokeswoman Jennifer Bemisderfer says the Sustainable Planet Tech Zone is four times bigger than last year.

She says manufacturers are increasingly interested in the idea of "cradle-to-cradle" technology. That involves thinking about a product's whole lifetime.

JENNIFER BEMISDERFER: "When those products are at the end of their useful life, how are they going to be broken down? How are we going to get some of the essential elements out of those products and have them reused in the manufacturing process?"

Interest is also growing in energy management systems for the home -- and safe driving technologies for the car. These include voice-activated systems that let drivers make calls and send text messages without using their hands. Other products warn drivers if they are falling asleep or in danger of an accident.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

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This is the VOA Special English Economics Report.

Two thousand nine may be remembered as the year the world avoided an economic depression.

In the United States, stock prices sank to their lowest levels in March. But stocks recovered strongly for the year. The S & P Five Hundred index gained over twenty percent--its largest increase in six years.

Treasury Secretary Timothy Geithner tells Congress in December that he is extending the TARP to October 2010

In June, the Treasury permitted the ten largest banks to return their rescue money and withdraw from TARP. This let banks escape government restrictions on pay for top officials. Now, the government holds a large ownership share in only one big bank, Citigroup. The Treasury says it expects banks to repay one hundred seventy-five billion dollars of TARP money this year.

A Ford dealer advertises the government's so called "cash for clunkers" program to lift sales

The Ford Motor Company refused government aid and is working to become profitable again by two thousand eleven. And there are signs that the industry is starting to recover.

However, the housing market continued to suffer its worst downturn in generations. Mortgage financer Fannie Mae reports that payments on five percent of its single-family home loans are late. The ten percent unemployment rate has meant that many people are struggling with their house payments.

Still, consumer confidence grew in December. Experts say Americans were feeling better about the job market and the economy. Growth in the United States is expected to reach about two and a half percent in two thousand ten.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

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This is the VOA Special English Economics Report.

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There is a place where Christmas lives all year long. It is called Bronner's CHRISTmas Wonderland in Frankenmuth, Michigan. The family-owned business calls itself the world's largest Christmas store. The late Wally Bronner started the business in nineteen forty-five.

Wayne Bronner, Wally's son, is president and chief executive of what is now a multi-million dollar corporation. He learned the business from an early age. Some of his best memories are traveling to other countries with his father to find new products for the store.

Goods for sale at Bronner's

Michigan has the nation's highest unemployment rate. Bronner's has been affected by the recession, too. But not in reduced sales.

WAYNE BRONNER: "Even though people are spending less, we're having more people visit here. And as a result we've actually had a sales increase."

Bronner's success is also linked to community cooperation and investment. Frankenmuth is a town of five thousand people in eastern Michigan's farm country. The town was settled by Bavarian Germans in the eighteen hundreds. It has kept its traditions alive in buildings and restaurants.

Bavarian cultural themes and Bronner's huge store bring three million visitors a year. The town is the most popular place for tourists in the state.

Bronner's business is aimed at a single day of the year. But that is not too different from other businesses.

WAYNE BRONNER: "About half of our business is done in the last quarter of the year, in the last three months. And actually when you contrast that with most retailers, that follows the same pattern."

Wayne Bronner says the family's long-term planning and willingness to reinvest profits has grown the company into what it is today. Still, it does not hurt to build a business on a holiday celebrated worldwide. Currently, about two percent of sales are overseas. But Wayne Bronner sees room for growth, especially through the Internet.

(MUSIC)

And that's the VOA Special English Economics Report written by Mario Ritter. I'm Steve Ember.

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This is the VOA Special English Economics Report.

Dubai's recent debt problems have brought attention to the growth of Islamic finance. A government-owned group of companies, Dubai World, has been seeking to restructure twenty-six billion dollars of debt. About six billion of it is in Islamic bonds, including a three and a half billion dollar bond set for repayment on Monday.

Instead of interest, lenders charge fees. Ghiyath Nakshbendi at American University in Washington is an expert on Islamic financing.

GHIYATH NAKSHBENDI: "The bank will estimate its costs based on its fixed costs, variable costs, the cost of their employees, the rent and so on and so forth. And from that they estimate how much they are going to charge."

But he points out that this system can make Islamic financing costly. The costs of the system are shared by the borrowers. The fewer the borrowers, the more each has to pay.

In many cases, Islamic financing requires the lender and borrower to share profits and losses. Ghiyath Nakshbendi explains what that means with Islamic bonds, called sukuk.

GHIYATH NAKSHBENDI: "When we talk about sukuk, we don't guarantee a certain return."

He says the bondholders are buying a share of a business or property. If business is good, then they could get back more than they expected. But if it fails, then there is no guarantee of repayment. Islamic bonds can be structured in different ways, but a major idea is shared profit and loss.

Professor Nakshbendi says Islamic lending practices are also supposed to be socially responsible.

In world banking, the total share of Islamic finance is less than one percent. But it is growing at a rate of fifteen to twenty percent a year. There is growing interest in Islamic banking in the West. London is becoming a center of Islamic finance. And France recently proposed changes in finance laws to protect Islamic bondholders.

Estimates differ, but as much as one and a half trillion dollars may be managed under Islamic rules.

Last year, the International Monetary Fund studied the financial security of Islamic banks. It found that their lack of complex products like futures and derivatives limits the ability to spread risk.

Professor Nakshbendi notes that Islamic finance does not appeal only to Muslims.

GHIYATH NAKSHENDI: "In Malaysia, the majority of customers in Islamic banks are non-Muslims."

And that's the VOA Special English Economics Report, written by Mario Ritter. Our reports are online at voaspecialenglish.com. I'm Steve Ember.

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This is the VOA Special English Economics Report.

In recent years, a shining city grew in the desert of Dubai on -- and even off -- the Gulf coast. An island shaped like a palm tree was built for hotels, homes and entertainment.

In October of last year the same developer announced plans for the world's tallest building yet. But the economic downturn soon forced the Nakheel company to suspend those plans.

Now Dubai finds itself in financial pain. And its reaction has some investors worried.

Last week, Dubai's largest investment company called for a six-month delay in paying some of its debts. Dubai World Group is seeking to renegotiate terms on twenty-six billion dollars in debt. All of it is linked to Nakheel, which is part of Dubai World.

The government owns Dubai World and will take control of its restructuring. But Dubai's finance chief said the government does not guarantee its debt.

Dubai World owes creditors a total of sixty billion dollars. The company is not an investment vehicle for the government like a sovereign wealth fund. It is a holding company for businesses in land development, port operations, energy and financial services. The group has used borrowed money for economic development.

Ghiyath Nakshbendi of American University in Washington notes that the problems are linked to a worldwide collapse in real estate prices.

GHIYATH NAKSHBENDI: "Emerging markets are as victim to the world meltdown as any other economy and there are no exceptions."

He expects the debt restructuring to be successful. He says Dubai and its leaders have too much to lose to let creditors -- like banks in Britain -- suffer losses.

Still, last week's announcement was a surprise. Now Dubai World is faced with selling properties at heavy losses to raise money. Some experts question how willing Abu Dhabi will be to rescue Dubai. Their relationship is sometimes tense.

Ghiyath Nakshbendi says Dubai World will have to change its ways.

GHIYATH NAKSHBENDI: "I think Dubai went a little bit too fast and they borrowed too much money in a very short period of time."

Of course, Dubai was not alone in gathering debt during the easy credit years. There are worries that the crisis could be the first of more to come in other parts of the world.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

Lisenning English MP3

This is the VOA Special English Economics Report.

This year, Junior Achievement marks its ninetieth anniversary of educating young people about business and economics. The nonprofit organization is the largest of its kind. Jack Kosakowsky is executive vice president.

JACK KOSAKOWSKY: "We are the oldest business and economic education organization in the world. We're now serving nine-point-two million young people around the globe in one hundred twenty-three different countries."

Programs begin in elementary school and continue through middle and high school. The education is based on the ideas of market-based economics and entrepreneurship.

Shakara Walker shows a product her group of students is marketing at JA offices in Atlanta, Georgia

For more than fifty years, Junior Achievement programs operated through clubs that met after school. But in nineteen seventy-five, JA also began to teach business skills during the school day.

Volunteers from the community teach about businesses, how they are organized, and how products are made and sold. The volunteers also teach about the American and world economies and about industry and trade.

The Junior Achievement Company Program teaches young people how entrepreneurship works. They learn about business by operating their own companies.

Students develop a product and sell shares in their company. They use the money to buy the materials they need to make their product, which they then sell. Finally, they return the profits to the people who bought shares in the company.

Chellsey Cruz joined a student-operated company two years ago. The Higher Grounds Cafe in West Hills, California, sells high quality coffee.

She says her experience has given her valuable training that will help her for a lifetime.

CHELLSEY CRUZ: "It taught me to be dedicated, and that if you want to be successful, you have to put in a lot of time and effort. You really have to work at it."

Junior Achievement says three hundred eighty-five thousand volunteers support its programs around the world. In the United States alone, there are nearly twenty-three thousand places that hold Junior Achievement events.

Junior Achievement Incorporated and Junior Achievement International combined their operations in two thousand four. They formed Junior Achievement Worldwide. Its headquarters are in Colorado Springs, Colorado.

And that's the VOA Special English Economics Report, written by Mario Ritter with additional reporting by Faiza Elmasry. Transcripts, MP3s and podcasts of our programs can be found at voaspecialenglish.com. And you can follow us on Twitter at VOA Special English. I'm Steve Ember.

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This is the VOA Special English Economics Report.

Women are on their way to holding more than half of all American jobs. The latest government report shows that their share of nonfarm jobs nearly reached fifty percent in September. Not only have more and more women entered the labor market over the years, but the recession has been harder on men. In October the unemployment rate for men was almost eleven percent, compared to eight percent for women.

Former eBay chief Meg Whitman, right, a Republican candidate for California governor, talks to a supporter at a business women's conference

Industries that traditionally use lots of men have suffered deep cuts. For example, manufacturing and building lost more jobs last month. But health care and temporary employment services have had job growth. Both of those industries employ high percentages of women.

Thirty years ago, women earned sixty-two cents for every dollar that men earned. Now, for those who usually work full time, women earn about eighty percent of what men earn. And women hold fifty-one percent of good-paying management and professional jobs.

Yet a study released Thursday said men still hold about nine out of every ten top positions at the four hundred largest companies in California. The results have remained largely unchanged in five years of studies from the University of California, Davis.

Also, a new research paper in the journal Sex Roles looks at the experiences of women who are the main earners in their family. Rebecca Meisenbach at the University of Missouri in Columbia interviewed fifteen women. She found they all valued their independence and many enjoyed having the power of control, though not all wanted it.

But they also felt pressure, worry and guilt. Partly that was because of cultural expectations that working women will still take care of the children. Also, men who are not the main earners may feel threatened.

The job market continues to suffer the effects of last year's financial crash. Now, a judgment has been reached in the first case involving charges of criminal wrongdoing on Wall Street.

Last week, the government lost its case against two managers at Bear Stearns, the first investment bank to fail last year. A jury found Ralph Cioffi and Matthew Tannin not guilty of lying to investors.

The hedge funds they supervised lost their value in two thousand seven. But jurors said there was no clear evidence that they meant to mislead investors.

The Justice Department continues to investigate other companies.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

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Correction attached

This is the VOA Special English Economics Report.

A major reform of the American system of health care and insurance has moved farther in Congress than ever before. President Obama wants a final bill passed by the end of the year. But a difficult road still lies ahead.

House Speaker Nancy Pelosi after passage of the bill

BARACK OBAMA: "The Affordable Health Care for America Act is a piece of legislation that will provide stability and security for Americans who have insurance, quality affordable options for those who don't and bring down the cost of health care for families, business and our government while strengthening the financial health of Medicare."

But thirty-nine Democrats voted no, and only one Republican, Joseph Cao of Louisiana, voted yes. The bill passed with just two more votes than required. Republicans say the plan would add to the nation's debt, raise insurance costs and expand government involvement in health care.

Representative Joe Barton is a Republican from Texas.

JOE BARTON: "So, there is a choice. Bigger government, more mandates, more control, less freedom. Or lower costs, more opportunity, more freedom or more choice. I vote for more freedom."

The bill aims to provide health coverage to thirty-six million Americans. That would raise the nation's coverage rate to about ninety-six percent.

The most disputed part of the bill is a "public option" for individuals and small businesses. The government would compete with private plans by offering it own insurance -- based on payment rates negotiated with providers.

The House bill would raise taxes on high earners to help pay for the plan. It would also cut four hundred billion dollars from health programs for the retired and poor -- money that supporters of the bill say is now being wasted.

Most Americans would have to buy insurance or pay a fine; the government would help the needy. All but the smallest businesses would have to offer insurance for their workers or pay a tax. Some small businesses could receive tax credits to help with their costs.

Insurance companies could not deny or cancel coverage for people with pre-existing conditions. And the industry would lose its protection from anti-competitive laws.

Now, Harry Reid, the Democratic majority leader, is working to produce a health care bill in the Senate. Two bills passed by committees must be combined into one. If that passes, then a compromise would be needed with the House version.

But there is strong resistance in the Senate to a public option. Also, the Senate proposals would not require employers to provide coverage, but would offer tax credits to those that do.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

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Correction: An earlier subheadline over this story overstated opposition to a "public option" by saying the idea had "little support" in the Senate.

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This is the VOA Special English Economics Report.

America's economy has started to grow again. Now what about jobs?

The government says productivity jumped in July, August and September. That meant companies produced more with fewer workers. Also, new claims for unemployment aid fell last week to the lowest number since January.

People waiting in line at a job fair in Livonia, Michigan

Jack Strauss at Saint Louis University in Missouri says recent recoveries have been slow to create jobs.

JACK STRAUSS: "Historically, during our last two recessions in ninety-one and two thousand one it's taken twenty-three months in ninety-one and about thirty-six months, three years, in our last recession in two thousand one for the United States to regain the jobs lost in the recession."

Experts debate the reason for these so-called jobless recoveries. But Professor Strauss says a banking crisis is especially hard to recover from, because there is less money to lend to support growth. Banks have been holding bigger safety reserves.

On Wednesday, the Federal Reserve kept its target rate near zero for overnight loans between banks. The central bank said levels are likely to remain "exceptionally low ... for an extended period."

Low interest rates and growing federal deficits have weakened the dollar. But that also lowers the price of American exports, which could help drive job creation. Yet where exactly will future jobs come from?

Investor Warren Buffet says America's "future prosperity" depends on its rail system. On Tuesday his Berkshire Hathaway company agreed to buy the nation's second-largest railroad, the Burlington Northern Santa Fe. The forty-four billion dollar deal is Berkshire's biggest ever.

The Obama administration is also putting money into transportation to speed recovery. A program that paid Americans to buy new vehicles with higher fuel economy lifted sales for automakers. Ford just reported a profit of almost a billion dollars for July through September.

A second government program -- a tax credit for first-time home buyers -- has helped the housing market. These two programs fueled a lot of the recent economic growth.

But economist Jack Strauss says credit conditions threaten the main engine of job growth since two thousand one -- small businesses.

This week, CIT, a lender to small and medium sized businesses, sought bankruptcy protection from its creditors so it can reorganize. Taxpayers will likely lose more than two billion dollars in federal rescue money.

And that's the VOA Special English Economics Report, available online at voaspecialenglish.com. I'm Mario Ritter.

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This is the VOA Special English Economics Report.

Early estimates show that the United States economy began to grow again in July, August and September. The three-and-a-half percent growth was the first expansion in more than a year, and the strongest in two years.

The government said increases in consumer spending and exports and improvements in business investment led the growth. So did increased federal spending and housing investments.

The economy is growing again, but when will jobs follow? Job seekers attend a jobs fair in Little Rock, Arkansas, Tuesday.

President Obama had this reaction to Thursday's report on the gross domestic product -- a wide measure of goods and services in the economy.

BARACK OBAMA: "This is obviously welcome news and an affirmation that this recession is abating and the steps we've taken have made a difference. But I also know that we've got a long way to go to fully restore our economy and recover from what's been the longest and deepest downturn since the Great Depression."

That downturn was partly caused by bankers and others taking irresponsible risks to earn huge payments. So say their critics. Criticism of Wall Street pay is nothing new. But never before has the government used hundreds of billions of dollars to rescue companies that made risky investments.

In June, the Obama administration appointed lawyer Kenneth Feinberg as the "special master" on executive pay -- also known as the pay czar. Congress gave him power over compensation of the twenty-five highest-paid employees at seven companies most indebted to taxpayers.

This week, he gave lawmakers a progress report.

Kenneth Feinberg

The seven companies are in the financial and auto industries. Now Kenneth Feinberg must consider their next seventy-five highest paid officials.

But some management experts warn that limiting pay could make it harder for taxpayers to get their money back. Edward Lawler at the University of Southern California says these companies may now have difficulty getting and keeping high-quality employees.

But he agrees that in recent years, many companies have tied pay to short-term performance, instead of their long-term health. He also says boards of directors need to do more to control pay.

EDWARD LAWLER: "We could have boards that do a much better job of designing compensation plans. If we had good boards, I think they could certainly do a better job of that than the government can."

Last week, the Federal Reserve proposed to examine pay policies at thousands of banks. The central bank would reject policies that it thought might cause bankers to take too much risk.

And that's the VOA Special English Economics Report. I'm Mario Ritter.

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This is the VOA Special English Economics Report.

Many people think the search for cleaner energy leads only to renewable resources like sun, wind and water. But it also leads to a fossil fuel. Natural gas is considered the cleanest of the fossil fuels, the fuels created by plant and animal remains over millions of years.

Burning it releases fewer pollutants than oil or coal. The gas is mainly methane. It produces half the carbon dioxide of other fossil fuels. So it may help cut the production of carbon gases linked to climate change.

Drilling beneath the Bakken shale formation in North Dakota

But now the industry is taking a new look. Companies are developing gas supplies trapped in shale rock two to three thousand meters underground. They drill down to the shale, then go sideways and inject high-pressure water, sand or other material into the rock.

This causes the rock to break, or fracture, releasing the gas. Huge fields of gas shale are believed to lie under the Appalachian Mountains, Michigan and the south-central states.

Gas shale exploration is being done mainly by small to medium sized companies.

Eric Potter is a program director in the Bureau of Economic Geology at the University of Texas at Austin.

ERIC POTTER: "The types of opportunities that are left for natural gas exploration in the U.S. have changed. So it's a different class of resource -- not as easy to develop, and not even recognized as something worth pursuing, say, twenty years ago."

He says more than half the gas in the United States is now coming from these new reserves.

But hydraulic fracturing can also produce debate and anger over the risk of groundwater pollution. This method of drilling is not federally supervised under the Safe Drinking Water Act. Some in Congress want to end that exemption from the law.

Natural gas provides Americans with about one-fourth of their energy. And, unlike oil, most of it is produced in America. Gas producers invested heavily in reaching new supplies when prices were high. But prices are down sharply now because the recession cut demand for energy. So energy expert Eric Potter says it is too early to know how the new gas shale reserves will affect the market.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

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