we'll investigate that with economic analyst richard gill's help on this edition of economics usa. david schoumacher. for many years after the great depression, national economic policy's basic goal was minimizing unemployment. but the winter of 1982 saw 12 million unemployed. many complained they were victims of a needlessly cruel government policy. public enemy number one was inflation, and jobless workers were the war casualties. the battle cast new doubt on the government's ability to manage the economy or the wisdom of even trying. why was stopping inflation so hard? the time has come for decisive action to break the vicious circle of spiraling prices and costs. inflation is domestic enemy number one. present high inflation threatens the economic security of our nation. from richard nixon through jimmy carter, president after president set out to fight inflation. when that threatened to increase unemployment, president after president reversed course, opting for stimulative policies to keep the economy growing and unemployment low. we must shift our emphasis from inflation to r

for economics usa, i'm david schoumacher.oning performed by the national captioning institute, inc. captions copyright 1989 educational film center annenberg media ♪ annenberg media ♪ will cost $56 billion. schoumacher: 1945 -- by the war's end, the price tag will pass $200 billion. how will we pay for world war ii? 1960. as president eisenhower talks of paying off the national debt, the economy stumbles into a recession. how can a budget surplus hurt the economy? 1999. huge deficits turn to surplus. what would the government do with the money? almost every year the federal government spends more money than it takes in. year after year, the tide of red ink rolls on.

economic analyst richard gill and i will examine that on this edition of economics usa. david schoumacher. rarely have americans had to worry about water. they take it for granted because it's plentiful, available, and cheap. but for what water does, there is no substitute. what would it take to show how much water is really worth? 1975 marked the beginning of one of california's worst droughts. it's a semiarid state with a gigantic agricultural industry, dependent on water from its snow pack and winter rains. but in the fall and winter of 1975, winter rains and snow did not come. accustomed to dry spells, californians showed little concern. but that winter wore on with no rain or snow, and soon, what was great weather for some began causing problems for others. the summer of '76 exploded into flame as over 1,400 fires swept the state in a three-week period. marin resident sharon mooney recalls. when the rains didn't come and didn't come, people talked about preferring to have rain to sunshine. the next winter continued without rain. farmers were notified that water for

for economics usa, i'm david schoumacher.ect captioning performed by the national captioning institute, inc. captions copyright 1986 educational film center annenberg media ♪ for information about this and other annenberg media programs call 1-800-learner and visit us at www.learner.org. annenberg media ♪ annenberg media ♪ in 1974, california water was cheap. by 1977, the state was in the midst of a great drought. what would californians pay now for water? after the 1973 arab-israeli war, the middle-eastern oil spigot was shut off. what did america do to get domestic oil producers to fill the gap? during the designer jean craze, why would so many pay so much for so little?

with the help of economic analyst richard gill, we'll explore that question on economics usa. david schoumacher. coins, bills, checks-- our basic money supply. the amount of money and where it goes wiin the banking system has been the main concern of our nation's central bank. at the fed's headquarters here in washington, dc, closed deliberations are held by experts who continuously monitor our financial health and prescribe remedies. how did these experts prescribe a remedy that plunged us even deeper into the great depression? early in the 20th century, american banks operated with little regulation and great vulnerability. in 1907, that vulnerability became apparent when depositors lost confidence and demanded their money. the banks couldn't get short-term loans, and many colpsed. it took a powerful banker, j.p. morgan, to end the 1907 panic. but should an entire country be dependent on an individual's whim? a central bank, a lender of last resort, seemed a better solution. just before christmas of 1913, president wilson signed the federal reserve act. it created a federal

with economic analyst richard gill, we'll explore that question on this edition of "economics usa." david schoumacher. schoumacher: since the passage of the employment act in 1946, it has been accepted policy for the government to fight unemployment by stimulating total demand. often, inflation resulted. when that happened, the government shifted gears and clamped down on demand in order to decrease inflation. for five administrations, the government more or less successfully practiced the delicate art of balancing off unemployment and inflation. the experience of the 1950s and 1960s indicated that when unemployment went up, inflation would, correspondingly, fall. by the time richard nixon was in office, though, this classic relationship was showing signs of strain. by 1972, inflation was at a level of 4% and unemployment was at 5 1/2%. a year later, unemployment was holding at 5%, but inflation had skyrocketed to 8 1/2%. why weren't the old predictable trade-offs working? what had happened to change the economic rules? nature, suddenly violent, rampaged over the entire globe. in 19

at's the queion economic analyst richard gill and i will investigate on this edition of "economics usa'm david schoumacher. on this edition the federal reserve board is responsible for deciding how much money the economy needs to grow. in the early 1970s, the fed held to a policy of using the money supply to try to keep the economy on course. in times of inflation, the fed tightened the money supply to squeeze excess dollars out of the economy. in times of recession, it increased the money supply to stimulate growth. but in 1975, the fed, under the chairmanship of arthur burns, faced a new and troubling dilemma -- caught between persistent inflation and a growing recession, how did chairman burns keep the economy on course? by late 1974, inflation had become a serious economic problem. under pressure from rising fuel prices, inflation rose to a staggering 12%. inflated interest rates had driven up the price of mortgages and brought the building industry to a standstill. sales of new cars and home appliances plunged. in september, president gerald ford asked congress to join him in a ba

usa. 175,000 new jobs created last month, better than the estimates. where did they come from? and what does it say about the bigger economic picture?c number two, this amazing bull run, one of the steepest upswings for the markets since world war ii. how long can it last? what is its health almost five years to the

usa. 175,000 new jobs created last month, better than the estimates. where did they come from? and what does it say about the bigger economic picture? >>> economic issue topic number two, this amazing bull run, one of the steepest upswings for the markets since world war ii. how long can it last? what is its health almost five years to the day since the market bottomed out? >>> that brings us to issue number three. what is your next best move, sell, keep putting money into equities and mutual funds, take something off the table, put it into bonds, cash? we will give you answers and advice in the next 59 minutes. let's first check in with sue downtown. >> i'm just looking at the markets, ty. despite the big jobs number, not the greatest day for stocks. we are far off of our highs of the day. right now, the dow is up 22 points on the trading session. the nasdaq is negative, down about half a percent. we are fractionally lower on the s&p but check out some staggering stats we found for you. the current five year bull market is the second strongest since world war ii. it is the sixth longest on record and the bull run ranks fourth in te

economic viability amid the current people. the evils of inflation and private central banks don't just affect the usa alone recently the russian ruble has gone from around thirty roubles the dollar to thirty five yikes people in the russian media are now debating whether to go dollars or euros but the thing they forget is that all this paper money one way or another is doomed by inflation so if you have a few thousand dollars or rubles then what should you do with it many people say that gold is the way to go because it has retained value for thousands of years but land has also been in big demand since the dawn of time and paper money inflates into nothing a nice big chunk of the earth's surface is always worth something according to the washington post and twenty eleven the u.s. so security system is forty five billion in negative cash flow so maybe it's time to invest in having some children because for most of human history your retirement package was your kids so security might not cut it for my generation and last but not least you can still buy in so guns from the eight hundred for cash what other things in your house w

usa into radioactive ash. the one thing throwing some cold water on all this overheated emotion is the prospect of economic sanctions against russia, which will escalate from today. one thing that's already a sign that the currency markets are jittery is that the value of the ruble, the russian ruble, today hazard fallen to new lows. charlie, nora? >> elizabeth palmer, thank you. >>> this morning the u.s. navy confirms the s.e.a.l.s captured some southeast of cyprus. the ship was hijacked from a libyan port by three armed men earlier this month. it carrying oil owned by libya. that country's government asked for u.s. help. no one was hurt in the raid. >>> the official start of spring just three days away, millions of americans from the midwest to the east coast are facing a final blast of winter this morning. snow is piling up in virginia. we have a bus crash north of richmond this morning. at least four people are hurt. parts of i-95 are closed. it is also snowing heavily in atlantic city, new jersey. wyatt andrews is in washington, d.c. where the severe weather is leading the government to close offices yet again.

charles plosser talk about the latest economic data and whether that will lead the fed to rethink tapering. and they call it the euro-copter but it is made in the usaright here. more on that in a moment. ♪ >> you are watching "in the loop " live on bloomberg television and streaming on your phone and bloomberg.com. i'm betty liu. 26 minutes past the hour which means bloomberg is on the market. scarlet fu has your check on how we are trading quite a bit lower. >> a lot of red on the screen. futures pointing to a lower open. remember, the s&p 500 closing at a record high last week. emerging markets stocks down almost one percent after china reported an unexpected decline in february exports. chinese stocks actually at a five-year low. copper lower as well. in london, and an eight-month low but right now in new york, down 1.5%. concerns about the export decline plus chinese yuan depreciation fueling demand copper from china demand will fall off. 3-d systems, the 3-d printer maker falling in the premarket high four percent to 15% -- $15 a share, being predicted. jetblue ended its partnership with american airlines, ending the reciprocal frequent flyer

usa uses different time zone. >> time zone has nothing to do with this. it is more related to the economic development. >> back at his home, he says there'll be adjustment in having two time zones in the country. after 5:00 pm the sun starts to set. people feel being able to enjoy the day when there's toilet out will be worth it. >> they say what goes around comes around. two new york artists took the saying to an extreme. they are spending 10 days living on a hamster wheel. and we ask them why. >> hi, i'm alex and i'm an artist and architect from new york city. >> i'm ward shelley from brooklyn. together with my partner we are living on a peace called in ordit. ward and i got the idea based on pieces from the past. we wanted to explore two people synchronising their day. all the norm at activities spin around and we synchronise. >> 180 degrees is ward's bed. >> i'm on top of the wheel. the situation here is different to the bottom. i have a small area i can stand in. he's got to be thoughtful about me and every moment. he has to keep his mind on me. the script for the performance building