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Professors Debate Depression Vs. Recession

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Professors Debate Depression Vs. Recession EDITORIAL: Women’s History Month INSIDE: SPORTS comes up short, page 5 Wrestlers go to NCAA FEATURES: Cash in on free or cheap Championship, page 8 things to do in O.C. and L.A., page 3 Since 1960 Volume 85, Issue 25 Thursday Daily Titan March 19, 2009 DTSHORTHAND Politics and pizza Titans can rub elbows with Cal State Fullerton President Milton Gordon, executive members of ‘Renegade’ rides the Associated Students, Inc. and the vice president of student af- fairs at ASI’s biannual “Pizza with the Presidents” today at noon in Becker Amphitheater. Students may come ask ques- tions, eat free pizza and enjoy music and giveaways while they through last. Fatter chance with close fast food (UWIRE) – A fast-food restau- town rant being in close proximity to a high school increases the obesity rate among its freshmen, accord- ing to a recent study by UC Berke- ley economists and a Columbia University researcher. The study, released in January, found that freshmen who attend high school a tenth of a mile from a fast-food restaurant have an obe- sity rate at least 5.2 percent higher than other freshmen. Additionally, there was “no dis- cernible effect” on obesity for high schools with fast-food restaurants within a quarter mile or half mile, or with non-fast-food restaurants nearby. “What we found was basically that only very close fast-food plac- es matter,” said Vikram Pathania, a researcher in the study who re- cently received his doctorate from UC Berkeley. “(And) if it’s not a fast-food restaurant then it does not lead to a spike in obesity.” The study looked at data from three million California public school freshmen, who are all re- quired to take a fitness test in the spring. The study also found that preg- nant mothers who live within a half mile of fast food outlets have a 2.5 percent increased chance of gaining 44 pounds or more. Pathania said this discovery can be used to argue for stricter regula- tion of fast-food locations. “He chose Orange County,” By jESSica TERRELL AND LuiS DELgADiLLO Veronica Kelley, a Cal State Ful- Daily Titan Editors lerton Child, Family and Commu- ‘Electronic Supersonic’ [email protected] nity Services professor said. “That’s amazing for a president to come out here this early in his presidency The crumbling economy and education cuts were the biggest concerns on the minds to talk to us.” of Orange County college students who had camped out overnight to earn a seat at See TOWN HALL, Page 4 President Barack Obama’s town hall event in Costa Mesa Wednesday. Photo By iAN HAMilton For the Daily Titan Despite the severity of the issues that audience members were hoping Obama would address, President Barack Obama waves as he The mock synth-pop-star, deplanes Air Force One at Long Beach Zlad, will keep you entertained most seemed near-giddy at the chance to see America’s 44th president in the flesh. Airport Wednesday. while he mumbles his way through an over-the-top song with a thick acccent. Hailing from the also fictional country of Molvania, keep an eye out for Zlad’s other hits. Professors debate depression vs. recession CSUF experts estimate then, in terms of stock market de- “Both started with stock market Interest rates at the time were also If the United States’ banks were to WEATHER cline. And unemployment rates are decline, but the reasons why mar- much higher than now, allowing the go under, the entire global economy when the economy will also increasing but are nowhere near kets crashed is a little bit different,” government to manipulate them in would be impacted for the worse, hit rock bottom what they were in the 1930s.” Puri said. “The problem we have on order to subside the effects of eco- Puri said. TODAY TOMorrow There are different ways of measur- our hands is from this credit bubble nomic downturn. Now interest rates “Many people argue that (this cri- By SARAH DE MERS ing what is happening in the econo- that for the last ten or fifteen years, are so low it is difficult to use it for sis) is more of a global phenomenon Daily Titan Staff Writer my, Puri pointed out, including the everybody all over the world, and es- economic advantage. than before, but if you look back in [email protected] stock market, unemployment rates, pecially the United States, have been According to Jared Rubin, CSUF history, the Great Depression was output and gross domestic product borrowing too much, that we have economics professor, this makes just as global,” Lane said. Whether or not Americans are growth. All these move somewhat lost restrictions on credit.” banks a top priority for the govern- One of the major differences High: 75 High: 71 suffering through a recession or a separately, which complicates mea- According to CSUF American ment. between the 1930s and now is the Low: 55 Low: 52 depression is the question that econ- suring exactly how bad the crisis is. Studies Professor Carrie Lane, the “If one or two big banks falter, the amount of government involvement and activity, Puri said. PARTLY CLOUDY PARTLY CLOUDY omists like Cal State Fullerton’s Anil Unemployment rates reached 25 economic crisis of the 1930s consist- negative effect in capital markets will Puri, dean of Business and Econom- percent during the Depression, while ed of several depressions, beginning cause insolvency for some banks that “Obama is spending a whole lot of ics, are trying to answer. the current unemployment rate is with the Mississippi flood, followed have been fiscally prudent and are money to increase borrowing, which CONTACT US “The single most important issue only at 8.1 percent, according to the by the stock market crash and then currently solvent,” Rubin said. has lowered interest rates,” Puri said. “Money is freely available to increase Main line: (714) 278-3373 right now is, are we getting close to Bureau of Statistics. This leaves some the Dustbowl. The fall of Lehman Brothers and consumption and demand.” News desk: (714) 278-4415 the bottom?” Puri said. “In some room before we hit “bottom” and “Both crisis’ show how much our other financial firms is very similar While money is available for in Advertising: (714) 278-4411 ways (this recession) is comparable experience the same depth of crisis economy is dependent upon credit,” to the bank situation from 1931 to E-mail: [email protected] to the 1930s. (It) is the worst since as the Depression. Lane said. 1933, Rubin said. See RECESSION, Page 2 2 PAGE TWO March 19, 2009 IN OTHER NEWS ‘stepping up and doing the right thing’ INTERNATIONAL In Iraq, a boy named ‘War’ turns 6 AIG’s CEO said he’s asked employees to give some bonuses back and return at least half of the money BAGHDAD (MCT) – Iman Kadhim felt the contractions at 2 a.m. on (MCT) – The head of theA meri- ability to pay taxpayers back quick- March 20, 2003. The streets of Baghdad were deserted; people cowered in can International Group told Con- ly and completely, and the only way their homes awaiting the threatened U.S. invasion. But the baby wasn’t go- gress on Wednesday that he’s asked to avoid a shock to the economy ing to wait. employees who received $165 mil- that the U.S. government’s help was A neighbor with a car gave Kadhim and her husband a ride to the hospital lion in bonuses to “step up and do meant to relieve.” from their southern Baghdad neighborhood. the right thing” and voluntarily give Liddy said that if he’d been in Nothing was easy that night. Kadhim heard the baby’s first cry before back at least half of their rewards. charge of AIG when the retention dawn and held him in her arms. Then they heard the first explosions that Edward Liddy, AIG’s chairman contracts first came up, he would heralded the arrival of the U.S. military. and chief executive officer, told a have opposed them. She named him Harb, Arabic for “war.” His full name, Harb Zaid, trans- House Financial Services subcom- “But we concluded that the risk lates as Zaid’s War. mittee that, earlier in the day, he to the company, and therefore the Neighbors joked that the child named War would only bring damar, or requested that AIG employees who financial system and the economy, destruction. She worried about him, the boy with a difficult name and an received retention bonuses of more were unacceptably high,” he said. uncertain future. than $100,000 return at least half Liddy acknowledged that mis- “I was scared. We didn’t know how our life would go forward,” she said in of the money. takes “were made at AIG on a scale her small home in New Baghdad. “We didn’t know the future.” “Some have already stepped for- few could have ever imagined pos- The tension has eased a little, however. The family has taken to calling the ward and offered to give up 100 sible.” little boy with black eyes and a shy demeanor Taqawi, a nickname that has percent of their payments,” Liddy “The most critical of those mis- said. “We will work toward the no burdensome meaning. It has no meaning at all, really. takes was that the company strayed highest level of employee participa- photo courtesy of Mct from its core competencies in the tion in this effort in the days ahead, insurance business,” he said.
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