Here is your economics lesson for the day. I’ll make it very simple.The government can influence the economy by two basic methods--monetary policy and fiscal policy.

Monetary policy is concerned with the money supply--how much money is available in the economy. Monetary policy is mostly the responsibility of the Federal Reserve Board, which sets the interest rate for loans to banks in the Federal Reserve System. In a recession, the Fed, as it is usually called, lowers the interest rate. If you can take out a car loan at 2% interest, you are much more likely to borrow money than if the loan comes with a 20% interest rate. A low interest rate encourages people to buy goods, which increases the need for workers to make, distribute, and sell the goods, all of which stimulates the economy. In an inflationary period, the Fed raises interest rates. There are other steps the Fed can take, but that is enough for today’s lesson.

By Michelle Kaplan Ognjanovic.

The New York Times recently delivered what was at once a walloping and disturbing message to Americans about the condition of our drinking water. Find it here: http://www.nytimes.com/2009/12/17/us/17water.html?emc=eta1. The article details how drinking water sources nationwide may be unhealthy though legal (bet you didn’t know drinking water could be legally unhealthy). To be fair, it is more unhealthy in some places than others (and I imagine your initial reaction to be should I be worried?).