Recession has rich and poor cutting back!

Wealthy people are doing the spending with the economy needing to be stimulated. But now the New York Times reports that even the big spenders have roped in their purchases. The Federal Reserve has acknowledged that America's economic recovery has slowed. If conditions worsen, experts believe that an additional stimulus may be necessary.

If rich people spend, jobs are created

The Economist reports that two junior ministers from the French government have resigned over expense report discrepancies like $ 15,000 Cuban cigars and $ 147,489 for a private jet to fly to "a conference devoted to the penniless victims of the Haiti earthquake." Now many different scandals regarding the acceptance of illegal campaign contributions have touched French Labor Minister Eric Woerth and even President Nicolas Sarkozy.

In a deal worth almost $ 5 billion, consulting and insurance business Aon Corporation is getting HR outsourcing firm Hewitt Associates. The newly-formed Aon Hewitt division will function much like Hewitt Associates did before the purchase. After a few years of transition, the combined business will probably conserve about $ 355 million each year.

Consumer reports don't recommend the iPhone 4G. The iPhone 4G bomb was dropped by the magazine because of reception issues. iPhone 4G antenna troubles and what the media calls the "iPhone death grip" are in headlines since the company released the gadget last month. Apple says there will soon be a software update showing accurate display of signal strength. Nevertheless, Consumer Reports ran its own tests on the iPhone 4G and recreated the very same exact reception problems everyone has been complaining about.

The iPhone 4G has had a lot more than its share of troubles from the start. First, the phone was leaked long before Apple wanted it to be. After that, ordering and delivery did not work as intended. Next, white iPhone 4G difficulties abounded. Will the recent iPhone 4G reception issues prove to be a reason for users to switch to Android.

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With fear of a double-dip recession on the minds of auto industry executives, drastic measures have been undertaken that have sent shock waves through the once steady world of auto advertising. Where size and experience once guaranteed an advertising agency's future business with automakers, now the same automakers are planning to shake things up as sales numbers continue to flounder when compared with those of previous years. According to Automotive News, there's a $ 600 million media spending turnaround on behalf of three major automotive brands, and it's all about swapping ad agencies.

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