Tag Archive for the 'economy' Tag

The Worse of Two Evils

Posted by Donna on August 11, 2009 at 7:11 am

If a cleaner environment means fewer jobs and higher power bills, this week’s National Clean Energy Summit

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that’s being held in Las Vegas is in big trouble as it attempts to bring the benefits of updated environmental policies to the forefront.

A recent Gallup poll revealed 41% of Americans surveyed believe the media has exaggerated global warming.  Twelve months ago, that number was 35%.  Republicans appear to be the most suspicious of media intentions.  66% of Republicans insist the media has ulterior motives, while only 20% of Dems say they’re prone to take the media reports as truth.  A whopping 61% believe the effects of global warming haven’t even begun to occur; these percentages were at 52% this time last year.

So why the sudden distrust?  Two words: the economy.  Too many folks believe greed is behind the push for environmental clean-up efforts.  Jerry Taylor, who works with the free-market advocate, Cato Institution, said, “We’re in the midst of one of the deepest recessions since the Great Depression and people suspect environmental policies that prices tags that are not inconsequential”.   To say there’s a skeptical public is an understatement.

Even with 40% of those polled who believe the environment takes precedence over the economy, it’s clear there’s a shift in priorities in this country.   Economic growth, most believe, should be top priority.

As Frank Newport, editor in chief of the Gallup Poll says in reference to the non-plussed attitude this new poll reveals, “Al Gore won a Nobel Peace Prize for his efforts…yet, for all that, it hasn’t worked”.  Of course, there are those who disagree with the Gallup Poll’s numbers and insist on seeing the formulas used to “get to this place”.  Not that it matters; several other polls conducted in the past several months show growing percentages of those who are adamant about not paying higher utility bills that are required for cleaner energy sources.  The sentiment seems to be, “Not now.  Maybe later, but not now.”

The summit will last throughout the week and has many state political leaders in attendance.


The New Landscape in Business

Posted by Donna on October 12, 2008 at 11:05 am

With the uncertain times in American businesses, many people who have lost their jobs or are considering bailing before the ship actually sinks, more and more inquiries are being made via the Small Business Administration (SBA) from those wishing to strike out on their own.
It seems a little overwhelming, but it’s actually easier to navigate once you decide to not let fear become the basis of all you future choices.
The SBA defines a small business as one who employees 500 people or less. On average, most small businesses employee seven people. The first question, after one has made the decision to go into business for himself, is what will the government require regarding employee protection of anyone added to the payroll?
Age Discrimination Act - Applicable to those small businesses who employ 15 or more
Americans with Disabilities Act - Applicable to companies with25 or more employees
Civil Rights Act of 1964 - Applies to companies with 15 or more
Family Medical Act (FMLA) - Applies to small businesses with 50 or more employees
COBRA - Applicable to small businesses with 20 or more employees

Keep in mind, however, some state laws demand small businesses, regardless of size, comply with these federal guidelines. You will need to check with the state you reside in for any overriding laws.
You have your solid business plan, now what? Employee benefits, of course. After all, you will want to retain the talent you’ve sweet talked and promised the moon to in your efforts to woo them to your side, right? Because you really have no “assets” yet (unless you’re independently wealthy, of course), your offerings may be nothing more than a company cookout once a month. That cookout consisting of the spouse at the helm of the grill in the backyard, entertainment in the form of “Greatest Hits from the 80s” on the cd player (which, by the way is quite attractive - I’d consider working for someone with great taste in music) and cold beer instead of an open bar for liquid refreshments (again…quite attractive - I’d rather drink a cold beer than some cocktail that’s has more embellishments than Janet Dickerson). As tempting as that is for most people, they still would like a little something more. You can’t offer company benefits yet, but with your solid business plan, you realistically see that within the first year. How about a 401(k) plan? That’s relatively inexpensive to set up and provided you can attract potential employees with the contributions being solely up to them at first, you could offer a company match after the first year or so. Believe it or not, with the economy the way it is, that is something that’s quite tempting. Add to the fact that this may be the most honest statement many have heard from any employer in the past two years, many will jump on this. People are tired of feeling betrayed by their employers.
Also, the failure or success of your company can often rest on your business choices. One vital element that must be in place is your professional team. This is as important as choosing your employees and mustn’t be decided on a whim or on the advice of the hubby’s Aunt Doris who has used the same insurance agent since the 1940s.
Bank - You want to know the bank has enough faith in you as you do.
Accountant - Vital in ensuring you cover the bases in taxes - both company and employee as well as guiding you in everything financial.
Attorney - Again, vital for contracts with vendors, property purchases to build your company and other matters to protect you, your family and your investment. You attorney also will sound the alarm anytime something isn’t on the up and up whether it’s the perfect location whose current owner is a bit hinky to when you’re making plans to promote your company. Nothing worse than an advertising campaign that’s full of potential lawsuits. Your lawyer has a radar that can see the potential legal problems a mile away.
SBA - Yes, they are on the same team as you. Your success is the primary reason of its existence.

So, you see, even if the economy is screaming “RUN RUN RUN”, you can slow it down a bit, find the faith in your own abilities and run straight to a new success built on all that you are and what you can offer in the business world.


What the Past Teaches

Posted by Donna on October 8, 2008 at 8:28 am

With so much going on in the world of politics, finances and American legal structures, we’ve heard words such as “recession”, and even phrases like, “Well, back during the days of the Depression…” Hopefully, things won’t get this despondent. Contrary to what some may believe, I don’t think we’re anywhere near a depression. Maybe a series of “blue days” would be a more apt description, for now anyway.

Still, though, I was interested in comparing the days of the Depression and the years prior that some say is the true beginning of what culminated into a near-decade decline. For the sake of uniformity, I’m using a general “pre-1940″ as my comp point with specific years within each reference.

Pre-1940

2008

Suggested Causes of Decline/Depression was coined as: “The 3 Bs”: Bankers, Business, Brokers

Suggested Causes of Decline could coined as “The 3 Ms”: Money, Mortgage, Mismanagement

Those Living Below Poverty: 33% (1929)

Those Living Below Poverty: 12.5%

Unemployment Rates: 26.6% (1933)

Unemployment Rates: 6.1% (Analysts predict numbers near the 1933 rate of 26.6% if trends remain same)

Number of Banks Failed: 9,000

Number of Banks Failed (YTD 2008): 60 (Analysts predict potentially 90 more within next twelve months)

Human Toll: 11 well known Wall Street speculators suicide on Black Thursday, 1929. It was later discovered that a ticker glitch was at fault this particular day.

Human Toll: 90 year old woman attempts suicide due to foreclosure in October 2008

A man in California killed his family of five and then killed himself over financial problems and recent job loss.

Divorce Rates: Due to the legal costs of obtaining divorces, the rates dropped sharply; however, it’s estimated that nearly 1.5 million men abandoned their wives and children due to low self-worth and failure to provide for their families

Divorce Rates: No noticeable difference; divorce rates still hover near 50%

Catchphrases: Hooverville - Used to defined cardboard “shanty” towns built by homeless men to provide shelter

Catchphrases: Housing bubble burst - Result of high number of subprime mortgages facing foreclosure.

High School Dropout Rates - Surged to near 4 million at height of depression

High School Dropout Rates - Hovering near 9%, up only slightly from 2005

*All figures come from US Census Bureau and BLS/PPI Government site

Even though there are some similarities, when you take a step back, you begin to realize many of these comparisons are indicative of society throughout the decades. Divorce, even though the rates were down, is as evident now as it was in the 1970s. Dropout rates are actually a bit better than they were in the early 1980s. Murder rates weren’t really any higher in the late 20s through the early 30s. Of course, robbery and theft was up for obvious reasons. On the other hand, a depression is defined as:

Deep extended slump in total business activity. Buying and selling drop, forcing a decline in production prices, incomes and employment.

Again, that statement can be applicable to many times even within our lifetimes. So, as bleak as the political and financial fronts seem to be, it’s not as discouraging as some insist, especially the ones who declare the sky is falling.

My guess is burglary, petty theft and misdemeanor charges for things such as a lack of automobile insurance and expired tags will be on the increase. Hopefully, the winds of change will begin to shift sooner rather than later.



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