As Women Take Over a Male-Dominated Field, the Pay Drops

Women used to make about 60 cents for each dollar men make, now it’s around 80 cents. There are several reasons for the gap to exist. Firstly, women are in a disadvantage for heavy-duty jobs, and normally very few women choose to take jobs in these industry. Even if they did, they are most likely not as productive as male. Which leads to a lower wages. Secondly, in this article, one of the researchers indicates that some times the main issue is the gender difference non-cognitive skills. Men are often said to be more competitive and self-confident than women, and according to this logic, they might be more inclined to pursue highly competitive jobs. Also, sometimes women voluntarily choose lower-paying jobs, because they want less demanding jobs because they have more family responsibilities outside of work.

In general, the wage gap still exists, but it’s getting smaller and smaller as the society evolves.

Link: http://www.nytimes.com/2016/03/20/upshot/as-women-take-over-a-male-dominated-field-the-pay-drops.html?ref=economy

Apple Pay could arrive on browsers by this holiday season

Apple Pay is going to be added in browsers, which means people can use Apple Pay through Safari on iPhone and iPad. Shopping on mobile is actually complicated and slow, which turns off users. Users do most of their shopping within a browser even though they spend more time on apps when on their smartphones. According to Google, 48% of consumers start their shopping research on search engines compared to 33% on brands' websites and 26% in apps.

As the development of technology, electronic payment methods largely reduce the money demand. People intend to shop in using different methods rather than in cash. In this case, I believe that the Apple Pay in-browser function would attract more users to start use it. People could shop immediately when they find something they want on smartphone. They don't need to turn off their smartphone and turn on laptops to purchase.

http://www.businessinsider.com/apple-pay-in-browsers-could-boost-us-adoption-2016-3

Brussels Attacks: Can Europe Keep its Open Borders?

Link: http://www.cnbc.com/2016/03/22/brussels-attacks-can-europe-keep-its-open-borders.html 

After the attacks in Belgium that claimed the lives of at least 31 people, border checks were reintroduced. This questioned what will happen in the future for border policies in Europe. In Europe, many countries are a part of the Schengen Agreement. This Schengen Agreement was signed in 1985, and allows travelers to cross borders of these countries without immigration controls or passport checks. This agreement involves 22 Europe countries currently, as well as four European Free Trade Association member states. Open borders in the European area is very important for productivity. About 1.7 million people cross European borders every day to get to work. A study constructed by a German research institute called Bertelsmann Stiftung forecasted last month that increased border controls would cost Germany, which is Europe's biggest economy, about 77 billion euros ($86.3 billion) between now and 2025. Germany would be hit particularly hard if the Schengen agreement were dissolved because it is surrounded by Schengen countries. To be able to reintroduce border controls, countries must submit a request to European Commission. The website of the European Commission describes this move as a "step of last resort and would be used only if all other measures were ineffective in mitigating a serious threat." And although the European Commission has the legal tools to punish countries who reintroduced border controls without requesting it, it is unlikely that they will.

Ford may join Uber and Lyft in the ride-sharing business

I thought that this was an interesting article because it talks about how car companies are investing in these company's like Uber and Lyft. Companies like these are growing huge in big cities are putting a hurting on regular cab companies. In the article it talks about how car companies are looking in to making cars that drive them-self which will eliminate a driver which would allow Uber and Lyft more money cause they wont have to split the money with the driver. I don't know how i feel about vehicles that drive them selves because that will cut back on the amount of jobs needed in some companies because they wont need to hire drivers to transport the goods.    

link: http://finance.yahoo.com/news/ford-may-join-uber-and-lyft-in-the-ride-sharing-business-173021620.html   

Amazon: What Wall Street Still Gets Wrong

When it comes to expectations for Amazon.com’s profits, Wall Street is starting to come down from the clouds.

Shares of the e-commerce giant have fallen more than 16% since the beginning of 2016 as analysts have lowered their estimates for its future earnings. In December, analyst consensus estimates showed Amazon posting 2016 operating income of $4.5 billion. That estimate has since fallen to slightly less than $4 billion. Estimates for 2017 and 2018 have similarly declined. A major factor in those now lowered expectations: increasing competition for its Amazon Web Services cloud business.

The rapid growth of the high-margin AWS business has driven the bulk of Amazon’s recent profits. Operating income reached $2.2 billion in 2015, up from just $178 million in 2014. But given the presence of well-financed competitors such as Google and Microsoftin cloud services, investors should have known not to take AWS’s growing profitability for granted.

This is especially true in light of Amazon’s history of cutting prices to drive market-share expansion. Margins for AWS fell as low as 8% during the third quarter of 2014, versus 29% in the most recent quarter, after a big round of price cuts.

Heard on the Street pointed out in December that estimates for Amazon’s profits looked unrealistically high. Yet Wall Street seems to have gotten a bit ahead of itself. At least two research firms lowered their price targets this week, citing expected increasing competition for AWS. Google was also hosting a cloud conference this week, and some analysts are now saying that price cuts may lie ahead.

ENLARGE

If that comes to pass, this could put pressure on Amazon to cut prices again or ramp up its cloud investment. Recent high-profile wins for the search giant’s cloud business, including its new deal with longtime AWS customer Spotify, announced last month, could also presage future defections.

Of course, AWS isn’t the only reason that analysts have cited for their lowered numbers. Higher-than-expected shipping costs and greater-than-expected demand for fulfillment services from third-party sellers have also pressured gross margins. But the retail business was never expected to be Amazon’s major profit center—at least not until it flips the mythical switch turning off continuous investment in favor of profitability. Chances are, then, that estimates have further to fall.

For investors, Amazon’s golden age of profitability may remain just beyond the horizon.

http://www.wsj.com/articles/amazon-what-wall-street-still-gets-wrong-1458914693

Starbucks plans to donate 100% of unsold food in America

By the end of 2016, Starbucks plans to have donated 5 million meals.  Companies donating unsold food is not a new concept; many big companies already do this including Chipotle, Cheesecake Factory, Taco Bell, and several others.  Even with many large companies donating their unsold food, the U.S. Department of Agriculture still estimates that 30% to 40% of America's food supply is wasted.  Starbucks is one of the largest and most successful companies and I think it is due to its proactive mindset.  The CEO of Starbucks, Howard Schultz, explained to CNN,"I'm always trying to educate myself on the current social issues of our time"  However, it was actually the employees at Starbucks who brought this concept to attention.  According to Starbucks spokesperson, Erin Schaeffer, Starbucks has tried to donate food in the past but hasn't been consistent in finding a way to preserve the foods quality through the process of  the donation. Being one of the largest companies in its industry, I am interested in seeing how this change affects its competitors and if they will proceed to make social changes in order to remain competitive.  

http://money.cnn.com/2016/03/22/news/companies/starbucks-hunger-relief-action/index.html?iid=surge-stack-dom

History Points to Limited Economic Pain From Belgium Attacks

Financial markets barely registered this week's attacks in Brussels, which killed more than 30 people, a sign that investors think the economic impact on Belgium and across Europe as a whole will be limited. Recent history suggests they may be right.

The experience of terror attacks in Europe in the past decade have helped the business community keep their cool in the face of horrors like this week's deadly bombings at the Brussels airport and subway.

Firms have gotten better in their responses. From identifying personnel, to clearing offices or sanctioning remote working, even at recovery sites, they manage to contain the disruption. The people have shown a willingness to get back to life as usual as soon as they can, whether it be shopping, boarding a train or having a meal. And governments learn to put in place security measures they hope will deter more attacks.

http://abcnews.go.com/International/wireStory/history-points-limited-economic-pain-belgium-attacks-37889082

If the Fed wants more inflation, it should say so

"SOMEWHAT surprisingly, inflation has been picking up in America in recent months. Not in any worrying way; indeed, the Fed's preferred gauge of inflation, the price index for personal consumption expenditures, remains below the 2% target, as it has done for most of the last four years. But the move upward since late 2015 is unmistakable, and amid what looks like the end (for now, at least) of a long boom for the dollar and a long bust for oil prices, a rise in inflation to and above 2% seems increasingly likely. Above-target inflation is an opportunity for the Fed."

It is known that U.S inflation has been very low for a period long time, so, I found this article useful to talk about fed's approach. 

http://www.economist.com/blogs/freeexchange/2016/03/low-end-theory

Plan to Rescue Puerto Rico Advances, Led by House Republicans

Politicians in Washington are working together on a financial plan to rescue Puerto Rico, weeks before they are expected to default on bond payments that would be detrimental to an already shaky economy. The current plan, which is led by House Republicans, will give the island tools that bankruptcy proceedings offer. This will only happen however, if Puerto Rico comes under federal oversight and meets very specific conditions. The oversight will consist of a 5 member voting board, selected by the POTUS. The board will have the power to subpoena documents from both the U.S. and Puerto Rican governments, their main goal being to audit the local government so that they can find savings and determine how to restructure the $72 Billion the country has racked up in debt.

This package comes under the direction of Speaker Ryan, who has been in consultation with the U.S. Treasury Department and other Democratic leaders. The Treasury Department has also been recently calling for Puerto Rico's debt to be restructured. While this legislation is being pushed through Congress, there are still skeptics who think that restructuring should only be allowed in certain areas and where necessary. Speaker Ryan set a March deadline when the rescue package was drafted so it will be interesting to see if Congress can finalize a plan to help Puerto Rico's deteriorating situation.  

http://www.nytimes.com/2016/03/25/business/dealbook/plan-to-rescue-puerto-rico-advances-led-by-house-republicans.html?ref=business&_r=0

http://www.investopedia.com/articles/investing/032216/shortsighted-retailers-why-target-losing-retail-wars-tgt.asp?partner=YahooSA

Target Losing the Retail War

Target has been known for a long time as a trendier alternative to its more bland and less amicable competitors K-Mart, Sears, and Walmart. While, they have strayed the retail death march brought on by online competitors such as Amazon.com, Target's lack of innovation could lead to their demise.

First off, when Target sought out to expand business in 2010, they did so by establishing a greater amount of brick and mortar stores internationally in Canada. What they had abandoned was their retail sector which would have sought the most growth in recent years. Amazon has seen exponential growth in the sector since our domestic economy has made recoveries, however Target has begun hemorrhaging money since the expansion of their brick and mortar constant.

Investopedia believes that their biggest mistake is a lack of focus. It would appear that target had aimed to concentrate itself for expansion in four sectors - style, baby, kids, and wellness. It had also sought to expand its grocery part of the business - all while decreasing the amount of SKU's in the store.

It would appear that target is continuing to exist in the past, while their main focus should be on sustained growth of the smallest part of their business. Even though their online retail sector grew 30% last year after a billion dollar investment, online sails still only equate to 3.4% of total sales. Maybe Target should be a bit more like Phillip Morris (reference to Collins' Good to Great, Phillip Morris expands sales by focusing on the smallest part of the business and avoiding US sanctions after they expanded their international market).

Negative interest rates are a high-risk experiment

  Conventional thinking is that negative rates are just a natural continuation of quantitative easing, like dialling down the air conditioning. This, though, underestimates how financial intermediaries may actually respond. They erode banks’ margins. They give lenders an incentive to shrink, not grow. They encourage banks to seek out opportunities overseas rather than in their home markets. They also risk disruptions to bank funding. All go against the grain of the central banks’ desire to ease credit conditions and support financial stability.

  Negative rates could also start to erode consumer trust in banks as the right place for their cash because bank consumer always pursues positive nominal interest rates. Will negative interest rates en­courage banks to lend more plentifully and cheaply and help support economic recovery?

Link: http://www.ft.com/cms/s/0/018ea7f8-ef67-11e5-9f20-c3a047354386.html#axzz43msaBRP7

Friends at Harvard Turn Rivals Over Ride-Hauling App in Asia

Friends at Harvard Turn Rivals Over Ride-Hauling App in Asia

Two entrepreneurs who were friends while attending Harvard Business School, both eagerly schemed
ideas together in hopes of creating a successful startup company. Upon graduating each had success in their pursuits, ultimately making each other rivals in the same business. Nadiem Makarim started the company Go-Jek. Which is an Uber like service except it provides motorcycle rides that can help customers get from point A to point B in densely populated areas of Asia. Anthony Tan started the company GrabTaxi, which is similar to Go-Jek but with cars. Each company has had tremendous success and it will be interesting to see how this may change our means of modern-day transportation. For the full article click below.






Click here

How Wage Insurance Could Ease Economic Inequality

Wage insurance is an experimental policy that could lead to some serious stability in the economy if applied. George W. Bush has supported it in his presidency, as has current President Barack Obama but most surprisingly, it does have bipartisan support. It helps those who have lost jobs and are currently underemployed or unemployed. While it is only currently available for those over fifty who make no more than $50,000 per year, presumably because they are rapidly approaching retirement, it also targets to protect those who have lost their jobs to workers overseas. This is a policy that had been adopted by Canada in the mid nineties and recommended by them to us. If it becomes effective through 2021 as Obama implied, it could be critical for domestic economic growth.

http://www.nytimes.com/2016/03/13/upshot/how-wage-insurance-could-ease-economic-inequality.html?ref=economy&_r=0

Are women ready to rent their work wear? Rent The Runway bets yes.

     From Spotify to Netflix to even Uber, our society today is fairly comfortable with renting goods and services for a limited time and then later returning them. In this sense, we only pay for what we know we will consume and use up, and we usually save money and resources through these actions. With this in mind, it comes to no surprise that in the 21st century women working in business may also want to rent their work apparel. In the Washington Post article, written by Sarah Halczak, it explores the idea of this kind of "sharing economy" being popularized today.
     According to the article, the company Rent the Runway, created 6 years ago which allows customers to rent expensive and brand name ready to wear gowns and formal attire, recently launched a new app named Unlimited that lets users  "pay a monthly fee of $139 to receive three items at a time that they can keep for as long as they want." This idea is very reminiscent of netflix during its earliest days. I think that this is an interesting and innovative idea for not only working women but also other consumers alike. Although it may take away from some of the sales of the high end department sales and brands that people can purchase in shopping centers and elsewhere, this application and online resource will allow consumers to better allocate their time and money so that they can be more productive in other areas of their life. On of the problems that I do foresee for the app is how it will compete with other similar programs, however, rent the runway is already rather well known and probably has a strong customer base through that asset. Also, the owner of the app stated that the company, "deliberately priced Unlimited to deliver an 'extremely healthy [profit] margin' from the get-go instead of trying to lure people with a lower introductory price." As an aspiring finance major, I am interested to see how this app will impact the way in which modern business and working women fill their closets in years to come.

Link: https://www.washingtonpost.com/news/business/wp/2016/03/23/the-meaning-of-rent-the-runway-expanding-from-fancy-dresses-to-everyday-clothes/

Shares Decline After Attacks in Belgium

United States stock indexes on Tuesday, closed lower. Shares of airlines, cruise companies, and travel booking sites fell after the bombings in Belgium. The news of the attacks pulled the market as a whole lower for much of the morning, the market rose a little bit in the afternoon, and then lowered later. Overall, trading has been relatively light signaling the upcoming Easter holiday as well as signaling that traders were not as rattled by the potential market implications of the attack in Belgium. The major European stock markets declined early on Tuesday, but ultimately closed higher. For example, in Belgium- the BEL 20 index rose 0.2 %.
It is interesting that the stock markets in the United States and Europe do not immediately reflect the panic that has set in both nations. While the shares declined, the market seems relatively stable considering the situation at hand. Only time will tell, whether that is here to stay.
NY Times, The Associated Press

Fed leaves rates unchanged, sees 2 hikes this year

A dovish Federal Reserve held the line on interest rates Wednesday and substantially scaled back its expectations for further moves ahead. Where the U.S. central bank at its December meeting had projected four rate hikes in 2016, new estimates released Wednesday reduced that number to two. Fed officials also cut their expectations for economic growth and inflation. In addition to the two rate increases this year, the Federal Open Market Committee now projects just two hikes in 2017, according to the latest Summary of Economic Projections. The current interest rate target is 0.25 to 0.5 percent, and Fed officials back in December had expected the upper level to rise to 1.4 percent by year's end. With the new projections, the FOMC now sees just a 0.9 percent funds rate in 2016 and a 1.9 percent level by the end of 2017, both reflecting cuts of half a percentage point. The projections were included on the so-called dot plot, a graph that shows where individual members see the Fed's interest rate target each year. There was a considerable shift lower in the latest estimates. The Fed also cut its GDP growth outlook for 2016 from 2.4 percent to 2.2 percent and reduced 2017's call from 2.2 percent to 2.1 percent. Despite recent public comments from some members indicating that a rate hike was appropriate, the FOMC approved the decision 9-1. Only the Kansas City Fed's Esther George dissented; she wanted to hike rates at this meeting. In the statement, the committee referenced "global and financial developments (that) continue to pose risks," language that contrasted to the December statement, which said the committee was only "closely monitoring" those conditions. The committee saw household spending "increasing at a moderate rate," while housing "has improved further." The statement did not address the "balance of risks" issue included following some previous meetings. Despite the Fed's aggressive rate projections at the December meeting, futures traders had been holding to a slower trajectory for the path of rate hikes. Consequently, the fed funds market moved little after the decision, except for a drop in expectations for a June rate hike. "They still see a pretty slow-growth low-inflation world ahead of us. They're catching up with the market," said Kathy Jones, chief fixed income strategist at Charles Schwab. "The big takeaway is the Fed is adjusting to the global economy, as the market already has. It's really tough for our rates to go up much when they're negative in the rest of the world."The committee continued to include language that it was confident inflation would gravitate toward the 2 percent goal and is lower now due largely to energy price declines. But economic projections indicated some misgivings about the current pace of growth.

             Inflation expectation changes were split: Committee members see headline inflation, which includes volatile food and energy costs, at 1.2 percent by the end of the year, slightly lower than the current level and down from the December estimate of 1.6 percent. The core personal consumption expenditures level is still expected to be 1.6 percent at the end of the year, consistent with the December projection. Core inflation projections for 2017 also were taken down a notch, from 1.9 percent to 1.8 percent. At least in terms of economic projections the dovishness exceeded expectations from Wall Street, where some Fed watchers fully expected the committee not to raise rates but were looking for more hawkish language on rates, considering a recent upturn in economic data. Jobs and housing numbers continue to improve, while gross domestic product is likely to come in above 2 percent, after a 1 percent gain in the fourth quarter. After more than seven years of zero interest rates and more than nine years since the last rate hike, the FOMC in December enacted a quarter-point hike. Financial conditions quickly tightened afterward, giving policymakers pause about future moves. However, the last month or so has seen a rebound, with a strong rally in stocks and a bounce in government bond yields.

Full article at: http://www.cnbc.com/2016/03/16/fed-leaves-rates-unchanged.html

New Chinese Ivory Policies

China implemented new policies today that widened its ban on ivory import as China comes under pressure from other major nations. China has one of the highest prices of ivory in the world, reaching up to $1,100 per kilogram. Before this new legislation, China had allowed the resale of ivory brought to the country before 1989. However, activists have argued for years that the trade of legal ivory acts a a cover for illegal ivory imports. In his last visit to the United States, President Jinping was asked by the White House to "commit to enact nearly complete bans on ivory imports and exports. Unfortunately, these newly enacted policies do not outlaw the existing domestic trade of ivory in China. It will be interesting to see how these new policies affect the worldwide trade of ivory.

http://phys.org/news/2016-03-china-widens-ivory-imports.html

10 American Companies Hopping on the Cuba Bandwagon

http://www.thefiscaltimes.com/2016/03/21/10-American-Companies-Hopping-Cuba-Bandwagon

http://www.bbc.com/news/world-latin-america-12159943

President Obama has a very pivotal and historic meeting Raul Castro, President of Cuba. A direct result of this meeting has been many US companies pursuing opportunities in Cuba with the new, healthy relationships being built between the United States of America and Cuba. Relations between the US and Cuba have been improving rapidly and the very recent meeting between the two Presidents has shined light on past disputes, leading to the increase of interest in future business opportunities. A crucial outcome of the meeting between Obama and Castro is that the US embargo on Cuba is expected to end, which will restore a functional relationship between the US and Cuba. There is great economic opportunity for both countries if communal ties are to be normalized. The President also met with many US business leaders/executives and Cuban entrepreneurs to further discuss the opportunities at hand with the lifted US embargo of Cuba. In order to further increase awareness of very possible and mutually beneficial business opportunities in Cuba with the US, Obama brought many distinguished executives, from multiple business industries, with him on the trip to Cuba.

Timeline of US + Cuba Relations:

1934: The US abandons its right to intervene in Cuba's internal affairs, revises Cuba's sugar quota and changes tariffs to favour Cuba.

1960: All US businesses in Cuba are nationalised without compensation; US breaks off diplomatic relations with Havana and imposes a trade embargo in response to Castro's reforms.

1962: Cuban missile crisis ignites when, fearing a US invasion, Castro agrees to allow the USSR to deploy nuclear missiles on the island. The US released photos of Soviet nuclear missile silos in Cuba - triggering a crisis which took the two superpowers to the brink of nuclear war. It was subsequently resolved when the USSR agreed to remove the missiles in return for the withdrawal of US nuclear missiles from Turkey.

1993: The US tightens its embargo on Cuba, which introduces some market reforms in order to stem the deterioration of its economy. These include the legalisation of the US dollar, the transformation of many state farms into semi-autonomous co-operatives, and the legalisation of limited individual private enterprise.

1996: US trade embargo made permanent in response to Cuba's shooting down of two US aircraft operated by Miami-based Cuban exiles.

Nov 2001: US exports food to Cuba for the first time in more than 40 years after a request from the Cuban government to help it cope with the aftermath of Hurricane Michelle.

Aug 2006: US President George W Bush - in his first comments after President Castro undergoes surgery and hands over power to his brother Raul - urges Cubans to work for democratic change.

Dec 2006: The largest delegation from the US Congress to visit Cuba since the 1959 revolution goes to Havana. Jeff Flake, a Republican congressman heading the 10-member bipartisan delegation, said he wanted to launch a "new era in US-Cuba relations", but the group is denied a meeting with Raul Castro.

Oct 2011: Convicted Cuban agent Rene Gonzalez is freed as scheduled from a Florida jail. Gonzalez is part of a group known as the Cuban Five, who were given long terms in 2001 in the US after being convicted of spying. Havana has repeatedly called for the men to be freed.

Dec 2011: The US again calls for the release of Alan Gross, an American who is serving 15 years in a Cuban jail for taking internet equipment into the country. Cuba's refusal to free him has frozen relations for months.

Sep 2012: Cuba suggests it is ready to negotiate with Washington on finding a solution to the Gross case.

- It is truly amazing to see relations between the US and Cuba improving hastily today with all of the past turmoil (summarized above) that has been produced between the two countries starting in the late 1800s. Healthy relations maintained between the US and Cuba could mean certain future economic expansion/improvement for both countries as well. 

The top ten American companies hopping on the recent Cuban bandwagon are:

1. Airbnb - matches travelers with home rentals
2. AT&T - telecom monopoly 
3. Google - internet access/search engine/multiple computerized programs
4. Marriott International - hotel operating company
5. PayPal - global money transfer service
6. Priceline - booking site
7. Starwood Hotels & Resorts Worldwide - hospitality company
8. Stripe - Stripe Atlas product for budding businesses/start-up business aid 
9. United Airlines, American Airlines, Southwest and JetBlue - airlines
10. Western Union - global payments services company  

Consumer sentiment hits 90 in March vs. 92.2 estimate

     According to the University of Michigan study from March, the Consumer Confidence Index dipped lower than expected this month. The CCI reached around 90 when expectations were around 92.2 which is even a decrease from earlier this year from February which had a CCI of 105.6 down from 106.8. The University of Michigan provides this index number on a monthly basis which can give economists a key insight into the way that consumers feel about the current state of the economy. One main aspect and driving force of consumer behavior are expectations. This idea can take the form of anything from prices of commodities domestically to the overall inflation rate of the economy. Usually, people and companies pay very close attention to the words and actions of the Fed and act after they have made their assumptions. Similarly, consumer actions and consumer spending have a very large impact on the GDP of our nation (around 70%), and when they are feeling confident, they spend more which promotes the growth of industries and aids in productivity and wage growth.
    Currently, the article written by Anita Balakrishnan, claims that consumer confidence fell due to concern over increasing gasoline prices. Over this year, gas prices have been historically low from the over supply and abundance, and during that time, consumers relished in the cheap prices, however, with prices rising, they probably worry about what is to come. The article does mention, on the other hand, that consumers do not necessarily think that there will be another recession in the near future, but that the GDP could potentially slow to a growth below 2.4% which would stifle productivity and output.

link:http://www.cnbc.com/2016/03/18/university-of-michigan-reports-preliminary-consumer-sentiment-for-march-2016.html

General Mills to label GMOs on products across the country

General Mills came out with a statement Friday, March 18th, that it will start labeling its products that contain genetically modified ingredients (GMO’s).  The company is doing this in response to a law going into effect in Vermont later this year.  The Vermont law will require all products that contain GMO’s to be identified starting July 1st.  General Mills said that its more cost effective to adopt the practice across the country now, rather than later, in order to keep price levels from rising.  General Mills joins Campbell Soup in adopting the labeling of GMO’s in their products amid a contentious debate in Congress whether identifying GMO’s should be a voluntary act or not.  However, not all of General Mills foods will be identified with GMO’s.  The new labeling will hit the grocery stores over the next couple of weeks.  In addition to the new labeling General Mills launched a tool on their website that will allow you to look up if a certain product has GMO’s.  However,  GMO’s are a very controversial topic especially when this comes to health.  Hopefully this move doesn’t come back to haunt General Mills. 

http://www.usatoday.com/story/money/2016/03/18/general-mills-to-label-gmos-on-products/81981314/

San Francisco's First Automated Restaurant is 'Pure Magic'

     After writing my previous post about a convenience store in Europe that has no workers and is controlled by an app, I became more interested in stores and restaurants that are using technology to replace workers. This being said, I found an article on Business Insider about San Francisco's first automated restaurant recently opening. The restaurant features iPads on the walls where customers can place their orders and pay, all without interacting with an employee. After placing their order, their meal will "magically" appear in a once blackened cubicle (a behind the scenes worker will place it there). The restaurant isn't fully automated, as workers prepare the food and one stands at the front of the store to answer any questions about the unique style of restaurant. Even so, the technology has replaced several jobs, leading to a more profitable business. In fact, after opening their original location in August, the restaurant has already expanded to Los Angeles.
     The article details several facts about robots replacing humans in the work force and notes that in 2014, researchers at Oxford warned that 47% of total U.S. employment was at risk of computerization. This is obviously a big concern as many more jobs will need to become available for those that are eventually taken over by computers. It will be interesting to see where society progresses and how the economy is affected by the shift to computerization.



http://www.businessinsider.com/the-future-of-the-machine-worker-is-here-2016-3

Will soft drink companies sue the UK government over the sugar tax?

The U.K. government has decided to impose a tax on sugary beverages, which has caused many problems for soft drink companies.  The tax will be issued to the producers of beverages that contain more than 5 grams of sugar per 100ml and will start in 2018.  U.K. finance minister, George Osborne, expects the tax to raise 520 million euros in the first year.  On the other hand, some of the producers are arguing that they are the only food and drink product to have made any progress at reducing their sugar content over the years and should not be punished for it.  Many soft drink companies are disappointed by this decision and are planning to take legal action.

http://www.cnbc.com/2016/03/21/

Louisiana's broad tax increases will hit April 1

In this article by Greg Hilburn they mentioned how starting on April 1^st the state of Louisiana will be paying higher taxes. Just in the past week alone the Louisiana State Legislature raised about $300 million in taxes for the rest of the year, as well as a $1.2 billion for next fiscal year. However, this action did not stop the budget cuts from higher education or health care programs. The Louisiana Bond Commission agreed to make about $82 million in quick cash that will help pay the long term debt of the state. They blame the state’s debt on the declining taxes and tax cuts in the past years. As of now there is a budget deficit forecasted at $750 million for the next year. 

Most of these taxes will come from temporary sales tax on any item you may purchase, except for food or prescription drugs, including other exemptions. However, taxes on items such as cigarettes and alcohol are permanent.  Also, they have other implementation such as the 1-cent state sales-tax increase, 4-cent state sales-tax exemption elimination, alcohol taxes on tap, cigarrates tax hikes, auto-rental tax reinstatement, corporate franchise tax expansion and insurer credit reduction that are further explained in the article. Retailers are worried about this because Louisiana will have the highest sales-tax rate in the country especially once we combine the local sales taxes. 

I believe this is an absurd measure that will certainly affect people with a very low income. First of all, they are cutting funding from schools and health care services that actually benefit those with lower income. Two weeks ago I was able to work with an organization in Louisiana that provided new homes to families with lower income that were affected by the devastation of Hurricane Katrina. Although it has been 10 years since this natural disaster the state of Louisiana has been recovering very slowly because the government has offered very little financial help. It will most definitely be hard for the state to recuperate from their debt but it will be even harder for those who are financially struggling to pay higher taxes.

Link : http://www.usatoday.com/story/news/politics/2016/03/18/louisiana-taxes/81974076/