This article discusses how many American firms feel regarding a Chinese government crackdown on foreign firms. In only one year, an additional nineteen percent of members in the American Chamber of Commerce in China feel less welcome doing business overseas in the Chinese economy. Several large American firms, including Apple and Microsoft, have recently been investigated by the Chinese government for allegations of corruption, price-fixing, and anti-trust violations. So do these businesses have a reason to feel targeted?
The article mentions that China's government is undergoing massive campaigns to help target corruption and pricing problems. For this reason, it may be an overreaction of some companies to feel 'targeted', especially since many Chinese companies have also recently undergone scrutiny. I don't believe that it is China making a direct target of the United States and our companies that have presence there.
On the other hand, press, whether domestic or international, can have major impacts on the stock prices of companies. In this respect, I believe that the American companies should be careful while under scrutiny of the Chinese government, because it could have major implications of their stock price and shareholder satisfaction.
http://money.cnn.com/2014/09/03/news/china-us-business/index.html?iid=SF_E_River
Wednesday, September 3, 2014
Is Owning Overrated? The Rental Economy Rises
This article is about the increasing popularity of renting items rather than buying them, is it more worth it to buy an item, or just rent it? With the recent financial crisis, people have turned to businesses like Uber and Airbnb where they can rent a room out of someone’s house or catch a ride with a person for cheaper than a hotel room or a cab. The fact that through renting, you get the same experience as buying, but for cheaper is a responsible choice when budgeting your money. This is also a main factor in attracting people to renting rather than buying.
Jennifer Hyman, co-founder and chief executive of Rent the Runway said, “We are now in a state of mind where we want to acquire more experiences. The 1990s ‘MTV Cribs’ show-off-how-much-money-you-have generation is over.” People have strayed away from the need for possessions, and are beginning to appreciate the experience of an item or a service more. This article also states that a majority of people that rack up the debt don’t do so by buying clothes, electronics or food, they do so by buying basic things like cars and houses. So with the new option of renting these things, people see a way to avoid debt.
There are some points to be made against renting. For example, what happens when somebody breaks the rented item? This question is one that has to be answered by the company renting, but the point is there are flaws to the system.
The final part of the article made the point that most people were more interested in renting more expensive items and services rather than buying. Also buying cheaper items like a vacuum rather than going through the process of renting one. People who rent with the option of buying, also leads to a lot of purchases. I feel like in this day in age, people need a little trail run with more expensive items before they take the plunge and commit to buying. Renting is a useful tool to save money and get the same experience while also figuring out if you want to buy the product in the end.
Tuesday, September 2, 2014
LA Mayor calls for $13.25 minimum wage
This article centers around Mayor Eric Garcetti's proposal to raise the minimum wage in Los Angeles to $13.25 by 2017. He says that the plan will increase the wages of nearly 570,000 workers and lift many above the poverty line. With about 1 million people living below the poverty line, the wage increase could be vital to those struggling to survive. If the increase is approved, LA will have one of the highest minimum wages in the country, among Seattle, SeaTac, and New York.
However, others in favor of small businesses argue that the wage raise will cause layoffs and hurt smaller businesses because of increased costs.
LA is a huge place, home to large corporations as well as small businesses, so the effects of the proposal should vary. I'll be interested to see if the proposal passes and what the consequences are if it does.
However, others in favor of small businesses argue that the wage raise will cause layoffs and hurt smaller businesses because of increased costs.
LA is a huge place, home to large corporations as well as small businesses, so the effects of the proposal should vary. I'll be interested to see if the proposal passes and what the consequences are if it does.
"The Nation's Economy, This Side of the Recession"
By Alicia Parlapiano, Shaila Dewan, and Nelson D. Schwartz. June 14, 2014
http://www.nytimes.com/interactive/2014/06/14/business/this-side-of-the-recession.html?ref=economy
The authors of this article give a broad overview of the macroeconomic state of the nation today, five years after the United States began to recover from the recession. Their primary focus is the job market and how it has evolved since before the recession. Not all industries fared the same through recession and recovery. Though the number of jobs in the market is now the same as the "previous peak of January 2008" (Parlapiano, Dewan, and Schwartz), we are still facing high unemployment as the many new workers have entered the labor market since that time. There are also millions of long term unemployed people, due to the weak recovery. This has kept down wages and the labor force participation rate has decreased since 2007. The article estimates that the nation is "at least seven million jobs below it's potential" and thus we are losing a large amount of money on output.
Many middle class industries suffered the most during the recession, and recovery has been weak in fields like construction and manufacturing. The manufacturing production index is back near the level it was at prior to the recession. Despite the loss of jobs, we are producing nearly the same amount indicating greater "efficiency and high productivity." This has both positive and negative macroeconomic effects. The economy has lost about 2.5 million middle-wage jobs and there are fewer factories. Poor and low-wage workers have not recovered nearly as much as the richer members of the country. The number of people receiving food stamps has almost doubled since 2007, median yearly income has decreased by more than $4000, and "the nation's poverty rate remains above its pre-recession level."
Conversely, health care, energy, and technology industries have recovered quite well since the recession and even grown. Approximately 1.5 million jobs have been added by health care services at various wage levels. Certain states like Texas and North Dakota have recovered better than others thanks to new technologies that have increased the output of oil and natural gas. The technology industry suffered little during the recession and have "emerged as prime drivers of the economy, creating tremendous wealth for a number of individuals and adding many well paying jobs." I really like this article because it presents facts on several different facets and helps paint the macroeconomic picture of today. Also, the use of graphs and other visuals greatly aides in understanding the complex nature of our overall economy.
By Alicia Parlapiano, Shaila Dewan, and Nelson D. Schwartz. June 14, 2014
http://www.nytimes.com/interactive/2014/06/14/business/this-side-of-the-recession.html?ref=economy
The authors of this article give a broad overview of the macroeconomic state of the nation today, five years after the United States began to recover from the recession. Their primary focus is the job market and how it has evolved since before the recession. Not all industries fared the same through recession and recovery. Though the number of jobs in the market is now the same as the "previous peak of January 2008" (Parlapiano, Dewan, and Schwartz), we are still facing high unemployment as the many new workers have entered the labor market since that time. There are also millions of long term unemployed people, due to the weak recovery. This has kept down wages and the labor force participation rate has decreased since 2007. The article estimates that the nation is "at least seven million jobs below it's potential" and thus we are losing a large amount of money on output.
Many middle class industries suffered the most during the recession, and recovery has been weak in fields like construction and manufacturing. The manufacturing production index is back near the level it was at prior to the recession. Despite the loss of jobs, we are producing nearly the same amount indicating greater "efficiency and high productivity." This has both positive and negative macroeconomic effects. The economy has lost about 2.5 million middle-wage jobs and there are fewer factories. Poor and low-wage workers have not recovered nearly as much as the richer members of the country. The number of people receiving food stamps has almost doubled since 2007, median yearly income has decreased by more than $4000, and "the nation's poverty rate remains above its pre-recession level."
Conversely, health care, energy, and technology industries have recovered quite well since the recession and even grown. Approximately 1.5 million jobs have been added by health care services at various wage levels. Certain states like Texas and North Dakota have recovered better than others thanks to new technologies that have increased the output of oil and natural gas. The technology industry suffered little during the recession and have "emerged as prime drivers of the economy, creating tremendous wealth for a number of individuals and adding many well paying jobs." I really like this article because it presents facts on several different facets and helps paint the macroeconomic picture of today. Also, the use of graphs and other visuals greatly aides in understanding the complex nature of our overall economy.
For Job- Hunting Teenagers, The Market Is Brutal
http://www.businessweek.com/articles/2014-03-14/how-to-fix-the-shockingly-high-teen-unemployment-rate
Generally, the unemployment rate in any region of the world is considered crucial. Most importantly the effects of unemployment on adults and the country as a whole is the main focus of any discussion, however this article points out the various ways in which unemployment may be more detrimental to teens than it is made to seem. Because teens are not the heads of households, it is assumed that they aren't hit as hard as adults who work full time.
In 2000, 45% of teens were employed but by 2011 this number decreased to 26%. If this was the case for adults, it wouldn't have been such a blind item in our society. If the unemployment rate reduced that much for adults, it would have been a bigger deal.
The employment rate actually rose for 55 year olds between 2000 and 2011, so by 2011, 65-75 year olds were as likely to have jobs as 16-29 year olds. One can say that adults have more responsibility than teenagers and that the unemployment rate for teenagers is not as alarming as it would be for adults. On the other hand, teenagers face the risk of being involved in criminal activity and substance abuse once there are no job opportunities. As important as adults are in our society, teenagers and young adults also deserve the training and experience to be able to be responsible adults and also to be able to put their time to good use in order to avoid unnecessary distractions.
Generally, the unemployment rate in any region of the world is considered crucial. Most importantly the effects of unemployment on adults and the country as a whole is the main focus of any discussion, however this article points out the various ways in which unemployment may be more detrimental to teens than it is made to seem. Because teens are not the heads of households, it is assumed that they aren't hit as hard as adults who work full time.
In 2000, 45% of teens were employed but by 2011 this number decreased to 26%. If this was the case for adults, it wouldn't have been such a blind item in our society. If the unemployment rate reduced that much for adults, it would have been a bigger deal.
The employment rate actually rose for 55 year olds between 2000 and 2011, so by 2011, 65-75 year olds were as likely to have jobs as 16-29 year olds. One can say that adults have more responsibility than teenagers and that the unemployment rate for teenagers is not as alarming as it would be for adults. On the other hand, teenagers face the risk of being involved in criminal activity and substance abuse once there are no job opportunities. As important as adults are in our society, teenagers and young adults also deserve the training and experience to be able to be responsible adults and also to be able to put their time to good use in order to avoid unnecessary distractions.
Monday, September 1, 2014
Janet Yellen: Job market not recovered
In this article the head of the Federal Reserve, Janet Yellen, describes the state of the current U.S. Job market. In a speech given a few weeks ago she describes the job market as growing, however it is not yet fully recovered from the crash of 2008.
This is prompted by the debate going on within the Board of Governors about whether to begin raising interest rates again, or to keep them where they are now. Yelllen believes that is is not yet time to be raising the interest rates and points out the incomplete recovery of the job market.
This is prompted by the debate going on within the Board of Governors about whether to begin raising interest rates again, or to keep them where they are now. Yelllen believes that is is not yet time to be raising the interest rates and points out the incomplete recovery of the job market.
A New Reason to Question the Official Unemployment Rate
http://www.nytimes.com/2014/08/26/upshot/a-new-reason-to-question-the-official-unemployment-rate.html?rref=upshot&abt=0002&abg=0&_r=0
This article calls into question the accuracy of the official unemployment rate and highlights some fundamental reasons why the report may not be as concrete as some would like to believe. For example, the United States has a vast population, but information regarding employment is demanded at a fairly fast pace. The author believes that the luxury of a timely report may be overshadowing the importance of accurate content.
This, the author claims, has become an even bigger problem within the past 20 years, as Americans are seemingly much less willing to partake in surveys. Skepticism regarding the authenticity of surveys has shot up over the last two decades, making it harder for the government to accurately report the unemployment rate. This all suggests the possibility that the unemployment rate is higher than it is reported in official statements.
This article calls into question the accuracy of the official unemployment rate and highlights some fundamental reasons why the report may not be as concrete as some would like to believe. For example, the United States has a vast population, but information regarding employment is demanded at a fairly fast pace. The author believes that the luxury of a timely report may be overshadowing the importance of accurate content.
This, the author claims, has become an even bigger problem within the past 20 years, as Americans are seemingly much less willing to partake in surveys. Skepticism regarding the authenticity of surveys has shot up over the last two decades, making it harder for the government to accurately report the unemployment rate. This all suggests the possibility that the unemployment rate is higher than it is reported in official statements.
EU and US Economic Sanctions on Russia
http://www.bbc.com/news/world-europe-28400218
The European Union and the United States have added more sanctions to Russian senior officials in a stronger response to the Ukrainian sovereignty. Since the unofficial annexation of Crimea in March, the EU and the US have chosen to respond the issue through economic measures. The increasing pressure and issues in Ukraine since March have done nothing but worsen the matter. The EU sanctions announced on 30 July have been the first time targets to directly disrupt Russia's state finances, energy and arms sectors. In addition to industries, many of President Putin's closest inner circle are subject to asset freezes and travel bans. These bans will make conducting business much more difficult.
Contrary to popular belief, the European Union is actually applying most of the bans. They have blacklist the heads of Russia's intelligence services. While many of the senior officials won't be affected by the travel bans, their assets have been frozen which doesn't allow them to sell or buy assets including property.
The EU and Russia conduct business on a much higher level than the United States. Germany is the main European trading partner especially for German autos. Germany and other countries rely on Russia for gas supplies which creates a large economic dilemma for decision makers. Another issue, is the embargo of food from Western countries which as elevated food prices in the country. At a time when Russia's economy is starting to seep into recession, Russia can't afford to sustain the majority of these sanctions.
The economic sanctions of the EU and the US on Russia have been effective to an extent. The economic sanctions can be potentially more devastating given more time to effect the average consumers. Russia is essence committing "economic suicide" by allowing it's pride and involvement in the Ukrainian crisis to consume it's own economy.
The European Union and the United States have added more sanctions to Russian senior officials in a stronger response to the Ukrainian sovereignty. Since the unofficial annexation of Crimea in March, the EU and the US have chosen to respond the issue through economic measures. The increasing pressure and issues in Ukraine since March have done nothing but worsen the matter. The EU sanctions announced on 30 July have been the first time targets to directly disrupt Russia's state finances, energy and arms sectors. In addition to industries, many of President Putin's closest inner circle are subject to asset freezes and travel bans. These bans will make conducting business much more difficult.
Contrary to popular belief, the European Union is actually applying most of the bans. They have blacklist the heads of Russia's intelligence services. While many of the senior officials won't be affected by the travel bans, their assets have been frozen which doesn't allow them to sell or buy assets including property.
The EU and Russia conduct business on a much higher level than the United States. Germany is the main European trading partner especially for German autos. Germany and other countries rely on Russia for gas supplies which creates a large economic dilemma for decision makers. Another issue, is the embargo of food from Western countries which as elevated food prices in the country. At a time when Russia's economy is starting to seep into recession, Russia can't afford to sustain the majority of these sanctions.
The economic sanctions of the EU and the US on Russia have been effective to an extent. The economic sanctions can be potentially more devastating given more time to effect the average consumers. Russia is essence committing "economic suicide" by allowing it's pride and involvement in the Ukrainian crisis to consume it's own economy.
Sunday, August 31, 2014
School-hopping alumni aren't giving back to colleges
"I had a really great first year at American," said Gunaseharan, who is 24. "But I've seen a very clear return as a result of my degree from Cornell. So I absolutely feel the tension about who to give to." Universities and colleges are feeling the pressure, too.
Today, nearly a quarter of students who earn degrees finish somewhere other than where they started, according to the National Student Clearinghouse. And as more students jump from school to school, colleges say it's getting harder to solicit all-important alumni donations.
"What motivates alumni to give is a sense of loyalty, an indebtedness that 'I am who I am because of my education,'" said Shaun Keister, vice chancellor for alumni relations at the University of California, Davis. "What we don't know from this generation that jumps around a lot is: Are they ever going to have that warm and fuzzy feeling for the campus?"
While total contributions to colleges and universities were up last year, the percentage of alumni who are actually giving is shrinking, according to the nonprofit Council for Aid to Education. In 2003, 13% of alumni gave to their schools. Last year, just 9% did.
And that's what's keeping alumni directors up at night.
The participation rates keep falling "even though we have more sophisticated programs, bigger programs, more options" -- like social media -- to help encourage giving, said Brian Kish, senior vice president for central development at the University of Arizona Foundation.
Alumni executives and consultants say the transfer phenomenon is partly to blame.
"So let's say you went to three different places undergrad, and then to grad school — because we have more people going to grad school, too. Now you've been to four schools. Where's your love? Where's your affinity? Where's your passion?," asked Kish.
The problem isn't likely to affect elite universities and colleges, whose students almost always graduate on time, and rarely transfer, said Chris Marshall, vice president for alumni relations practice at the consulting firm Grenzebach Glier and Associates. But for mid- and lower-tier schools, where most of the transfers occur it's "going to be hard to engage if they don't have that four-year experience with some continuity," he said.
And alumni who do give seem to support the universities or colleges from which they ultimately graduate.
Another source of worry: Community colleges, where many students start their college careers these days, are also beginning to go after financial contributions from alumni.
"It's one more organization coming after the same pool of people," Keister said.
Yet, many university and college alumni offices have failed to reach out to students who transfer in from community colleges while they're still enrolled, as they often do with conventional freshmen.
Now more schools are beginning to do this, beginning at the orientations they require transfer students to attend.
"You have the undivided attention of students two times. Once during orientation and again at their graduation ceremony. Otherwise, good luck," said Keister.
Gunaseharan, meanwhile, is mulling the requests for money she's received from Cornell and American — which has another pull on her because her mother went there — but she is putting them aside while she plans to go to graduate school.
"I'm not really in a position to be giving loads to any of my alma maters," she said. "I'm still saving money for the next degree."
I believe the issue here is the constant increase in the cost of college causing students to seek the best education possible at the lowest price. This leads to students transferring different schools and never gaining a sense of home or school pride in the long run. Hopefully the cost of college will decrease and students will stay in one place for 4 years, love it and then have the desire to give back to his or her alma mater.
"Britain's GDP per capita lower than poorest US states"
http://www.presstv.ir/detail/2014/08/27/376736/britains-gdp-lower-than-poor-us-states/
According to Fraser Nelson, editor of The Spectator magazine, Britain would fall behind the poorest of US states in terms of GDP per US state, divided by population. This figure is surprising considering the "financial preeminence" of London; the city was recently named by Forbes as "The World's Most Influential City" due to its multitude of foreign direct investment deals.
Perhaps the most interesting part of the article is a statistic that comes from a UK charity group. The group reports that Britain's five richest families have a combined fortune of $46.9 billion in comparison to the $46.7 billion that is shared between the poorest 20 percent of the UK population. In the past two decades, the richest .1 percent of the UK population has seen its wealth grow almost four times faster than the rest of the population.
Even more compelling is that food poverty in the UK has recently climbed, supported by a 19 percent increase in the number of citizens hospitalized for malnutrition over the past year.
I believe it will be interesting to see how Britain chooses to address the clear economic inequality, if they choose to address it at all.
According to Fraser Nelson, editor of The Spectator magazine, Britain would fall behind the poorest of US states in terms of GDP per US state, divided by population. This figure is surprising considering the "financial preeminence" of London; the city was recently named by Forbes as "The World's Most Influential City" due to its multitude of foreign direct investment deals.
Perhaps the most interesting part of the article is a statistic that comes from a UK charity group. The group reports that Britain's five richest families have a combined fortune of $46.9 billion in comparison to the $46.7 billion that is shared between the poorest 20 percent of the UK population. In the past two decades, the richest .1 percent of the UK population has seen its wealth grow almost four times faster than the rest of the population.
Even more compelling is that food poverty in the UK has recently climbed, supported by a 19 percent increase in the number of citizens hospitalized for malnutrition over the past year.
I believe it will be interesting to see how Britain chooses to address the clear economic inequality, if they choose to address it at all.
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