Showing posts with label economics USA. Show all posts
Showing posts with label economics USA. Show all posts

Wednesday, November 16, 2011

EconomicsUSA: Small Businesses: Do small businesses really lead in job growth?

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Open Forum, Powering small business success (Nov9,2k11)
— Reposted here by EconoMix
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Are Small Businesses Really Saving Our Economy?




The media loves small businesses. Pundits sound off daily on the benefits of keeping corner stores in operation, politicians exhibit empathy for small business owners in speeches, heck—even I’ve written that shopping local can save us all.
But lately, my beliefs have been called into question. For everyone who loves small business and credits them with saving our economy, there are an equal number of people who believe otherwise. Case in point: reports of falling small business employment and data that attributes job creation with mid-size firms.
So what’s the real answer? Are small businesses saving our economy or not?

Read more ... click the time-stamp below:

Sunday, October 02, 2011

EconomicsUSA: Dr James Verbrugge: Finance professor

Dordt College via yUT2ube


"Dr. James Verbrugge received his A.A. Degree from DordtCollege in 1960 when it was a two-year college. He is emeritus professor of finance at Terry College of Business at the University of Georgia, serving as professor of finance from 1978 to 2002 and chairman of the Department of Banking and Finance at Terry College from 1977 to 2001. He also held the Georgia Bankers Association Chair of Banking from 1992 to 2002. He received his Ph.D. in economics from the University of Kentucky.

"An expert on the banking industry, Verbrugge has testified on the modernization of the Federal Home Loan Banking system before the United States Senate Committee on Banking, Housing, and Urban Affairs. His research on financial markets and institutions, banking, and bank privatization has been widely published, and his teaching interests include venture capital, management of financial institutions, entrepreneurial finance, and money and capital markets. He is well-respected in his field and is active in consulting work. He serves on many corporate boards and has been involved in several startup companies that have done well. He also serves on the Advisory Committee of the NFL Players Association Financial Programs and Advisor Administration.

His presentation, The Federal Deficit: Are we looking at the real issue?, promises to be interesting and thought provoking. We hope you are able to come."




James Verbrugge gave his take on the federal deficit at our Alumni Business Connections breakfast on Friday, Sept16,2k11 weekend. — Dordt College Alumni eNews

Hat Tip to Steve Bishop

Friday, June 03, 2011

EconomicsUSA: Unemployment: Jobs down, unemployment up, says CSM, speed bump, not stopl+t






New jobs down, 

unemploy-

ment upuuuuuup! -- 


Is the economy hitting 

a pothole 

or a ditch?



by Ron Scherer,  CSM Staff writer / June 3, 2011
New York


The economy seems to have hit a speed bump – but not a stoplight.
Skip to next paragraph

The latest indication of the slowing economic pace came on Friday, when the Bureau of Labor Statisticsreported the economy created just 54,000 jobs in May, the lowest number since September of 2010. At the same time, the BLS reported, the nation’s unemployment rate moved up to 9.1 percent from 9 percent in April.
Job growth in May was considerably slower than March and April, when it was averaging over 200,000 new positions per month.
Behind the slowdown, say economists, are the ripple effects on the auto industry from the tsunami in Japan, the adverse impact of rising food and gasoline prices, and a slowdown in business hiring.
“We’ve hit a soft patch,” says Joel Naroff of Naroff Economic Advisors in Holland, Pa. “It looks like we may have a month or two of subpar job growth.”
The weak jobs numbers prompted a spate of press conferences and press releases in WashingtonThe Republicans blamed excessive federal spending, lack of progress on reforming entitlements, and the high federal debt levels.
“Instead of more stimulus, more debt, more regulations, and yes, more taxes, the President needs to take a cue from the Reagan recovery and get Washington out of the way of our job creators," said Rep. Kevin Brady (R) of Texas, the top Republican on the Joint Economic Committee, in an announcement.
At the same time, Austan Goolsbee, the chairman of the Council of Economic Advisers, called the numbers a bump in the road, noting it’s important not to read too much into one monthly report. “The overall trajectory of the economy has improved dramatically over the past two years,” he said in a statement.

Response from the market

Wall Street had been expecting lower numbers – but not this low. As a result, the stock market opened with a loss of as much as 144 points on the Dow Jones Industrial Average. By noon, it had trimmed the loss to 75 points.

Saturday, March 05, 2011

EconomicsUSA: Unemployment: Budget cuts will cut 200,000 jobs, says Fed Reserve Chair

Bernanke sees 200,000 hit 

to jobs from budget cuts




Chairman of the Federal Reserve Ben Bernanke testifies before the House Committee on Financial Services on Capitol Hill in Washington March 2, 2011. REUTERS/Kevin Lamarque

WASHINGTON | Wed Mar 2, 2011 8:27pm EST
(Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday a Republican spending cut plan would not cause a big dent to U.S. economic growth, but could cost around 200,000 jobs over two years.
Read more of this Reuters 2-page article (Mar2,2k11). Very interesting and stimulating.
-- posted by EconoMix

Friday, March 04, 2011

EconomicsUSA: Unemployment UPDATE: From 10+% down at last to 8.9% Unemploy drops



Update:  please also read the new update from NYT, posted Mar5,2k11.
New York Times presents a more roseate report than I trust -- EconoMix

WaPo (March 4, 2011; please read the entire article!)

The free-enterprise system in America has recovered sufficiently from the Meltdown 2k08 and the Democratic government for two years under Prez Obama, Senate majority leader Reid, and House majority leader Pelosi, until now with debt-decreasing Republicans with Freshnen Tea Partiers in the House of Representatives, to reduce unemployment by a small, bnut hopefully, sufficient margin to take note.  The story is not at core about politicians.  The story is about businesses large and small (with their owners, managers and investors) in America's free-enterprise system.

Relatively free enterprise has recovered sufficiently to produce statistical indicators of a marginal rise in employment.  For those still unemployed, this is for many a sign of hope -- but not all.  Among discouraged workers who fell into system-induced unemployment, many have become permanently discouraged.  These two categories of The Discouraged no longer appear in unemployment statistics becaws they are no longer looking for jobs.  So, the statistical base of the new figures, along with the old figures, are flawed to begin with.


The Democrats' chief strategy has been to pay out stimulus money to expand the Federal bureaucracy, the state bureaucracies of education, and similar taxpayer-financed jobs outside the free-enterprise system.  That means burdening taxpayers further, diminishing the ability of many to either buy (among other things, health insurance, but also food in a sector where prices to the consumer are rising) or invest (since there are fewer funds available to individuals to undergird small businesses and large with capital).


Obviously, Americans and our economy are not out of the woods yet.  

- comment and Washington Post materials posted by EconoMix


U.S. adds 192K new jobs --

unemployment rate dips to 8.9%



Job growth soared ahead and the unemployment rate fell in February, as the economy gained momentum and people who had been stuck at home because of January snow returned to work.





Employers added 192,000 jobs in February, the Labor Department said Friday. The number closely matched analysts' expectations, accelerating from a revised 63,000 jobs added in January. The unemployment rate edged down to 8.9 percent, from 9 percent.

Friday, February 25, 2011

EconomicsUSA: Recovery growth: From an estimate of 3.2% growth in 4th Quarter (ending in Dec), figure slides to 2.8%



Washington Post (Feb25,2k11)
A learnèd projection had forecast that the final fiscal Quarter for 2k11 -- the months of October, November, thru the end of December (which included the entire shopping marathon leading up to Christmas and post-Christmas bargain sales) -- woud amount to a modest 3.2% gain in the nation's economic growth.  As the real-life after-the-fact statistics cawt up with the previous forecasts, we now have learned that we're four decimal points short on what the economists had predicted.  For a population as large as that of the USA, the "missing" four points -- down from the forecast 4.2% to the actual 2.8% -- especially given that we're talking about the last Quarter of the previous year 2k10 -- is a shock.  The down-guaging will domino onto previous forecasts for the end of the current Quarter, the first of 2k11, which ends in a month's time.
A new factor has come full force onto the scene of America's ecnonomic forecasting:  the states of the Union and cities and towns of all population sizes are marked by a orevailing pattern of overloads of obligations and debts.  WaPo informs us today in a report by Jeannine Aversa (AP):

State spending cuts slow US economic growth in Q4

VIDEO
Feb. 25 (Bloomberg) -- The U.S. economy grew at a 2.8 percent annual rate in the fourth quarter, slower than previously calculated and less than forecast as state and local governments made deeper cuts in spending. The revised increase in gross domestic product compares with a 3.2 percent estimate issued last month and a 2.6 percent gain in the third quarter, figures from the Commerce Department showed today in Washington. Bloomberg's Betty Liu reports. (Source: Bloomberg)







By JEANNINE AVERSA
The Associated Press
Friday, February 25, 2011; 10:28 AM

WASHINGTON -- Deeper spending cuts by state and local governments weighed down U.S. economic growth in the final three months of last year. 
The government's new estimate for the October-December quarter illustrates how growing state budget crises could hold back the economic recovery. 
The Commerce Department reported Friday that economic growth increased at an annual rate of 2.8 percent in the final quarter of last year. That was down from the initial estimate of 3.2 percent. 
The weaker figure was dis-appointing and prompted some economists to lower their fore-casts for economic growth in the current January-March quarter. 
State and local governments, wrestling with budget shortfalls, cut spending at a 2.4 percent pace. That was much deeper than the 0.9 percent annualized cut first estimated and was the most since the start of 2010. 
Consumers spent a little less than first thought. Their spending rose at a rate of 4.1 percent, slightly smaller than the initial estimate of 4.4 percent. Still, it was the best showing since 2006. And it suggests Americans will play a larger role this year in helping the economy grow, especially with more money from a Social Security tax cut.
But the failure of the over-optimistic forecasts by the wide ranks of learnèd economists in regard to the overburdened lower two tiers of government is not the only factor now in play for the end of the coming first Quarter 2k11.  Rather, the dynamics of the Arab Revolutions must now be factored in, as well.  The Arab Revolutions are shaking the always-uneasy balance in world oil prices.  While the Saudi Oilgarchs have made strenuous efforts to convince the world, in the wake especially of the Libyan Revolutionary uprising,  at the same time the Saudis are on massive alert and are building up their operational security forces becawz even they have no guarantee that the Days of Outrage called for a month from now, will leave their oil production facilities functioning at full tilt.  Any interference with Saudi production that slowed the outflow from the Kingdom is improbable, but no longer a madman's hallucination.  The issue then is how investors and commodity-futures traders will shift some of their spendable funds into other commodities and industries.

The hot-millions financial newsletters are now touting coal for energy worldwide (Money Matters), not betting on the green movement for sustainable renewable energy forces; more widely, the apparently incredible investment field of Mongolian mining in copper, gold, and rare metals is currently gaining attention from the mainstream business media.  Anyone with sufficient financial resources can pull funds out of oil futures and divert them to mining, a global industry with many locales where labour is abundant and cheap, seams of various commodities well-identified and governments welcoming.  Such a movement of capital woud drive up the futures prices in a major inflationary trend, as country's which have abandoned coal, for instance, and with huge oil-transport and -pipelines in place will be committed to buying oil and signing deals for oil supplies from now thru next winter. In this latter regard, I'm thinking of deals made between the Russian oil suppliers and Europe East and West, the Russians woud have no problem breaking existing agreements if a shortage offers the prospect of rising oil prices worldwide.

-- EconoMix

Saturday, December 18, 2010

EconomicsUSA: Construction; Cost of materials in usa rises due to Building Boom in other countries

I found this nooz item in the email nerwsletter of the Associatied General Contractors: of America [Dec17,2k10]  -- Building boom in other countries pushes up materials cost

 The cost of construction materials has increased by 4.8% over the past year and 0.5% in November alone, thanks to burgeoning demand in China and India, according to the Associated General Contractors of America. Prices for copper and brass have risen by 16%; diesel fuel has increased by 18%; and aluminum has grown by 14%. Such sharp cost increases can run construction companies out of business, AGC warns. Los Angeles Times / Money and Company blog (12/16)  
The market is hi-ly sensitive also to precious metals of the newer kind from China, under a new designation, but very important to importers into Ameroica from China of these precious materials [not comparable to 'blood diamonds' as far as i know], China where there's a relative abundance of the necessary mining operations.  For a brief period, China barred exports of these commodities to Anerica 


Telegraph [Aug1,2k10] 'hot political summer as China throttles rare metal supply and claims South China Sea', by Ambrose Evans-Pritchard.


-- EconoMix

Monday, December 21, 2009

EconomicsUSA: Environment: Mega-Corps will work to re-balance world's ecology, says geographer

New York Times (Dec5,2k9) Op-Ed reported by Olga Orda (Dec17,2k9) for the ecology website Green Options. Dr Jared Diamond, professor of geography and physiology at the University of California at Los Angeles, is the author of Guns, Germs and Steel: The Fates of Human Societies (1997) (which I've read and deeply appreciate) and Collapse: How Societies Choose to Fail or Survive (2005):

[Diamond's] article struck me as unusual -- both with its street smarts and nuanced analysis -- for two reasons.

One, the author ... [has] a real ear to the street and clearly, the boardroom, [and, of course, he is now a target whom] stoic environmental advocates immediately write off as nothing but “greenwash”. [Err, "greenwasher," shoud I re-write? -- rW]

I am talking about household names like Coca-Cola, Chevron and Wal-Mart that the author says [is a corporation] “many critics of business love to hate, in my opinion, unjustly.”

In the case of Chevron: “Not even in any national park have I seen such rigorous environmental protection as I encountered in five visits to new Chevron-managed oil fields in Papua New Guinea [on the geography-attuned anthropological history of which Diamond is a/the leading expert - rW]. (Chevron has since sold its stake in these properties to a New Guinea-based oil company.) And, the publicly traded company gives five savvy reasonson why it needs to care and is spending the money to prove it cares.

And then there is Wal-Mart, for whom scale is both a beast and blessing. Case in point: “This is what Wal-Mart did with fuel costs, which the company reduced by $26 million per year simply by changing the way it managed its enormous truck fleet. Instead of running a truck’s engine all night to heat or cool the cab during mandatory 10-hour rest stops, the company installed small auxiliary power units to do the job. In addition to lowering fuel costs, the move eliminated the carbon dioxide emissions equivalent to taking 18,300 passenger vehicles off the road.”

Second, Diamond states exactly what underpins and is attractive about the whole "sustainability means consuming less" argument. It is that consumption rates and standards of living are only loosely correlated, because so much of our consumption is wasteful [the waste does not meet the norm of optimality; see Hendrik Hart, Understanding our world: An integral ontology (1983, subsequent editions) - rW] and doesn’t contribute to our quality of life. Hello, Western Europe with less of our American stuff and more happiness due to more access to medical care, financial security after retirement, infant mortality, life expectancy, literacy and public transport. So, happiness is more complex than that, but definitely the social foundation matters.

Third, Diamond spoke with striking clarity on some of the actions Washington, D.C. can take to stimulate more businesses to adopt sustainability practices that keep the planet healthy. Namely:

“My friends in the business world keep telling me that Washington can help on two fronts: by investing in green research, offering tax incentives and passing cap-and-trade legislation; and by setting and enforcing tough standards to ensure that companies with cheap, dirty standards don’t have a competitive advantage over those businesses protecting the environment.”

So, if you have not already, read Diamond’s article. It will grab your attention too.
I join her in urging you to read it, and to click on and read Ordo's own write-up in Green Options (see above for the live-link to her article).

The fact that Diamond's main book is atheist historiography, is no obstacle to recommending that author to those who are, like me, of Christian faith or other non-atheist religions (atheism is equally religious in its own ways, and there are several varieties incompatible with one another -- that is, atheism actually is several religions, all of which  have arisen in history, in future some may die and others may be born). I discount the unrelieved atheist undertone as I read Diamond, which may not be possible for all readers. It is work to do so.

My biblical interpretation, unlike that of so-called "creationists," proceeds from Creator and a law-order for His creation (also a creation law-order for the creatures which appear over time, in a Christian evolutionary way of thinking, which is quite different from evolutionism and its atheist religions).   No to atheistic theories of cosmic, earthic, and humanic evolution(ism).  Yes to Christian philosophical explanation to bridge the narratives in the Bible and various sciences relevant to evolution.  But, at the same time, in my view these stories cannot be fruitfully and integrally reduced to one another.  I think this is the mistake, however much a valiant one, as introduced to reformational thawt by Roy Clouser's The myth of neutrality: An essay on the hidden role of religious belief in theories (2005 rev ed, paperback) which seeks to meld these two different narratives, but which Christian philosophizing shoud first respect in their distinct ownnesses (eigenheiden) in accord with a philosophic explanatory bridge-analysis of both.

This has taken us far from focus on the role of mega-corporations in "saving" the world from ecological collapse, but to Christians who have biblistic-historistic tendencies of thawt and who thus tend to over-historicize these chapter of Genesis -- it must be said that neither the hermeneutics of confession (Spykman), covenant (classical and new), nor the classical historical-literary hermeneutics, has offered us sufficient grounds to faith-affirm the ecological-cultural mandate for human maintenance of a genuine human stewardship over Earth as commanded in Genesis 1-3 (thus, the ecological element that shoud be powerfully motivating in our reformational reading of Scripture and our reformational ecological organizations).  Reviving the confessional hermeneutics approach more recently, Craig Bartholmew tends to the "problem" of the rise of yet another hermeneutical approach Scripture, called "Canon Criticism" (Brevard Childs and Bernhard Anderson).  Albert Wolters seems to be of this view, as well.  But I have not yet acquired the necessary books to read these latter writers on the subject.

-- EconoMix

Tuesday, March 17, 2009

USA: Economy: Christian political leader blasts American financial & business leadership of 'collapse'

In a recent article, Dr James Skillen (executive director of Citizens for Public Justice USA until October 2009) bristled indignantly, "Can Trust Be Restored?" (Root & Branch (Feb23.2l9).

Let me put it more bluntly. People are not just angry about bankers’ big bonuses and auto company CEOs’ private jets; they are angry that they got taken by “the system” — by banks, by mortgage companies, by investment advisers, and by the government that aided and abetted and gave no warning of the coming collapse. As in a stagecoach robbery, writes Janet Tavakoli, “Wall Street bankers made off with the loot without firing a shot. They were enabled by Washington overseers and financial regulators who—when not beneficiaries of the good times—behaved like ostriches. Meanwhile, news of the fact that no one in the US has been brought to justice has not escaped notice” (Financial Times, 2/5/09). The authorities oversaw and even encouraged the increasing leveraging of debt until the whole country was overextended, leading to the crash. One of the biggest culprits, according to John Kay, was the “diversified financial conglomerates” created after Washington abolished the Glass-Steagall Act that separated commercial and investment banking. The conglomerates, says Kay, “are riddled with conflicts of interest” and their growth “served only the ambitions of the greedy men who ran them and the financial interests of traders, who were allowed to play with sums of money that should never have come into their hands” (Financial Times, 2/11/09). With government having not yet done much to change the system and after several months of trying to prop up all kinds of financial services companies, the hole is getting deeper. Even two months ago, Niall Ferguson could write, the Fed itself “increasingly resembles a public hedge fund, leveraged at more than 50:1” (Financial Times, 12/19/08).

Saturday, June 02, 2007

Economy USA: Alan Greenspan: Reviews 18 years at Federal Reserve Bank and peers into the future of world economy in new book

CNN.com carries a Reuters article, "Greenspan: 'Very unusual' economic conditions -- The former Fed chief, noting a 'very unusual' situation in which interest rates around the world are low, defended his trademark circumspection and reflected on the surprising lesson he got from 9/11." (Jun1,2k7):


Former U.S. Federal Reserve Chairman Alan Greenspan said Friday that U.S. interest rates are low, but that rates are low all over the world.

He said the prevalence of low interest rates throughout the world was one of the things that surprised him as he prepared his reflections on his past for the new book he was promoting, The Age of Turbulence [Sept2k7, Penguin Press].

CNNMoney.com's Allen Wastler discusses U.S.-China trade issues and Alan Greenspan's ominous warning. ... Greenspan warns China stocks primed to fall