Women Pay Levels

Women pay levels have been the subject of controversy for some time. There is no doubt they had been discriminated against in the past. The question is whether they still are, when anti-discrimination laws have been around for decades and penalties are severe.

True, women still tend to earn less. But there can be valid reasons. Because many women do leave jobs in mid-career for maternity reasons and that distorts statistical averages. Others prefer to spend more time with family.

Still, there are more variations in certain professions than others which makes this not the sole explanation for income variation. Hostile environment may often be possible. The discrepancy varies by profession.

Women’s needs may vary within those jobs, especially where measures of hostility may actually exist.

Defaulting on College-Acquired Debt

Defaulting on college-induced debt can be a dilemma. You will have to get a grip on the type of debt, whether federal or private, and its terms. I suggest you contact the National Student Loan Data System, at www.nslds.ed.gov.

There may be some forgiveness programs for government workers and teachers, along with AmeriCorp volunteers and similar programs.

As a precaution, avoid heavy student loans. Do not go much further into debt than you may already have.

Tuition, room and board charges that total $100,000 and more in many instances can be an enormous impediment for any student or for parents. For those with several children to put through school, it can be the major obstacle for a comfortable retirement.

College Grade Inflation

Inflated college marks are now the norm. At the College of the City of New York during World War II, students were admitted only if they had the highest grades in local schools.

If they were getting deferments because they were science and engineering majors, they had many of their classes marked on a “curve.” This was comparable to having to make the cut in PGA professional golf. The lowest 10% to 15% of each class flunked, no matter what mark they got. Classmates competed against each other

In the toughest college in the city, perhaps the U. S., open only to the top high school graduates, a student with one class "failure" immediately lost that army deferment. Compare that to the Ivy League standards of today!

If truth be told, students go to Ivy League schools because of the aura about them, and the contacts they afford. The vaunted Ivies are not tough once you are admitted. If anything, they are overrated.

Regaining Recession-Lost Jobs

It will take years for lost jobs to come back. In fact, many may never be available once more. Our only solution will be to produce new types.

Small business, which accounts for more than half of our work force, is a solution to the employment question. Unfortunately, most bureaucrats and influential politicians in Washington, are not attuned to their interests. The heavy lobbying and influence comes from big business and labor unions.

You can be sure: Ever-higher minimum wages, taxes and insurance costs are the poison that guarantee that small business will not be able to fulfill its conventional role of creating new jobs.

Unless Washington’s political elite relent..

The Definition of a Good Manager

Good managers as far up in rank as CEOs, are hard to evaluate. It’s not as easy as evaluating an athlete who wins or loses events, or has measurable statistics. I know that the sports media have experts who make lots of senseless noise, comparable to locker room or bar room chatter.

While business sales can be measured, as well as profit and loss, it’s not that simple to evaluate executives who may not be responsible for the bottom line after all.

I have always said a good executive may still lose money for his or her company. But less than a poor manager or executive would have lost under similar conditions. Thus more arcane yardsticks must be employed, depending on the type of business.

Moreover, what incentives do you give to get results? What is good pay? Or options? Do more and more money inducements really make a difference?

The definition of a good manager is difficult when the evaluation is equally hard to make. On-the-job experience may accomplish it, not text book explanations and suggestions.

Centralized and Decentralized Business Management Styles

Companies can be top-managed in two ways. The public is not generally conversant with the difference.

In short, there are two different types of CEOS for two different styles.

Very strongly, or centralized, where the CEO is in complete control of the company’s daily operations. Many executives prefer this approach. I ran a highly successful 74-office employee-contracting firm using this management principle. Those offices operated in a myriad of industries.

Or, loosely and decentralized, where more local control is allowed. Warren Buffett operates his different companies within varying industries on a decentralized basis. His individual companies perform without much strict daily direction.

I prefer centralized, hands-on oversight, which I believe is better from the operational standpoint. On the other hand, if your goals are primarily that of an investor, you never have the time, nor perhaps the ability or inclination, to cope with daily administrative duties.

Cap and Trade

Cap and Trade legislation appears to be at doomed in Congress but left-leaning politicians never give up trying. Those who still believe in global warming science as being unpolluted, are still its religionists.

Added to entrenched-religion environmentalists are practical leftists who realize that Cap and Trade is an instrument for enforcing control and taxation on the population without designating the effort for what it truly is.

The main problem is the economic damage that will be imposed, though the vast majority of Americans do not want Cap and Trade.

However, the government is enacting many of these actions without the approval of the electorate, by stealth. It’s weapon? The almost unrestricted use of Environmental Protection Agency dictats.

A Man-Made Recession

I have often commented in the past on our economic financial meltdown; I think it’s worthwhile repeating.

Too many folks are still getting misled by the slanted media and by politicians.

One lesson: Up and down economic cycles are normal, but excesses may have other causes.

Second: The current financial meltdown started as a direct result of a concerted government policy of making home mortgages available to folks who could not afford to have those mortgages.

Three: Government pressure, and threats of law suits from “do-gooders,” in addition to the opportunity for profit by banks, who collateralized the mortgage obligations (CDOs) that facilitated mortgage sales the world over.

Four: Government-licensed rating agencies gave these CDOs the AAA ratings that assured the global sale of the securities.

Therefore, a bubble grew until, like all bubbles, it burst.

To add to the bad psychology that accompanies any bust, the government came in with a series of disastrous man-made steps.

Furthermore, the decision to determine bank value on a daily fictitious basis.

Then, catastrophic unnecessary bailouts of banks, and buy-ins of auto companies when ordinary guarantees would do. The government takeover of AIG was unnecessary when an ordinary bankruptcy would do less damage.

In short: The government has seen to it that a slight economic downturn has become a Great Recession. With an unconscionable deficit to go with it.

The French GDP

GDP or Gross Domestic Product is a measure of a country’s economic output, the value of all its goods and services produced. It therefore represents the country’s standard of living.

The French GDP is falling, so they want to substitute their vacation time and other assumed “joie de vivre.” After all, it can be embarrassing when the French have to compare their left-oriented economy to those more attuned to capitalism.

So they have suggested an arbitrary adjustment that assumes their way of living is superior to others. They may take the month of August off for holidays. So they come up with an arbitrary value from under their chapeau.

But what about the lack of services during August? And those constant, paralyzing public union strikes?

Patents for Business Methods

Patents were originally intended for pure inventions. They contributed to the U.S. becoming the industrial leader of the world.

Now patents are being issued not only for actual products and things, but for general ideas and business solutions. Or even the way payments are made online.

Courts have been looking at cases in dispute, to see if clarification of patent law is necessary and whether interpretation of the law is to be more limited.

Facts About Global Trade

It was the Smoot-Hawley protectionist import duties that set off the world-wide trade protectionism whereby industry was stifled and the Great Depression became global. That mistake, along with Franklin Roosevelt’s high U. S. taxation policy, reckless government spending, and a mindless Keynesian philosophy.

It was a similar pump-priming stimulus theory that the Obama Administration is keen about today.

Remember: We are primarily an export country. Playing games with protectionism to save a relatively small number of jobs, compared to the whole jobs picture, can be deadly for our economy.

Pension Fund Allocations

The problems that persist with pension fund allocations, particularly those funded for public state employees, is that they are predicated on assumptions that securities will continue to earn about 8% a year.

These funds averaged as much in the more distant past, but they are now earning much less in recent years. Unfortunately, pension funds will be lucky to get 3% net or so in the future.

This under-funding for public state employees is running in the trillions and is bankrupting many state budgets.

Ode to School Funding

Don’t expect schools to provide an adequate underpinning of information, so students can comprehend economics and finance in the real world. In truth, the public cannot evaluate the bombardment of ads, nor the headlines that apply to finance and business topics.

That’s also why the retailers of America would be lost if cash registers didn’t automatically make change for everyday purchases.

Most younger clerks could not figure dollars and cents transactions as our parents and grandparents did before America started spending a fortune on schooling.

When Execs Act on Advice of Lawyers

A few years ago, the executives of the Bank of America had consented to a proposed judgment by the SEC to pay a fine of $33 million.

The judge on the U.S. District court, Jed S. Rakoff, of the Southern District of New York, however, held that bank executives had acted on the advice of their lawyers. Why then penalize the bank and its stockholders? Would you penalize the bank executives for taking legal advice in good faith? Why not penalize the lawyers for the advice?

Government and Job Creation

The government can employ people and achieve full employment by drafting every unemployed person. Particularly, high-cost, make-work jobs. Federal “stimulus” spending is promoted for its job creation. But that obviously does not “create” jobs.

Private industry jobs, on the other hand, are created in response to economic demand, incurred for a need. A businessman knows that expenses should be kept to a minimum, so jobs are genuine. Real job growth requires business optimism. With no tax and iffy economic fog. Training along with payroll expenses make human resources a long-term investment.

Government work also absorbs tax money, that could have been used for economically useful job growth. The government uses tax dollars as “stimulus” funds only as it sees fit.

The government can help create jobs by cutting taxes. That would make it easier to create business. They can help also by limiting restrictions on terminating employees. The latter would therefore more easily get hired by private industry.

Misguided Youth

If American youth were truly aware of the effects of the monetary inflation set for them and future generations, they would be shouting from the roof tops for the government to stop the economic mess.

Instead, most are still more concerned with the latest entertainment fads and entertainers. Or how much more it may cost most of them to get an ineffectual education, particularly should they go to college.

The ones demonstrating for lower college tuition have learned poor economics. Our youth have no idea of what budgetary deficits have done to them so far and certainly what they will do in the future.

Nasty Credit Card Companies?

A question for those in Washington who pick on credit card companies. Along with commentators in the media who fulminate over “outrageous” charges and fees.

Bad debts incurred by the companies generally run close to 10%. The companies in the business are losing money, so they are attempting to earn fees where they can operate. If they cannot get repaid by the deadbeats, they will receive it from the many customers who pay their bills on time.

If the business is so great, why aren’t so many more banks running to get into it?

Job Resume Factors

The right job resume is essential. So make a job application simple and current. Keep it up-to-date.

Dates are important, as is your formal education. In fact, the latter appears to count importantly on a resume.

Yet, much of what you learn in school is useless for a practical job. Therefore, be sure you are explicit about what have you done to make money for your past employers or how you have been able to help them save money.

Or if you feel you have talents as an organizer, describe what you have done and accomplished in this type of effort.

Beware When Hiring "Contractors"

As a follow-up to my previous blog on the hiring of contractors.

Remember: Contractors do not get unemployment checks.

Many newly hired employees want to escape employee payroll taxes just as much as employers do, and prefer being contractors. That is, until they are no longer working and are then seeking unemployment insurance. Then they complain they never were independent contractors but really employees.

They file for unemployment insurance and the employer has the difficult job proving the employer/employee relationship.

Killing Birds to Save the Environment

The Obama administration has plans to have wind power supply 20% of our energy by 2020. At the expense of the bird population.

The project calls for 186,000 50-story wind turbines to be built in California, Nevada, Arizona, Utah, Colorado and New Mexico, along with 19000 high-voltage transmission lines.

With the probable killing of tremendous numbers of birds as a result, and the outlay of huge taxpayer subsidies, all this could be accomplished, according to the Nature Conservancy, by a minimal number of atomic energy facilities. And at much lower ongoing cost.

Without the eyesores that will beset the Southwest of the U.S. if the Obama Administration planning comes to fruition.

Ruining the Environment: With Solar Panels

Covering the desert landscape with solar panels is one way to make the environment “green.” Though you may profess love for raw nature.

Which does not work in any event.. When solar panels get covered with desert dust and dirt, they do not accomplish their goal. They have to be washed down with water every month. Yet, precious water is not available in the desert.

The Wildlife Conservancy and other clear-minded environmentalists are against solar panels in the desert. That, in addition to the fact the process still has to be subsidized by taxpayers.

Corporations Treated As Individuals

The status of the corporation as a legal person has been considered valid, going back to Chief Justice John Marshall in 1819.

Equal protection laws always applied to corporations in the past. There are questions which occasionally arise. In fact, they occurred recently during the nomination and approval of Supreme Court Justice Sotomayor.

In a hearing prior to her approval, Justice Sotomayor remarked about corporations not being people. However the Supreme Court has always held that corporations held broad First Amendment rights, as do individuals.

Should her stance become the view of future Supreme Court rulings, the entire basic commercial structure of this country could be overturned.

Are You Really an Independent Contractor?

Whether or not you’re an employee or a contractor is a long running problem for small business individuals. I have written extensively on the subject,

The subject has become trickier, as the courts are vague and tort lawyers have been given more leeway by judges and juries who know ever-less about business.

The rule of thumb for business is this: Basically, if you control how a worker performs, he or she is an employee, not a contractor. Tell the hired person how and when to report to work and you have an employee, not a contractor. Also, when you provide tools for work, you have an employee.

Tricky vagueness comes about when a question arises how important the job is to an employer’s business. You can be a genuine contractor by all conventional definitions and still be considered by some courts an employee of a business. Sharp lawyers come in to help make a complaint against the boss and trouble starts.

Government Bungling of Student Loans

The Obama Administration is telling us how ObamaCare can please the health consumer while cutting health insurance costs.

Here is the perfect example why this can never work as advertised.

The government has taken over the student loan business. And it is costly. Private lenders are being forced out of business. And what’s more, students are not happy with the government efforts.

After July1, 2010, private lenders no longer were able to make government guaranteed student loans. The government now had 20% of the market and is ready for a complete takeover.

Taxpayers will put up $100 Billion as a start.

The problem here is that private lenders did a better job of evaluating risk and collecting bad debt than the government. Any estimates of “savings” by the government is a fantasy. Government figures, for example, never have those the private lenders include, such as two-year college programs with much higher default rates. What is more, the government has a poor service record among student borrowers.

A portent of what can happen to our health system.

College Dieting Ahead

Increasing transparency is hitting colleges at the same they’re getting overwhelmed financially. It's diet time.

Universities saw their endowments take a financial bath when the stock market did and many got stuck with illiquid, unconventional investments. State governments have raised tuition at public schools, but state educational budgets have since declined.

Competition from for-profit universities, with curricula more oriented to job opportunities, has been increasing. Furthermore, the public has noted the tendency for college administrative bloat, Previous college administrations were able to get away with extravagance. They got by and prospered with expansive programs of dubious merit.

It does seem college administrators will have to expand their budget dieting regime further.

Court Change Of Venue

Few judges approve defense lawyer requests for change of venue. That’s where a trial location is changed in order to prevent possible local prejudice against a defendant. Most judges do not like to offer this request.

Yet, it’s important for cases in the public eye that a defendant be tried where jurors have not been bombarded with information about the case. And where defendants may be fairly judged on the merits of the case’s arguments.

Particularly, where information comes from populist and perhaps ignorant-of-the-facts media, that may already have prejudged that case.

Basic distrust exists against defendants who happen to be in finance or business. Most jurors, and I may add, judges, harbor innate prejudice against such individuals.

Many jurors simply don’t understand finance or business. They have been influenced by years of populist thought. A change of venue does not help change the harm done by such ignorance, but the change of venue principle is, at least, a step in correcting the system.

The Coming College Bubble

Presidents and politicians have promised for years to provide college for everyone and have measured success by the percentage of students enrolled.

But it's becoming clear that college doesn't make sense for everyone. Some students simply lack the necessary competence, including the ability to carry on fluent conversation. Nor do they have the basic math.

Many others would prefer non-college careers in industry. And are considering whether the expensive conventional college model is worth the heavy investment.

A century ago, only about 2 percent of American adults graduated from college; college education expanded when the G.I. Bill financed veterans after World War II. College attendance expanded further postwar and Government student loans have enabled colleges to grow even faster over the last three decades.

This growth has been great for the schools but the product has simultaneously suffered. America leads the world in mass education, not better education.

Unfortunately, a bubble is ahead and the result will not be pretty to observe.

The Shortage of Doctors

All the talk and action from the Obama Administration about how government can make health coverage better, merely makes the situation worse for all of us.

Liberals never seem to be aware of unintended consequences.

Example: For years, liberals have been vehemently against changing tort and malpractice excesses that drive doctors out of the system. Doctors just find it getting too expensive to pay ever-rising insurance premiums, especially in some specialties such as obstetrics and surgery. But it’s not because doctors are more derelict in their work. Plaintiff lawyers are more creative in their briefs.

In addition, doctor fees are being sharply reduced where government control is already exercised in Medicare and Medicaid. Or in Medicare Advantage.

Yet, ObamaCare wants to treat up to 50 million new insured with extra doctors. A new report from the American Association of Medical Colleges says the U. S. has a shortage of 15,000 doctors . What is more, this shortage will probably grow to 125,000 by 2015. And 150,000 by 2025.

The doctor shortage will lead to the rationing of medical care, so long as government policy interferes with the ability of doctor earnings to attract more qualified students for adequate training.

Centralized vs Decentralized Business Management

Companies can be managed from the top in two ways. The public is not generally conversant with the difference. They’re:

One: Very strongly run, or centralized, where the CEO is in complete control of the company’s daily operations. Many executives prefer this approach. I ran a highly successful 74-office employee-contracting firm using this management principle. Those offices operated in a myriad of industries.

Two: Loosely and decentralized, where more local control is allowed. Warren Buffett operates his different companies in varying industries on a decentralized basis. He has his individual companies perform without very strict daily direction from his headquarters.

I prefer centralized, hands-on oversight, which I believe is better from the operational standpoint. On the other hand, if your goals are primarily that of an investor, you never have the time, nor perhaps the inclination, to cope with daily administrative duties.

In short, there are two different types of CEOs for two different styles.

Potential Cap and Trade Damage

Cap and Trade legislation is stalled in Congress but left-leaning politicians never give up trying. Those who still believe in global warming science are true religionists.

Added to these entrenched environmentalists are practical leftists who realize that Cap and Trade is an instrument for enforcing control and taxation across the board on the entire population. And without designating the effort for what it truly is.

The main problem is that economic damage will be imposed, though the vast majority of Americans do not want Cap and Trade.

The government is enacting many of these global warming tenets without the approval of the electorate, by stealth and undercover means.

It’s weapon? The almost unrestricted use of the Environmental Protection Agency.