College Education Deficiencies

College administrators and politicians should drop their promotional hype. Higher college enrollment and government loan programs and subsidies may be good for the college marketers, but they don’t produce the training needed to fill real, paying jobs in industry.

This becomes more evident by the day.

Too many degrees, especially from four-year institutions, offer graduates little skills but a resume, when they go looking for a job in the real world. ( See the Earl J Weinreb NewsHole® comments.)

Sarbanes-Oxley’s Unintended Consequences

Sarbanes-Oxley was passed in 2002, as a reaction to media-enhanced investor-debacles.

The law of unintended consequences was an ultimate result. And negatives by far outweigh any positives.

Sarbanes-Oxley has been a great profit center for accounting firms. It’s also a good talking and campaigning point for populist politicians, but an expensive headache for companies.

Lots of smaller corporations no longer seek public funds because it has become too expensive for them to be publicly owned. Audits are too expensive. That does special havoc with small business which cannot afford the added costs..

What is more, the legislation helps little in preventing fraud, the intended purpose. Moreover, this keeps foreign corporations, even giants, out of the U.S. or has existing ones reconsider their American status.

If any corporate executive wants to commit fraud, Sarbanes-Oxley will not prevent collusion to do so. On the other hand, anyone with corporate experience (that leaves out most in Congress) knows that Sarbanes-Oxley makes running a business more like a steeplechase or handicap than it should be. ( See the Earl J Weinreb NewsHole® comments.)

“Fair” Labor Union Wages and the American Social and Cultural Contract

A worker gets what he or she produces in a “fair” productive society, Labor has to be productive. If it is not, there is an eventual disconnect.

The perfect example is the downfall of the American automobile industry which priced itself out of business because of its labor costs. You can talk style and product non-competitiveness, But management was coerced into giving catastrophic labor contracts, in order to avoid immediate costly union walkouts.

The breakdown in schools can be attributed to the same cause. Here it is the avoidance of competition in the form of breaking the public-school-only monopoly of unionized teachers. A choice of vouchers would make for better productivity of teachers, and better schools.

Unfortunately, labor unions and real wage conflict have grown into the American social and cultural contract. They have been highly politicized by union campaign funding, so it will be almost impossible to rectify in the foreseeable future. ( See the Earl J Weinreb NewsHole® comments.)

Patents for Business Methods

Patents are being issued not only for actual products and things, but for general ideas and business solutions. Or the method by which payments are made online.

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

Courts now are 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. ( See the Earl J Weinreb NewsHole® comments.)

Cheapening College Marks

Inflated college marks are now the norm around the country. Pay the tuition and pass with flying colors. What used to be called a "Gentlemen’s C” grade for the class dummy is now the “Gentlemen’s A” for all.

It’s hard for today’s students to believe but the following is fact you will never, never get from a current college manual:

At the College of the City of New York during World War II, students were admitted only if they had the highest grades in New York City schools.

If they were getting war-service 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% or so of each class flunked, no matter what mark they got. Classmates competed against each other.

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

Students go to Ivy League schools because of the aura about them, and the contacts they afford. The overrated Ivies are not tough once you are admitted. ( See the Earl J Weinreb NewsHole® comments.)

Essential U. S. Global Trade and Smoot-Hawley

Smoot-Hawley protectionist import duties in the U.S. 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 taxation policy and government spending, induced by pump-priming Keynesian philosophy. It was a similar stimulus theory that the Obama Administration is advocating.

Never forget: 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. ( See the Earl J Weinreb NewsHole® comments.)

Small Business and Recession-Lost Jobs

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

Ever-higher minimum wages, hidden taxes and insurance costs will guarantee that small business can not fulfill its conventional role of creating new jobs. Unless Washington’s political elite relent.

It will take years for lost jobs to come back. In fact, many may never be available. ( See the Earl J Weinreb NewsHole® comments.)

Recessions are Made by Poor Handiwork

Folks are constantly misled by the media and by politicians.

An economics lesson: Economic cycles are normal, but excesses have man-made causes.

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

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) facilitated mortgage sales the world over.

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

A bubble resulted from this man-made series of pressures, 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. ( See the Earl J Weinreb NewsHole® comments.)

Effective Business Management

Good business management is hard to evaluate. It’s not as easy as evaluating an athlete who wins or loses events, or has measurable statistics.

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 solely responsible for the bottom line.

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. More complex 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. ( See the Earl J Weinreb NewsHole® comments.)

Public Pension Fund Illusions

The illusion continues: Problems persist with pension fund allocations, particularly those funded for public state employees.

They’re still being based on assumptions that securities will continue to earn about 8% a year. So less funds go into the kitty than is needed.

These funds averaged that much in the distant past, but they have been 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. But the illusion persists. ( See the Earl J Weinreb NewsHole® comments.)

Poor Schools and Discontent

The public cannot evaluate the bombardment of news and the headlines that apply to finance and business topics.

Don’t expect schools to provide an adequate understanding of information, so students can comprehend economics and finance in the real world.

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.

Or why so many of our youth are protesting they cannot find work. ( See the Earl J Weinreb NewsHole® comments.)

The Youthful Protesters

If American youth were truly aware of the effects of the monetary inflation set for them and future generations by our government, they would be shouting from the roof tops for the government to stop the economic mess. And forget about the “rich” and the “bankers” they detest.

Instead, most are really 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 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. ( See the Earl J Weinreb NewsHole® comments.)

Tips for Job Resumes

Make a job application simple and current and keep it up-to-date as the right job resume is essential..

Employment dates are important, as is your formal education, college or technical schooling. 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 you have 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 accomplished in this type of effort. ( See the Earl J Weinreb NewsHole® comments.)

Private and Government Job Differences

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

The government can employ people and achieve full employment by drafting every unemployed person. Especially, high-cost, make-work jobs. Federal “stimulus” spending is promoted for its job creation, but that obviously does not “create” jobs. It usually has a political purpose or helps party fund raising.

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. ( See the Earl J Weinreb NewsHole® comments.)

Employee/Contractor Regulations

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

When former “contractors” file for unemployment insurance, the ex-employer has the difficult job proving the employer/employee relationship.

If the employer owns the tools or equipment and directs the work involved, there is usually an employer/employee connection. ( See the Earl J Weinreb NewsHole® comments.)

Wind Power’s Toll on Birds

The Obama administration has plans for wind power to supply 20% of our energy by 2020. Unreported, is the toll it does to 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, to go along with the outlay of huge taxpayer subsidies. All this according to the Nature Conservancy.

Effective energy policy is attainable with 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 Administration planning comes to fruition. ( See the Earl J Weinreb NewsHole® comments.)

Piling Up on Credit Card Companies

Bad debts incurred by credit card companies generally run close to 10%. The companies must make up for this, so they are attempting to earn fees where they can. 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? Something politicians in Washington who pick on credit card companies, or the media, never address. ( See the Earl J Weinreb NewsHole® comments.)

Solar Panels and the Environment

Covering the desert landscape with solar panels is really not the way to make the environment “green.”

When solar panels get covered with desert dust and dirt they don’t 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. ( See the Earl J Weinreb NewsHole® comments.)

Imposing Unwanted Cap and Trade

Left-leaning politicians never give up trying to impose cap and trade legislation. Those who still believe in global warming science are true religionists whose God is over-powerful government controls.

Added to entrenched environmental co-religionists 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 essentially is.

The main problem is the economic damage that will be exacted, though the vast majority of Americans do not want such job-killing legislation.

However, the government is enacting many of these steps without the approval of the electorate, by stealth. It’s weapon is the almost unrestricted use of the Environmental Protection Agency. ( See the Earl J Weinreb NewsHole® comments.)

Corporations Are Legally Individuals

The status of the corporation as a legal person has been considered valid, as far back as Chief Justice John Marshall’s decision in 1819.

Equal protection laws always applied to corporations in the past. And occurred recently during the nomination and approval of Supreme Court Justice Sotomayor.

In a hearing prior to her approval, Justice Sotomayor remarked that corporations were not people. However the Supreme Court has always held that corporations also had similar broad First Amendment rights. ( See the Earl J Weinreb NewsHole® comments.)

Strict Independent Contractor Rules

Independent contractor rules are as strict as ever. Whether or not you’re an employee or a contractor is a long running question for many small business individuals.

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

The rule of thumb for employers is this: 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. ( See the Earl J Weinreb NewsHole® comments.)

Student Loans

ObamaCare was supposed to cut health insurance costs. We are beginning to find out the opposite is happening; over 1800 waivers have been issued so far because of “hardship” situations in industry.

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

The government has taken over the student loan business. And it is costly. Furthermore,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.

In fact, government proposals are now on the track to eventually forgive whatever loans students never do pay back. ( See the Earl J Weinreb NewsHole® comments.)

Change Of Venue Procedures

A change of venue is where a trial location is changed in order to prevent possible local prejudice against a defendant. But most judges do not like to offer this request.

However, 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, especially 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 judges, harbor innate prejudice against such individuals.

Most 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. ( See the Earl J Weinreb NewsHole® comments.)

Colleges Never “Greedy”?

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.

However, they have been treated royally by the federal government with increased tax law and student loan benefits. No one in official Washington ever calls college bigwigs greedy for their increasing tuition charges and poorer student quality. ( See the Earl J Weinreb NewsHole® comments.)

Cap and Trade Damage

Those who still believe in global warming science are true religionists.

Cap and Trade legislation is stalled but left-leaning politicians never give up trying. Added to these entrenched environmentalists are practical leftists who realize that Cap and Trade is an instrument for enforcing control and taxation on the entire population, though the vast majority of Americans do not want it.

The main problem is that economic damage will result, 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. ( See the Earl J Weinreb NewsHole® comments.)

A College Bubble on the Horizon?

College doesn't make sense for everyone. Some students simply lack the necessary competence, including the ability to carry on fluent conversation. Or write complete sentences. Nor do they have the basic math.

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

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. ( See the Earl J Weinreb NewsHole® comments.)

Easily Taught Job Needs

There has been commentary that it’s no fault of the schools and colleges that graduates are so unprepared for the workplace.

Obviously, this commentary is understandable when it comes from the ivory towers of academe. They find nothing wrong with their ability to produce a student who can stand on his or her own two feet on Main Street in an emergency, if they have to feed themselves. To make change from a dollar at a cash register, if need be.

I personally ran a business with a payroll of up to 30,000 checks a week. At times I had to set up temporary projects with off-the-street employees, and have them trained within three days. But that was not with the caliber of present-day average school and even college graduates. ( See the Earl J Weinreb NewsHole® comments.)

Doctor Shortages Will Worsen

Action from ObamaCare about how government can make health coverage better, merely makes the situation worse.

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 under 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. ( See the Earl J Weinreb NewsHole® comments.)

Business Management Centralization

Companies can be managed in two ways. The public is not aware of the difference. They’re:

One: Very strongly, or centralized, where the CEO is in completely in control of the company’s daily operations. Many executives prefer this approach.

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 the inclination, to cope with daily administrative duties. ( See the Earl J Weinreb NewsHole® comments.)

Women’s Salaries

Women have 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.

Women still tend to earn less. But there can be valid reasons. Many leave jobs in mid-career for maternity reasons; that distorts statistical averages. Others prefer to spend more time with family.

However, there are more variations in certain professions than others. Hostile environment may often remain. Occurrences depend on profession or industry.

Women’s needs may also differ within those jobs, especially where measures of hostility may actually exist. (See the Earl J Weinreb NewsHole® comments.)