Global Warming Red Herring--Again

             

The sun has been its least active in decades. It’s in its dimmest phase in a hundred years.

                       

This is causing, in fact, scientists to recall the Little Ice Age, an unusual cold spell in Europe and North America, that lasted from about 1300 to 1850. The coldest period of the Little Ice Age was between 1645 and 1715, linked to a deep dip in solar storms, known as the Maunder Minimum.

                       

Access to Greenland, at that time, was largely cut off by ice. Canals in Holland routinely froze solidly. Glaciers in the Alps covered whole villages, and sea ice increased so that no open water flowed around Iceland in 1695.

                       

For hundreds of years scientists used the number of sunspots to trace the sun's roughly 11-year cycles of activity. Sunspots indicate intense magnetic activity on the sun's surface. Solar storms send bursts of charged particles hurtling toward Earth.

                       

Changes in the sun's activity affect earth in other ways. Research has developed a theory that the sun has a bigger influence on earth's climate than others have predicted.

                       

That throws the global warming pessimists who are anti-auto, anti-industry, and anti-industrial development, into their usual dilemma.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

College Grade Chicanery

                              

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 professional golf. The lowest 10% or so of each class flunked, no matter what marks 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 flunked out.

                       

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 vaunted Ivies are not tough once you are admitted.

                       

If anything, they are overrated. We see their products in Wall Street and government. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)        

Environmentalist Self-Damage

                          

Americans in the past created farmland out of forests, swamp and deserts.They produced the world's most widespread and inexpensive agriculture. They built dams and canals.

                           

Today, the population is growing by natural and immigration means. Yet many hundreds of thousands of acres of productive land is pushed out of use. At the same time we have chronic water shortages, particularly west of the Mississippi River.

                           

We are also taking too much productive farmland away from food supplies. As well as making food we do have more expensive.

                           

How? Professional environmentalists stop irrigation wherever they can. Too often it’s to save threatened species of fish and other organisms they view on the same level with human needs.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

College Failures

                         

A Pew Charitable Trusts investigation back in 2006 showed that 50% of college seniors failed a practical test. It had asked them to understand a table about exercise and blood pressure, or understand newspaper editorials, or to compare credit card offers.

                           

Graduates are less adept today, from more recent test scores being reported.

                           

Employers say many college graduates lack basic skills of thinking and writing. This is not surprising.

                           

About 20% of college seniors did not have the ability to estimate whether their car had enough fuel to get to a gas station. According to the National Assessment of Adult Literacy, the percentage of college graduates’ ability in literacy had declined from 40% to 31% in the past decade.

                           

I often say, colleges do more for their teachers and staff, than for a large portion of their students. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Essential Small Business Optimism

                          

If you want an idea of where the economy is heading and what the chances are for a brightening in the picture for more jobs, you will want to see small business optimism numbers.

                           

The National Federation of Independent Business periodically issues its Small Business Optimism Index. That, better than any political pronouncement from the White House, will tell you how small business folk are prepared to speculate with their hard-earned money, to create needed jobs that the government can only muse and pontificate about. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Anti-Hiring Tactics by the Government

                      

The  administration would love to improve the job picture. but continues to overlook how job creation really works.

                       

It does not work by handing out one-time tax credits or benefits. It does help by improving the psychology for hiring. That means providing a clear understanding of the ground rules for business. And those ground rules must be pro-business.

                       

Enterprise requires less cost of doing business. With no future prospects of a choking increase in taxes. That means no higher minimum wages for unskilled labor and ever-increasing burdens such as government-mandated health care.

                           

Inasmuch as government bureaucrats and most politicians have never operated a pushcart, how are they to know the psychology of creating private enterprise jobs?  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

College Teaching Deficiencies

                           

Over 4,000 colleges and universities enroll over 17 million students. College has obviously become a huge growth industry.  

                     

The industry has also mutated negatively, with far too little oversight of quality.

                       

As an example: Colleges appear to be primarily in the business of acquiring students, differing to a degree, only in their approach to marketing.

                       

Some do so as research centers. They may boast professors with science awards and Nobel Prizes which are very appealing marketing devices. Such esteemed faculty also attract more grants and endowments.

                       

But few undergraduate students have these celebrity professors. They often are taught by graduate students.

                       

Parents and taxpayers pay billions of dollars to colleges and universities. Schools make money whether students learn or not, whether or not students graduate, or are prepared to get good jobs after leaving school.

                       

Colleges and universities thus engage in "bait and switch;" conferring what are actually deficient degrees, and engage in other practices that would bring legal sanctions in any other business.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

What is The Pareto Optimality’s Efficiency Concept?

                           

Pareto efficiency, or Pareto optimality, is a concept in economics. Named after Vilfredo Pareto, the term is used in engineering, game theory, and social sciences.

                           

Pareto used his theory in studies of economic efficiency and income distribution. He claimed that a change from one allocation to another could make one individual better off, without making another worse off. This is referred to as a Pareto improvement. The allocation is called Pareto efficient or Pareto optimal.

                           

The 80/20 Efficiency concept, so often used in management, is his reasoning. For example, 20% of your sales foe may contribute 80% of your sales.

                           

I bring it up because those on the political left would do well to reconsider some of their anti-business tirades when trying to create jobs, contemplating the Pareto principles.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Permanent Vs Short-Term Tax Cuts

                       

Business psychology is not a political liberal’s strong suit. From time to time the Administration, for example, has offered tax cuts when under pressure, but only as temporary measures.

                       

Such half-hearted tax reductions have little effect because business people plan for years ahead. Temporary cuts are not only meaningless, they are a trap.

                           

For instance, a cut in payroll taxes for a short time is yet another version of failed Keynesian economics. It adds some money to the economy for a time and sounds good because it appears it will add to consumer spending. But experience shows it has no business multiplier effect for producing jobs.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

College Student Enticement Antics

                     

Education marketers compare apples and oranges when making earnings comparisons about the financial advantage of attending formal college. That skews career choices of too many kids.

                       

Numbers thrown out by what I call college administration snake oil salesmen, are usually off-the-mark. They often include janitor jobs, in comparison with high tech. Their figures are prejudiced with regard to higher-paying, non-college trades, such as electricians, plumbers, or computer techies.

                       

You are successful because of your skills and enterprise. not a framed piece of paper from a college. Get a marketable ability. Whether it comes from a college or a technical school. Many technical school graduates earn far more than college grads.   (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Franchisers Should Offer Financing

                           

As you know, I am not an advocate of most franchising, both for a franchiser, and someone seeking to buy a franchise.

                                                     

The franchisee usually finds it difficult to get financing these days, so any help from a franchiser is welcome. But, I find it dangerous for a franchiser to offer financing to a franchisee unless there is firm collateral. Despite the rosy marketing and promotional material from franchisers. A franchise is, after all, small business, and that entails risk.

                       

The only type of financing that makes sense is account receivables financing. It actually ties the franchisee more closely to the franchiser. Construction, real estate and general financing does nothing that applies equally to both parties.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Saving Your Tax Dollars

           

Over-regulation of the U.S. economy is estimated to cost $2 trillion in extra costs that taxpayers will pay in one form or another. These costs come in varying disguises: Windmills, solar panels. battery operated cars. All of which are worthy goals.

           

But they belong in research labs where they can be studied more deeply before being made commercial, and not subsidized by taxpayers as they are today. Any product that is commercially viable will be brought to market by an entrepreneur seeking profit. Only Big Government believes in the principle of losing money with taxpayer assistance.

           

Also, in order to save taxpayer funds, do we need an Energy Department or Education Dept, when their functions are state and local matters? Do we need subsidies for sugar farmers and ethanol production?  Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Confusing Mark-to-Market Accounting at Banks

                                                     

               

I have been saying, going back to 2007, there was no reason to bail out banks. Credit guarantees, and/or takeovers, and in worst cases, conventional bankruptcies would have cleared up the financial mess without the lingering financial recession we now have.

               

Just one example of pure idiocy in the past: Accounting rules relating to assets, including mortgage-backed securities, required that they be marked-to-market if held for trading, or held "available for sale." Most banks hold such assets in one of these two accounts. Mark-to- market rules unfortunately applied.

               

Daily pricing of bank assets based on limited markets saw to it that bank net worth disappeared literally overnight. Short sellers legitimately took advantage of the fact and the downward market result became even more exaggerated.

               

In short: Much of the banking problems we have had could have been avoided with clearer thinking by the “experts.”

               

The financial meltdown that brought on this recession could have been self-corrected by simple market-place principles and no mark-to market accounting.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Poor Grade School Results

                          

My comments often criticize colleges and college student deficiencies. But never overlook the poor job of the American public school system, and its poor kindergarten to 12th grade education record.

                                   

Real dollars spent have more than doubled in the past forty years as teachers unions have gotten stronger. The number of teachers have increased by more than one third. Yet less than 40% of students who graduate are ready for college level. And, of course, do not measure up to international standards.

           

A solution is possible, in the form of charter schools where union rules are somewhat relaxed and school vouchers. Here funds allocated to public education are set aside for parents to use for private school tuition.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Do Corporations Influence Their Regulators?

                           

Companies with interests in an industry, may have the greatest financial stake in the regulatory activity of that agency. They are more likely to attempt to influence that body than would individual consumers. The term applied to the possible outcome is called “regulatory capture.”

                           

Members of the consuming public would have little incentive to try to influence the regulators. We would therefore expect that when regulators assign experts to help review and decide policy, this will lead to opinions of former industry members in contact with that industry.

                           

I feel there are some agencies where industry input is essential. High tech and medical are examples. But it is important that independence be truly and consciously maintained

                           

This regulatory capture syndrome extends beyond political agencies and organizations into business, media, and popular culture.

                           

The concept of regulatory capture is one of government failure. Yet, the media and the Left constantly attack the problem as one of a free market shortcoming.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Localized Licensing Requirements

         

Some spotlights are again being trained on the various local and state licensing requirements, now that many unemployed are seeking to enter their own small business operations.

Often, such licensing is used as a means to restrain trade, done to keep

competition out of established trades. Like old guilds and trade organizations. In many instances, licensing has little to do with standards or community protection; they’re a means of reducing competition.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Why Corporate Consultants?

Corporations with experienced staff, having experts with years of background in their business, still hire consultants, whose staffs are replete with youngsters just out of business school.

Companies already have their own experts who know their business intimately. They study their operations from every angle, on an ongoing basis. So why the consultants?

My conclusion has always been that these often newly-minted consultants have always been a form of business insurance. Even though their ”fresh look” often is amateurish.

It’s much the way investment bankers are called upon for advice. They, too, are often relatively inexperienced.

The rationale? When confronted by plaintiff lawyers, you can say you tried correct management. You have taken adequate precautions in your duties as a manager by using consultants.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

Jobs Mobility

There are often jobs to be had in a particular trade but not in a specific location. Therefore, job mobility has become an important factor.

It also explains why younger folks are more readily able to adapt to unemployment, once they have necessary skills. America has always had a lower unemployment rate than Europe, for example, because we have more job mobility than Europeans.

During the severe unemployment crisis of 2009, 3 million jobs were still open while 13 million were unemployed. Skills were needed, but also mobility.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

   

Low-Cost Retail Medical Offices

This is another ObamaCare casualty that has been stifled; However, it can yet be resuscitated as an alternative..

Mall medical services have been designed to accommodate everyday, urgent medical problems that may arise, where patients want to immediately know how serious their illness may be. The idea is to avoid overcrowded conditions in hospital emergency facilities. ERs are there for specific purposes, other than routine health evaluations.

Such medical offices can be made adjuncts to other types of retail facilities. Many have been in operation. They are supervised on staff by licensed nurses, while overseen by licensed physicians. Doctor referrals are made by those nurses.

Different states have varying regulations, depending on pressure groups, who would prefer not to have this form of competition.

Results? A form of reliable, private choice, low-cost, health care coverage. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

MisUsed Government Spending Theory

                       

Keynesian theory enthusiasts think governments can  stimulate their economies. Evidence  shows this assumption is completely not true.

Keynesian economics is used by politicians as a ploy to get votes because it appears so simple.   Spending money freely sounds like there is bound to be more economic action. So it is popular. 

But what  sounds plausible to the uninformed masses is known to  have poor overall results, when there is unbiased, independent study. Heavy spending simply does not work.

Over-spending by Keynesians produces enormous debt which adds problems that creates a worse economy,  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)    

American and European Unemployment Insurance Benefits

About one third of the unemployed on benefits get jobs once those benefits expire. The longer the benefit term, the longer many unemployed take to start looking.

The difference between the U. S. and Europe has been that the latter has better unemployment benefits. Europe also has chronically higher unemployment. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Why Temporary Jobs Can Be Practical

Why not look for a temporary job when permanent opportunities are scarce? There are a variety of temporary positions in different industries, over a variety of activities.

This advice is for those just out of school with a new diploma but with no job offers in their chosen profession. Or a suggestion for those of you who have no idea what it is, exactly, you would like to work at.

You will get the on-the-job experiences you need, though few may relate in any way to what you studied in courses at school. You may even wait tables in some instances.

But they will all add to your practical education. And, importantly, to your pocketbook. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Economic Knowledge Despite Media Misconceptions

I listen to late night/early morning call-in radio to hear how people around the country think about everyday living matters.

They talk about personal finance, economics and business and related political slants.

I find it a difficult chore because most folks are in the dark about the basics that they should have acquired in public school. College graduates often are just as lacking in fundamentals.

Except for any leftist indoctrination they may have gotten from professors. Most have no knowledge of basic finance, economics and business.

And unfortunately, most radio and TV moderators and anchors have had similar “liberal” schooling, and are in no position to correct such views. ( See the Earl J Weinreb NewsHole® comments.)

$1Trillion is Available to Stimulate the Economy

Well over $1 trillion in cash is now held by S&P 500 companies. However, the vast majority of corporations are too scared of the economic environment, ]to act and employ the funds.

You can’t blame them, when they worry about encroaching taxation and regulatory agencies in Washington. The administration keeps informing them by word and bureaucratic action that it’s ready to impose anti-business diktats, over which Congress has often no vote or power to control.  (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.

Climate Fears Still Pay Off For Some

Since the heat waves of summer replace the dire hardship experience of severe winter, and vice versa, climate control always gets media attention.

There are adherents who treat climate control as a religion and have no doubt the earth is warming.

To others it’s a political cause that creates a road to office and helps to keep them there.

To others in government, it’s a subterfuge for quietly and indirectly raising taxes on consumers, as well as industry.

And for still others, it’s business in which you can buy and sell so-called cap and trade credits.

They market a green philosophy in a variety of industrial and consumer products that you choose to develop for profit.

The now-gullible public will find out the climate promoters can be grouped with the types who used to tell us the world would come to an end by a certain date. When that never occurred we just forgot about the quacks. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

For-Profit and Non-Profit Company Competition

Government-operation proponents are always enthusiastic about non-profit business. They rant against profit-making businesses.

The so-called non-profits can lose fortunes for their backers, while the for-profits can make pennies-on-the-dollar of sales. Yet, the government-operation fanatics remain committed to left-wing perception and deception.

It is impossible for private business to compete for long, whether it be the insurance business, health care, energy production, whatever, if taxpayer funds are grabbed by government for capital and operating needs and losses. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

The Dollar’s Use as International Reserve Currency

The potential loss of the dollar as a reserve international currency is now underway. The ability to protect U.S. global interests in the future will be diminished in this process.

Do not treat unlimited government spending lightly. The repercussions can be extremely serious in matters of our economic and national security.

Think of what is happening with Greece and the European Union. The U.S.debt ceiling question is not important. Spending below that ceiling resolves the problem.

A budget deficit that cannot be overcome without massive taxation guaranteed to stifle economic growth, to prevent deficit reduction is a major difficulty.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)