Productivity Gains

                       

Economic changes occur without public knowledge or publicity, but they affect the affairs of all of us. The public ought to get basic economics education in the media, so that they may more readily absorb information that has so much to do with everyday life.

                       

One example: Positive changes in output per hour by industry often is considered to be good during economic recessions; it helps recovery. Companies cut staff to do this to keep labor costs low.

                       

It’s painful, of course. Lost jobs produce the favorable statistic. However, that is true only in private industry. The public sector, particularly those unionized, are being added to, with the aid of past federal stimulus funds. And they’re budget-busting, absolutely non-productive. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

       

Redoing Corporate Images

                   

Companies try to redo their image as well as re-focus when fortunes turn. They do what individuals do with New Year’s resolutions.

Most individuals never seem to take those resolutions seriously. When companies do the task, the program is an expensive undertaking. Moreover, it’s a sign of desperation and poor management when change periodically and habitually occurs.

                       

Customers and the public instinctively feel management may be hiding real problems and that it is all a sign that management is weak or dishonest.

                       

There is a natural tendency not to believe what corporations say and do, because of populist media and politicians. Corporate managers have to be doubly careful about image. They can be damned no matter what they say or do. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Public Employee Budgets

                 

I have often remarked about problems of government paying over-market wages and pensions to public employees, amounts bankrupting government and taxpayers alike.

                       

The solution: As a start, publish wage and pension scales, along with fringe benefits of all unionized government

workers. List only job description, for the public to see. Let voters know how private earnings and pensions compare to public earnings and benefits, that tax-paying voters earn for comparable work.

                       

If there is to be open government, why hide a major cost? This part of the budget is always hidden from voters. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Social Security Promises

Social Security checks cannot be truly considered a

government “pension” fund.

                                           

Can Social Security checks be delayed if Congress ever fails to increase the government's borrowing authority? Probably not for political reasons. No matter what Congress does about the debt limit, Social Security recipients will get their checks.

                       

But note: There is no Social Security lockbox; funds are used by government as received in Social Security taxes. So- called Social Security trust funds are actually IOUs, of no  market value. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Business Managerial Risks to Avoid

                      

There are four basic business risks:

                       

1- Knowing what the possible risks are.

2- The size, types and pitfalls of accounts receivables.

3- Salary excesses, their fringe costs and how they can be controlled.

4- Existing and potential production problems and how they can be controlled.

                       

What compounds these problems in many companies, large or small, is the inability to adequately recognize them early on. And to monitor them, while managing their potential risks on an ongoing basis. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

College Tuition Debt

                  

The numbers received about student debt from the College Board bear a disturbing lesson.

                                               

What college-debt estimates don’t take into account are a list of important factors. Student debts racked up in going to college ought to include those of their parents; they weigh down college advantages. Interest on the debts are huge and add to problems associated with those debts. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

College Education’s Value?

                  

Estimates of a college education’s benefits are being estimated to be from about $800,000 to as much as $1 million. However, I find it’s more likely a fictitious figure, that often compares college degree earnings with those that include laborers working at minimum wage.

                       

An assumption is made that all non-college jobs are non- skilled. Many skilled jobs that do not call for a college degree, such as electricians and plumbers, pay far better than college-bred positions.

                       

Eliminate janitor-type jobs from the conventional comparisons, and the estimates get completely skewed; college’s worth is over-valued. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Non-Profit Companies

                   

The public usually gets the impression that non-profit companies are good and for-profits somehow are not. That non-profits are there to be helpful; the for-profits greedy, seeking nothing for the public or consumer, but largess only for themselves.

                       

The public have been taught by populist politicians and the media, that somehow profit is a dirty word. Unless, of course, a member of the public loses a job, where the boss has no profits with which to pay salaries.Then again, for-profits must have cheated to get their earnings, if you listen to the populist media expositions.

                                           

However for-profits have an upside, in that they are seen as more competent. Why? Too many folks have had run- ins with the post office and motor vehicle personnel. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Global Warming

                  

Expensive global warming talk has been based on what we are now slowly learning are hoaxes.

                       

Moreover, replacement ethanol production for inefficient fuel is also expensive. And it is the product of a source of food that is becoming more expensive because of its diversion to energy use.

                                           

The outlawing of incandescent bulbs, and the buying of costly compact fluorescent light bulbs instead, is yet another instance of the need for rethinking some of the global warming nonsense.

                       

What about green car manufacturing and the plans of companies who are going "carbon neutral." Lots of talk, and huge expense.

                       

When will schools stop teaching the kids about the doubtful,“cataclysmic” effects of climate change? (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Future Job Opportunities

                                   

Getting to know what jobs will be plentiful in the future is never easy to predict. In these difficult times it’s tougher than ever.

Consultants hired to make predictions are often wrong; yet they prognosticate, despite only rarely winning accuracy goals.

                       

We know that economic trends are hard to change overnight. The health care services industry appears destined to continue its growth. There will be some bumps, however, depending on legislation and unionization activity.

                       

Some aspects that require delicate skills, doctors, for instance, may be adversely affected, by legislation or continued lack of tort reform by government. Technology skills will be sought.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Producing Real Jobs

                  

Getting the actual unemployment rate to a more normal level is not going to be easy with just meaningless gestures.

                       

The unemployment rate is actually depression-like, when you consider the truly unemployed. Not only those who still haven’t given up seeking a worthwhile job. The truth is, the official unemployment rate is misleading.

                       

To get job creations going, the economy must improve. That means psychology must get rosier. More money has to get into households through economic activity.

                       

What will do that? Lower income taxes, fast. And productive private industry jobs, fast.

                       

To produce jobs you must get small business starts going by cutting their taxes. And you have to cut government debt. Servicing that debt will make it impossible to keep taxes low or to make a dent in debt reduction. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

The Correct Job Resume

                 

Advisers generally tell you how to write a job resume. But always remember the importance of the covering letter. It’s just as essential as the resume itself.

                       

Place upfront in the covering letter what is most important about your skills. Outline very quickly your professional assets. Tune the theme to what that skill is; technical, leadership, or academic.

                       

The covering letter ought to quickly reprise what you are  selling about yourself. That will make it easier for a prospective employer to scan your’s from, perhaps, hundreds of other job requests. (See the Earl J. Weinreb

NewsHole® comments and @BusinessNewshole at twitter.)

The U.S. and Free Market Capitalism

The Annual Index of Economic Freedom reports from the

Heritage Foundation and the Wall Street Journal, indicate the U. S. remains far behind countries such as Canada, Australia, New Zealand, Switzerland, Hong Kong and Singapore, in terms of economic freedom.

                       

In economic and bureaucratic terms, there is much improvement the U.S. can make to eliminate business red tape and restrictions. Unfortunately, we have been heading even more from free economic principles.

                       

This, at a time when we desperately need to formulate new private industry jobs. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Why Sell a Business Franchise?

                     

Ask yourself if you are thinking of franchising your business: If you have a successful business, it’s easy to think it can be franchised. But why should someone pay for the company name and your expertise when they can probably duplicate the same entity at no franchising cost?

                                           

You cannot successfully franchise your operation if:

                                           

1) It is easily duplicated or entered into by a competitor.

2) You don’t have a highly recognized brand name.

3) You don’t have special management expertise to offer. 4) It’s hard to service or manage operations, from your end.

                       

You must realize, too, that the usual upfront fees and the royalty you take on sales, that cover whatever management training and materials you may offer, will probably represent about half a franchisee’s net earnings.

                       

That fact is bound to eventually infuriate him, assuming he becomes successful. There is no telling what the fury may be if he fails after investing in your advice.

                       

So they may eventually cheat you or form groups with other franchisees you may have, to sue you over contract terms.

                       

Question: If you want to franchise your business, can you finance them as well to keep franchisees intact? (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)