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.)