Posts tagged with: Business/Finance

beatlesOne would think that the road to success for entrepreneurs would start with a business major. After all, you have to know marketing and business strategies and accounting and all that stuff, right?

Panos Panay gives some thoughtful rebuttal to that idea. He is a successful entrepreneur, having created Sonicbids, a platform where musicians and bands can book gigs, promote themselves and basically act as their own managers. He is also the founding manager of Berklee Institute for Creative Entrepreneurship. He believes he’s been a successful entrepreneur not in spite of his music background, but because of it. (more…)

Blog author: jcarter
Friday, October 31, 2014
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man_thinking_numbersIs the murder rate in the U.S. increasing or decreasing? What percentage of teen girls will give birth this year? What percentage of Americans are Christian or Muslim? What percentage are immigrants?

If you guess wrong, you’re not alone. A new global survey, building on work in the UK last year for the Royal Statistical Society, finds that most people in the countries surveyed were wildly wrong. For instance, Americans guess wrong on each of the following questions:

• What Percentage of Girls Age 15-19 Give Birth Each Year? (Avg. guess: 24 percent; Actual: 3 percent)

• What Percentage of People Are Muslim? (Avg. guess: 15 percent; Actual: 1 percent)

• What Percentage of People Are Christian? (Avg. guess: 56 percent; Actual: 78 percent)

• What Percentage of People Are Immigrants? (Avg. guess: 32 percent; Actual: 13 percent)

• What Percentage of People Voted in the Last Major Election? (Avg. guess: 57 percent; Actual: 67 percent)

• What Percentage of People Are Unemployed and Looking For Work? (Avg. guess: 32 percent; Actual: 6 percent)

While these examples may seem relatively trivial, they highlight that when it comes to numbers that shape policy and politics, many Americans are extremely confused. Ideally, before making a decision about how to vote or stressing about the latest health threat, we’d research the numbers to develop an informed decision. But the number of issues we face each day often prevents us from doing more than making a “best guess.”

Fortunately, there are ways we can hone our skills at guessing and estimation — guesstimation — that will help us minimize our innumeracy. Here are a few tips for making better guesses about numbers related to politics, policy, and demographics:
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Blog author: jcarter
Thursday, September 4, 2014
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Imagine if a scientist was able to create technology that turns corn into cars. As economist Bryan Caplan explains, we already have such an innovation: foreign trade.

Caplan argues that foreign trade is a form of technology that lowers our cost of living and increases our standard of living. In fact, claims Caplan, from a broader perspective trade is even better than most technology since it not only makes us better off, it makes foreigners better off too.

Sic semper tyrannis, eh?

Sic semper tyrannis, eh?

The Burger King acquisition of Tim Hortons and the resulting plans to move the corporate headquarters under the taxing authority of the Canadian government is being derided by some as unpatriotic.

This is the latest in a long string of similar phenomena over the last decade or so, as we see patriotic loyalty (or the lack thereof) becoming a political issue in the context of offshoring, globalization, outsourcing, and so on.

A response to the charge of being unpatriotic would seem to me to require at least two points.

First, the responsibilities of a business owner, CEO, or corporate board are different than those of a government politician. They have different loyalties, so to speak. So to judge the one by the standards of the other is an exercise in missing the point.

Second, I would respond with a query along these lines: Which is more unpatriotic, a greater disservice to a nation, for someone to be involved in: moving a business from one country to another or making the tax environment in a country inhospitable to businesses?

RL-logo-wit1Earlier this month, religious shareholder activists from the Interfaith Center on Corporate Responsibility, Mercy Investment Services and the Sisters of Mercy nabbed headlines by attempting to force Ralph Lauren Corp. to conduct a needless and politically driven human-rights risk assessment of offshore vendors.

The ICCR effort is another “name and shame” tactic intended to publically embarrass a company refusing to play ball with a left-leaning organization. According to the Huffington Post, the nominally religious shareholders’ proposal is …

… backed by the AFL-CIO Reserve Fund, an investment fund for the national trade union center, that urged Ralph Lauren to assess human-rights risk throughout its supply chain. The company’s board of directors told shareholders to vote the proposal down. (more…)

Blog author: jcarter
Thursday, August 21, 2014
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7figuresFeeding America is a nationwide network of 200 member food banks, the largest domestic hunger-relief charity in the United States. The Feeding America network of food banks provides food assistance to an estimated 46.5 million Americans in need each year, including 12 million children and 7 million seniors.

The report “Hunger in America” is Feeding America’s series of quadrennial studies that provide comprehensive demographic profiles of people seeking food assistance through the charitable sector.

Here are seven figures you should know from the latest report:
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Hobby-Lobby-StoreWhen the Supreme Court ruled on the Hobby Lobby case, the near universal reaction by liberals was that it was a travesty of epic proportion. But as self-professed liberal law professor Brett McDonnell argues, the left should embrace the Hobby Lobby decision since it supports liberal values:

The first question was: Can for-profit corporations invoke religious liberty rights under RFRA? The court answered yes. HBO’s John Oliver nicely expressed the automatic liberal riposte, parodying the idea that corporations are people. It is very funny stuff.

It is not, however, especially thoughtful stuff. The court does not argue that corporations are just like real people. Rather, it argues that people often exercise faith collectively, in organizations. Allowing those organizations to assert religious-liberty rights protects the liberty of the persons acting within them. The obvious example is churches, usually legally organized as nonprofit corporations.

The real issue is not whether corporations of any type can ever claim protection under RFRA — sometimes they can. The issue is whether for-profit corporations can ever have enough of a religious purpose to claim that protection.

To me, as a professor of corporate law, liberal denial of this point sounds very odd. In my world, activists and liberal professors (like me) are constantly asserting that corporations can and should care about more than just shareholder profit. We sing the praises of corporate social responsibility.

Well, Hobby Lobby is a socially responsible corporation, judged by the deep religious beliefs of its owners. The court decisively rejects the notion that the sole purpose of a for-profit corporation is to make money for its shareholders. This fits perfectly with the expansive view of corporate purpose that liberal proponents of social responsibility usually advocate — except, apparently, when talking about this case.

McDonnell is right, of course. Support for religious liberty should transcend partisan political lines. And it used to be an issue that was championed by liberals. The fact that religious liberty is now despised and denigrated reveals a sudden, perhaps irrevocable shift in the nature of progressivism in America.

(Via: Rod Dreher)

The Transom links today to a piece about how Proctor & Gamble is ramping up product lines aimed at older adults. “The flip side of the low birthrate is we’re all living longer,” said corporate exec Tom Falk.

In fact, the global trend over the last two hundred years has been toward longer lives and fewer babies. This trend really gathered momentum in just the last half-century or so. Consider this short video I put together for a talk at last month’s Acton University.

The two axes correspond to fertility (horizontal) and life expectancy (vertical). So in the bottom right we are having more children and shorter lives, while in the upper left we are having fewer children and living longer. Each of the countries in the world is represented by a circle, whose size is determined by size of population. Each region is also color coded.

What you’ll see as we move forward through the last two centuries is a gradual shift toward the upper left, which turns into a rush after about 1950. There are a few lagging countries in Africa, which still are moving toward the upper left, just a bit more slowly. Watch it again, and note the brief drops in life expectancy corresponding to each of the twentieth-century world wars.

Where we start in 1800 was just about where humans have been for recorded history: short lives and lots of kids. Now within the last 50 years we’ve seen a monumental shift that really is unprecedented on a global scale. Think for a few minutes about the complex causes of this shift and the massive changes in social, political, and economic dynamics that undergird it and also flow out of it.

We really have never seen its like before.

“Despite the mounting cost and swelling debt,” notes Laura Prejean in this week’s Acton Commentary, “America’s demand for education, particularly higher education, has not decreased, defying typical market expectations.”

This is what economists call inelastic demand, when people continue to buy a good or service regardless of an increase in prices. Though the post-recession job market is still difficult, growing student debt ought not to lead us to forget the dignity — and responsibility — of each individual student. When prices for goods and services rise, consumers often make sacrifices and adjust their spending. For example, as gas prices rise, families use carpooling or more efficient routes to and from the grocery store. But what are students sacrificing when they join the immovable market for education? Are they considering less costly options with lower tuition, or do they unthinkingly take out student loans, falling into serious debt as they enter their twenties?

The full text of the essay can be found here. Subscribe to the free, weekly Acton News & Commentary and other publications here.

t873In a 5-4 decision, the Supreme Court just announced its ruling in favor of Hobby Lobby, holding that, “as applied to closely held corporations, the government’s HHS regulations imposing the contraceptive mandate violate the Religious Freedom Restoration Act of 1993 (RFRA).” The full opinion, written by Justice Samuel Alito, can be read here.

Although there is still much to digest, and although the majority opinion still leaves quite a bit of room for related battles to continue, it’s worth noting that that whatever perceived “narrowness” we see in the decision — confining things specifically to closely held corporations — remains a significant victory, particularly given our culture’s prevailing attitudes about business.

According to HHS, by simply incorporating one’s business in the pursuit of profit — “without in any way changing the size or nature of their businesses” — a company “would forfeit all RFRA (and free-exercise) rights” (quotes from Alito’s paraphrase). The arguments supporting such a view vary, including the principal argument advanced by HHS that corporations cannot “exercise religion.”

Alito dissects this from a variety of angles, and does so rather compellingly. But one of the more noteworthy sections is his refutation of the notion that for-profit corporations aren’t protected by RFRA because they “simply seek to make a profit.” (more…)