Yes, we have an answer to long term structural unemployment. In the academic world, We are finally starting to see what looks like the broad outline of of a job creation policy. The centerpieces are strong anti-monopolization regulation, support for small businesses, and education and training for the workforce. Conservatives would also all support for wage and geographic labor market flexibility.
Below is an important piece on corporate consolidation.
Here.
But then, as a rational thinking economist want-a-be, you then say what institution, private or public, if any could handle the task. During the 70's and 80's we trusted government regulator's to operate in the countries best interest. But conservatives has discredited any good government could do, so there is no one left fill the void. and encourage competition.
v2
Sunday, April 24, 2011
Saturday, April 16, 2011
Food Nationalism: Develop a local food and gourmet industry
Developmental ideas that work local and globally
A key development idea is import substitution: Replacing imports with locally made products. This is true for 2700 Atlantic ave., Fort Greene, Brooklyn, Atlanta or Barbados. You always want to consumer products made within you local confines while being a net exporter outside your boundary.
The local food sector is a great target for import substitution. Food production provides lot of jobs, especially in the developing world. They may not pay very much but the large number of jobs helps.
One way to do this is to exploit local taste or create them. Almost every country and region has some sort of food nationalism. All countries have there own specifc recipies that they take pride in cooking. Some countries like Japan and France, have specific laws limiting the number and quality of imports. And almost all countries practice discrimination against some foreign foods. France is well-known example of food bigotry but almost every country has examples.
Conversely, many poor countries have very weak food nationalism cultures. They like imported goods and their status. I have been in two countries where gleaming supermarkets competed with local fresh fruit vendors. The street vendor sold mostly locally produced products. The stores sold the similar products for twice the price. Don't you know people nearly kill themselves getting into the supermarket. They were buying way more than just fruit.
Multinational companies work against such food nationalism for economic reasons. They try to sell the "American" or "European" lifestyle to developing countries. The promotion has have disastrous effects for local farmers and food producers.
Developing communities must promote their own products to keep more money in the local economy. Promotion through word of mouth and cell phone chatter would break though the usual market hype. It turns that "Local" is almost always best when it comes to food.
v2
A key development idea is import substitution: Replacing imports with locally made products. This is true for 2700 Atlantic ave., Fort Greene, Brooklyn, Atlanta or Barbados. You always want to consumer products made within you local confines while being a net exporter outside your boundary.
The local food sector is a great target for import substitution. Food production provides lot of jobs, especially in the developing world. They may not pay very much but the large number of jobs helps.
One way to do this is to exploit local taste or create them. Almost every country and region has some sort of food nationalism. All countries have there own specifc recipies that they take pride in cooking. Some countries like Japan and France, have specific laws limiting the number and quality of imports. And almost all countries practice discrimination against some foreign foods. France is well-known example of food bigotry but almost every country has examples.
Conversely, many poor countries have very weak food nationalism cultures. They like imported goods and their status. I have been in two countries where gleaming supermarkets competed with local fresh fruit vendors. The street vendor sold mostly locally produced products. The stores sold the similar products for twice the price. Don't you know people nearly kill themselves getting into the supermarket. They were buying way more than just fruit.
Multinational companies work against such food nationalism for economic reasons. They try to sell the "American" or "European" lifestyle to developing countries. The promotion has have disastrous effects for local farmers and food producers.
Developing communities must promote their own products to keep more money in the local economy. Promotion through word of mouth and cell phone chatter would break though the usual market hype. It turns that "Local" is almost always best when it comes to food.
v2
Friday, April 15, 2011
National rate drops to 8.8%; Black Unemployment Rate rises in March
The national rate dropped 0.1% to 8.8% of the counted workforce. There was a 216,000 increase in private sector jobs. Jobs increased in the following sectors: professional and business services, healthcare and leisure.
The Black Unemployment rate rose to 15.5% from 15.3%. The increase was small but the direction was worrisome. We also have concerns over the source of the increase: Black Male and Teen unemployment increases. The white unemployment rate is 8.0%.
The unemployment rate for Black men over 20 years old stood at 16.8% and the rate for women, 20-years and old was 12.5%. The Black teenage unemployment figure was 42% nearly double the white teenage rate of 22%.
The long term unemployed, 27-weeks or longer, increased from 43.9 to 45.5. The labor force participation rate stayed at 64.2. Part-time workers who want full-time work was fixed at 8.4 million.
The Black Unemployment rate rose to 15.5% from 15.3%. The increase was small but the direction was worrisome. We also have concerns over the source of the increase: Black Male and Teen unemployment increases. The white unemployment rate is 8.0%.
The unemployment rate for Black men over 20 years old stood at 16.8% and the rate for women, 20-years and old was 12.5%. The Black teenage unemployment figure was 42% nearly double the white teenage rate of 22%.
The long term unemployed, 27-weeks or longer, increased from 43.9 to 45.5. The labor force participation rate stayed at 64.2. Part-time workers who want full-time work was fixed at 8.4 million.
Budget battle represents a discussion of core american values
The heat and smoke from the "Budget Battle" has crowded out any discussion of unemployment or Black Economics. So we have to talk the issue. First, is there even a budget issue. Short-term: No. Inflation is in check. Interest rates are zero. There is excess capacity in the manufacturing and labor markets. The real short term problem remains which is unemployment: long-term, structural, and class based.
In the medium and long-term there is a real problem but of a smaller magnitude than is covered in the news. Yes, we spend more than we collect but it is easily corrected by reducing our spending on the military, health care and tax relief.
The real issues is the conservatives using the debt as an excuse to limit the size and especially the role of government in programs they don't like. They are willing to cut education, health and retirement account but not the military, fire & police or business tax incentives. It is really just a battle over fore beliefs disguised as a "Debt / Budget" battle.
At last the American public is starting to understand the issues. I hope we can have a deeper understanding of the issues.
In the medium and long-term there is a real problem but of a smaller magnitude than is covered in the news. Yes, we spend more than we collect but it is easily corrected by reducing our spending on the military, health care and tax relief.
The real issues is the conservatives using the debt as an excuse to limit the size and especially the role of government in programs they don't like. They are willing to cut education, health and retirement account but not the military, fire & police or business tax incentives. It is really just a battle over fore beliefs disguised as a "Debt / Budget" battle.
At last the American public is starting to understand the issues. I hope we can have a deeper understanding of the issues.
Thursday, April 7, 2011
Pay your fair shre
Well, it looks like the tax issue is finally getting a fair discussion. For too long, large corporations and super-rich individuals have paid little or no taxes. They do it quietly and legally by following the letter of the law and not the spirit of the law. They use lobbyist to bend the rules to fit their own circumstance. Now many of the tactics are coming to light.
The New York Times reported that GE paid no taxes. Here. An Joseph Stigliz reported that the top 400 richest people in the US have an effective tax rate of 17%. Here.
These abuses have a common theme of doing whatever they can get away with. Of the rugged individual beating the "system" against the odds. Of David beating Goliath. Nothing could be further from the truth.
The little guy is actually the IRS, who collects money for the government to pay for teachers, pensions, healthcare and military spending. And Goliath is the 975 person tax department of GE. Or the slew of tax lawyers and tax accounants available to the rich.
Luckily, news websites are running stories about tax abuse by the wealthy.
There are also people fighting for tax justice such as the "Tax Justice Network". Here.
The New York Times reported that GE paid no taxes. Here. An Joseph Stigliz reported that the top 400 richest people in the US have an effective tax rate of 17%. Here.
These abuses have a common theme of doing whatever they can get away with. Of the rugged individual beating the "system" against the odds. Of David beating Goliath. Nothing could be further from the truth.
The little guy is actually the IRS, who collects money for the government to pay for teachers, pensions, healthcare and military spending. And Goliath is the 975 person tax department of GE. Or the slew of tax lawyers and tax accounants available to the rich.
Luckily, news websites are running stories about tax abuse by the wealthy.
There are also people fighting for tax justice such as the "Tax Justice Network". Here.
Monday, April 4, 2011
Why aren't the rich feeling the heat ?
I am having trouble understanding why here in the US there is not more pressure on the rich to share some of their wealth. Either though taxes or compensation limits. The top 1% of the countries wealth has grown by 30% over the past 30 years while the median income has barely moved.
My theory is that the large middle class majority is happy with the status quo because:
1) they personally have not felt the pinch. The great masses of people have not really felt the sting. Materialistically, they live a very good life compared to the rest of the world and they know it. They can see others on TV. They are not starving. They can buy any basic necessity they require. They still eat out on fridays and buy new pick-up trucks.
2) Materially, they have just about everything they need. In the US, even the poorest among us has some material luxuries. We all have cellphones, cable tv, and decent clothes. No one is starving. Many receive unemployment benefits.
3) Long-term problems like health-care, education, retirement and college tuition are far into the future.
4) They believe they are rich or might some day be rich.
5) They don't understand how much money the rich actually have and receive from the economy.
My theory is that the large middle class majority is happy with the status quo because:
1) they personally have not felt the pinch. The great masses of people have not really felt the sting. Materialistically, they live a very good life compared to the rest of the world and they know it. They can see others on TV. They are not starving. They can buy any basic necessity they require. They still eat out on fridays and buy new pick-up trucks.
2) Materially, they have just about everything they need. In the US, even the poorest among us has some material luxuries. We all have cellphones, cable tv, and decent clothes. No one is starving. Many receive unemployment benefits.
3) Long-term problems like health-care, education, retirement and college tuition are far into the future.
4) They believe they are rich or might some day be rich.
5) They don't understand how much money the rich actually have and receive from the economy.
Thursday, March 31, 2011
So, what If they do want more Black Owned Businesses in St. Thomas
Well the answer is complex and multi-faceted.
So what's the solution ?? The answer is always the same: a complex combination of long-term capital formation and government policy. It takes a complex, cross functional solution led by government for about a generation(30 years). And it takes playing favorites: like using affirmative action for traditional disenfranchised groups, subsidies for very small business, and workforce skill development.
All of which is opposed by the entrenched business interest.
1) The best and cheapest capital is human capital (education, training and workforce development)
2) Monetary capital formation. Real-estate and home ownership continues to be the number one way to raise business capital. You must own you own home or apartment. It is your savings account.
3) Government policy to support small and native businesses. Government should support those traditional shut out of the banking sector.
4) Business training and development activities to graduate small, subsistence business to the next level as employment generators.
To push such a program forward takes political will and support of the people who say the current situation is bad but we can do some thing about it.
Hey, I did not say it would be easy.
So what's the solution ?? The answer is always the same: a complex combination of long-term capital formation and government policy. It takes a complex, cross functional solution led by government for about a generation(30 years). And it takes playing favorites: like using affirmative action for traditional disenfranchised groups, subsidies for very small business, and workforce skill development.
All of which is opposed by the entrenched business interest.
1) The best and cheapest capital is human capital (education, training and workforce development)
2) Monetary capital formation. Real-estate and home ownership continues to be the number one way to raise business capital. You must own you own home or apartment. It is your savings account.
3) Government policy to support small and native businesses. Government should support those traditional shut out of the banking sector.
4) Business training and development activities to graduate small, subsistence business to the next level as employment generators.
To push such a program forward takes political will and support of the people who say the current situation is bad but we can do some thing about it.
Hey, I did not say it would be easy.
Monday, March 28, 2011
The rich are different from you an me...
They have more money.
Today I walked near $200 million dollars in maga-yachts docked in St. Thomas at while coming back from Pueblo Supermarket where I saved $2.50 on some Ginger Beer. These guys cruise around the caribbean on the mega-ultra luxury yacht so they can drink a crona at different bars around the the region.
Is there some thing more constructive they could do than burn gas sailing around the islands helping the cayman island government steal tax revenue. In fact there is something unsettling about a country like the Cayman islands that has to basic help the rich and criminal class avoid taxes, launder money and avoid international standards for boating.
Apparently, while many yachts sale under the Cayman islands "flag of convenience" they still register with the US coast guard when they are in port in case any real trouble happens. I say let them call the Cayman Island Coast Guard. Or let them pay their fair share of real taxes.
Today I walked near $200 million dollars in maga-yachts docked in St. Thomas at while coming back from Pueblo Supermarket where I saved $2.50 on some Ginger Beer. These guys cruise around the caribbean on the mega-ultra luxury yacht so they can drink a crona at different bars around the the region.
Is there some thing more constructive they could do than burn gas sailing around the islands helping the cayman island government steal tax revenue. In fact there is something unsettling about a country like the Cayman islands that has to basic help the rich and criminal class avoid taxes, launder money and avoid international standards for boating.
Apparently, while many yachts sale under the Cayman islands "flag of convenience" they still register with the US coast guard when they are in port in case any real trouble happens. I say let them call the Cayman Island Coast Guard. Or let them pay their fair share of real taxes.
Shopping with the Evil Black Economist
Where I spend my hard earned money, here is what I consider:
1) Black Owned Business (Sylvia's resturant)
2) Black Managed (MacDonalds, Burger King, Starbucks)
3) Black Employer (Wal-Mart, JC Penny, foot). Especially young Black mem
4) Provides quality services in Black Neighborhoods (Pathmark, Kroger, Safeway, Food lion, Winn Dixie)
What does not matter as much:
1) They treat me nicely when they take my money
2) They are conveniently located down the block.
3) Reasonable price. I am willing to pay about a 2-5% more because it helps the community.
1) Black Owned Business (Sylvia's resturant)
2) Black Managed (MacDonalds, Burger King, Starbucks)
3) Black Employer (Wal-Mart, JC Penny, foot). Especially young Black mem
4) Provides quality services in Black Neighborhoods (Pathmark, Kroger, Safeway, Food lion, Winn Dixie)
What does not matter as much:
1) They treat me nicely when they take my money
2) They are conveniently located down the block.
3) Reasonable price. I am willing to pay about a 2-5% more because it helps the community.
On vacation in the Carribean and looking for Black Businesses
Well, I got a cheap package for vacation for a couple days, so I am here in St. Thomas. The population 50,000 and a small island economy(SIE). The unemployment rate is 8.5% according to the VI department of labor. The US national unemployment rate is 8.9%. Interesting place.
So everything seems good in paradise right ?
Well not quite. Few of the private jobs pay more than $7.25, the minimum wage. Blacks have done well in politics, civil service and education. They also make up many of the front line workers in all sorts of food, hotel and tourism businesses. But they are getting creamed when it come to ownership. Like almost all caribbean SIE's Blacks are struggling to own businesses.
The large hotels are chains and employee many Black workers and managers. For example, Marriott's Frenchmen's reef employs about 500 people. However, the small hotels are family owned and white owned. They employee some low-level Black workers but any major management job is reserved for family.
The jewelery and retail stores are owned by people from the Middle East, Jewish and Indians. Furniture and hardware stores are also family controlled by whites of mid-easterners. Whites also control the yacht tendering and maintenance business, major construction and real estate development companies. All of these business are kept in the family,so there is little chance for Black ownership.
Blacks do run the government and the transportation industry. They handle the majority of low-end retail, non management jobs.
However, the level of opportunity "feels" less than in the states. Many Blacks and educated Virgin Islanders leave for the mainland to go to school and never return. Actually, any one with ambition generally leaves; white, Black, young or old, immigrant or native. People from the USVI do well in the US, just like any other immigrant person.
Is the lopsided business situation really that bad ? Are people happy ?
Well, if you really want to change something you have to have a certain dissatisfication with the existing order of things. People have to want to change the status quo enough to make some sort of sacrifice. And that does not seems happening. People, across the board, are quite happy here in the USVI. They also have better health and a longer life span than the average US continental. They have a close network of family and friends to keep them going. Finally, they have basic jobs and government jobs that provide productive activity and a basic wage. All of which combined give a better life than those in the states.
So, I guess we shouldn't rock the boat.
So everything seems good in paradise right ?
Well not quite. Few of the private jobs pay more than $7.25, the minimum wage. Blacks have done well in politics, civil service and education. They also make up many of the front line workers in all sorts of food, hotel and tourism businesses. But they are getting creamed when it come to ownership. Like almost all caribbean SIE's Blacks are struggling to own businesses.
The large hotels are chains and employee many Black workers and managers. For example, Marriott's Frenchmen's reef employs about 500 people. However, the small hotels are family owned and white owned. They employee some low-level Black workers but any major management job is reserved for family.
The jewelery and retail stores are owned by people from the Middle East, Jewish and Indians. Furniture and hardware stores are also family controlled by whites of mid-easterners. Whites also control the yacht tendering and maintenance business, major construction and real estate development companies. All of these business are kept in the family,so there is little chance for Black ownership.
Blacks do run the government and the transportation industry. They handle the majority of low-end retail, non management jobs.
However, the level of opportunity "feels" less than in the states. Many Blacks and educated Virgin Islanders leave for the mainland to go to school and never return. Actually, any one with ambition generally leaves; white, Black, young or old, immigrant or native. People from the USVI do well in the US, just like any other immigrant person.
Is the lopsided business situation really that bad ? Are people happy ?
Well, if you really want to change something you have to have a certain dissatisfication with the existing order of things. People have to want to change the status quo enough to make some sort of sacrifice. And that does not seems happening. People, across the board, are quite happy here in the USVI. They also have better health and a longer life span than the average US continental. They have a close network of family and friends to keep them going. Finally, they have basic jobs and government jobs that provide productive activity and a basic wage. All of which combined give a better life than those in the states.
So, I guess we shouldn't rock the boat.
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