Ford eliminating 5 major plants

Ford Motor Co. is likely to close five plants that employ about 7,500 workers, or about 6 percent of the company's North American work force, the Wall Street Journal reported Friday. These assembly plants are located in St. Louis, Atlanta, and St. Paul, MN. they are also shutting down engine part plants in Windsor, Ontario and a truck-assembly plant in Cuautitlan, Mexico. The company lost $284 million in the third quarter. On Thursday it said sales fell for a third straight month, down 18 percent, and cut its production forecasts for the fourth and first quarters. The company announced that it will eliminate 4000 salaried jobs. Do you think this is because of the gas prices or just because of the fact that Ford is being overpowered by other corporations and automobile companies? Do you think that this is the correct step for Ford or should they keep these jobs and plants rolling?

Delphi Hourly Workers hold Protests at Plant

Delphi hourly workers protested the company's executive compenstation plan with pickets at the auto supplier's plant. They believe it is unfair to pay huge amounts to top management while proposing to cut wages of hourly workers. Delphi filed for Chapter 11 bankruptcy last month and as part of their restructuring plan, proposed cutting production workers' hourly wages from $27 to between $10 and $12.50. Delphi is asking the bankruptcy court to approve a plan that would give stock options and cash bonuses for about 600 executives when the company emerges from bankruptcy. This estimates to be worth more than $500 million. Delphi says the compensation plan is necessary to keep its executive team in place during the bankruptcy process because recruiting new executives would be costly and time-consuming. Members of the UAW believe this compensation plan to be unfair because "it seems they are rewarding incompetence." Bob Nelms, a member of the UAW says, "the same people who bankrupted the organization are being rewarded." Do you think this compensation plan will cause production workers at Delphi to find work elsewhere? Also, will these workers be able to make a living a support a living on the $10 or $12.50 proposed wage cut?

No Purchase Necessary

A lingerie store in Augusta, Maine has caused more than a few eyebrows to raise-- the store uses live models in its window display. Yes, you read that correctly- three lingerie-clad women grace the window of a newly-opened store in Maine.

The advertising technique has caused mixed reactions. Some believe that it is distasteful and has actually driven customers with children away from the store. On the other hand, some believe that it is innovative: "It's like a New York thing. It's urban. It's edgy," said Stacy Gervais, owner of Stacy's Hallmark Store and a founder of a downtown merchants group. "We need a shtick _ something that we do that attracts people and gets us remembered."

Now this raises some questions on my part: Does this technique raise the bar in terms of advertising? Can we expect other stores to follow in this boutique's footsteps? Will money that used to go into print advertising and displays now go into hiring live models?

WalMart- Always Low Price...But at What Cost?

A recent national poll indicates that more than half of U.S. adults say that the low costs that Wal-Mart provides on its shelves bring about other costs in its workforce and benefits. The national poll--conducted by WakeUpWalMart.com, a union-funded group that has been pressuring Wal-Mart to raise employee wages and benefits-- claims that 56% of U.S. consumers believe that "Wal-Mart is bad for America. It may provide low prices, but these prices come with a high moral and economic cost for consumers."

Currently, Wal-Mart is facing a lot of fire from critits. As the largest U.S. private-sector employer, Wal-Mart faces intense pressure at home from unions, environmental gropus and others who say the company pays poverty-level wages, offers poor health-care benefits and gobbles up green space with its massive big-box stores. Wal-Mart is also defending itself in a record-large, class-action lawsuit that charges it with discriminating against women in pay and promotions.

Is Wal-Mart really so bad? Sure, Wal-Mart's got great prices on products, but can you put a price on "moral and economic costs" that apparently so many Americans feel are being imposed? Does this recent poll spell trouble for Wal-Mart?

global warming, is there any kind of substitutes ?

According to National Academy of Sciences, the average global temperature has raised 1° Fahrenheit in the last century The increasing temperature of the earth’s surface is commonly known as global warming. It causes many negative impacts, which include “more-violent storms, changes in the course of the Gulf Stream”, melting of the polar ice sheets, and rising of the sea level. Since the industrial movement, the world’s economic developed rapidly. The development of economy helps many countries create more benefits. However, the environmental problems, representing by the global warming, which are due to the industrial production became severe and the cost of solving them was significantly high during the last decade.
Since the global warming problems is mainly caused by the use of fossil fuel in the industrial producing, is there kinks of alternative energy sources could be used? such as the solar energy, the nuclear power, or wind projects?
know more about global warming : http://yosemite.epa.gov/oar/globalwarming.nsf/content/index.html

Piracy

Over the past few years, entertainment industries have voiced their concerns over the downloading of copyrighted material. Consumers have used the internet as a tool to take the work of various artists/entertainers without payment. As many have seen, this issue is difficult to handle. How can the government regulate this piracy when the technology is readily available to the average consumer?
According to an article on yahoo.com, Japan has come up with a solution. Under their current system, consumers in Japan pay a 3% tax on recording devices and other gadgets that can be used to duplicate copyrighted material. This tax is included in the price of the good; so many consumers are unaware that it even exists. This tax is then given back to recording industries as payment.
Do you think this is a fair system? Is the 3% tax really making up for the losses that piracy causes? What about consumers who pay fees to download music legally? Is it fair to charge them twice? Do you think the US should consider a similar set up?

Jobs Back on the Rise

Jobs Back on the Rise

Recently, the Labor Department released the news that 215,000 jobs were added in November, up from 44,000 in October. The Bush administration claims that the increase is due to their policies of cutting taxes and spending. Unemployment remained around 5%. Job growth rates have finally returned to pre-Katrina levels, indicating the the nation is firmly on the road to recovery from the disaster. Average hourly earnings rose along with the new employment, up to $16.32 from $16.29. However, the economy must be monitored closely to avoid "overheating," as mentioned in the article. My question is this: the Bush administration is taking a lot of credit for the increase in jobs and hourly earnings, citing tax and spending cuts. However, surely this policy was not the only cause. What other factors could have contributed to these positive trends in the labor market? One possibility is that consumers have become more confident and are buying more products, producing profits for companies. These profits allow the companies to employ more workers. I'd like to hear what someone else might think about this issue.

Illegal immigrants = legal citizens

President Bush has recently announced an initiative to grant temporary legal status to illegal immigrants, and this raises a labor economics question. Illegal immigrants come to this country because they can find under-the-table jobs that are beneficial to both employer and employee alike. Employers benefit because they are not bound by minimum wage laws and also avoid a number of taxes. Illegal immigrants benefit because they still make more money then would be attainable in Mexico. If these immigrants were made legal citizens, would the potential benefits enjoyed by the employers disappear? If so, would this lead to an increased unemployment rate among the new citizens? Or do you think that immigrants would still prefer an “illegal” status because it provides more job opportunities?
An interesting article describing the president's decision can be found at
http://www.time.com

Party in Cancun?

Over the past few months, hurricanes have been a major problem facing the United States. The damages caused have been devastating to many. But as hard as it is for the US to recover, it is probably going to be more difficult for Mexico.

As Cancun was hit by hurricane Wilma, it took a huge loss to its tourism industry. According to an article by MSNBC, tourism in Cancun makes up about half of all tourism revenue in Mexico. Estimating that it will take Cancun at least 2 months to restore the hotels to their pre-storm conditions; will they be ready for holiday vacations? If they can’t fix their problems within this time frame, these hotels could lose out on huge amounts of revenue during the winter tourist season.

Other than lost revenue, are there any other consequences of this storm? How will tourists react? Will they travel somewhere else (substitutes), or will they cancel their vacations all together? What does this do to other industries (compliments) connected to tourism in Cancun (airlines, restaurants, souvenir shops)? Who will suffer more from this storm: the hotels or the little shops that sell their products to tourists?

Clicks, bricks and bargains

the shopers favorite holiday black monday, the day after thaksgiving where everybody goes nuts about the deals at wal- mart is being invaded by internet shopers. internet shopers on this holiday has increased nearly 35 percent in the last year alone and sales have almost equaling that of the instore take. so i ask is there any threat of online shoping taking over, will society become so lazy that we cant go to a store to find a pair of pants. also what impact do you think this will have on stores in the long run. and do you think this trend will conmtinue to grow. and finally do you belive that this will affect the economy in any way.

Are US Auto Companies in Trouble?

In a report made by Cnn it talk about U.S. auto sales on the slide. It also reported that companies such as Ford and GM are having to lower production of the autos they are making because of the decrease in sales. With these sales continuing to dimish what do you think will happen to U.S. auto companies? Also what do you think they can do to turn around the problem and maybe have a comeback?

Stock, dollar, oil, gold jump

full article
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=OBR&Date=20051201&ID=5322423

U.S. stock indexes climbed on Thursday, with their biggest single-day gains in a month, while the dollar rallied, oil jumped more than $1 a barrel and gold popped above $500 an ounce to its highest level in nearly 23 years.

But U.S. Treasury bond prices fell on concerns that strength in U.S. manufacturing data would give the Fed another reason to keep raising interest rates.

- - -

does this mean oil prices are going to rise again? Are we doomed with high prices on oil and gas? How is the gold rising going to affect us?

New technology race

Intel Corp. has announced a plan for new technology, called Viiv that would combine computer capabilities in a a television, such as dowloading music and accessing the internet, all using a remote control for the television. Also, the Viiv computer will be able to pause and rewind television shows, as well as connet to other media players and dvd players. Other technology companies are also trying to make similar models for competition. Ted Schadler, consumer-technology analyst at Forrester Research Inc. said, "There are a lot of companies from a lot of industries who are trying to figure out where the power is and where the check points are." What do you think this means for the technology industry? Do you think that these new products will be able to be made affordable enough to take over the technology industry?

Gates plans huge push for next Windows

Bill Gates Company last launched its new design in 2001 Windows XP. Being pressured by many competitors he announced on September 13, 2005 about his company new Windows Vista. Gates is planning on pushing this windows launch in 2006. How will this affect the economy? Will this put the little business out of business or even hurt his competitors? Gates is one of the world largest software builders, and with launching this new idea may put him over the top. His business average $33 billion yearly in revenue. This new software is being design for personal computers and Gates said, “would drive a new wave of personal computer upgrades." Everyone always wants upgrade, but sometimes upgrade hurts the economy in the long run. We will have to wait and see what the launch of Mr. Gates Windows Vista will do to the economy!http://money.cnn.com/2005/09/13/technology/gates_windows.reut/index.htm?cnn=yes

Consumers say Wal-Mart bad for U.S.

A recent report from wakeupwalmart.com (a union-funded group that has been pressuring Wal-Mart to raise employee wages and benefits) showed that out of 1,012 randomly selected adults 56% believed that Wal-Mart was bad for America. The survey asked the participants to pick one of two options that they most closely associated they feelings with Wal-Mart.

Participants could choose: "I believe that Wal-Mart is bad for America. It may provide low prices, but these prices come with a high moral and economic cost for consumers" or that "Wal-Mart is good for America. It provides low prices and saves consumers money every day." Out of the other 44% of America, 36% said Wal-Mart was good for America and 8% declined to answer.

Another poll from Zogby questioned consumers on whether or not they believed Wal-Mart was becoming too powerful in the market. 33% of participants claimed they wer very concerned, while 20% claimed they were not concerned at all.

What do you think? How do you feel about Wal-Mart's power in the market? Do you think that Wal-Mart is on the verge of becoming a monopoly?

Teflon: helpful or harmful?

Today, many people have kitchen pans lined with Teflon. This non-stick chemical has made cooking a much easier process for people across the country. Companies also use Teflon to line candy wrappers, pizza boxes, microwave popcorn bags and hundreds of other food containers. It has proven to be a success in preventing food products from sticking to their container.

But is this a safe chemical? Due to the accusations of a former employee of Dupont, there is has been an increased concern about the safety of Teflon. Within Teflon, a chemical by the name of zonyl exists. And according to an article on msnbc.com, zonyl was recently put under observation. The concern is that once zonyl gets inside a human body, it turns into a substance known as PFOA, which has been documented as damaging to the health of animals and could possibly be damaging to the health of humans. “The Environmental Protection Agency has been trying to decide whether to classify PFOA as a “likely” human carcinogen” (Associated Press).

Dupont has also faced several lawsuits regarding their use of dioxin – a chemical believed to cause cancer in humans. “[A]n oyster fisherman who claimed dioxin from a Dupont plant caused his rare blood cancer was awarded $14 million in actual damages and his wife received $1.5 million” (Associated Press). They are also facing two other lawsuits in dealing with PFOA; totaling over $100 million in damages.

Has Dupont been reckless in its efforts to increase revenues? Or are these just accusations of a disgruntled former employee? If the FDA decides that the use of Teflon is harmful to the health of people and they ban its use, what will be the economic effects? If it is banned, who will bare the brunt of the costs associated with the abandonment of Teflon: consumers or producers? Do you think that there would be a substantial improvement in human health conditions as a result of the banning? Or will companies just find another product to replace Teflon that will bring its own unique damages with it?

New Technology Saves a Life

New Technology has arrived and is in action in Bangor, North Wales. This new computerize technology saved a girl from drowning in a pool back in August. This system alerted the lifeguard something was wrong with a person in the pool and by the monitor they lifeguard could locate exactly where and within 40 sec she was saved. With this new creation it would cause the PPF (Production Possibility Frontier) line to shift outward because of this new discovery, causing the number of drowning also to decrease. Do you agree with this new technology and believe that it will actually decrease the deaths?

The article was written by Steve Ranger entitle Computer saves drowning girl from CNET News.com

Unemployment Benefits Drop

The number of workers claiming first-time jobless benefits fell last week below pre-hurricane levels, and consumer incomes and spending showed more normal growth as well. Initial claims for state unemployment benefits dropped 17,000 to 320,000 the week ended Nov. 26 from an upwardly revised 337,000 the prior week, the Labor Department said. Well now that a couple months have past the unemployment benefits have dropped means that the country is getting somewhere slowly but surely. But how long will it take to solve this problem? Will it ever be solve, or will those victims of the hurricanes be living off unemployment for life and never have a job?

http://www.usatoday.com/money/economy/2005-12-01-jobless-income-spending_x.htm

Kyoto --- Whoa!

The Kyoto Protocol, as I am sure many of you know, is a multi-national effort in an attempt to curb greenhouse gas emissions. The Protocol calls for a reduction of 6% emissions from levels present in 1990. Many nations have joined in, with 34 now participating. The target date for the emissions levels is 2012, but the European Union has just announced that it expects to achieve a level of 9.3% below 1990’s levels by 2010.

How has the European Union progressed so quickly? The answer lies in an efficient system of tradable discharge permits.

Under the scheme, which limits emissions from about 11,500 manufacturing plants and power stations, European governments issue carbon dioxide allowances, which are sold into the market by firms emitting below their limits then traded.
A program called the clean development mechanism allows companies to also invest in environmentally friendly projects in developing countries to earn credits at home.

Effectively, the tradable permits have made a market for carbon and stuck a price tag on it. With the advent of the permit system, the number of carbon allowances is limited, thereby cutting back supply and raising the market price of carbon. Now, when companies are facing choices, the price of carbon is becoming a major factor. With the price of the permits tripling since January, companies in the EU have had a huge incentive to cut back on emissions, either by a reduction in output or by an investment in cleaner technology.

Given the results, do you see the tradable discharge permit system as applicable to every nation?

Ski

Finally the ski season is approaching. I've started researching season pass and single day ticket prices at some of the area ski resorts and have noticed how the prices are generally the same in the midwest area no matter what state, Ohio, PA, WV, or the size of the resort. But I also know that out west, a single day ticket is sometimes twice as much as these resorts. I'm betting it has to do with the quality of skiing and the size of the resorts out there. Personally, I've been to Perfect North, Indiana and Mad River, Ohio, which both are pretty beginner hills. I've also been to Timberline, WV which is a slight step up from the previous two. None of those compare to Mammoth Mountain, CA which boastst the largest ski resort in the nation and a ski season from late October to Late June! I was just curious as to who else enjoys skiing and where you've found the best carving for your buck.