Academic-Capital

Pension funds are increasingly risky and placing greater liability on cities throughout the country. On a national level, the risks to cities is large and this creates problems for cities that want to ensure they are fiscally sound. On a $10 billion fund San Diego has exposure of more than $20 billion that could subject taxpayers to an additional $10 billion in losses (McDonald, 2015). People rely on these pension funds for their retirement and it is important to ensure that decisions are being made in the best interest of the city, state, and pension beneficiaries. Pension funds that take on excessive risk or who are increasingly exposed year after year need additional attention to get them back on track. San Diego is not alone in its predicament. The Pew Center reviewed 2009 data and found that most cities are under risk with their pensions (Bradford, 2013). Not enough was done to ensure that these pensions are running at their optimal level and were adequately protecting the

2014 wasn't a great year for job creation in San Diego as employment numbers left much to be desired. According to the Employment Development Department 30,208 jobs were added to the San Diego economy in 2014 missing economist projections ( 1 ). Despite slower than expected growth in construction, professional, health, and scientific jobs the service industry added the most jobs with a 4.86% increase. Employment rates may be on the rise if San Diego focuses closely on high growth industries that already have a solid present in the area. The numbers are not dismal and could indicate a upward swing for 2015. Service jobs are relatively easy to add and mark a level of rising consumer spending on travel, restaurants, and leisure services that mark optimism. These are some of the first jobs added to the economy before higher paying jobs also make their way onto the market. Higher paying employment comes after lower skilled service jobs have made their initial appearance. Industrie

America is pulling ahead as CEO's project a much brighter future with more hiring and greater investment. According to a report by the Young President's Organization (YPO) the U.S. bucked trends of other nations by raising their confidence index from 64.2 to 65. This optimism is a full two points above other countries and has prompted some positive decisions in company strategic planning that will bode well for the American worker. Net importers of oil were more optimistic than net exporters. The reason this is the case is because exportation of a natural resource can be lucrative but is also unsustainable and limited. Those nations that reaped the rewards in the past may find their economies struggling now that prices are changing and demand is less. Importing nations find the cheaper oil prices an advantage for their production and economy through lowered input costs. The report had three interesting expectations over the next 12 months that include: -70% Sales to In

Companies exist within a wider context of information, finances, resources, and sociological networks that impact their long-term health. Successful companies can formalize and embrace this interconnected nature to develop enhanced levels of performance. They are semi-open systems that can take in information, transform it into something new, and contribute to their environment while ensuring they are retaining healthy profit margins.  Hubs are made of clusters of competencies  that make up the back bone of local human capital. They form when businesses with similarities work in tandem and share common characteristics. We can see how clusters are formed around competencies in science, entrepreneurship, art, manufacturing, or just about any other industry.  Clusters have socialites who foster and push network creation. Socialites pass out cards, attend meetings, make phone calls, and connect resources and finances to create new things. They are the entrepreneurs and pro-s

The economies of the world’s nations are on a slow stroll while America has quickened its pace to a leading role as one of the only bright Northern lights for others to follow. Improvement is so significant that GNP has been revised upward from 3.5% to 3.9% ( As cited in CNN Money ). Other nations are increasingly concerned about lower inflation and the potential for deflation. The U.S. is doing so well it may start to raise interest rates in alignment with growth. Americans are becoming increasingly positive about their future prospects within the economy. According to a recent gallop poll consumer confidence rose to -7 which is the highest it has been in 17 months ( Gallop, 2014 ).   The poll is a combination of how people view the economy. According to the poll 24% said the economy is excellent while 30% said it is poor leaving the total balance at -7.  The U.S. economy is also moving forward with some of that growth coming from lower energy and oil costs. Morgan Stan

Numbers are only representations of ideal states and are in and of themselves subjective to what they measure. A paper by Stow & Stow (2013) discusses some of the fallacies of relying too heavily on Gross Domestic Product (GDP) without considering the deeper meaning of the numbers. Fallacies of judgment can occur when governments adjust their economy to improve upon GDP but don’t look at actual economic activity. GDP is calculated by adding =C+I+G+NX. Any improvement in consumption (C), Investment (I), Government Spending (G) and Net Exports (NX) would result in an improvement in overall GDP. The numbers could be misleading in the long run and lead to poor policies decisions. When consumers spend more money they are not necessarily improving total wealth of the nation even though GDP rises. They are simply spending their money, dwindling their savings, buying now instead of investing later, and taking on debt. They may be encouraging organizational profits but not excl

The Beige Book is prepared at the Federal Reserve Bank of Philadelphia as is designed to gauge economic activity across various regions of the U.S. The recent (September 3rd, 2014) update shows broad economic growth with a few exceptions in construction, agriculture and wage pressure. Higher growth rates were experienced in Philadelphia, Atlanta, St. Louis, and Kansas City while moderate growth was experienced in New York, Cleveland, Chicago, Minneapolis, Dallas, and San Francisco.   Consumer Spending and Tourism: Improvements in consumer spending. Auto sales were raising and nearly every district experienced improvements in tourism.   Nonfinancial Services: Strong growth in professional and technology services with moderate growth in freight shipment.   Manufacturing: Moderate growth in manufacturing throughout most regions with increasing demand for steel.   Real Estate and Construction: A mixed bag with some regions showing moderate growth and others stagnati