U.S. Global Competitive Stance-Improvements with Concerns

The Global Competitiveness Report 2013-2014 discusses some major shifts in the economy of both emerging nations and advanced countries. These changes have impacted the potential growth of developed nations and will require them to make structural changes, find value-added products, create new processes, develop business models, and drive innovation. The way in which countries are viewed from developing to developed will change to innovative poor and innovative rich. 

The authors of the report look at 148 countries and rank them on 100 criteria. Competitiveness is seen as 12 pillars based upon institutions, policies, and factors that influence prosperity and its ability to generate income. They are as follows:

Institutions: The quality of administrative and legal framework that can enhance or stifle growth based upon the quality of decision making and societal beliefs. 

Infrastructure: The development of infrastructure that enhances and connects economics for the movement of products and services. 

Macroeconomic Environment:  The high debt load and borrowing that limit the potential for growth through high interest rates and other cost challenges. It is recommended that the U.S. take urgent action on their debt loads in order to avoid an economic crisis in the future. 

Health and Primary Education: The health of the general population as well as the educational services they receive in youth will determine their competitiveness in the future. 

Higher Education and Training: Countries will need to move beyond simple process understanding to more complex global and theoretical understandings. 

Goods and Market Efficiency: Reducing those things that limit direct investment, movement of products, and opportunities for a competitive stance. 

Labor Market Efficiency: Ensuring that labor markets can adjust and change to the times without being stuck in rigid jobs that do not develop alternative skills. 

Financial Market Development: The development of efficient financial markets that put to the best use a nations resources. 

Technological Implementation: Nations must implement technology at increasing rates in order to become more efficient and effective. 

Market Size: Countries will need to continue to reduce trade barriers and improve upon trading partnerships to create economies of scale. 

Business Sophistication: The strength and sophistication of business models. Businesses will need to change their models to make themselves more effective. 

Innovation: Nations will need to develop both technical and non-technical innovations.

The report indicates that each of these falls into a category that encourages either the underlying factors to economic growth, efficiency of the system and the innovative nature of that system. As countries develop they move from factor driven to, efficient driven to innovation driven. Each stage is a complex change in the way in which people conduct business but also how they think about world markets. 

The U.S. moved from 7 in last year’s report to number 5 within the world economy in its overall competitiveness factors. They also rank 1 in efficiency factors indicating that U.S. businesses are constantly seeking ways to reduce expenses and find better uses of resources.  In terms of innovation and sophistication factors the U.S. ranks in the 6^th spot meaning there is still work to do.

The U.S. has shown the ability to adapt to changing trends. For four years the nation has been declining but this year reversed its course. The deleveraging process in the banking industry has moved the nation from 31st^h to 10^th on this factor. Furthermore, there has been some improvement in the overall process of institutional factors and governance.  The upward momentum helps indicate that political and business interests are starting to see a path to mutual growth and development. 

There are some weaknesses the country is experiencing. There is a business lack of trust of politicians (50^th), ability of government officials to maintain an objectionable arms-length relationship with the private sector (54^th), perception that government spends its resources wastefully (76^th), and the macroeconomic environment is weak (117^th).  Much of the arguments appear to be centered on the business communities’ ability to compete in and develop under the economic and administrative framework. 

At present the top three concerns are tax regulations, tax rates, and inefficient government. To many in the international business community the U.S. has a high tax burden and complex tax system that pushes businesses to consider other markets. Likewise, those taxes that are being collected are not being put to progressive use with higher administrative and governmental costs. To further develop the economic market will mean that a simpler and more competitive tax structure should be developed as well as the encouragement of efficient government operations. 

The report also indicates that higher education is a catalyst to innovation rich countries that are likely to compete effectively on the market. To further develop the higher education system is an economic benefit to both workers and companies. Some emphasis on developing innovative solutions and bringing those to full bloom through commercial enterprises may be beneficial.  This includes the development of entrepreneurship and small cottage industry that help foster the larger business engine.

http://www.weforum.org/reports/global-competitiveness-report-2013-2014

Call for Papers: Trans-Atlantic Public Economics Seminar in Vienna

June 16-18, 2014. The National Bureau of Economic Research with the Institute for Advanced Studies will be sponsoring the Trans-Atlantic Public Economics Seminar in Vienna. Papers will be considered for a special issue of Journal of Public Economics based upon referee suggestions. The program will be organized by Christian Keuschnigg of IAS and Roger Gordon of the University of California.

Submissions of related topics, empirical and theoretical, related to the effects of personal income tax on household and firm behavior would be beneficial. New research on traditional topics, such as tax effects on labor supply, household savings, and portfolio choice, is welcome. However, more recent evidence suggests that taxable income is much more responsive than either labor supply or savings. What else is responding to taxes? Possibilities include forms of compensation, rates of self-employment, dividend payout rates, where and when income is reported, firms' choice of organizational form, rates of tax evasion, the size of the informal economy, and cross-border migration of people or economic activity. There are also a variety of other elements in the personal income tax base, e.g. itemized deductions, that can respond to taxes. Papers examining how taxes affect these other aspects of behavior are particularly welcome.

The conference will be more interested in empirically oriented research and will accept theoretical research. Papers will be selected on the basis of abstracts of about 750 words or, when possible, completed papers. The deadline for submission is October 1, 2013. Authors chosen to present papers will be notified by November 1, 2013. The NBER and IAS will cover the cost of economy-class travel, and local expenses for participants. Authors should send by email their abstracts to Roger Gordon, at rogordon@ucsd.edu.

Call for Papers-More Information

The Frequency and Long-Term Consequences of College Cheating

We all know that some students can cheat. Why these students cheat and under what circumstances is important for professors and administrators to understand. A paper by Josien & Broderick (2012) explores 16 scenarios that may encourage students to cheat and how often they may engage in such activities. They bring forward the concept of multi-method cheaters and the dangers of their behaviors later in life.

Previous reports on the subject give a fairly large range of students cheating throughout their academic careers. This ranged from 40-85% but a composite of the studies put the figure around 70%. Cheating is part of the academic life even if it is shunned by professors. Yet the level and methods of cheating may be more important than the cheating itself. 

The author further finds through her literary research that cheating is increasing in higher education. Some of the issues are blamed on a host of factors that include cost, available technology, and general ease of the process. Research indicates that there is an association with cheating at school and cheating on one’s job and therefore such actions by students should be taken seriously, as they lead to larger actions in the future. 

Previous studies found that cheating often occurred more among younger and more immature students. Likewise, as students progressed into higher level classes such cheating was found less. Unmarried students cheated more than married ones. This indicates that such students are self-focused on their behavior and lack certain skills and perceptions to navigate the academic environment. 

One of the most significant factors in cheating was related to how people viewed their behaviors within their social group. They found that when norms, values, and beliefs were related to disapproval of cheating such students within these social networks cheated less. Those social networks that accepted cheating influence the frequency of such cheating. Much of cheating was social by nature.

There is a difference between those who cheated once and those who have cheated multiple times. Some students may use a single method or may have cheated only once. They are of less concern than those students who used multiple methods to cheat and cheat on a regular basis. They are more opportunistic and will use any method to achieve desired ends. Such behaviors will follow them into the workplace.

 In their study Josien & Broderick used 236 surveys with a cross representation of students from all four undergraduate grades. The results flew in the face of the literary search in that only 30+% indicated they cheated and that these cheating behaviors were exhibited more at higher end classes. Multi-method cheaters were 15% of the total sample or 40% of all cheaters. As people progressed to higher level classes the cheating became more sophisticated. The far majority of cheating occurs out of class where students interact with others to complete tests and other school work. 

The study is interesting in the sense that it gives an alternative perspective that as students progress in school they become more likely to cheat at higher levels. This would coincide with the social aspects of cheating that are a result of learned expectation and behavior. However, without catching such cheating the behavior becomes ingrained as an acceptable method and is likely to display itself within the workplace. Both colleges and business leaders should be concerned with cheating as it will impact the success of the student and their institutions in the future. 

Josien, L. & Broderick, B. (2013). Cheating in higher education: the case of multi-method cheaters. Academy of Educational Leadership Journal, 17 (3).

Book Review: Which Comes First, Cardio or Weights?

The book entitled Which Comes First, Cardio or Weights? By Dr. Alex Hutchinson provides an excellent overview of modern fitness science and what works and what doesn’t work. As the book is focused on actual research it provides some excellent discussion on the most effective methods of getting in shape and the potential health benefits of doing so. 

There are fads and there are fads. Fads come and go with lots of claims and false research projects that are designed to give a specific result that can mislead consumers. Their focus is not on science but on the actual lending of perceived credibility within marketing campaigns and messages. Don’t blindly believe most of the claims of fad diets, pills, and 10 minute widget exercises that will give you six pack abs. 

Working out is a process that entails creating stress on the human body. Depending on what someone wants to accomplish they can either move toward brute muscle strength or lean cardio endurance. One can take on a cross training program for general fitness but should work cardio on some days and weights on the others. Each day should have their own focus to maximize change. 

The book provides a number of strong chapters that include fitness gear, aerobics, strength training, recovery, aging, weight management, and nutrition. You might be surprised that most supplements do not work but that certain ones such as amino acids can actually help one gain strength. The book will discuss how research shows the increases and decreases of performance based upon these issues. A moderate amount of whey protein and use of amino acids can have a beneficial effect. Yet protein itself can ignore certain building blocks. See study

While working out with weights it important to understand that slurping down protein shakes after protein shakes won’t do you much good unless you’re a professional body builder. Even then the evidence is relatively week and has a marginal effect. Yet it is important to use at a minimum 60% of your 1-time maximum weight to ensure you are putting enough stress on your body. Protein is helpful but for the far majority of people will simply increase unnecessary calorie intake.

The book will give food for thought of those who are serious about their physical fitness. Every person should have a level of such exercise to maintain health as well as reduce stress. The book will make a strong case for being involved in exercise as well as help you ignore those common myths that waste time and energy in one’s busy day. There is support for the belief that exercise can improve performance in your work life so there are few drawbacks to getting fit today.

Hutchinson, A. (2011). Which Comes First, Cardio or Weights? NY: Harper Collins. ISBN 978-0-06-200753-7

19 Crimes Wine-Wine with a History

19 Crimes is an Australian red wine that tastes of licorice, fruits, and vanilla. The brand is labeled after the historical development of colonies in Australia. It is a label associated with the experience of being accused and being sent to work camps from England. It is an Australian wine and imported to the U.S. in Napa Valley. The taste is relatively light, fruity by nature, and does not have a large tannin aftertaste. 

The name is interesting in that it represents how Australia started and gives honor to all those who are falsely accused.  There were 19 crimes that could get you sent from England to the Australian work camps that eventually turned into colonies. At this time in history an unfair suspicion could land you in a work camp for decades. Young children barely in their teens were sentenced for life for stealing something as simple as what we might consider candy or being born into the wrong ethnicity. 

The wine name after John Boyle O'Reilly comes with an interesting tale of a person who was sentenced to an Australian work camp because of associations in his Irish youth. Through time he  moved from a worker to someone who overseas other workers. He made friends with a priest and escaped aboard an American whaling ship. He started over in the U.S. and became a speech-maker and writer for a Boston newspaper. 

http://www.19crimes.com/home.html