What happens when there are supply shortages and businesses run at maximum capacity? When the economy is zooming ahead quickly and supply shortages occur the cost of products increases and so does inflation. As inflation increases the overall value of a dollar declines and people have less disposable income to spend on discretionary products while spending more for basic household items because they have to conserve on their dwindling earning power.
According to JP Morgan Chase & Co.'s PMI report global growth will be around 4 percent. This means more people are buying products and people will need to manufacture more to fulfill growing consumer demand.
This can lead to higher wages and additional hiring. We don't have a large unemployed population so whatever cushion within the system is likely to be sucked up quickly. After that slack is gone wages begin to increase.
Some will benefit over others. People highly skilled, or with specific training, will find their skills worth more while those who do not have advanced skills will start to see their earning power decline without new training programs. The gap between those who have and those who don't will lessen.
As inflation picks up the government is also likely to use interest rate hikes in their tool kit to slow down the economy and in turn inflation. There is a healthy balance where wages rise but inflation is still low that leads to improved earning power. A very difficult window for any government to maintain for long.
Another problem is that most employers don't raise wages fast enough to match the lost earning power. The reasons for this are based in a sticky economy and the insecurity of raising wages that will lead to increased costs. Productivity, skills, and innovation can justify wage increases.
For most of us, we will continue to have the pleasure of losing 3-5% of our income every year while doing more because of increased work demands based on production pressure. As increasing demand rises it would be beneficial for Americans to think about improving productivity, narrowing the wealth gap through raises, returning investments back into the U.S., and seeking to gain market share so they can squeeze out foreign competitors when the market slows down.
Tuesday, January 2, 2018
The Basic Benefits of Tai Chi
Tai Chi is must like yoga in offering fitness, mental, and health benefits. It also has the bonus of teaching one basic self-defense classes. While I like kempo and kick boxing I often find myself gravitating toward Tai Chi as a good "glue" that gaps yoga and self-defense.
Here is a video on basic Tai Chi tactics. You can see people practicing this at parks and gyms in California and much of the rest of the country.
Here is a video on basic Tai Chi tactics. You can see people practicing this at parks and gyms in California and much of the rest of the country.
Crisp Clean Super Moons in the Wilderness
Such natural phenomenon add to the beauty and lifestyle that is attractive for a more natural lifestyle outside of a city. As the economy changes more people will be drawn to large cities and likely not see many of these natural beauties. There will be a large, yet smaller, demographic people that will use their education and work arrangements to life outside the city and comet to places like the Upper Peninsula of Michigan where a growing eco-tourist industry is growing.
Monday, January 1, 2018
Six Measures of Economic Branding
National brand is an essential component of competing within the global market places. The "made in" image creates a stereotype between consumers and business that creates a picture of the products and its value to consumers on the global market (Ali & Rehman, 2015). This image is created from multiple aspects of the economy that include a variety of different aspects that reflect the local environment.
Countries are engaging more and more in branding opportunities because it can often draw additional investment that leads to economic growth (Anhold & Simon, 2003). As the world moves into an integrated global market stakeholders must think more about collaboration and working together to measure performance using macro-data and putting together better brands.
It is possible to use six dimensions of the local economy in measuring the quality of a brand image (Anholt-GfK Nation Brands Index, 2017).
-Exports: Products and services that allow consumers to buy or avoid local production.
-Governance: Belief and trust in government related to poverty, justice, democracy, and environment.
-Culture and Heritage: The global image of the locations heritage including arts, crafts, literature, sports, music, drama and film.
-People: The image of the people and their education, competence, friendliness and openness.
-Tourism: The local natural and man-made attractions that draw people to the area.
-Investment and Immigration: Through the lens of investors it is the value of the location for people to invest, get educated, spend money, start businesses, and live in the area.
Ali, M. & Rehman, C. (2015). National branding and economic development: finding the missing link. Arabian Journal of Business and Management Review, 5 (5).
Anholt-GfK Nation Brands Index (2017). About. Retrieved 01/01/18 http://nation-brands.gfk.com/
Anholt, & Simon. (2003). Brand New Justice: The Upside of Global Branding,.
UK. : Butterworth-Heinemann, Oxford
Countries are engaging more and more in branding opportunities because it can often draw additional investment that leads to economic growth (Anhold & Simon, 2003). As the world moves into an integrated global market stakeholders must think more about collaboration and working together to measure performance using macro-data and putting together better brands.
It is possible to use six dimensions of the local economy in measuring the quality of a brand image (Anholt-GfK Nation Brands Index, 2017).
-Exports: Products and services that allow consumers to buy or avoid local production.
-Governance: Belief and trust in government related to poverty, justice, democracy, and environment.
-Culture and Heritage: The global image of the locations heritage including arts, crafts, literature, sports, music, drama and film.
-People: The image of the people and their education, competence, friendliness and openness.
-Tourism: The local natural and man-made attractions that draw people to the area.
-Investment and Immigration: Through the lens of investors it is the value of the location for people to invest, get educated, spend money, start businesses, and live in the area.
Ali, M. & Rehman, C. (2015). National branding and economic development: finding the missing link. Arabian Journal of Business and Management Review, 5 (5).
Anholt-GfK Nation Brands Index (2017). About. Retrieved 01/01/18 http://nation-brands.gfk.com/
Anholt, & Simon. (2003). Brand New Justice: The Upside of Global Branding,.
UK. : Butterworth-Heinemann, Oxford
Saturday, December 30, 2017
Those Without Higher Education Suffer Through Shorter Lives
Education can have a substantial impact throughout our lives and touches just about every aspect of our being include health and marriage. According to Princeton University economists Anne Case and Angus Deaton, men and women who do not go to college live shorter, less healthy lives and continue to lose ground against their more educated countrymen.
https://www.brookings.edu/wp-content/uploads/2017/08/casetextsp17bpea.pdf
We know that life can be stressful but pain, stress, unemployment, and social dysfunction seem to take a toll on those who didn't get an education. They are slowed by their economic environment and their stress levels begin to rise.
There is also the problem of consistent healthcare. When you are working menial jobs, or are not fully employed, you don't have the same access to healthcare and this can add up to a shorter life. Neglecting check ups and not having money for procedures can lead to serious illness.
The comparison can be profound. For those between 50-54 without a bachelors degree mortality is 867 per 100,000 versus 243 for those with a bachelors degree. This is almost a 3X difference in survival rates.
Higher education is becoming a must in today's high technology world where people need college to complete everyday tasks. This doesn't mean that a person can't move into a skilled trade but there is a level of education that goes with it that can be helpful. Helping people attend college can improve people's lives in many different arenas.
https://www.brookings.edu/wp-content/uploads/2017/08/casetextsp17bpea.pdf
We know that life can be stressful but pain, stress, unemployment, and social dysfunction seem to take a toll on those who didn't get an education. They are slowed by their economic environment and their stress levels begin to rise.
There is also the problem of consistent healthcare. When you are working menial jobs, or are not fully employed, you don't have the same access to healthcare and this can add up to a shorter life. Neglecting check ups and not having money for procedures can lead to serious illness.
The comparison can be profound. For those between 50-54 without a bachelors degree mortality is 867 per 100,000 versus 243 for those with a bachelors degree. This is almost a 3X difference in survival rates.
Higher education is becoming a must in today's high technology world where people need college to complete everyday tasks. This doesn't mean that a person can't move into a skilled trade but there is a level of education that goes with it that can be helpful. Helping people attend college can improve people's lives in many different arenas.
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