A new article was recently printed in the Harvard Business Review related to Supply Chain investments and creating innovation in this arena. You can read the article here https://hbr.org/2018/03/the-supply-chain-economy-and-the-future-of-good-jobs-in-america
I wrote about the last article and am somewhat watching this research for my own purposes.
I'm working on developing an economic approach to hubs and clusters. Supply chain creation among local businesses is an important consideration. Large companies often have smaller companies within the same area. They supply them with needed resources, tools, labor, and other things they need that are outside their core business.
The supply chain connects them together as well as other clusters that exist in the area. When two large clusters are in one area they often interrelate and share knowledge to generate innovation. This depends on what those clusters are but they do have similar needs and many times share vendors.
Innovation leads to growth and change and this comes through the supply chain as well as through the sharing of spill over knowledge, drawing skilled employees to the area, higher education, research, and the utilization of better infrastructure.
Supply chain creates significant value for companies. The way in which materials move through a system and are shifted, adjusted and changed will lead to value added products/services that can be sold on the more. The better they sell the higher the profit margins and the more jobs, tax revenue and economic growth.
Friday, March 9, 2018
How the Government Influences the Decline in Private Universities
American's are losing their private universities despite global demand. At least, according to an article Inside Higher Edu the U.S. private education sector is 27.5% which is now much lower than other nations. As private education in the U.S. declines does government own some of the blame for this?
The total private enrollment around the world is $56.7 million which translates to 32.9% of the world's enrollment. Private education has a huge impact and is an important part of the higher education system. It provides a level of diversity and innovation for the entire system.
Private education is facing challenges where some schools are closing and others are being regulated to death. Smaller schools are having a hard time competing. Think of the private liberal arts colleges with less than 2,000 students. They are going bust despite growing demand.
There is a problem with regulation and the cost of student loans. In both cases, much of this is the government making. Unnecessary regulation damages small and private universities which don't have the economies of scale, the tax funding, and government support that larger state universities have. Likewise, at 6% interest rate on student loans the problem will continue to grow and while we need people to become "educated" to compete in a more complex world we are punishing them with costs and interest.
The total private enrollment around the world is $56.7 million which translates to 32.9% of the world's enrollment. Private education has a huge impact and is an important part of the higher education system. It provides a level of diversity and innovation for the entire system.
Private education is facing challenges where some schools are closing and others are being regulated to death. Smaller schools are having a hard time competing. Think of the private liberal arts colleges with less than 2,000 students. They are going bust despite growing demand.
There is a problem with regulation and the cost of student loans. In both cases, much of this is the government making. Unnecessary regulation damages small and private universities which don't have the economies of scale, the tax funding, and government support that larger state universities have. Likewise, at 6% interest rate on student loans the problem will continue to grow and while we need people to become "educated" to compete in a more complex world we are punishing them with costs and interest.
Thursday, March 8, 2018
What Does Flexibility on Tariffs Mean?
Tariffs are a type of tax that ensures foreign products cost more and American products are competitively priced. This is more likely if our industries are not competitive. Flexibility on Tariffs does two things 1.) maintain free trade for those who did not violate concepts of fair practices and 2.) protect the industry to develop.
Flexibility is important when America has a long-term past precedence of promoting free trade. Yet there is a solid argument that some countries have taken advantage of that free trade good will. Therefore, a higher level of tariffs on abusive countries that engaged in "dumping" could be justified as a punitive measure to ensure countries have a stake in playing it fair.
You must also consider that tariffs are only good when they allow already working industries to quickly pick up their competitive position through new investment, innovation and reform. Without a quick change in their position they will need these tariffs for a long time and that could force them to be further non-competitive through lack of reforms.
Flexibility is important here because with legislation there is often a time frame and a "one shoe fits all" approach. The situation on the ground changes often, percentages need to change to ensure industries are not being overprotected from change, and adjustments are made for existing concerns of allies. I'm more of an advocate for free and fair trade where bad actors are punished but the overall process of open markets continue forward to a more united world with higher economic growth that improves people's lives.
Flexibility is important when America has a long-term past precedence of promoting free trade. Yet there is a solid argument that some countries have taken advantage of that free trade good will. Therefore, a higher level of tariffs on abusive countries that engaged in "dumping" could be justified as a punitive measure to ensure countries have a stake in playing it fair.
You must also consider that tariffs are only good when they allow already working industries to quickly pick up their competitive position through new investment, innovation and reform. Without a quick change in their position they will need these tariffs for a long time and that could force them to be further non-competitive through lack of reforms.
Flexibility is important here because with legislation there is often a time frame and a "one shoe fits all" approach. The situation on the ground changes often, percentages need to change to ensure industries are not being overprotected from change, and adjustments are made for existing concerns of allies. I'm more of an advocate for free and fair trade where bad actors are punished but the overall process of open markets continue forward to a more united world with higher economic growth that improves people's lives.
11 Countries Seek to Improve Trade
Eleven countries are promoting sweeping changes to reduce tariffs and new trade rules called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The action is being taken as an attempt to ensure that the concepts of free trade and increased trade improve economies and lives. Some of this makes sense from a policy standpoint.
Free trade is great and improves economic development. Countries that have porous trade borders gain advantages in terms of technology, wealth, and new ideas. This occurs because as they move their products overseas they generated wealth, and as they buy products from overseas they improve the wealth of others.
Hypothetically, each country in a free trade area gains specialization advantages to focus on what they do best and this raises overall wealth. For example, if England produces better and cheaper sheep than Peru then they would focus more on sheep and purchase cheaper products from overseas raising wealth in both countries.
Yet there is risk in this for some countries because apples are not exchanged for apples. Resources and products move throughout many countries making actual tracking difficult. It is more like apples trading for bananas, pineapples, carrots, and peanuts. It is all jumbled up and some countries can lose.
There are also those who cheat the system and don't share the true cost of their manufacturing. They may damage the environment, violate rules of the agreements, and take advantage of their partners. In this case, the agreement would need to have a strong mechanism of enforcement, better supply chain tracking, and overall development of protections from abuse.
Free trade is great and improves economic development. Countries that have porous trade borders gain advantages in terms of technology, wealth, and new ideas. This occurs because as they move their products overseas they generated wealth, and as they buy products from overseas they improve the wealth of others.
Hypothetically, each country in a free trade area gains specialization advantages to focus on what they do best and this raises overall wealth. For example, if England produces better and cheaper sheep than Peru then they would focus more on sheep and purchase cheaper products from overseas raising wealth in both countries.
Yet there is risk in this for some countries because apples are not exchanged for apples. Resources and products move throughout many countries making actual tracking difficult. It is more like apples trading for bananas, pineapples, carrots, and peanuts. It is all jumbled up and some countries can lose.
There are also those who cheat the system and don't share the true cost of their manufacturing. They may damage the environment, violate rules of the agreements, and take advantage of their partners. In this case, the agreement would need to have a strong mechanism of enforcement, better supply chain tracking, and overall development of protections from abuse.
Everyone Should Have a Purpose in Life? Search for the "Holy Grail"
Each person should live a purposeful life based on something they find valuable and helpful not only to themselves but also to society. This purpose leads one to make choices and actions that give them daily direction. Every day I see people without purpose wandering from birth to death without a focus and this can be detrimental to your life satisfaction.
Aimless life isn't necessarily a bad thing but seems sort of bland. We see it all the time, go to work, come home, eat, sleep, and eventually grow old doing the same thing over and over. There is little attempt to improve yourself or those around you. A kind of hand and mouth existence without greater awareness.
Some have made money their only focus. They may accumulate a lot within a lifetime and there is nothing wrong with this. At some point they have enough for security and beyond that what they do with it is important to their life goals.
There are others who have deeper purposes. This can be something like setting an example, gaining knowledge, raising awareness of an issue, improving life or any number of important things. Such people are different as they have a deeper and wider understanding of life and try and contribute when they can.
It can be hard when you have a purpose and others seem to be focused on lower values. Money, social prestige, self-glorification, etc... are raised as high ideals and if you don't follow there is sure to be some criticism. However, as we age and when we are very old often we come to realize that all of it could be traded for a few more meaningful moments.
The quest for the "Holy Grail" is your personal quest based on what is important to you. It may be lofty or it can be selfish. The way you live your life reflects on your personal values.
Aimless life isn't necessarily a bad thing but seems sort of bland. We see it all the time, go to work, come home, eat, sleep, and eventually grow old doing the same thing over and over. There is little attempt to improve yourself or those around you. A kind of hand and mouth existence without greater awareness.
Some have made money their only focus. They may accumulate a lot within a lifetime and there is nothing wrong with this. At some point they have enough for security and beyond that what they do with it is important to their life goals.
There are others who have deeper purposes. This can be something like setting an example, gaining knowledge, raising awareness of an issue, improving life or any number of important things. Such people are different as they have a deeper and wider understanding of life and try and contribute when they can.
It can be hard when you have a purpose and others seem to be focused on lower values. Money, social prestige, self-glorification, etc... are raised as high ideals and if you don't follow there is sure to be some criticism. However, as we age and when we are very old often we come to realize that all of it could be traded for a few more meaningful moments.
The quest for the "Holy Grail" is your personal quest based on what is important to you. It may be lofty or it can be selfish. The way you live your life reflects on your personal values.
Wednesday, March 7, 2018
The Population of Hunters is About to Drop
There is a large population of hunters that are about to move out of their prime hunting age. Many of them are Baby Boomers and getting too old go out into the woods. When they stop hunting the money they contributed to conservation will also decline.
Contrary to popular opinion hunting is good for the environment. People who hunt are often very concerned about the environment, donate to wildlife programs and protect their habitat. Enjoyment of the atmosphere comes with a concern over pollution and habitat destruction.
Hunting is very regulated today and requires people to buy licenses that are worth much more than the price of the meat. Yet they do it to get outdoors and engage in the sport. Loosing their money will mean we will need to fund conservation from other areas.
Some argue that the amount of hunters will drop 30% in the next few years.
Contrary to popular opinion hunting is good for the environment. People who hunt are often very concerned about the environment, donate to wildlife programs and protect their habitat. Enjoyment of the atmosphere comes with a concern over pollution and habitat destruction.
Hunting is very regulated today and requires people to buy licenses that are worth much more than the price of the meat. Yet they do it to get outdoors and engage in the sport. Loosing their money will mean we will need to fund conservation from other areas.
Some argue that the amount of hunters will drop 30% in the next few years.
Detroit State of the City Address and Areas of Continuous Improvement
The State of the City by Mike Duggan addresses a few key points. Below is what I like and what I think could be improved in the future. A few key points:
1. Better schools, bus routes to school programs and college tuition.
2. Infrastructure on roads, biking and parking.
3. Housing improvements in removing abandoned houses and remodeling older houses.
4. Better police and fire protection.
5. 2 Billion budget that may allow removal from state oversight.
6. Jobs and businesses.
These are good things. They are still in the arena of building the basics. Attracting more business is helpful in creating long-term viability of the city.
To be truly successful the city will need to also do a few more things for long-term development:
1. Partner with the region and state to attract back manufacturing into the area.
2. Create new and enhance existing export infrastructure.
3. Encourage new businesses and clusters to form in the area.
4. Continue to work on making business-government regulations easy to navigate.
5. Develop the social environment and attract entrepreneurs, artists, business people, and high skilled laborers into the area.
6. Improve data transition, financial transactions and network development.
7. Encourage high tech companies to resettle in the area.
8. Seek out international investors from different countries and improve international marketing of the city and its businesses.
1. Better schools, bus routes to school programs and college tuition.
2. Infrastructure on roads, biking and parking.
3. Housing improvements in removing abandoned houses and remodeling older houses.
4. Better police and fire protection.
5. 2 Billion budget that may allow removal from state oversight.
6. Jobs and businesses.
These are good things. They are still in the arena of building the basics. Attracting more business is helpful in creating long-term viability of the city.
To be truly successful the city will need to also do a few more things for long-term development:
1. Partner with the region and state to attract back manufacturing into the area.
2. Create new and enhance existing export infrastructure.
3. Encourage new businesses and clusters to form in the area.
4. Continue to work on making business-government regulations easy to navigate.
5. Develop the social environment and attract entrepreneurs, artists, business people, and high skilled laborers into the area.
6. Improve data transition, financial transactions and network development.
7. Encourage high tech companies to resettle in the area.
8. Seek out international investors from different countries and improve international marketing of the city and its businesses.
Subscribe to:
Posts (Atom)