Historically Speaking
We are definitely living in a time that will be recognized as a key historical time in our lives. We have a lot to be thankful for. Years from now generations will look back at this time as a time of change and evolution. Do you ever wonder about the time and what it was like during the Great Depression of the 1920s and how people navigated through a trying time to survival? What lessons were learned, what evolved from those times?
What would the people back then say about our challenging times today? What advice would they have? There is a part of me that is very thankful for living for living in such a historical time in life. Witnessing the election of our first African American President, and working toward a solution for improving society as we know it today - both economically and socially. We should be looking forward, turning the page and feeling good about where we are headed. Although these times are challenging, they can also be viewed as exciting times. Becoming part of positive evolution and positive solutions that will be remembered for generations to come is a good thing.
Sunday, March 29, 2009
Statistically Speaking
Statistically Speaking
We are in a time of information overload, and countless data dumps that infiltrate our television news casts, newspaper reports and internet blogs that contain statistics and information provided by government agencies, consumer awareness organizations, and educational institutions. Because we read about it or see in on television we can fall into the trap of assuming what we are absorbing through these information vessels is true and accurate.
It is our right as Americans to question and challenge information including the information and statistics that are provided by our government. Case in point is, the government provides census data from the Bureau of Labor and Statistics. There are countless pages of information that the government uses to develop economic strategies and set policies.
One example is the Consumer Price Index (CPI) Currently the Federal Government, under the Department of Labor and Bureau of Labor Statistics (BLS), utilizes the CPI as a key indicator to assist in measuring the nation’s economic strength. The CPI measures the price variance of a “market basket” of goods and services to urban consumers. There are over 200 categories within eight major groups: Food and Beverages, Housing, Apparel, Transportation, Medical Care, Recreation, Other Goods and Services, and Education and Communication These price variance measurements are captured monthly in predetermined metropolitan markets and the Federal Government uses this data to help determine the state of the economy through consumer spending, its effect on inflation, and creates strategies to change or alter the economic environment.
There is much debate about how this data is interpreted and its methodology. For example, rural residents are not part of the collection surveys. Also, goods and services, part of the “market basket”, do not always represent actual consumer spending. For example, food and energy expenses are not calculated as part of “Core CPI” that is reported to congress. During times of over inflated energy expense – about 1 year ago, it does not accurately reflect the cost of everyday living. 80 million Americans who receive government checks and support, including social security recipients, military personnel, and the subsidizing of school lunch programs are affected by a high inflation report or a higher than normal CPI rate – they would receive an increase in pay/support.
Because of the relevance of CPI to direct compensation, and the fact that the Government is directly accountable for dispersing the affected compensation, it brings into question the objectivity of the Government when determining the true cost of living.
The point is most everything we read or watch is subject to some form of bias. We as a democratic society need to interpret all information that we are exposed to with an objective, inquisitive view, including government provided statistical information that we assume is non-biased.
We are in a time of information overload, and countless data dumps that infiltrate our television news casts, newspaper reports and internet blogs that contain statistics and information provided by government agencies, consumer awareness organizations, and educational institutions. Because we read about it or see in on television we can fall into the trap of assuming what we are absorbing through these information vessels is true and accurate.
It is our right as Americans to question and challenge information including the information and statistics that are provided by our government. Case in point is, the government provides census data from the Bureau of Labor and Statistics. There are countless pages of information that the government uses to develop economic strategies and set policies.
One example is the Consumer Price Index (CPI) Currently the Federal Government, under the Department of Labor and Bureau of Labor Statistics (BLS), utilizes the CPI as a key indicator to assist in measuring the nation’s economic strength. The CPI measures the price variance of a “market basket” of goods and services to urban consumers. There are over 200 categories within eight major groups: Food and Beverages, Housing, Apparel, Transportation, Medical Care, Recreation, Other Goods and Services, and Education and Communication These price variance measurements are captured monthly in predetermined metropolitan markets and the Federal Government uses this data to help determine the state of the economy through consumer spending, its effect on inflation, and creates strategies to change or alter the economic environment.
There is much debate about how this data is interpreted and its methodology. For example, rural residents are not part of the collection surveys. Also, goods and services, part of the “market basket”, do not always represent actual consumer spending. For example, food and energy expenses are not calculated as part of “Core CPI” that is reported to congress. During times of over inflated energy expense – about 1 year ago, it does not accurately reflect the cost of everyday living. 80 million Americans who receive government checks and support, including social security recipients, military personnel, and the subsidizing of school lunch programs are affected by a high inflation report or a higher than normal CPI rate – they would receive an increase in pay/support.
Because of the relevance of CPI to direct compensation, and the fact that the Government is directly accountable for dispersing the affected compensation, it brings into question the objectivity of the Government when determining the true cost of living.
The point is most everything we read or watch is subject to some form of bias. We as a democratic society need to interpret all information that we are exposed to with an objective, inquisitive view, including government provided statistical information that we assume is non-biased.
Sunday, March 8, 2009
Never Enough
Never Enough
I often ask myself how much is enough? Enough what you may ask? Let’s consider education. I recently enrolled back in school to further my education at my employer’s request and to be honest with you, it was not a very appealing proposition for me. I found myself asking the question – How much is enough? How much more time must I commit? How much more could I learn about the business I have been in for over 20 years? Was there enough value to me based on the time commitment it would take to achieve the objective?
These were valid questions in my mind. The company trusts me with a multi-million dollar budget and a team of resources spread across the US to drive their business. Furthermore, I have already learned many lessons within their structure of multiple roles and living in multiple cities the last 20 years which has developed my business skills very substantially. They must have confidence in my ability – so what gives??
Plenty. Although I was somewhat reluctant and pessimistic about continuing my education, I can honestly say I have underestimated the value of what I have been learning since my return to school. I can unequivocally say that the development I have experienced these last several months has been immeasurable. I have become a better manager, employee, and leader in my organization because of my recent education endeavors.
I have become much more appreciative of the opportunities provided to me in continuing my education. I have come to the conclusion that you can never have enough education and you can continue to learn in significant strides regardless of age and experience. It all comes down to attitude and how much you are willing to let yourself learn.
I often ask myself how much is enough? Enough what you may ask? Let’s consider education. I recently enrolled back in school to further my education at my employer’s request and to be honest with you, it was not a very appealing proposition for me. I found myself asking the question – How much is enough? How much more time must I commit? How much more could I learn about the business I have been in for over 20 years? Was there enough value to me based on the time commitment it would take to achieve the objective?
These were valid questions in my mind. The company trusts me with a multi-million dollar budget and a team of resources spread across the US to drive their business. Furthermore, I have already learned many lessons within their structure of multiple roles and living in multiple cities the last 20 years which has developed my business skills very substantially. They must have confidence in my ability – so what gives??
Plenty. Although I was somewhat reluctant and pessimistic about continuing my education, I can honestly say I have underestimated the value of what I have been learning since my return to school. I can unequivocally say that the development I have experienced these last several months has been immeasurable. I have become a better manager, employee, and leader in my organization because of my recent education endeavors.
I have become much more appreciative of the opportunities provided to me in continuing my education. I have come to the conclusion that you can never have enough education and you can continue to learn in significant strides regardless of age and experience. It all comes down to attitude and how much you are willing to let yourself learn.
Sunday, March 1, 2009
The Cost of Knowledge - Is it for Sale?
As the cost of college education continues to rise along with the unemployment rates, what impact will this have on tuition rates? Adding a third variable of increasingly stringent banking guidelines on borrowing, the future could be in line with lower tuition. Assuming that college tuition is affected by the same economic equation that most goods and services are – supply vs. demand, future tuition costs should come down.
One variable not yet considered is, will colleges and universities lower their academic standards to increase supply so tuition costs can stay in line with current trends? Should colleges and universities be permitted to do so? Should the credibility of these schools be for sale? In today’s economic climate, we shall soon find out.
One variable not yet considered is, will colleges and universities lower their academic standards to increase supply so tuition costs can stay in line with current trends? Should colleges and universities be permitted to do so? Should the credibility of these schools be for sale? In today’s economic climate, we shall soon find out.
Sunday, February 22, 2009
Technically Speaking
As our world progresses rapidly through the ever changing environment of technology, should we as a society question the true value of what invention and technology bring to consumers and how we really benefit?
It is hard to imagine life without all of the changes that technology has touched and impacted our lives. MP3 players, Cell Phones, the Internet, Computers, the list goes on and on. We’ve become so accustomed to what these gadgets and tools provide in making our life easier, faster, more informed, etc. How often do we think about the cause and effect of how technology has impacted the world’s economy?
On the positive note the Cell Phone business has contributed billions of dollars each year into coverage plans, software/hardware upgrades that consumers never get enough of. The same could be said for MP3, music downloads, flat screen televisions, the internet, all of which add billions of dollars of purchases helping to stimulate the sagging economy.
From a more negative perspective, technology upgrades have eliminated and reduced thousands of jobs across the world we live. Some of the most obvious would be car manufactures. The number of human hands that build and assemble automobiles is just a fraction of what it used to be, Travel Agents, Real Estate agents have all been impacted by the internet. At what point does technology cannibalize a consumer’s source of income preventing them from purchasing goods and or services that help keep our economy afloat?
A concept (not new) that the world is embarking on is the elimination of the UPC (Universal Product Code) and being replaced by RFID (Radio Frequency Identification). While this technology is not relatively new, the optimized use of this capability has not yet been completely developed. The cost of the RFID tag itself is what is preventing companies from thoroughly utilizing this breakthrough, as the UPC code was once thought of several years ago. It is just a matter of time when the cost of putting RFID chips/tags on all consumer goods packaging.
When this does happen, think of the impact on the number of jobs in retail, and supply chain businesses. Products can be checked out/paid for in seconds, Inventory information can be captured at the push of a button. The number of Sales Reps of these consumer goods companies will be cut to a fraction because of the information stored on the tags.
The US lost over 2MM jobs in 2008. Companies can do so much more with far less human capital. Have we potentially slipped into an environment that technology has outpaced our ability to develop jobs inline with our technology upgrades, thus severely impacting our economy? We may have….this world has not experienced this type of decline in many years….if ever.
Sunday, February 15, 2009
Economic Headwinds
I am a 45 year old executive with a consumer goods company that I have been employed with for over 20 years. I have experienced significant changes over those 20 years, such as technology, consumer trends and most recently economic challenges that virtually affect every person in the world in some form or capacity.
The world continues to pull itself from one of the most challenging times in recent history. While I believe that we as a society will overcome this global depression, the question remains, how did we get to this point, and most importantly, how do we prevent it from happening again?
What led us to this economic slump, and for some people and businesses, economic catastrophe? Greed is definitely a factor in today’s hard times. As a society we have become engrossed in the “desire to acquire” without any regard for the necessary means to support such desires. How much is too much? We’ve become a society of confusing the core necessities of life with the desires of life, and take any steps necessary to acquire such things that have little impact to basic survival. Accumulating debt to drive a BMW or purchase a vacation home in Hawaii is not a necessity for survival, yet as consumers, we are drawn into believing that it is ok as long as the bank thinks it is ok.
We’ve become addicted to over-inflated lifestyles and there will come a time when we have to be detoxified from our addictions – always a difficult experience in all definitions of fighting an addition. The recent news of 800 billion dollar bailouts can be considered as a necessity to help save our economy, or could it be considered more fuel to feed the addiction? Much of the bailout funding was to enable the banks to begin loaning money again. Is this a good solution to one of the core problems? At what point do we pay off our debt? Comparing to other addictions – the alcoholic must stop drinking, the drug addict must stop taking drugs, the gambler must stop gambling. Consumers need to stop borrowing.
The next time you have the urge to pull out your credit card to purchase a flat screen TV with no-interest for 18 months, ask yourself, do I really need this item, do I really need to borrow this money? At some point we all have to pay our debt….maybe now is the time.
The world continues to pull itself from one of the most challenging times in recent history. While I believe that we as a society will overcome this global depression, the question remains, how did we get to this point, and most importantly, how do we prevent it from happening again?
What led us to this economic slump, and for some people and businesses, economic catastrophe? Greed is definitely a factor in today’s hard times. As a society we have become engrossed in the “desire to acquire” without any regard for the necessary means to support such desires. How much is too much? We’ve become a society of confusing the core necessities of life with the desires of life, and take any steps necessary to acquire such things that have little impact to basic survival. Accumulating debt to drive a BMW or purchase a vacation home in Hawaii is not a necessity for survival, yet as consumers, we are drawn into believing that it is ok as long as the bank thinks it is ok.
We’ve become addicted to over-inflated lifestyles and there will come a time when we have to be detoxified from our addictions – always a difficult experience in all definitions of fighting an addition. The recent news of 800 billion dollar bailouts can be considered as a necessity to help save our economy, or could it be considered more fuel to feed the addiction? Much of the bailout funding was to enable the banks to begin loaning money again. Is this a good solution to one of the core problems? At what point do we pay off our debt? Comparing to other addictions – the alcoholic must stop drinking, the drug addict must stop taking drugs, the gambler must stop gambling. Consumers need to stop borrowing.
The next time you have the urge to pull out your credit card to purchase a flat screen TV with no-interest for 18 months, ask yourself, do I really need this item, do I really need to borrow this money? At some point we all have to pay our debt….maybe now is the time.
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