Monday, March 19, 2018

Spreading the Wealth Trump Style - Get Ready for More Tax Cuts

I’m no proponent of runaway government spending and the headlong rush into national insolvency. But, if the government is going to do it anyway, we as citizens should get to hold onto every last red cent, regardless what it might eventually be worth. And, who knows, perhaps the added attention to the deficit will help the Congress to return to fiscal sanity. It’s doubtful, but we always hope for change we can all believe in. Like clockwork, President Trump raised the prospect of more tax cuts during the Republican Congressional Retreat. He recently delivered, promising Phase 2. [more...]

The U.S. Surprises Estimates by Adding 313,000 Jobs

The U.S. Bureau of Labor Statistics released the employment report for February 2018. It surpassed and surprised analysts’ estimates by adding 313,000 jobs. The unemployment rate remained at 4.1% for the fifth consecutive month, the lowest rate in 17 years. Analysts had expected that the U.S. had added about 200,000 jobs and that the pool of potential workers has been depleting. These new figures suggest otherwise; the last time the U.S. experienced large gains with low unemployment was during the economic boom of the 1990s. The U.S. has added over 500,000 new jobs since the start of 2018, and the labor force participation rate has increased as well - its best one month gain in over 8 years. [more...]

Monday, February 26, 2018

How Facebook Can Help Rebuild U.S. Manufacturing

How could Facebook regain public and political support? Here’s a simple proposal: the company is investing $14 billion this year on capital spending. That’s a huge sum of money (and double its 2017 spend). The vast majority of it goes on the data centers Facebook is building in the U.S. and worldwide. And the vast majority of that money goes to the servers, storage, and networking gear crammed, floor to ceiling, into those data centers. Today, virtually all that money is going to Asian-manufactured IT equipment, simply because all that equipment is manufactured over there and almost none of it here. What if Facebook said it would spend a quarter of its data center budget on U.S.-manufactured equipment? If Facebook committed to spend one quarter of its IT budget on U.S.-made product, and was followed by other Internet giants, the U.S. might soon have some 3 million people working on manufacturing the products that make the Internet hum. [more...]

The Rise and Fall (and Rise Again?) of Bitcoin

This wasn’t supposed to happen. As this article is written, Bitcoin is trading around $11,200. It’s up from breaking the $6,000 barrier, but this could well be a dead cat bounce. That’s down from nearly $20,000 in mid-December. After all, everyone knows that Bitcoin only goes up.... just like the stock market and housing prices. What gives? What’s happened in cryptocurrencies was completely predictable. In fact, I wrote an article about this very scenario back on December 25, 2017. Bitcoin and all of its Johnny-come-lately followers are in for some more tough times ahead. If it retraces 80-90 percent of its gains the past year, that will put it in a range of $3,800-5,600. Such a pullback would not be out of the realm of experience. When a bubble pops, it’s look out below. [more...]

When it Comes to Entrepreneurship, Age 40 is the New 20... and Always Has Been

The truth is that the average entrepreneur is nearly 40 years old. There are more Baby Boomers (ages 53 to 71) starting businesses than millennials (ages 20 to 36) and even more entrepreneurs in Generation X (ages 37 to 52). What’s more, your odds of starting a company that experiences scale growth, becoming really profitable, only increase with age. The “Mozart Myth” leads us to believe that if you haven’t started your first company in your twenties then you’re never going to be an entrepreneur. But age, financial security, and experience — most often at an established company — are far more likely predictors of an entrepreneurial career. It turns out that corporations are often far more effective in training entrepreneurs than are most business schools or incubators. [more...]

Thursday, February 8, 2018

Older Entrepreneurs Do It Better

People over 35 are more likely to start a business... and much more likely to succeed at it

We all know today’s script for entrepreneurial success: A super-bright college student, impatient with classwork, drops out to pursue his big idea. Venture-capital funders chase after him, and he gathers smart pals around him to launch his startup.

Sensational growth soon follows for the company - and riches for its founders - and the youth-driven innovation economy notches yet another success. It’s a powerful narrative, and it has shaped lots of thinking about how to spark economic growth and prosperity. [more...]

In his new book, BURN THE BUSINESS PLAN: What Great Entrepreneurs Really Do, bestselling author and economist, Carl Schramm, applies his decades of experience in the world of entrepreneurship to offer a myth-busting guide packed with tools and techniques to launch any business. Illustrated with stories of real entrepreneurs who started successful businesses, he debunks some of the most commonly held beliefs surrounding startups and business development - starting with the supposed importance of a business plan.

Monday, January 29, 2018

Stumo in USA Today: Trade Predators Destroy U.S. Jobs

For too long, America has been led by a naive embrace of free trade that overlooks the predatory behavior of our trade competitors. Widespread trade cheating and poorly designed trade deals have led to persistent U.S. trade deficits causing job losses, manufacturing decline and income stagnation. Many nations push their currency values lower, and the dollar higher, to gain a price advantage in global market at our expense. Their governments subsidize manufacturing in order to “dump” product in the U.S. market at below cost. These predatory practices violate world trade law and destroy American industries. Thankfully, President Trump appears willing to confront such abuses by punishing trade violators and renegotiating job-killing trade agreements. [more...]