AU Blogspot

 
          Thanks to Rob West for permission to use this Photo.

Our new Ashworth University Discussion Forum has been sparking some lively debate.  If you haven’t checked out the forum yet, what are you waiting for?—get engaged with your student community!

Ashworth University Business Student, Frederick F, states: 

I recently completed the Macroeconomics course, and all the negative things about Keynes were wrong!

I do agree with government intervention to get the economy out of recession and depression as a better solution by lowering interest rates and major government projects to get people employed and spending money.

However… I wrote projects, not programs. Programs that are started to help people don’t usually work, just enough to keep people employed and create more red tape.

As for supply and demand side economics, I side with Jean-Baptiste Say whom said “Demand creates it’s own supply”

Keynes basically said that excessive saving can lead to recession or depression, True, but today we are experiencing excessive greed which is causing our current recession. (High gas prices and the mortgage crisis.)

Ashworth University Technical Services Supervisor And Resident Economist, John Ash, responds:

Well, Keynes’ ideas look dynamite on paper, but they suffer from the minute flaw of not actually holding up in the real world. I know, I know, we should ignore that and just let the beauty of his carefully constructed theories suffer no detractors, but those of us who are actually studying economics to understand the world better and use that knowledge to improve our own lives (i.e., make more money) can’t allow such intricate economic fallacies to remain unmolested.

Keynes’ theories were gospel for the economic advisors of the 60s and 70s, and it is generally believed (among economists anyway) that strict adherence to his policy recommendations led to the stagflation of those decades (stagflation is when the economy is in a recession but inflation is increasing, two things which are supposed to be mutually exclusive by Keynesian standards). Keynes is a good starting point for understanding economics, but modern post-industrial economies are far too complex to be modeled with it. Don’t fall into the trap of trying to find one unifying principle which will explain everything; it’s never going to happen. There are a lot of variables, and usually no single one is going to accurately predict the movement of the economy. (more…)

While the “experts” continue to debate whether our economy is in a recession, the rest of us working in the real world have already determined that the semantic definition of this crisis is the least of our concerns.  In the following podcast interview, Dale Collie, a former corporate executive and elite U.S. Army Ranger shares the lessons he has learned throughout his life on how to cope with the stress caused by difficult circumstances.  Although focusing primarily on how the business manager of today can effectively lead, inspire, and provide stability to workers during times of economic hardship; this podcast also offers some “big picture” perspectives that anyone can apply in their personal lives as well.  I think you’ll enjoy this podcast. Please share your thoughts in the comments section of this post.  I’d also like to thank Bill Conerly for conducting this outstanding interview. Thanks…

Ryan Rode
Interactive Services Manager
Ashworth University  

The rate at which employees are voluntarily quitting their jobs is down from its peak, but still much higher than in the aftermath of the 2001 recession.

We only have data since December 2000, but this appears to be a lagging indicator, meaning that it hits bottom well after the overall economy hits bottom.  It always takes a while for folks to figure out that the economy is soft.  Nonetheless, it’s a good measure of employee attitudes.

I say that when an employee quits just because his boss is a jerk, he’s probably just trading in one jerk of a boss for another.  I’ve said that to my own staff.  (They said they were willing to take that risk.)

Although the quit rate is not at its peak, employers should continue to focus on increasing employee retention.  You might want to check out my 7 Steps to Better Employee Retention.

Bill Conerly
Creator of Businomics Blog
Ashworth University Contributing Blogger

*Bill Conerly is one of the most respected and trusted Business bloggers on the Web. Mr. Conerly’s in-depth analyses are based on “real world” applicability, a communications’ style he has honed through years of professional experience. We’re honored to have Bill Conerly as a member of the Ashworth University Blog contributors network. To learn more about the life and work of Bill Conerly, visit his acclaimed Businomics Blog.

Photo courtesy of Hussein Alazaat

The Small Business Trends blog has an interesting article, Four Mistakes Entrepreneurs Make in a Recession (the title of which I’ve modified for the title of this post, for SEO reasons).

I’m going to add another mistake, but first let’s review Scott Shane’s four mistakes:

1.  Failing to take advantage of decreasing costs.  [good point; I made this in Businomics]
2.  Thinking the only way to increase demand is to cut price [also a good point]
3.  Failing to recognize increased competition.  [sometimes true, especially across normal industry lines; for instance, residential contractors may move into non-residential work when their sector weakens.] (more…)

                Thanks to Len Peralta for permission to use this Photo. 

As the deadline for completing 2007 tax returns approaches, more and more people are filing returns each and every day. Once the headaches of making sure all your information is accurate and all your paperwork has been submitted, you should know in advance if you can expect a tax refund this year. As with any income, it’s a good idea to think about what you’re going to do in advance and make a plan for how you will use it. We always quote the saying that “no plan is a plan to fail,” and it seems true that many of the worst financial decisions are those made compulsively. Since tax refunds are getting turned around more quickly than ever these days, take the time in between when you file and when you receive your refund to really think about what you’ll do with the money you get back. 

Here are seven ideas we at 22Dollars brainstormed to help get the wheels turning when it comes to your 2007 tax refund: 

* Deposit it in your savings account to help you meet your savings goals.

* Spend it on something you’ve needed to buy for a while and that will help save you money in the long run – like a fuel efficient car for example.

* Invest it in your retirement fund or in stocks you’ve researched.

* Pay it toward debts you have such as school loans or credit card debt to help yourself avoid spending additional money on interest payments. (more…)

                         Image courtesy of Sztanko Demeter. 

I just came across this troubling report about dramatic job losses in February.  Now, I consider myself a pretty optimistic person, but I must admit that it’s becoming more and more difficult for me to believe that our economy is not in a recession.  The politicians tell us different stories every day and I’ve basically stopped listening.  What’s the point?  The numbers don’t seem to lie in this case.  By the third paragraph of this article, I knew where the latest Department of Labor report was headed: down!

From The Associated Press:

 WASHINGTON - Employers slashed 63,000 jobs in February, the most in five years and the starkest sign yet that the country is heading dangerously toward recession or is in one already.

The Labor Department’s report, released Friday, also indicated that the nation’s unemployment rate dipped to 4.8 percent as hundreds of thousands of people — perhaps discouraged by their prospects — left the civilian labor force.  The jobless rate was 4.9 percent in January.

 Job losses were widespread, with hefty cuts coming from construction, manufacturing, retailing, financial services and a variety of professional and business services. Those losses swamped gains elsewhere, including education and health care, leisure and hospitality and the government.

Not exactly inspiring stuff, right?  However; I meant what I said earlier about being an optimist and I can still see some silver lining on a personal level.  The fact that I just earned my college degree, an Associate’s degree in Business Management, gives me the confidence to do what I need to do in order to compete in this job market.  With just a high school diploma, I feel like I’ve always been forced to accept jobs that seem to pay a lot less than they used to?  I’m not an economist, but I can tell when something just isn’t adding up.  I was working longer hours for less money.  Something had to give.  I actually landed my first “good job” before I even graduated.  No one would call me rich, but I feel comfortable with the fact that I can support myself and my family no matter what happens with my current employer (knock on wood).  Even if this job didn’t work out for whatever reason, I know I’ve got marketable skills that will land me on my feet somewhere. 

I don’t mean to sound like I’m preaching to anyone, but based on the little bit I’ve seen of the good life since graduating, I can tell you that the only way to get ahead and stay ahead is through hard work and education.  Don’t wait around for the economy to rebound.  No one realistically even knows how long this recession is going to last.  And what if the economy does improve?  Will it really make a big difference in your life?  The job market is still going to be more competitive than ever.  I encourage you to take control of your own situation and future.  Otherwise, you’re just going to be waiting around for an opportunity to appear out of the blue.  The chances of that happening are honestly not that good, but that doesn’t make me worry anymore.  I’d rather make that opportunity happen for myself.  I hope I can inspire a few of my fellow students out there with this message.  I hope to meet some of you at the graduation ceremony! 

Ray Wheatley
Ashworth University Class of 2008    

                  Thanks to Mattia for permission to use this Photo.

We’ve been fortunate enough to share the insightful perspectives of economist and entrepreneur Bill Conerly with our student community since this blog first launched in 2007.  Mr. Conerly is not only a contributing blogger, but someone we consider a friend of the greater Ashworth University community as well.  He was recently interviewed on the Small Business Advocate Radio Show on the topic of business planning after the recession.  The issues covered are of vital importance to anyone one with small business aspirations, so I highly recommend listening to this very informative podcast interview.  You can also visit Bill’s Businomics Blog to show your appreciation for his efforts on behalf of our Ashworth Blogspot readers.  Thanks everyone.

Ryan Rode
Ashworth University