For more than a year, I have been predicting?not advocating, just predicting?a significant tax increase to deal with the budget deficit. My hypothesis has been that sooner or later financial markets would put pressure on Congress to act on the budget deficit, and that the magnitude of the problem would be too great to deal with on the spending side alone.
I was unsure where, when or how this financial market pressure would arise. But it now seems clear that it will come through the foreign exchange market. The dollar has been dropping rapidly and this is setting in motion forces that eventually will impact on domestic stock and bond markets. The possibility of a major crash cannot be ignored.
The root of the problem is the U.S. current account deficit, which includes the trade balance for goods and services, plus receipts on U.S. investments broad minus payments to foreigners on their investments here. There is also a large negative figure for unilateral transfers abroad, such as those for military programs and foreign aid.
Economic Time Bomb: US Teens are Among the Worst at Math
June Kronholz summarizes the OECD’s Program for International Student Assessment, which finds that:
The percentage of top-achieving math students in the nation is about half that of other industrialized countries, and the gap between scores of whites and minority groups — who will make up an increasing share of the labor force in coming decades — is enormous.
Here’s the report. Slashdot discussion.
Norm Brodsky on Employee Retention
Norm Brodsky offers up some useful tips on employee retention in his article: “Pennies from Heaven”.
iPod photo
I’m giving the latest iPod photo a try. This mp3 player also includes the ability to store and display photos (including the optional storage of the large, original image files – which makes it a handy backup device). It also will playback slideshows through your TV, along with music.
I also have the first iPod (5GB). It’s rather amazing to think that the latest ipod is a bit smaller, yet holds 12X the music and/or photos. So far, I’ve been quite impressed with it (I’ve dropped it a few times, including on a tradmill). It just works 🙂
More on Oscar Meyer for Sale?
Michael Arndt wrote about Kraft’s possible sale of Oscar Meyer several weeks ago. Avrum Lank keeps the thread going this morning.
iPods and personal mixes cut into radio time
iPods, personal mixes and to a lesser degree satellite radio are evidently cutting into traditional radio listeners time tuned in. I actually think that most radio stations have become ad vehicles rather than creative outlets. For example, I used to listen to 105.5 (triple m in Madison) rather frequently. However, the past two years, I listen to our fine student station 91.7, WSUM and my iPod. 105.5 has no shortage of commercials and a reasonably predictable playlist (they do offer up new music periodically).
The best station, hands down is Fordhams WFUV, available via mp3 stream.
Michael Booth says that Denver stations are trying to change…..
Fine Photography Holiday (Christmas, Hanukkah) Cards
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Palm Press publishes a very attractive set of Holiday Greeting Cards.
Carolyn Said takes a look at the greeting card business.
Advertising: Things are changing
Lots of data around to show that all organizations must consider where and how they spend their marketing and advertising dollars:
- Online Shoppers say size does not matter as most are just as willing to buy from a small online retailer as a large firm according to Carole Matthews.
Circulation dropping is a blog dedicated to the recent newspaper circulation scandals. Newsday (one of the papers involved) summarizes the story here.
- Rick Edmonds: Ignoring the Elephant in Newspaperland; Effective circulation losses are 50 percent worse than we have been told.
Interesting Aerial Photos
Take a look at these gorgeous aerial photos – shot by remote controlled airplanes.
Property Tax Bills: Reading the Tea Leaves?
Perhaps my mind fails me, but in years past, I recall receiving a pleasant marketing letter from the Mayor extolling the hard work that went into limiting the annual increases in our property tax bills. This year, I found only the bill. I’ve emailed the Mayor’s office asking for comments on this.
Perhaps, given the size of this year’s increases, they did not want to be that closely identified with the tax bills? (OTOH, eliminating the letter does save a few dollars).