Starbucks, charity and U.S. job creation

Starbucks, charity and U.S. job creation

Editor's Note: Edward Alden is a senior fellow at the Council on Foreign Relations, where he writes the blog Renewing America. The following is reprinted with the permission of CFR.org.

By Edward Alden, CFR.org

I am rarely surprised when I go to Starbucks. The coffee is always about the same (good), and the menu of pastry items is thoroughly predictable (and not so good). But the other day, amidst the CDs and other miscellany at checkout, I noticed a small badge asking for a $5 donation. “Let’s Create JOBS forUSA” it implored, offering a snazzy red, white, and blue wristband in return.

I was taken aback.  I have donated to help poor children, to end famines,  to cure and prevent diseases, to help the homeless, to build bike trails, to save wild animals and wild places, and dozens of other causes. But it had never occurred to me to make a charitable contribution to “create JOBS.” Have we as a country really sunk this far? Must we now rely on charity to employ Americans? FULL POST

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Topics: Business • Jobs • United States
Is an MBA worth it for the entrepreneur?
(Courtesy: Dinesh Moorjani)
April 24th, 2012
07:00 PM ET

Is an MBA worth it for the entrepreneur?

Editor’s Note: Dinesh Moorjani is the Founder and CEO of Hatch Labs, a mobile startup incubator creating new platforms and applications to improve mobility for the wireless generation.

By Dinesh Moorjani – Special to CNN

It’s often perceived in the business world that pursuing an MBA degree is analogous to buying career insurance, especially if you attend a top program.

What many aspiring entrepreneurs have found, however is that earning an MBA can actually momentarily slow down an upward career trajectory, considering the degree typically requires a two-year job hiatus at a full-time program.

The real benefit of this advanced degree may be the parachute it serves in times of economic distress.  But for those assessing the risk vs. reward opportunity, the need to consider the likelihood of that parachute opening properly remains paramount.  And perhaps the best indicator of that is how well the parachute is packed, or without the laborious analogy, how talented the individual is and how those talents are channeled toward meaningful professional endeavors. FULL POST

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Topics: Business • Education • Innovation • Technology

Are U.S. multinationals abandoning America?

Editor's Note: Laura Tyson, a former chair of the U.S. President's Council of Economic Advisers, is a professor at the Haas School of Business at the University of California, Berkeley. For more from Rogoff, visit Project Syndicate's excellent new website or follow it on Facebook and Twitter

By Laura Tyson, Project Syndicate

At a recent conference in Washington, DC, former Treasury Secretary Larry Summers said that US policymakers should focus on productive activities that take place in the United States and employ American workers, not on corporations that are legally registered in the US but locate production elsewhere. He cited research by former Labor Secretary Robert Reich, who, more than 20 years ago, warned that as US multinational companies shifted employment and production abroad, their interests were diverging from the country’s economic interests.

It is easy to agree with Summers and Reich that national economic policy should concentrate on US competitiveness, not on the well-being of particular companies. But their sharp distinction between the country’s economic interests and the interests of US multinational companies is misleading. FULL POST

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Topics: Business • Economy • United States
Rogoff: Jeremy Lin and the political economy of superstars
Jeremy Lin of the New York Knicks looks on during a game against the Miami Heat on February 23, 2012. (Getty Images)

Rogoff: Jeremy Lin and the political economy of superstars

Editor's Note: Kenneth Rogoff is Professor of Economics and Public Policy at Harvard University, and was formerly chief economist at the IMF. For more from Rogoff, visit Project Syndicate or follow it on Facebook and Twitter. The views expressed in this article are solely those of Kenneth Rogoff.

By Kenneth RogoffProject Syndicate

The biggest news around Cambridge in recent weeks has been Jeremy Lin, the Harvard economics graduate who has shocked the National Basketball Association by rising overnight from “nowhere” to become a genuine star, leading a losing New York Knicks team to an unlikely string of victories.

Lin’s success is delicious, partly because it contradicts so many cultural prejudices about Asian-American athletes. Flabbergasted experts who overlooked Lin have been saying things like “he just didn’t look the part.” Lin’s obvious integrity and graciousness has won him fans outside the sport as well. The whole world has taken note, with Lin being featured on the cover of Sports Illustrated for two consecutive issues. The NBA, which has been trying to build brand recognition and interest in China, is thrilled. FULL POST

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Topics: Business • Economy • Sports
Alexander Hamilton's manufacturing message
American politician Alexander Hamilton (1757 - 1804). (Getty Images)
December 5th, 2011
12:02 PM ET

Alexander Hamilton's manufacturing message

Editor's Note: Bruce Katz is the vice president and founding director of the Metropolitan Policy Program at the Brookings Institution (follow him on Twitter @bruce_katz). Jessica Lee is a senior policy analyst at the Brookings Metropolitan Policy Program. The views expressed in this article are solely those of Bruce Katz and Jessica Lee.

By Bruce Katz and Jessica Lee - Special to CNN

Two hundred and twenty years ago today, Alexander Hamilton presented his Report on Manufactures to the U.S. House of Representatives. This report, commissioned by Congress almost two years earlier, urged legislators to regard manufacturing as an integral component of the emerging American economy.

In stark contrast to the Jeffersonian vision of an agrarian democracy led by virtuous yeoman farmers, Hamilton envisioned a national economy strengthened through diversification and immigrant talent, with a vibrant manufacturing sector complementing the nation’s already sizable agricultural productivity.

Arguing against those who insisted that the government should “leave industry to itself,” he insisted that deliberate government encouragement was needed to ensure that American manufacturers continued to thrive. FULL POST

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Topics: Business • Economy • United States
Has Occupy Wall Street reined in CEO bonuses? No.
A large gathering of protesters affiliated with the Occupy Wall Street Movement attend a rally in Union Square on November 17, 2011 in New York City. (Getty Images)
November 21st, 2011
10:00 AM ET

Has Occupy Wall Street reined in CEO bonuses? No.

Editor's Note: Alastair Smith is a professor of politics at NYU, and is co-author of The Dictator's Handbook: Why Bad Behavior is Almost Always Good Politics. The views expressed in this article are solely those of Alastair Smith.

By Alastair Smith – Special to CNN

Wall Street executive bonuses are expected to be down by about a quarter this season. After two months of occupying Wall Street, can the 99% take credit for reining in the excesses of corporate America? In a word: No.

Even in the wake of 2008’s financial crisis, bonuses remained “shamefully” robust.  The perceived injustice of executives rewarding themselves while their firms were propped up by the public purse helped create much of the anger that prompted the Occupy Wall Street movement. Even though many companies are expected to cut bonuses this year, Wall Street remains tone deaf to the cries of those outside their offices. FULL POST

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Topics: Business • Occupy Wall Street
November 6th, 2011
05:00 PM ET

Teaching entrepreneurship in inner-city schools

Editor's Note: Rahilla Zafar is working with a team of writers at Arabic Knowledge @ Wharton on a book highlighting female entrepreneurs and leaders in the MENA region. She is also a graduate student at the University of Pennsylvania researching solar and water innovations in developing countries. The views expressed in this article are solely those of Rahilla Zafar.

By Rahilla Zafar – Special to CNN

At 17, inner city high school student Maurice Suggs is attentive and watching him sit through classes, it’s clear he enjoys learning. A student at University City High School in Philadelphia, Suggs is part of a team of a dozen students lead by Wharton Business School Professor Keith Weigelt making history. They are developing a product that currently doesn’t exist, an online business curriculum that will be sold to high schools across the country.

“At school I help put paper in the copier and deliver mail in mailboxes, and imagined myself continuing doing that after I graduated,” says Suggs. His mother is unemployed and his father dropped out of high school and works at a school. After just a few weeks in the course, Suggs now has entrepreneurial ambitions. “Mr. Keith explains good stuff, he talks about products and also tells us how to make money,” says Suggs adding that the class and the opportunity to develop such a product makes him feel happy and inspired. FULL POST

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Topics: Business • Education
November 2nd, 2011
04:14 PM ET

Big business is good for America

Editor's Note: Gary Hufbauer  is Reginald Jones Senior Fellow at the Peterson Institute for International Economics. Martin Vieiro is a research analyst at the Peterson Institute. The views expressed in this article are solely those of the authors.

By Gary Hufbauer and Martin Vieiro, Foreign Affairs

Even though the Occupy Wall Street protests seem incoherent at times, one main theme is clear: anger at big business. On this count, the occupiers are aligned not only with Hollywood portrayals (predating even the 1941 classic Citizen Kane) but also with mainstream Americans. A majority of respondents to a recent Gallup survey said that they believe big business has too much power. The sentiment held across party lines. The reasons seem simple enough. Business leaders often rank in the top one percent of income earners. Meanwhile, unemployment remains over nine percent - and is much higher among minorities and young people - yet corporations are sitting on trillions of dollars in unspent cash.

But this backlash is based on three common misconceptions about major U.S. corporations. The first is that Wall Street and big business are the same thing. When asked separately about "major corporations" and "financial institutions," the same percentage of Americans, 67 percent, agreed that each cluster had too much power. Discontent with Wall Street is understandable. Its practices led to wild lending and the sale of trillions of dollars' worth of toxic assets to unsuspecting investors. When the house of cards crumbled in 2008, the George W. Bush administration was forced to bail out Wall Street. FULL POST

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Topics: Business • Jobs • Protests • United States
Occupy the mortgage lenders
A sign sits in the front yard of a home being offered for sale January 25, 2010 in Pleasant Prairie, Wisconsin. (Getty Images)
October 20th, 2011
01:15 PM ET

Occupy the mortgage lenders

Editor's Note: Simon Johnson, a former chief economist of the IMF, is co-founder of a leading economics blog, BaselineScenario.com, a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics, and co-author, with James Kwak, of 13 Bankers. For more, visit Project Syndicate or follow it on Facebook and Twitter.

By Simon JohnsonProject Syndicate

Participants in the Occupy Wall Street movement are right to argue that the big banks have never properly been investigated for the mortgage origination, aggregation, and securitization behavior that was central to the financial crisis – and to the loss of more than eight million jobs. But, thanks to the efforts of New York’s attorney general, Eric Schneiderman, and others, serious discussion has started in the United States about an out-of court mortgage settlement between state attorney generals and prominent financial-sector firms.

Talks among state officials, the Obama administration, and the banks are currently focused on reported abuses in servicing mortgages, foreclosing on homes, and evicting their residents. But leading banks are also accused of illegal behavior – inducing people to borrow, for example, by deceiving them about the interest rate that would actually be paid, while misrepresenting the resulting mortgage-backed securities to investors.

If these charges are true, the bank executives involved may fear that civil lawsuits would uncover evidence that could be used in criminal prosecutions. In that case, their interest would naturally lie in seeking – as they now are – to keep that evidence from ever seeing the inside of a courtroom. FULL POST

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Topics: Business • Protests
October 13th, 2011
10:30 AM ET

U.S. takes aim at yuan

Editor's Note: Christopher Alessi is an associate staff writer at CFR.org. This is an Analysis Brief, reprinted with the permission of the Council on Foreign Relations.

By Christopher Alessi, CFR.org

The U.S. Senate passed legislation on Tuesday that would tax the goods of countries with "misaligned" currencies (WSJ). The bipartisan measure is meant to target China, a trading partner the United States has routinely criticized for devaluing its currency. China warned that such a move could instigate a trade war (BBC) between the two nations, threatening the global economy.

U.S. officials have argued that by artificially holding down the yuan, China is keeping its exports inexpensive for U.S. consumers, thus undermining the U.S. manufacturing sector. The measure has gained traction because of the perception that China's alleged unfair trade advantage (NYT) is costing U.S. jobs and contributing to an already-bleak employment outlook. FULL POST

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Topics: Business • China • Economy • Politics • Trade • United States
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