The use of the words “citizen” and “consumer” to many would appear to be synonymous when in actual fact, there are often conflicts between their desires and aspirations that could lead one to believe that these are two different groups of individuals.
2020 has been one of the most polarizing years in recent history. A global pandemic decimated the economy, the murders of Ahmaud Aubrey, Breonna Taylor, and George Floyd sparked a worldwide outcry for social justice, and a contentious presidential election gripped the nation while the world watched. All these events culminated in a complex display of cultural dynamics that influence contemporary consumer attitudes and behavior.
In our 2020 ThinkNow Year-End Report, we examine these events through a multicultural lens to provide actionable insights on key consumer trends to watch heading into 2021.
There are a number of ways to make a lot of money these days. Some are more profitable than others. Some are also more deplorable than others, and need to be stopped.
Inspired by the E. Benjamin Skinner book of the same title. Find out more at http://acrimesomonstrous.com/
2020 has been one of the most polarizing years in recent history. A global pandemic decimated the economy, the murders of Ahmaud Aubrey, Breonna Taylor, and George Floyd sparked a worldwide outcry for social justice, and a contentious presidential election gripped the nation while the world watched. All these events culminated in a complex display of cultural dynamics that influence contemporary consumer attitudes and behavior.
In our 2020 ThinkNow Year-End Report, we examine these events through a multicultural lens to provide actionable insights on key consumer trends to watch heading into 2021.
There are a number of ways to make a lot of money these days. Some are more profitable than others. Some are also more deplorable than others, and need to be stopped.
Inspired by the E. Benjamin Skinner book of the same title. Find out more at http://acrimesomonstrous.com/
Understanding Consumers and Cross-Border E-Commerce in MexicoFiroz Patel
Today, the largest e-commerce market in Latin America is Brazil, but when it comes to long-term potential for cross-border merchants, Mexico is the market to watch. Though cross-border commerce is low compared to Brazil, Mexico’s e-commerce market is growing at a rate of over 21%, nearly double the global average.
Warren Buffet on newspapers - 2012 report excerptScott Anderson
Warren Buffet's discussion about why he's investing in newspapers. From his just-releaser letter to Berkshire Hathaway investors about 2012 performance.
Paper written by owner of Guilty Custom addressing the motorcycle industry and lack of diversity and women in the market place. Is not addressing riders but management and company level.
This Blue Paper discusses going beyond traditional demographic segmentation to better understand the behaviors, buying patterns and desires of consumers.
Retail in Canada is at a crossroad, with the promises and challenges of digital being the next step forward. Digital should be looked at as a tool to grow Canada’s retail ecosystem, particularly at the local level, but equally as a threat to the very survival of local retail if not properly harnessed. This white paper focuses on the local digital retail nexus that exists across Canada and explores how the “cities as warehouses” concept may provide some needed answers to the digital gaps in Canada’s retail sector.
Created in Adobe InDesign, this press kit encourages potential sponsors to partner with CARE Oklahoma while also exposing their own brand to leaders in the long-term care profession
David F. Larcker, Stephen A. Miles, Brian Tayan, and Kim Wright-Violich
Stanford Closer Look Series, November 8, 2018
CEO activism—the practice of CEOs taking public positions on environmental, social, and political issues not directly related to their business—has become a hotly debated topic in corporate governance. To better understand the implications of CEO activism, we examine its prevalence, the range of advocacy positions taken by CEOs, and the public’s reaction to activism.
We ask:
• How widespread is CEO activism?
• How well do boards understand the advocacy positions of their CEOs?
• Are boards involved in decisions to take public stances on controversial issues, or do they leave these to the discretion of the CEO?
• How should boards measure the costs and benefits of CEO activism?
• How accurately can internal and external constituents distinguish between positions taken proactively and reactively by a CEO?
If Apple had joined the DJIA earlier than March 2015, it would not have impacted DOW very much. Its positive impact would have started being felt after January 2011 but the impact would not have been great. Apple is not the top performing component in DJIA. Goldman Sachs is the top performing one for the past one year (to March 2014). The other top performing stocks are 3M, IBM and Boeing. Apple comes 5th.
Understanding Consumers and Cross-Border E-Commerce in MexicoFiroz Patel
Today, the largest e-commerce market in Latin America is Brazil, but when it comes to long-term potential for cross-border merchants, Mexico is the market to watch. Though cross-border commerce is low compared to Brazil, Mexico’s e-commerce market is growing at a rate of over 21%, nearly double the global average.
Warren Buffet on newspapers - 2012 report excerptScott Anderson
Warren Buffet's discussion about why he's investing in newspapers. From his just-releaser letter to Berkshire Hathaway investors about 2012 performance.
Paper written by owner of Guilty Custom addressing the motorcycle industry and lack of diversity and women in the market place. Is not addressing riders but management and company level.
This Blue Paper discusses going beyond traditional demographic segmentation to better understand the behaviors, buying patterns and desires of consumers.
Retail in Canada is at a crossroad, with the promises and challenges of digital being the next step forward. Digital should be looked at as a tool to grow Canada’s retail ecosystem, particularly at the local level, but equally as a threat to the very survival of local retail if not properly harnessed. This white paper focuses on the local digital retail nexus that exists across Canada and explores how the “cities as warehouses” concept may provide some needed answers to the digital gaps in Canada’s retail sector.
Created in Adobe InDesign, this press kit encourages potential sponsors to partner with CARE Oklahoma while also exposing their own brand to leaders in the long-term care profession
David F. Larcker, Stephen A. Miles, Brian Tayan, and Kim Wright-Violich
Stanford Closer Look Series, November 8, 2018
CEO activism—the practice of CEOs taking public positions on environmental, social, and political issues not directly related to their business—has become a hotly debated topic in corporate governance. To better understand the implications of CEO activism, we examine its prevalence, the range of advocacy positions taken by CEOs, and the public’s reaction to activism.
We ask:
• How widespread is CEO activism?
• How well do boards understand the advocacy positions of their CEOs?
• Are boards involved in decisions to take public stances on controversial issues, or do they leave these to the discretion of the CEO?
• How should boards measure the costs and benefits of CEO activism?
• How accurately can internal and external constituents distinguish between positions taken proactively and reactively by a CEO?
If Apple had joined the DJIA earlier than March 2015, it would not have impacted DOW very much. Its positive impact would have started being felt after January 2011 but the impact would not have been great. Apple is not the top performing component in DJIA. Goldman Sachs is the top performing one for the past one year (to March 2014). The other top performing stocks are 3M, IBM and Boeing. Apple comes 5th.
Inventory in business defined as “an economic figure that tracks the dollar amount of inventories held by retailers, wholesalers and manufacturers across the nation. Business inventories are essentially the amount of all products available to sell to other businesses and/or the end consumer. When tracked alongside a sales index, production activity in the near term can be predicted.
I took much of this article from a Reuters news feed and began thinking. In the world today we are forced into global thinking, despite many countries or people wanting isolationism. It won’t happen.
In simple terms...
PPR = The relationship between TOTAL Payroll Cost vs. Gross Profit
Your largest Cost after COGS (Cost of Goods Sold)...Is always Payroll Cost
T h e O n e Pe rc e ntTHE 1 PERCENT’S PROBLEMWhy won’t.docxperryk1
T h e O n e Pe rc e nt
THE 1 PERCENT’S PROBLEM
Why won’t America’s 1 percent—such as the six Walmart heirs, whose wealth equals that of
the entire bottom 30 percent—be a bit more . . . selfish? As the widening financial divide
cripples the U.S. economy, even those at the top will pay a steep price.
B Y J O S E P H E . S T I G L I T Z A N D L I N D A J . B I L M E S
I L L U S T R AT I O N S B Y S T E P H E N D O Y L E
MAY 31, 2012 12:00 AM
! " #
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L et’s start by laying down the baseline premise: inequality in America has been wideningfor dec ades. We’re all aware of the fact. Yes, there are some on the right who deny thisreality, but serious analysts across the political spectrum take it for granted. I won’t run
through all the evidence here, except to say that the gap between the 1 percent and the 99 percent
is vast when looked at in terms of annual income, and even vaster when looked at in terms of
wealth—that is, in terms of accumulated capital and other assets. Consider the Walton family: the
six heirs to the Walmart empire possess a combined wealth of some $90 billion, which is
equivalent to the wealth of the entire bottom 30 percent of U.S. society. (Many at the bottom have
zero or negative net worth, especially after the housing debacle.) Warren Buffett put the matter
correctly when he said, “There’s been class warfare going on for the last 20 years and my class has
won.”
So, no: there’s little debate over the basic fact of widening inequality. The debate is over its
meaning. From the right, you sometimes hear the argument made that inequality is basically a
good thing: as the rich increasingly benefit, so does everyone else. This argument is false: while the
rich have been growing richer, most Americans (and not just those at the bottom) have been
unable to maintain their standard of living, let alone to keep pace. A typical full-time male worker
receives the same income today he did a third of a century ago.
From the left, meanwhile, the widening inequality often elicits an appeal for simple justice: why
should so few have so much when so many have so little? It’s not hard to .
Byline BY JOSEPH E. STIGLITZ ILLUSTRATION BY STEPHEN DOYLEOF TH.docxRAHUL126667
Byline: BY JOSEPH E. STIGLITZ ILLUSTRATION BY STEPHEN DOYLE
OF THE 1%, BY THE 1%, FOR THE 1%
Americans have been watching protests against oppressive regimes that concentrate massive wealth in the hands of an elite few. Yet in our own democracy, 1 percent of the people take nearly a quarter of the nation's income-an inequality even the wealthy will come to regret
It's no use pretending that what has obviously happened has not in fact happened. The upper 1 percent of Americans are now taking in nearly a quarter of the nation's income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous12 percent in the last quarter-century alone. All the growth in recent decadesand morehas gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.
Economists long ago tried to justify the vast inequalities that seemed so troubling in the mid-19th centuryinequalities that are but a pale shadow of what we are seeing in America today. The justification they came up with was called "marginal-productivity theory." In a nutshell, this theory associated higher incomes with higher productivity and a greater contribution to society. It is a theory that has always been cherished by the rich. Evidence for its validity, however, remains thin. The corporate executives who helped bring on the recession of the past three yearswhose contribution to our society, and to their own companies, has been massively negativewent on to receive large bonuses. In some cases, companies were so embarrassed about calling such rewards "performance bonuses" that they felt compelled to change the name to "retention bonuses" (even if the only thing being retained was bad performance). Those who have contributed great positive innovations to our society, from the pioneers of genetic understanding to the pioneers of the Information Age, have received a pittance compared with those responsible for the financial innovations that brought our global economy to the brink of ruin.
Some people look at income inequality and shrug their shoulders. So ...
p a r t1Introduction toRetailingC h a p t e r 1P.docxalfred4lewis58146
p a r t
1
Introduction to
Retailing
C h a p t e r 1
Perspectives on Retailing
C h a p t e r 2
Retail Strategic Planning
and Operations Management
Perspectives on Retailing
OVERVIEW:
In this chapter, we acquaint you with the nature and scope of retailing.
We present retailing as a major economic force in the United States and
as a significant area for career opportunities. Finally, we introduce the
approach to be used throughout this text as you study and learn about
the operation of retail firms.
LEARNING OBJECTIVES:
After reading this chapter, you should be able to:
1. Explain what retailing is and why it is undergoing so much change
today.
2. Describe the five methods used to categorize retailers.
3. Understand what is involved in a retail career and be able to list the
prerequisites necessary for success in retailing.
4. Explain the different methods for the study and practice of retailing.
What Is Retailing, and Why Is It Undergoing So Much
Change Today?LO 1
What is retailing, and
why is it undergoing so
much change today?
It is easy to take for granted the impact retailing has on our economy and lifestyle.
The full importance of this statement was recently pointed out to one of the authors
when his niece, after working in New York City and Atlanta, made a career move to a
town of 15,000 in the upper Midwest. While the town had a regular Walmart (not a
Supercenter), she was now 41 miles from a Target and Walmart Supercenter and
almost three hours from a major department store. While she now spent less time in
stores, she was frustrated by the lack of selections. As a result, her overall spending
declined. This situation illustrates the impact retailing has on the economic pros-
perity of any nation as well as the lifestyle of individuals. History has shown that the
nations that have benefited from the greatest economic and social progress have
been those with a strong retail sector.1 After all, it is retailing that is responsible for
matching the individual demands of the consumer with vast quantities of supplies
produced by a huge range of manufacturers and service providers.
Retailing’s contribution to a nation’s economic growth can be further pointed
out by these two examples. First, in 2006, the Nobel Peace Prize was given to
Bangladesh economist Muhammad Yunus and the Grameen Bank, a microretail
bank which he founded decades earlier. The prize committee recognized the
importance of financing the business aspirations of ‘‘millions of small people’’ with
c h a p t e r
1
loans as little as $20 to help some of the world’s most impoverished people start
businesses so that they could work to bring about their own development by
establishing small retail outlets that helped build the retailing sector of the
economy.
The second example can be found by looking at the impact of the world’s
largest retailer, Walmart, on the U.S. economy. One business writer suggested
tongue in cheek that Walmart, which was founded in Arkan.
“THE END OF THE AGE OF ENTITLEMENT”
ADDRESS TO THE INSTITUTE OF ECONOMIC AFFAIRS LONDON 17 APRIL 2012
JOE HOCKEY MP
THE END OF THE AGE OF ENTITLEMENT
INSTITUTE of ECONOMIC AFFAIRS
LONDON
In life and business, false influences regularly overtake realism and diminish innovation and curiosity. And nowhere is that more prevalent than in today's foodservice equipment and supplies industry.
A Strategic Financial Response
In 2015 or 2014 or 2020 to “win” at the market one needs to be strategic about how they do it. There are many ways this can be done. One can be Modern Portfolio Theory (MPT).
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Francesca Gottschalk - How can education support child empowerment.pptx
The citizen vs the consumer
1. The Citizen vs. The Consumer
www.theevansgroupllc.com
Chip Evans, Ph.D., Sola Lamikanra, Ph.D., Joy Marshall and Dziko Thunde, MBA
2. The Citizen vs. The Consumer
The use of the words “citizen” and “consumer” to many would appear to be synonymous when in actual
fact, there are often conflicts between their desires and aspirations that could lead one to believe that
these are two different groups of individuals. For example, the citizen wants the best health care, very
high wages and minimal control of our economic system by the elite rich and corporations. Their
actions suggest the desire for a system that generates less profit for business and improved "fair
trade” that is linked to the "cost of living". The Consumer, the other side of the citizen, wants to buy
everything at the lowest price, eat as much as they can, and shop for bargains. Many of the citizens are
outraged that firms like Wal-Mart or fast food restaurants appear to pay less than a livable wage. At the
same time consumers demand the lowest prices and expect the corporation or franchisee of a
restaurant to absorb the higher labor cost. As the citizen and consumer are the same person we create
conflict in our own thinking and in what we communicate about ourselves. This is the schizophrenia of
how the U.S. deals with business today.
Since the 2008 massive worldwide economic crash, moods have changed. Most citizens did not know
what actually caused the economic crash. They have had to rely on false and/or incomplete information
about why it happened. Bank improprieties for example are blamed for the loose mortgage financing
that was further fueled by government institutions worldwide such as Freddie Mac, etc. helping to push
loans through for citizens with inadequate abilities to finance mortgages. At the same time the stock
market in the U.S. was in the “Wild West” state of non-regulation, stock trading, cash derivative bets
and options trading that were at all time highs. The Citizen subsequently learnt about the vast
corruption within the financial sector, the improprieties involved with the housing market, government
supported mortgages and the impending burst of the massive bubble.
The citizen was caught off guard by the consequent economic crisis and naturally blamed others for
everything that went wrong. Citizens believed they had nothing to do with the ensuing crisis, forgetting
their role every step of the way, including contributions through the votes they cast in support for the
acts that occurred. When the citizen or consumer is “the prey” they believe fully that they have no
responsibility for acts against them. In reality, they voted for and supported each financial step until
the bubble burst. It was easier for the citizen to place guilt solely on the corrupt rich or greedy financial
sector with no responsibility ascribed to the combined citizen/consumer.
The year 2008 was a trigger year when businesses, who are also employers of the citizen/consumer,
became the “evil rich”. The citizen also became outraged at huge CEO pay levels, bonuses and profits.
Five years earlier citizens worldwide wanted greater business profits, participated in purchasing goods
and services that they could not afford, hunted for bargains and pretended that they were rich
themselves. For example, the 50 year old white woman driving her $80,000 4 Wheel Drive Range Rover
meant for scaling the deserts on suburban Florida streets to the grocery store to buy bottled water
became the norm. This was not even considered the black comedy of greed itself that it was. Sadly, the
Ford F150 truck still sells better than other vehicles in the U.S, while in reality few people buying a truck
in the U.S use one as a truck. The citizen here becomes the consumer out of desire, not utilitarian need.
With the lower gas prices that we now have, SUV and big truck sales have gone up. How quickly we
forget about fossil fuel and the environment when we want to drive the big trucks. On the one hand
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
1
3. The Citizen vs. The Consumer
citizens want clean air, and renewable energy. The consumer on the side of us is out buying big trucks
and SUV’s as soon as gas prices go down. Interest in fuel-efficient cars wane when pump prices aren’t
part of the consumer equation when buying a new car1. We want what we want, when we want it, and
we only review what we did after we’ve done it.
Even now, as some believe that our consciousness is changing with increased awareness of
sustainability, climate extremes and controlled capitalism, the group labeled as “greedy and rich”
continues to maintain full authority and is getting more powerful. No meaningful laws are being passed
to reverse this progression, and the citizen argues within himself, the consumer. The Citizen and
Consumer are the cause and effect. As income inequality worsens, globalization has concentrated
wealth among corporate executives, Wall Street traders, popular entertainers and other financial elite.
At the same time, factory workers now compete with 3 billion people in China, India, Eastern Europe
and elsewhere who were not working for multinational corporations 20 years ago. 2The citizen sees
outsourcing of manufacturing and services by corporations as greedy. In reality the consumer by
wanting low priced goods and services forced the citizen out of high paying jobs. The consumer’s
obsession with low prices has for the first time put corporations to new challenges of how to maintain
profits and dividends. Few understood also that much of outsourcing was driven by the consumer’s
unwillingness to work for less. That same consumer expected, however, to purchase at bargain prices.
The citizen owning stock in companies ironically expected good profit and dividend from rich firms to
invest for their retirement. These expectations were decimated by a market crash stimulated by lack of
government regulations. Post 2008, the U.S market followed by global markets, began a gradual trend
upwards with intermittent feelings of fear (of loss), greed (what they did not get) and fear again that
further losses could occur. Gold that was at all time highs subsequently declined as faith in the
economic market returned. Citizens now went back to demanding high returns from their stocks and
consumers want the lowest priced items.
As U.S. wages stagnate, food stamp use has been growing fastest among workers with some college
training.3 A slow economic recovery with high unemployment, stagnant wages and an increasing gap
between low-wage and high-skill jobs all contribute to this trend. The government now spends $80
billion annually on food stamp programs. This is twice the amount spent five years ago. Nearly threequarters (73%) of enrollments in America's major public benefits programs are from working families.
The annual cost of public assistance to families of workers in the fast-food industry alone is about $7
billion4. A new minimum wage only makes sense. 5Most Americans (73% of them including 50% of self
identified Republicans) want the minimum wage to be raised. Big Business, however, wants to fight an
increase and has enlisted allies in Congress to block it. Sen. Elizabeth Warren (D-MA), for example,
deftly dismantled the notion by some business owners that a wage hike may force businesses to fire
workers, citing as an example that it would only cost McDonalds four cents more per meal to provide a
$10.10 minimum wage to all of its workers. It is, however, important to note that citizens want higher
1
http://blogs.wsj.com/corporate-intelligence/2014/02/18/with-stable-gas-prices-who-still-cares-about-fuel-economy/
2
http://www.timesdispatch.com/business/ap/wealth-gap-a-guide-to-what-it-is-why-it/article_875e183c-56c8-55f1-80831789457bdac9.html
3
http://www.foxnews.com/politics/2014/01/26/new-face-food-stamps-working-age-americans/
4
Allegretto SA, Doussard M, Graham-Squire D, Jacobs K, Thompson D, and Thompson J. Fast Food, Poverty Wages: The Public
Cost of Low-Wage Jobs in the Fast-Food Industry. Berkeley, CA. UC Berkeley Center for Labor Research and Education, October
2013
5
http://boldprogressives.org/2013/03/watch-elizabeth-warren-bat-down-right-wing-talking-points-about-the-minimum-wage/
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
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4. The Citizen vs. The Consumer
wages for themselves with little regard for our immigrant and migrant workers who get paid slave
wages, yet work twice as hard on an incentive based piece price model. The migrant worker spending 12
hours picking blueberries is paid slave labor, and few citizens will do such work. Yet, the same citizens
expect $15.00 wage scales in cities with higher costs of living for workers that perform jobs that often
require less than 5 working skills and 8th grade literacy level.
Recent events demand that we understand what “cost of living” is to the extent that municipalities now
want to determine and enforce their subjective minimum wages with no oversight, regulation or
forethought. They do not assess the reality of what a business would have to do to stay competitive for
the consumer in their argument of “fair employment wages”. Rule-makers now proliferate
municipalities enacting tax laws that will reduce business profit and subsidize their own
mismanagement and errors. Citizens are appalled by what they see being unfair to the poor. Again, the
consumer (also the citizen) creates this very cause and effect. Wal-Mart, for example, is currently
fighting the District of Columbia 6 over similar laws. The retail giant has suffered same-store sales
declines in the U.S. over the past few years (for the first quarter of 2013, the decline was at 1.4%). WalMart is claiming that it is being unfairly singled out among other retailers in D.C. by creating an
unlevelled playing field, especially with two of their largest grocery competitors. Wal-Mart claims that
its slim profit margins (3.6% for fiscal year 2012) bind its ability to simply absorb costs associated with a
boost in wages. The retailer would be forced to increase prices, thus weakening what is arguably its
strongest competitive advantage and would hurt the lower income consumers that benefit from WalMart's low prices. Best Buy’s earnings also recently dropped by 37.5% and their market share was
adversely affected by online sales. This trend if it continues will ultimately result in huge jobs losses and
migration of the employees from the Wal-Marts and Best Buys to the Amazon distribution centers.
These centers hire considerably less workers than retail stores, primarily leveraging third party shippers
and modeled to reduce work force. The municipality would have lost the large volume stores. The
smaller retailer will also have to pay higher wages and pass on the increased cost of doing business to
the consumer. Wal-Mart, for example, as of February 2014 is eliminating 2300 workers at its Sam’s Club
division as it reduces the ranks of middle managers in a bid to be more nimble. Sam’s Club represents
12% of Wal-Mart’s net sales of $466.1 billion that generated $56.4 billion in 2013. The cuts come as
Sam’s Club strives to compete with Costco, and Amazon’s Prime membership service. They also follow
layoffs from Macy’s, Penney’s and Target. The layoff of 116,000 employees that represents 2% of its
U.S. workers is the largest since 2010 when 10,000 workers were laid off as the company moved to
outsource food demonstrations at its stores. About half of these cuts are aimed at salaried assistant
managers, and hourly workers. There is no logic or rational for government and municipal governments
to enact laws that “reduce margins” and ensure that there are no “undue profits” under the guise of
protecting the employee, this time at the expense of the stockholder.
Citizens are determined to "help the poor" as they ironically continue to spend billions of dollars on
items such as PlayStation 4, while small business owners are being coerced or forced into paying
much higher wages. Businesses are effectively being taxed in new ways to help people earn “cost of
living”. Cost of living based wages will fail miserably as companies will only pass the cost of the "morality
laws" on to the consumer. The citizen for example believes that McDonald's defines the wages its
franchisees pay while in reality, the franchisee does. Meal prices will have to increase by 35% or more
to cover $15.00 an hour workers. The consumer, however, wants the lowest price. With this scenario,
the consequence of the citizen’s municipality driven wages only hurts small businesses. The
municipality in numerous ways can raise small business taxes. In reality many more small businesses
6
http://management.fortune.cnn.com/2013/07/18/walmart-wages/
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
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5. The Citizen vs. The Consumer
will fail or simply locate outside municipalities that create "anti-business laws". The frightening new
trend around this is that the U.S. citizen wants more rules and laws that would legislate
“morality”. Interestingly, this is the same U.S. citizen that cannot control its own members of Congress
and has allowed the Affordable Care Act health plan to become no more than "how to trick the
American to be against it", when 11 months ago 72% supported it. Also, are these the same citizens
that legalized marijuana use in Colorado with record cash sales because banks are unable to accept
money generated from a marijuana business? An important factor in this argument is the value of work
skills in relation to compensation. Does someone that works with 4 skills, reads to the 8th grade level at
best truly deserve $31,200.00 a year? Can a company truly afford to pay this, keep prices down, and
keep revenues up for its stockholders? The citizens want strong stock earnings for their retirement.
With jobs needed, it is bewildering that a lower skilled worker could be rewarded by government
mandate, or a municipal regulation. Do municipalities have the moral right to raise taxes without a vote
of citizens, or input the business community? Are we going to allow local, municipal, county, state and
federal taxation on businesses? We are setting a dangerous precedence if we cannot support our
businesses and allow bankrupt municipalities to force wage increases. Businesses on the other hand
need to provide incentives and reward for employees that show initiative, are self-motivated and
productive, and proactively provide opportunities for employees to develop new skills that will mutually
benefit them and the company.
The conventional belief is that while worker productivity and associated profit by businesses have
increased significantly since the 1970s worker compensation has stagnated. This is sometimes used as
the basis to justify a minimum wage increase. In arguing for the need for increased minimum wage,
liberals point out that productivity in the economy grew by 80.4% between 1973 and 2011 with most of
the growth occurring in the late 1990s, growth in median employee compensation was 10.7% over the
same period of time. They argue that reestablishing the link between productivity and pay, as was the
case before 1970 is essential for shared prosperity7. Some conservatives in their argument against
minimum wage increase question the assertion that compensation has not increased with productivity.
They indicate that analysts adjust for inflation using Implicit Price Deflator (IPD) unlike the Consumer
Price Index (CPI) used in adjusting wages and compensation. Additionally, they indicate that with
comparable adjustment for inflation and inclusion of total compensation (health insurance, retirement,
others), employee compensation closely follows productivity. Data often presented with these
adjustments, however, still show significantly lower net-income and median income that they ascribe to
skill-biased technological changes8. There is also a real possibility that we may also be under accounting
for hours worked, which would mean that employees are putting more hours than is been accounted for
and productivity lower than currently estimated.
Minimum wage should not be determined based on what citizens consider being unfair profit by
companies. It should be a fair minimum employee compensation rate for their contributions to
business. A thriving business has the duty to provide employees decent labor standards and support
the overall socio-economic health of the community. Businesses should also strive to be self-sustaining.
A system where three-quarters of enrollments in public benefits programs are working families, costing
tax payers billions of dollars, is a broken one that needs to be fixed. This, in effect, is taxpayer subsidy
for cost that should be borne by the business. The reduced amount of tax-payers funds going towards
7
Lawrence Mishel, “The Wedges Between Productivity and Median Compensation Growth,” Economic Policy Institute Issue
Brief No. 330, April 26, 2012.
8
James Sherk, “Productivity and Compensation: Growing Together” Backgrounder, No 2825, July 17, 2013, The Heritage
Foundation
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
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6. The Citizen vs. The Consumer
public assistance that will occur with increased minimum wage could be diverted to help develop skills
such as in providing subsides for higher and vocational education. The national minimum wage debate
is, however, totally different from that which empowers municipalities and local governments to
arbitrarily and unilaterally set minimum wages.
An integral part of the employee compensation debate outside the minimum wage discussion is that
when you pay employees more productivity increases. The theory is based on a premise that wages
deliberately set above their equilibrium level will increase worker productivity, hence the name
“efficiency-wage theory”. Some of the points raised in support of this approach are that it will reduce
worker turnover and increase quality of the workers that a company chooses to hire. Additionally,
better-paid workers take better care of themselves and healthier employees are usually more
productive. They also exert more effort and hence are more productive9. This is just another case of the
citizen and consumer effort to drive the cause and effect. There is no evidence to support these claims.
To fact check this, we looked at a number of companies in biotechnology, a sector that has had a leading
record-breaking bull run for U.S. stocks. A comparison of five companies trading on NASDAQ with
comparable size within this sector, two (United Therapeutics [UTHR], and Acorda Therapeutics [ACOR])
of which were identified as companies paying among the highest wages of all companies in America10
and three others (Halozyme Therapeutics [HALO], Cubist Pharmaceuticals [CBST] and Bio Marin
Pharmaceuticals [BMRN], showed no performance advantage over a period of five years as a result of
higher “efficiency wage” to employee (see chart).
Comparison of stock performance of five biotechnology companies (ACOR, UTHR, CBST, HALO and BMRN) over a period
of five years11.
9
http://economics.about.com/od/factor-markets/a/The-Efficiency-Wage-Theory.htm
10
11
http://www.bloomberg.com/visual-data/best-and-worst/most-profitable-employees-companies
www.nasdaq.com/symbol/ndaq/stock-comparison
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
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7. The Citizen vs. The Consumer
A recent study concluded that in 42% of the companies, the employees who do the worst job are the
ones who feel the most “engaged.” At the same time, the middle and high performers in those firms feel
disconnected from their jobs and not very motivated to come to work every day12. Also, more than a
third of US companies are so dysfunctional, the best people don’t really care about what they are doing
and the worst people do not know that they are doing a lousy job. Should people who don’t really care,
and are doing a lousy job be paid more money?
The market is at all-time high worldwide in spite of each doomsayer and our massive debt. The U.S.,
economy is strengthening and being supported by quantitative easing with increases for business and a
strong market. Outsourcing remains higher for jobs that require better skills than for lower end labor.
We have fewer higher-level jobs as the citizen, the owner and stockholder has outsourced all
technology. The rate at which North Americans learn new skills or even new languages continues to be
sluggish at best. Unless more citizens learn to innovate, the consumer will drive the market and our
consumption will be of product and service that uses the lower waged employee. Customer service will
continue to be poor or eliminated altogether. We have lost the war on poverty, the war on drugs, the
war for better education, and allowed a “freeze on society” to take place in the U.S. Congress. Jobs are
going to continue to be harder to come by, especially the low skilled kind as technology trends indicate
that the newly dominant information companies are not job producers. Wikipedia, for example, with
only 150 employees arguably subdued the giant Encyclopedia Britannica that dominated the global
information business for about 245 years. In 1955 General Motors employed nearly 600,000 people.
Today, in a much larger economy, Google employs fewer than 50,000; eBay employs only 20,000 in the
U.S. and Facebook employs fewer than 6,000. 13 The numbers for Apple, Microsoft, and Amazon, which
each employ between 80,000 and 100,000 worldwide are better, but very small compared with General
Electric or Ford. By one calculation the development of the IPod created less than 14,000 U.S jobs.
Meanwhile, Americans work harder and are quipped with devices that allow them continue to work
even when off duty at home, commuting, or on vacation.
To help us understand that we are the problem and that business may not necessarily be the “bad guy”,
lets take a look at the definition of Schizophrenia. Schizophrenia is a long-term mental disorder of a
type involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty
perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into
fantasy and delusion, and a sense of mental fragmentation. This should by now be sounding familiar.
For a possible solution we have to give considerable thought to revamping our educational system.
According to the latest government data, tuition paid at public colleges in 2012 was $62.6 billion. This is
less than what the government currently spends to subsidize the cost of college through grants, tax
breaks, and work-study funds, which is about $69 billion. An additional $107.4 billion is spent on
student loans. Thus, it is conceivable that money presently being spent by the government to make
college affordable could instead be used to subsidize public college tuition, thereby making it free for all
students. This would not only mean that anyone could attend a higher education institution without
worrying about cost, it could incentivize private colleges to reduce their costs in order to compete with
the free option.14 The consequent elevation of the overall skill of the U.S. work force would logically
12
13
14
http://www.forbes.com/sites/susanadams/2013/04/02/in-42-of-companies-the-best-workers-are-the-least-engaged/
Jeff Madrick, Harper’s Magazine
http://thinkprogress.org/education/2014/01/12/3151391/cost-public-college-free/
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
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8. The Citizen vs. The Consumer
lead to increased innovation and productivity, which will in turn drive up wages and even job creation.
The resulting increased job opportunities will cause a shift in the number of individuals looking for
minimum wage jobs as they take up more technical jobs or start new companies. Minimum wage jobs
will then open up for the less skilled entry-level workforce as they were first intended. These will mainly
be individuals in high school trying to pay for their first car or earning their way through college, or
vocational type institutions.
Moving away from entitlement pay to incentive based programs is another way to deal with arguments
over minimum wage and cost of living increases for low skilled jobs. If businesses make more as a result
of increased productivity and improved customer service they are better able to increase investment in
innovation and job creation that will ultimately fuel the economy. Incentive based programs would
appear to be a better alternative to passing regulations that further tax businesses and create hardships
that citizens and consumers will all share.
Citizens & Consumers are part of the problem if not the main cause of the problems. These issues affect
everyone, yet we want to act in a manner that only suits our individual and immediate wants that are
many times no more than our selfish aspirations. We then complain about the fallout and push our
lawmakers to regulate and blame businesses for our desires and extreme waste as consumers.
Chip Evans, Ph.D. et. al.
www.theevansgroupllc.com
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