A venture capitalist is seeking a new road sign: a combination of the stop and yield signs. His reasoning: there are times when no one else is at the intersection and a driver should not have to completely stop. These combination signs would save much time and money and would function best when a minor road intersects a major road. Read about it here (and also get a lesson in when stop and yield signs were developed in America).
Category Archives: Business and Economy
Sign here, and here, and here…
You probably don’t thoroughly read contracts you are asked to sign (or click through). But lest you think that lawyers read through things they are asked to sign in everyday life, Above the Law is reporting that even the legendary Judge Richard Posner [bio] didn’t read his home equity loan contract, much to the amusement of the audience at the panel where he made his confession.
I suppose Posner should be grateful that his bank didn’t take his soul as part of the deal? (Don’t laugh–it happened to 7,500 customers of a British computer game retailer earlier this year.)
As amusing as such stories may be from a news perspective, they clearly raise troubling questions about the sacrosanct role of contracts within our society.
Starbucks to expand far beyond coffee
Starbucks, one of the best symbols of globalization through the spread of its stores and its use of the international coffee commodity chain, is looking to branch out. At about a dozen stores around the world, Starbucks has been testing the sale of wine, beer, and more food. These stores have been informally named “Olive Way.”
This comes in face of competition from retailers like McDonald’s and also in the interest of expanding Starbuck’s reach to customers beyond 11 AM.
From foreclosed homes to islands for sale
From this Guardian UK article discussing Greece’s efforts to lease or sell island property to help fill its national coffers, I clicked through to this website: Private Islands Online. Even with a weak economy, why not pick up a 12.5 acre island in the Florida Keys for $17 million? Or how about a 3 acre island in the St. Joseph River in Michigan, just an hour or so from Chicago?
And for those who are a little worried about their budgets, don’t worry: there are some beautiful islands for rent.
From minivan to “Man Van”
Perhaps the Toyota Sienna is not the only minivan men love (at least according to its commercials). According to the Wall Street Journal, Chrysler will be rolling out a “man van” version of the Grand Caravan in the coming months. The slightly different styling and interior will cater to men:
“A man van won’t generate huge sales, but it’s one of those vehicles that gets people talking and heads turning,” said one dealer. “We need that now. I mean if it gets one guy to give the minivan a second look, its worth it.”…
Chrysler’s man van may help overcome the stigma surrounding the minivan in the eyes of many men. With its focus on cup holders, sliding doors and a ho-hum driving experience, the minivan has an image as a boxy vehicle of convenience, driven by mothers to get the kids to soccer practice or pick up groceries.
The article seems to suggest this is more of a marketing ploy of anything else; the company is unlikely to sell a larger number of these to men but it could get people talking. And isn’t that most of the battle these days with products?
How to succeed in business without really trying
Forget the 1961 Broadway play. According to the July/August 2010 issue of the Atlantic, all you have to do is be white and be willing to go to China.
Oh, and to check your ethical qualms at the door.
“It’s like they took my essence, bottled it, and poured it all over the car.”
This line comes from one of the Toyota Sienna commercials featuring a family that truly does see itself reflected in their minivan. A number of the advertisements are quite humorous – but this single line would sum up the advertising pitch for many consumer products: “this product reflects your truest and best self.”
Enjoy.
Tax credit over, new home sales drop 33%
The sales of certain large-ticket items, such as new homes or new cars, are often reported on in the media as indicators of the strength of a consumer-based economy. So this probably is not a good sign:
New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it’s the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.
The tax credits, $8,000 for a first-time homeowner or $6,500 for a current homeowner, expired April 30.
On the whole, we have come a long way from the housing-sale crazed days of the first half of the 2000s.
Chicago vs. Wal-Mart: outcome still in doubt
A news story today from the Chicago Tribune detailing Wal-Mart’s latest offer to build a store in Chicago (it currently has 0 within city limits). Some of the players in the long saga:
1. Wal-Mart. Its latest offer is starting all workers at $8.75 an hour, $0.50 above current minimum wage standards in Chicago. Has been exploring several sites on the South Side for years.
2. Unions. Don’t want Wal-Mart as the company does not allow its workers to unionize. Worried about lower wages.
3. The City. Has primarily been against Wal-Mart because of the wage issue.
4. Those who want cheaper and/or accessible groceries. Several of the neighborhoods Wal-Mart has looked at might be considered “food deserts” (neighborhoods where relatively cheap, nutritious food is not available). Many other companies are not willing to move in while Wal-Mart has expressed interest.
There might be a path to resolution soon – several aldermen now seem willing to support the stories in their wards. This may be particularly timely as Wal-Mart says it would add 12,000 jobs to the city for the next five years if they could build where they want.
Stay tuned.
UPDATE 6/23/10 at 11:10 PM
From the Chicago Tribune: Mayor Daley of Chicago makes “an emotional pitch” for Wal-Mart, Wal-Mart releases a list of benefits for the community, and demonstrators who support Wal-Mart add the vuvuzela to their arsenal.
#1 manufacturing nation: soon to be China
Maybe this is a foregone conclusion to many, but this Financial Times article suggests 2011 is the year when China will exceed the manufacturing of the United States.
This would end a 110 year period when the US led world manufacturing. This “American Century” (plus 10 years) contained an impressive display of produced items: steel, early cars, to household appliances, to military weapons, airplanes, personal computers, and more.
Even with a global shift to an “information economy,” many countries would give a lot to have more manufacturing jobs. Manufacturing is not just about raw goods: it involves local communities who then contain factories and working classes. Places like Detroit are infamous for going from economic powerhouses to empty cities within four decades. Other cities, like New York and Chicago, have made the shift from manufacturing to other sectors, primarily finance, insurance, and real estate (FIRE), within the same four decades.
From the article:
“Last year, the US created 19.9 per cent of world manufacturing output, compared with 18.6 per cent for China, with the US staying ahead despite a steep fall in factory production due to the global recession.
That the US is still top comes as a surprise, since in 2008 – before the slump of the past two years took hold – IHS predicted it would lose pole position in 2009.”
Interestingly, the return for China to the top adds to China’s long manufacturing edge before the modern era. Perhaps the “American Century” was just a blip on the screen of history:
“If China does become the world’s biggest manufacturer, it will be a return to the top slot for a nation which – according to economic historians – was the world’s leading country for goods production for more than 1,500 years up until the 1850s, when Britain took over for a brief spell, mainly due to the impetus of the industrial revolution.”
Legally Sociable 