Category: Business

Carts and horses!

“Don’t chase the money! Chase personal development and let the money chase you!”

This was the parting shot that came to my mind a couple of years ago, at the end of delivering a one week training course to a group of new graduates.

In general, my approach to training is less well suited to people at their stage than it is to people who are motivated by the need to get a job done. However, that is, of course, my “problem”.

Nevertheless, at the end of that particular course, I felt the need to pass on something from my years of supposed experience, however irrelevant that experience might seem to a group of young, newly minted, investment banking people.

Cause and effect

Although I do not remember the source of the quote, it seemed quite apt. I liked the way in which the opening exhortation seemed completely opposed to their motivation. That woke them up! Then the second part gave them a different entry point and restored the connection with that original motivation.

Perhaps the strongest aspect of the quote is, of course, that it attempts to clarify the direction of causation between money and personal development.

It seemed neat at the time, and it still does!

By John Lewis

A view of England – from France.

A work trip to Brittany, France and a chance to reflect on the differences.

I’m sat writing this in my hotel room on the outskirts of Quimper in Brittany. Usual overcast and drizzle but considering I’m only a couple of hundred miles south of home, that’s the only similarity with the Devon weather.

Quimper
Quimper

They simply seem to have no comprehension about the recession. There are small signs of some new office building being empty but more buildings seem to have appeared and business appears to be booming. The super market where I have lunch is even busier than last year and the shops are full of people buying things.

What’s the difference?

I’m sure my friend Chris [Chris Snuggs, another author on this Blog] who I used to work for here will be able to say, but I can’t believe it’s all about the main business of food and agriculture, which predominates in this part of the country.

Back home in Devon, the same set of circumstance ought to hold true as it’s mainly agriculture and tourism, just like in Brittany.  However there is a vibrancy in Quimper that I find refreshing.  And a lack of charity shops!

What can we learn from this?

I was bought up in an environment that did not trust the French and it wasn’t until I got an opportunity to work here 10 years ago I realised that it wasn’t all that I’d been told.

I really like Brittany and its people who are friendly and very welcoming. There is definitely something to learn from this.

By Jon Lavin

Integrity vs Entertainment

It’s a funny old world …

Recently I was asked to run a detail lasting 4 hours in an Airbus simulator, for a film crew coming from Australia.

I was told by the training office that this was just operating the instructor panel on the simulator to help them get the information they needed regarding certain situations that would be explained in a television documentary to be aired on a Sunday evening weekly program.

A320 simulator 'cockpit'.
A320 simulator 'cockpit'.

Apparently the various people involved had visited Airbus, and were due to return to Australia for interviews with some of the major airlines operating Airbus aircraft.

I soon gathered that the likely scenario was to be the loss of instrumentation and automation as experienced by an A380 crew recently, and what might have been the case with the A330 lost over the Atlantic.

Read more about this Post

Cash for Clunkers program a failure

The law of unintended consequences

It should come as no surprise to anyone that U.S. car companies are slumping once again.  The Cash for Clunkers program was a wasteful, inefficient publicity stunt or, worse, an actual attempt by the US Federal Government to stimulate the economy.  The worse part is that the program cost the economy jobs: many healthy, profitable dealerships had their company taken away from them by government edict under this program, never to return.  It’s almost criminal.

By Sherry Jarrell

Remarkable people: Guy Watson

Down to earth integrity!

GUY-WATSONBrought up on a farm, working as a management consultant and returning to farming, Guy Watson brought something from outside and applied it to a “field” in which he had a passion.

After starting an organic farming business from nothing, and after many trials and tribulations, he latched onto distribution by delivering food boxes directly to customers. The business grew until he was personally delivering boxes weekly to 800 customers; nowadays the business serves 40,000 customers weekly through a network of co-operating growers and franchised distributors and has revenues over £30 million ($45m) per year.

Read more about Guy Watson

A tax is a tax is a ….COST !

The role of taxes.

We’ve talked a lot about taxes as revenue to the Government and the inefficiency of government spending on this Learning from Dogs, but a far more important issue is the impact of taxes on the costs and output of businesses.

Any imposed cost to business is a “tax,” whether it’s called that or not.  And any tax is an additional cost to that business, which lowers its output, reduces employment, and raises prices of goods and services to you and me.

Read more about taxes

The Plain Truth about Government Spending

Core differences about how society spends that really need to be understood.

Government spending is fundamentally a different animal than private spending!

Private spending is the essence of the freedom of choice.  When you mull over the decision to purchase an item, you are making a very personal decision based on your current income or resources, the prices of the other goods and services you currently purchase or may purchase, and your personal tastes, risk preferences, needs, and wants.

You make so many mental comparisons and tradeoffs when you consider a purchase that they truly cannot be listed.  And then you live with the consequences of your choice, for better or worse.  If bad, you learn.  If good, you enjoy.  And the process repeats itself every time you make a buying or investing decision, updated with new personal, private information on the circumstances, choices, and preferences of the individual.

Read more about spending

Health Care vs. Health Insurance

Being clear about the terms Care and Insurance when it comes to US health.

The issue for the day is the distinction between health CARE and health INSURANCE.

As we all know, they are not the same thing.  But, as we all have noticed, the two are often confused and the distinctions ignored by many, if not most, in the media, Congress, and the White House.

Health Care and Health Insurance are certainly interdependent. But it helps first to separate the two and take each in turn.

Let’s start with health insurance.  And let’s think of it first as just any “insurance,” like a policy on your house or car.

What is insurance?  It’s a contract that you buy to limit your losses if a bad event happens, even though the likelihood of the bad event occurring is usually very low.

Read more about this important issue

Very few really saw this crisis coming; are we still in the dark?

Who really understood the forces of destruction building up in the global economy?

(This Post is longer than usual but doesn’t lend itself to being divided into multiple Posts – trust it is worth the read.)

Part One – How investing in the 80s was so hit and miss.

My education with respect to the sound management of one’s wealth came from a propitious mistake by a global insurance company, one of Britain’s largest insurance companies as it happens.  Here’s the story.

Read the rest of this Post

Another one of the few who saw the crisis coming.

Steve Keen – Associate Professor of Economics & Finance at the University of Western Sydney.

I know didly squat about economics.  I know a lot about the effect of economics in the sense of government policies, of inflation and debt, international trade and much more only in how they have impacted me over a lifetime of working, buying homes, raising a family, running a couple of businesses and now contemplating retirement.  I can sum up my personal strategy – LUCK!  I have been lucky.  The other Post out today shows an example of that luck.

Frankly, economists haven’t figured widely in my role call of people that I admired, probably because I don’t really understand what they are talking about.  (That’s why this Blog has a real live economist as part of the team, to help educate me and all the rest of the readers who come to this Blog!)

The other Post on this subject spoke of David Kauders, who clearly saw it coming.  Now here’s an economist who also saw it coming, Steve Keen.

Read more about Steve Keen