Business Archives - Page 2 of 2

The Roaring 2020s

May 19, 2021 by ehesson@pvs.org 1 Comment

Coming out of quarantine, we see the streets filled with people and hints that life is returning back to normal. What does this mean for the economy? Let’s ask Business Editor Jake Sonderman! — Editor-in-Chief Sara Habibipour

By Jake Sonderman, Business Editor

We are entering a new decade as the American people. We are just starting to come out of a deadly pandemic that has killed hundreds of thousands. We have been involved in military conflict around the globe in the previous decade but seem to be moving more towards isolationism with some calling for “America First.” But, on the bright side, consumer demand seems to be rising at a brisk pace and isn’t showing signs of slowing down. Only, the year isn’t 2021; it’s 1921!

Warren G. Harding campaign poster - Warren G. Harding Collection - — President Warren G. Harding, 1921-23

The 1920s are a well known period of economic growth and consumerism. They saw the introduction of technologies like the radio, combustion engine, and refrigerator. America had just come out of the Spanish flu, which killed 675,000 Americans (there were 100 million Americans at the time) (biospace.com). The decade was also a period of isolationism and tariffs. Presidents and Representatives campaigned on the idea of “America First.” Congress enacted the Fordney-McCumber Act, which raised tariffs to 40% pretty much across the board (britannica.com). The Hawley-Smoot tariff was enacted just as the Great Depression hit, raising tariffs by another 20%, making a bad problem worse (Britannica). By today’s standards, this would be considered a “trade war” with Europe.

Some of this might sound familiar. We are again exiting out of a world-wide pandemic that has killed hundreds of thousands in America. Markets are reaching record highs monthly and consumer demand for things like cars and houses is through the roof. Under Trump, we entered a trade war with China, raising tariffs to nearly 20% for $350 billion in goods (cnn.com). That’s not quite the same as the 1920s tariffs, but we are certainly moving in that direction as Biden does not seem to oppose the tariffs (cnn.com).

But, what about consumerism in the next decade? Will we truly, again, enter into a new Roaring 20s?? Well, short-term, it would seem like “Yes.” Median predicted GDP growth for the year is 4.7% (Bloomberg). We are seeing innovations in electric vehicles, renewable energy, machine learning, artificial intelligence, and more. But, long-term economic growth rivaling that of the 1920s is not likely. Breakthroughs in information technology and biotech simply do not rival the innovation of the combustion engine and widespread electricity (Bloomberg). Robert Gordon, economics professor at Northwestern University, is a proponent of the idea that “there is no chance of sustained decade-long growth that matches the achievement of the 1920s” (Bloomberg). Though we are still the world’s largest economy, we do not have near the production capacity of the 1920s and no tariff or government spending can bring us back.

But, that’s okay! We are not the same economy. We probably won’t see the same decade-long boom the 1920s did, but steady, healthy growth is certainly achievable. So, in short, no, we are not entering the “Roaring 2020s.” But, personally, I think with the innovation happening because of COVID (check out Blogger Erik Bearman’s article for more about that) and confidence from investors in the American economy, we can see a decade of economic prosperity.

Second Editor-in-Chief: Sara Habibipour

Sources:

https://www.biospace.com/article/compare-1918-spanish-influenza-pandemic-versus-covid-19/#:~:text=More%20than%2050%20million%20people,is%20calculated%20at%20about%202%25.

https://www.bloomberg.com/news/features/2021-01-26/roaring-twenties-2020s-will-try-to-roar-like-1920s-after-covid

https://www.britannica.com/topic/Smoot-Hawley-Tariff-Act

https://www.cnn.com/2021/03/24/politics/china-tariffs-biden-policy/index.html

Tax Cuts?

May 14, 2021 by ehesson@pvs.org Leave a Comment

Politics is conflictual by nature, and just one of the many controversial issues that divide the parties is that of tax cuts. The blog’s resident Business Editor and economics buff, Jake Sonderman, offers an analysis of this issue.

By Jake Sonderman, Business Editor

“What we don’t need is more spending, and what we don’t need are taxes, and what we do need is a lot less of both.”
— Ronald Reagan

It is the age old question. Tax more, or tax less? In 2017, under Donald Trump, the Tax Cuts and Jobs Act was passed, and after-tax revenue for the top marginal income tax bracket went up 3% (taxpolicycenter.org). So it would seem that the “tax less” side had won. But, with President Biden in office, it seems inevitable that taxes will go up for some to offset spending in many other areas. There is a lot of criticism on both sides of the aisle on tax policy, with Republicans ripping Biden for proposed tax hikes, and Democrats ripping Trump for tax cuts for the rich. I would like to put a pin in the politics of this issue for a second and discuss whether tax cuts are really productive for an economy and whether they do indeed “pay for” themselves.

Are Tax Cuts Productive?

To start, any tax cut will result in more money in the hands of citizens. For a tax cut or any spending to be effective, it needs to “multiply” or circulate through the economy instead of simply going straight into the bank. So if any tax cut puts more money into the economy, who should get the tax cut to make it the most “productive”? Owen M. Zidar at The National Bureau for Economic Research looked back at history to see which tax cuts are the most effective in states in terms of employment growth. He found that tax cuts for low-income brackets produce substantially more growth than tax cuts for income brackets in the top 10%. Specifically, he found that a 1% tax cut for the bottom 90% of earners resulted in 3.4% employment growth over two years, and that a cut for the top 10% produced 0.2% employment growth over the same period. (nber.org)

Summed up, tax cuts are productive for the economy. But tax cuts for low income brackets produce much more growth than tax cuts for higher brackets.

Do Tax Cuts “Pay For” themselves?

The short answer to this question is “No.” For a tax cut to “pay for” itself, it would need to produce an absurd amount of economic growth. For example, if the government introduced a tax cut that costs $200 billion and brings the income tax rate to 20%, the tax cut would need to produce about $1 trillion in growth. 20% of $1 trillion is $200 billion. This is an oversimplified essence of the idea. The idea that tax cuts produce more revenue for the government is based on the Laffer curve, an idea adopted in the Reagan era. It is based on the idea that if an income tax rate is 100% or 0% the government will receive the same amount of revenue. In the Laffer curve, there is a “sweet spot” where the government produces the most amount of revenue (investopedia.com) (taxpolicycenter.org).

The problem with referring to the Laffer curve in my opinion is that it is often used out of context and used incorrectly. The Laffer curve is often misconstrued to say that somehow lowering tax rates for high income earners and large corporations will result in booming growth that pays for itself entirely. The Laffer curve has to work both ways, meaning that cuts can substantially lower tax revenue if the tax rate goes too low.

Too often politics gets in the way of the facts when it comes to taxes. Too often politicians say “tax cuts” when they mean tax cuts for only high income earners. Tax cuts are an economic tool that can be more effective even than government spending, but they are only sometimes used effectively. Tax cuts for low income earners undoubtedly spur substantial employment growth, and those are, in my opinion, the tax cuts we should be talking about.

First Editor-in-Chief: Elizabeth Shay

Sources:

https://www.taxpolicycenter.org/briefing-book/do-tax-cuts-pay-themselves#:~:text=Cutting%20tax%20rates%20thus%20almost,percent%20of%20the%20tax%20cut.

Click to access w21035.pdf

https://taxfoundation.org/the-distributional-impact-of-the-tax-cuts-and-jobs-act-over-the-next-decade/

https://www.investopedia.com/terms/t/trickledowntheory.asp

Don’t Be a Pest, Help the Planet with Mightynest!

February 5, 2021 by ehesson@pvs.org Leave a Comment

To close out our theme on Up-and-Coming Businesses, Hannah chose to write about a new business that offers green alternatives to common products. She’s looking to our future.

By Hannah Hall

In this day and age, we order so many things from the internet. Monthly subscription services have exploded. For example, there’s IPSY (makeup and beauty), Blue Apron (home dinners), and MyBean (coffee). But, there is one up-and-coming subscription service that caught my eye recently: mightynest.

Mightynest subscriptions offer monthly subscription boxes that include a multitude of earth-friendly products—one per delivery. The company hopes the use of their service encourages you to “[make] changes that are better for you and the planet.” You may be thinking that shipping their products is counterintuitive to the whole green lifestyle they are encouraging, but they claim that their shipments are environmentally conscious and recyclable.

On this website you can actually order any green products you want! The mightynest website has seven main sections that sort all of the products they offer: kitchen, on the go, cleaning, body, wellness, kids, and pets. So I thought that I would pull some of my favorite items from the sections to share what could possibly come in your delivery box!

Stasher

A product to replace disposable plastic bags is the Stasher Assorted 6 Bag Set. It goes for $75.95 and the sizes it comes with are Half-Gallon, Stand-Up Mid, Sandwich and Snack, and two Pocket Stashes. They are dishwasher and freezer safe. I actually use these daily when packing my lunch, which is why they are on my list. They’re essential.

Bee’s Wrap

A product from the site that could replace plastic wrap is Bee’s Wrap, Assorted 3 Pack. The price is $18.99. Bee’s Wrap comes Small, Medium, and Large. With these natural bee’s wax wraps, you can wrap little items, like fruits and cheeses, or cover large items, like leftover lasagna tupperware. It’s all biodegradable.

Hair Care

As an alternative to plastic shampoo and conditioner products, you can use the Solid Shampoo and Conditioner Set, Moisturize by HiBar, which goes for $27.98. The shampoo and conditioner look like bars of soap. These bars are sulfate, paraben, phthalates, and silicone free, and safe for colored hair. All you gotta do is lather the bar in your hands or head, and wash. The reason I recommend this product is because it replaces two 16oz packages of shampoo and conditioner.

Hopefully these few products inspire you to check out mightynest, and join the journey of making your life less harmful to the Earth.

Up-and-Coming Businesses Editor: Jake Sonderman

The Next Tesla!

February 3, 2021 by ehesson@pvs.org Leave a Comment

When prompted to write about up-and-coming businesses, Blogger Evan Spry took his focus global and chose to write about an up-and-coming Chinese electric vehicle company: NIO. Watch out Tesla.

By Evan Spry

Blue Sky Coming

One of the most recognizable names of our contemporary history is Elon Musk. Musk took the world by storm with his groundbreaking technological feats and his popular electric car brand, Tesla. But, what if I told you that Tesla will soon no longer be the only synonym that comes to mind when someone mentions high-quality electric cars? China, the largest automobile market in the world (according to statista.com), constantly is looking for new ways to improve the automobile industry within its borders. Unfortunately, China is also high on the list of most polluted countries in the world, which motivates Chinese manufactures, politicians, and entrepreneurs to find cleaner solutions to automobile emissions. One of these cleaner solutions lies in electric cars.

In November 2014, NIO, a Chinese car manufacturer was created. NIO was founded on the idea of turning the sky blue wherever they went. The company’s Chinese name, Weilai, literally means “Blue Sky Coming.” But, what are they actually doing? And, how do they differentiate themselves from Tesla? Well, since NIO is such a young company, they were able to start with the idea of moving quickly to autonomous vehicles, or self-driving cars. In fact, in 2016, NIO received an “Autonomous Vehicle Testing Permit” from the California DMV and immediately began testing on public roads under the “Autonomous Vehicle Tester Program.”

Battery Swapping

Unlike Tesla, NIO has established a battery swapping station network that stretches over thousands of kilometers of Chinese expressways. This method is much more efficient because battery swapping only takes, on average, five minutes, while filling up your gas tank or recharging your battery takes much longer. Battery swapping has proven effective in China. Globalnewswire.com says, “As of August 2020, NIO has built 143 battery swap stations across 64 cities in China, and completed over 800,000 battery swaps for its customers.”

World Records

Sitting atop Purog Kangri glacier, the NIO ES8 broke a world record for successfully getting to and remaining at 5,715.28 feet above sea level while being in a temperature of -5 degrees Celsius. This would be the highest altitude ever achieved by an electric car. Purog glacier is the third largest glacier in the world, making this also the only time an electric car has ever been there. Unsurprisingly, this is not the only record NIO has broken. In the Nurburgring, a German motorsports complex that hosts events, the NIO EP9 only took 6 mins and 45 secs to run a track of 22 kilometers (13 miles). This was the new lap record and very important for electric automobile development.

Invest!

Not only is this car company blowing its competitors out of the water but its stock shares have also been going through the roof. In 2020, NIO’s stock rose over 1,190%, according to investorplace.com. Currently, each share of stock costs 59.99 USD, and it looks like it’s only going up. Yahoo!Finance surveyed 300 investors, and they concluded that NIO shares would rise to 100 USD by 2022.

In conclusion, NIO is an up-and-coming Chinese company that everybody should know about and keep their eye on. NIO’s ingenuity has caused it to become a big competitor of Tesla’s, and who knows what could happen if they really pick up in the West. Also, if you are an investor or interested in trading stocks, you might want to check out NIO as they are projected to increase their value a lot in the coming future.*

*All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.–Editor Jake

Up-and-Coming Businesses Editor: Jake Sonderman

World record for speed

https://www.nio.com/news/nio-ep9-breaks-nurburgring-nordschleife-lap-record#:~:text=May%2012th%202017%20%E2%80%93%20Munich,vehicle%20with%20our%20NIO%20EP9.

Yahoo Finance https://finance.yahoo.com/news/nios-stock-reach-100-2022-220104889.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANTFmB6a8PTDuSApyNAxsNRzfRh-W9eS2R6XYk_DEUPDR_r1l9PPvaPWIdantO563s8pbl0OjRLvD5snwTHVXDEaYIwTvbesEvtkujilPb19A9nTFz0ObfPd3ahO7xx123if-o-Utyf7KP9JRELUNkdUi0oQxSZBVsXQ5MV2-dPH

World record for height

https://www.nio.com/news/nio-es8-sets-guinness-world-recordstm-title-height-571528-meters#:~:text=At%20the%20height%20of%205715.28%20meters%20and%20a%20temperature%20of,achieved%20in%20an%20electric%20car.&text=The%20slogan%20of%20NIO%20is,can%20realize%20our%20vision%20soon.

ODIN: a DIY Genetic-Engineering Business

February 1, 2021 by ehesson@pvs.org Leave a Comment

Erik has long been interested in genetic engineering. When asked about new businesses, Erik wrote about a company making genetic engineering available to the consumer market. And, he’s pretty excited about it. He’s actually a consumer of the product. Don’t ask what’s going on in his kitchen.

By Erik Bearman

The ODIN was founded by Dr. Josiah Zayner, who got his Ph.D. in Molecular Biophysics at the University of Chicago. Dr. Zayner believes “the future is going to be dominated by genetic engineering and consumer genetic design will be a big part of that. We are making that happen by creating kits and tools that allow anyone to make unique and usable organisms at home or in a lab or anywhere” (https://www.the-odin.com/about-us/ ).

The ODIN website allows you to purchase DIY genetic engineering kits and ship them to your residence. Examples of kits you can order are DIY Bacterial Gene Engineering CRISPR Kit ($169.00), Genetic Design Starter Kit ($49.99), Glowing Jellyfish Bacteria ($29.99), and Frog Genetic Engineering Kit ($1,999.00). The kits come with all the equipment and supplies you need to perform your own at-home experiments. The ODIN even offers online classes to perform these experiments at your own pace. Among the online teachers is the esteemed Dr. George Church, Harvard Medical School’s Professor of Genetics.

The purpose of these experiments is to teach upcoming geneticists how to do basic modification that will be essential in their fields. It also gives average people (even those without a college education) a chance to do great work. For example, David Ishee, a Mississippi dog breeder, wants to use the ODIN’s kits to help him breed dogs quickly while also getting rid of genetic problems that are common in pure breeds.

Although this company is revolutionary, it is not the first time genetic engineering has been introduced into the business world. Look at your supermarket’s produce section for GMOs. And, in the timber industry, geneticists have created trees that produce premium wood at a faster rate: “the timber industry does not have to chop down so many virgin forests…[and] it has more top-quality wood” (https://marketbusinessnews.com/genetic-engineering-definition-meaning/).

The ODIN makes a substantial amount of money, but not many people outside the genetics or biohacking communities have heard of it. However, as genetic engineering slowly approaches the center of our future livelihoods, more people seeking to learn about biology might hear about these accessible DIY experiments. While controversies may abound regarding this work, Zayner’s work gives access of genetic engineering to the people while not limiting the power to big businesses.

Up-and-Coming Business Editor: Jake Sonderman

https://www.the-odin.com/about-us/

https://marketbusinessnews.com/genetic-engineering-definition-meaning/

Shark Tank Rising Stars

February 1, 2021 by ehesson@pvs.org Leave a Comment

Shark Tank businesses are everywhere: DoorBot, Bombas socks, Scrub Daddy, etc. These businesses invade our culture even when the “Sharks” don’t pick them for investment. So, when Editor Jake said, “Tell me about up-and-coming businesses,” Elizabeth thought immediately of the businesses that vie for investments on Shark Tank.

By Elizabeth Shay

Shark Tank, the critically acclaimed, multi-Emmy Award-winning show, has become a go-to for my family over quarantine. The show features a panel of investors called “sharks,” to whom entrepreneurs pitch their products or companies, hoping to secure an investment. Some of the most successful products that have appeared on Shark Tank include the Scrub Daddy sponge, Bombas socks (Investopedia), and the DoorBot–what became the Ring video doorbell! Fun fact, the sharks actually rejected the DoorBot, which was sold to Amazon for $1.1 billion in 2018 (Mental Floss).

Here are three companies and products that have recently been pitched on Shark Tank.

The Chirp Wheel

Founded by Tate Stock when he was pursuing his degree in economics at Brigham Young University, the Chirp Wheel helps relieve back pain without doctors, drugs, or surgery. It stretches, strengthens and releases tension in the muscles surrounding the spine. By relaxing muscles throughout the body, the wheel helps with headaches and neck pain (All Shark Tank Products). Shark Lori Greiner invested $900,000 to be paid back over the course of 18 months, for a 2% stake in the company (Meaww).

SparkCharge

While electric cars are increasing in popularity, what’s stopping many people from converting is something known as “range anxiety.” Charging stations for electric vehicles have become more common, yet they are still few and far between, especially in rural or less populated areas. That’s where SparkCharge comes in. The SparkCharge is a compact, portable electric car charger. This charging rate is actually eight times faster than the standard wireless charging stations. As of right now, SparkCharges are only being sold to roadside assistance providers, but the company hopes to introduce a product for consumer purchase in the near future (All Shark Tank Products). SparkCharge secured a whopping $1,000,000 in funding from Marc Cuban and Lori Greiner, for a 10% stake in the company (split 50-50 between them). The deal also included 2% advisory shares for Cuban and Greiner, and a seat on the company board (Buffalo News).

GarmaGuard

GarmaGuard is a garment and fabric cleanser that eliminates odor molecules. There are other air and fabric fresheners on the market, but these trap odor molecules, temporarily masking them. Such products usually include harsh chemicals that can be irritating or even toxic. GarmaGuard is vegan, cruelty free, biodegradable, and contains no abrasive chemicals (All Shark Tank Products). This product also was tested and proven to kill the COVID-19 virus, but was awaiting official certification. Shockingly, no sharks invested in the company, but I believe that GarmaGuard will be successful and benefit from the publicity that comes from being featured on a popular show.

If you have a product in need of investors–Dog-Poop Cone? Pimple-Popping Toy? Drum Pants?–consider marketing it to Shark Tank.

Sources Referenced:

https://abc.com/shows/shark-tank/about-the-show

https://www.investopedia.com/articles/investing/082415/10-most-successful-products-shark-tank.asp

https://www.mentalfloss.com/article/546955/shark-tank-most-successful-products

https://allsharktankproducts.com/sharktankproducts/season-12-products/

https://meaww.com/shark-tank-chirp-wheel-publicity-daymond-john-lori-greiner-douchebag-deal-money-abc-show-hulu-pitch

https://buffalonews.com/news/local/sparkcharge-secures-1-million-from-shark-tank-investors/article_67e1685e-120f-11eb-b677-3fb4adab1d29.html

Up-and-Coming Businesses Editor: Jake Sonderman

The Coolest Small-Business Restaurants in Palm Springs

January 29, 2021 by ehesson@pvs.org 1 Comment

Within the past few years, Palm Springs has become a small business hotspot, especially for new restaurants. In response to Editor Jake’s prompt, Blogger Sara decided to share, in her opinion, the coolest small business restaurants in her hometown of Palm Springs.

By Sara Habibipour

Kreem Ice Cream + Coffee

170 E Palm Canyon Dr #8822, Palm Springs, CA

If I was given the choice on where to go out for ice cream, my number one choice would be Kreem, a small, in-house creamery a few minutes away from the Ace Hotel. What I like about their ice cream is that it’s refreshing and that they offer vegan coconut-milk based options as well. They rotate their flavors, but some of them include lemon meringue pie, rosemary, ube, and turmeric-ginger. They also serve coffee and soda floats! I think this unique variety of flavors and options–that you can’t get at Ben and Jerry’s or Cold Stone–is what makes Kreem a stand-out destination.

Gabino’s Creperie

170 E Palm Canyon Dr #4, Palm Springs, CA 92264

I’ve never been to Gabino’s Creperie, but it seems to be such an interesting place! It’s a small, family-owned business that serves savory crepes. For example, Chicken Pesto Crepes and BBQ Chicken crepes. It also appears to be next to Kreem, so, hey, get a crepe and go get some ice cream one day. This business seems to appeal to the innovative and aesthetic foods that the younger generation is so interested in nowadays, so I see them becoming more and more popular in the valley.

Aspen Mills

555 S Sunrise Way # 101, Palm Springs, CA 92264

I. LOVE. ASPEN. MILLS.

If you’re ever craving a sandwich, go to this place! All the sandwiches are delicious. If you like tuna go for the Newporter! They also have a bakery, so you can buy fresh bread and baked goods. In addition to being hit by COVID, they actually suffered from a fire and had to renovate their kitchen and restaurant. So, if you’re looking to go support a local business, head to Aspen Mills! All of the Palm Springs locals love it. And, the staff is so kind!

Nature’s Cafe

555 S Sunrise Way UNIT 301, Palm Springs, CA 92264

Are you vegan or vegetarian (or maybe not and you still like that kind of food)? If so, you have to visit Nature’s Cafe. It’s an exclusively vegetarian/vegan cafe and juice bar that serves just about anything you could desire. Veggie burgers, stir fry, protein shakes, blue algae juices…they have it all! I’ve been going there for the past few years, and every time I go there seems to be more and more people! It’s definitely a booming business in Palm Springs that’s worth checking out! It’s also in a vegetarian/vegan health store, so you can pick up groceries while you wait for your food!

Great Shakes

160 S Palm Canyon Dr A, Palm Springs, CA 92262

Last but certainly not least…

Great Shakes.

Pure awesomeness (if you have a sweet tooth, that is).

Located in Downtown Palm Springs, this business has been growing greatly within the past couple years, especially during the summer heat when tourists and locals look for a refresher. They even have tiny signature donuts around the straws!

Up-and-Coming Businesses Editor: Jake Sonderman