Economic Perspectives with Hopeton Hay on KAZI 88.7 FM in Austin, TX

Archive for January, 2010

Listen to Interview with Jeffrey Richard on History of Urban League & Status of Austin Area Urban League

Posted by Hopeton on January 31, 2010

Listen to the interview by clicking here: Jeffrey Richard Interview

Austin Area Urban League president Jeffrey Richard discussed the history of the National Urban League on a special Black History Month edition of Economic Perspectives on February 1 on KAZI 88.7 FM. The Urban League was founded in New York in1910 to help improve the social and economic conditions of southern African Americans that had moved north to seek better employment opportunities.

Jeffrey Richard

Richards also discussed the program initiatives of the Austin Area Urban League for 2010.  The Austin Urban League, which was founded in 1977, is one of more than 102 affiliates of the National Urban League, whose mission is to assist African Americans and disadvantaged persons to achieve economic and social equality.

Richards has been president of the Austin Area Urban League since 2005. Prior to joining the Urban League, he was vice president of education for the Greater Austin Chamber of Commerce, where he studied policy and monitored outcomes in K-12 academic achievement and success.  He has more than 15 years of consulting experience and has conducted performance improvement and technology consulting projects for school districts, local governments, and state agencies.

Richard holds a B.S. in Political Science and Economics from Texas Christian University, and a Master’s degree in Urban Economic Development from the John F. Kennedy School of Government at Harvard University.

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Building a Financial Future Focus of KAZI Book Review January 31

Posted by Hopeton on January 29, 2010

Charles Farrell, author of Your Financial Ratios: 8 Essential Tools for Financial Success and Security, is the Sunday,  January 31 guest on KAZI Book Review 4, 12;30 p.m. – 1 p.m. central time on KAZI 88.7 FM.  You can listen live online at kazifm.org.

What You Will Find In This Book

IF YOU ARE IN YOUR 20s OR 30s
Your Money Ratios will tell you how to get started and what you need to do over the next 35 years to stay on track.

IF YOU ARE IN YOUR 40s
You can benchmark your own financial circumstances against the ratios and see how you are doing with respect to your savings, debt, investments and insurance. You have plenty of time to make adjustments if necessary and plot out your path to retirement.

IF YOU ARE IN YOUR 50s
The formula will provide you with a realistic assessment of your ability to retire. It will help you make the important decisions about how to allocate your financial resources over the next 10 to 15 years, and how to put on the final push for retirement.

Farrell is an investment adviser with Northstar Investment Advisors, which has more than $300 million assets under management. His column, “Retirement Roadmap,” appears on the CBS Moneywatch site, and his research is frequently cited in The Wall Street Journal, Smart Money, the Chicago Tribune, and many other consumer and professional media outlets.

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Strategies for Competing in Today’s “Transparent Economy” Focus of January 24 KAZI Book Review

Posted by Hopeton on January 23, 2010

Mia de Kuijper, author of Profit Power Economics: A New Competitive Strategy for Creating Sustainable Wealth, will be the guest on the January 24 edition of KAZI Book Review on KAZI 88.7 FM, 12:30 p.m. – 1 p.m. central standard time.  Listen to the interview live online at http://www.live365.com/stations/kazifm?site=pro&play.

In her book de Kuijker writes that one of the bedrocks of economics is the “efficient market theory” that posits  that abundant information should help markets become more efficient so that supply and demand will be in perfect balance, prices will be set at the right levels, and extraordinary profit will no longer be possible. That day of perfect information has come thanks to the Internet and all other contemporary advances in connectivity, but she argues that transparency is reshaping patterns of market behavior that will not lead to efficiency, but will enable extraordinary profit and predictability.

A new “transparent economy” has begun with a new set of rules and vast implications for business argues de Kuijper,  a Harvard trained economist, strategist and seasoned executive, in Profit Power Economics.

Why? Because transparency dramatically accelerates the human instinct to consume and invest in herds, and herd mentality does not operate by efficiency, “the wisdom of crowds” or “tipping points” but instead attracts active, interdependent consumers to hubs that operate under different predictable “powerlaws.” It’s imperative that businesses, analysts, and investors  understand these new market dynamics to identify tomorrow’s “profit power” pattern and reshape their competitive strategy and business model in response.

To succeed in the “transparent” economy ushered in by the Internet, businesses  will need to:

•   Establish dominance over business partners who are at once allies and competitors. For example, Estee Lauder’s profit margins are being squeezed not from other cosmetics competitors, but due to price pressure from large chains like Macy’s, their leading distributor. Being best is not enough.

•    Prepare for competition  from new unlikely sources outside their industry.  For example, Google is now faced with competition from Microsoft with its Bing search engine.

•   Redesign their business models. Owning and producing almost everything that goes into your product worked for companies like General Motors in yesterday’s economy. Instead, the business model for the 21st century will be focused companies that work with others to maximize profit for all participants. They won’t be cooperatives but fierce competitors held together by power (Pepsi and bottlers). These relationships will replace what we think of as industries or companies today.

•   Navigate inefficient markets and novel dynamics to attract demand and manage risk.

Economist Mia de Kuijper is CEO of strategy advisory firm de Kuijper Global Partners, and a Dean of the Duisenberg School of Finance, Amsterdam. She has held senior positions on Wall Street as well as at Royal Dutch/Shell, AT&T, and PepsiCo.

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Impact of Expansion of Digital Connectivity Rescheduled to February 22 Economic Perspectives

Posted by Hopeton on January 16, 2010

“…the inevitable expansion of digital connectivity to all of us and the things we care about will beat out the Internet and any other technology experience we’ve lived through.  Its impact will dwarf those changes just in any single dimension alone,” writes Emily Nagle Green in her new book Anywhere: How Global Connectivity Is Revolutionizing the Way We Do Business.  Green will be the February 22 guest on Economic Perspectives on KAZI 88.7 FM, 5:30 p.m. – 6 p.m. central time.  You can listen to the interview live online at www.kazifm.org.

Green writes that the devices linked to the global network will expand far beyond computers and phones.  It will include “cameras and picture frames, cars and crates, pumps and pill bottles:  literally anything that can benefit from being able to exchange information of any kind with any other item or person in the world.”

Emily Green

Green is is president and CEO of Yankee Group, a global technology research company. Throughout her career as a technology engineer, marketer and researcher, and through her writing and speaking engagements, Emily has become a widely respected thought leader on the impact of connectivity on networks, enterprises and consumers. Emily earned a B.S.L. cum laude in linguistics from Georgetown University and an M.S.E. in artificial intelligence and computer graphics from University of Pennsylvania’s Moore School of Engineering. She currently serves as vice-chair of Massachusetts Innovation & Technology Exchange (MITX), the U.S.’s largest Internet advocacy council.

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African American Unemployment Reaches Highest Rate in 25 Years

Posted by Hopeton on January 10, 2010

African American unemployment increased to 16.2 percent in December 2009, its highest rate since July of 1984 according to the monthly Employment Situation report from the U.S. Bureau of Labor Statistics.  The number of African American unemployed increased by 86,000 from November to 2,843,000.  Since the recession began in December of 2007, the number of unemployed African Americans has grown nearly 1.1 million.

The data reveals the growth in unemployment among African Americans was driven by an  increase in unemployed for African American females.  An examination of the unemployment figures by gender reveals that unemployment for African Americans males decreased to 18.2 percent in December from 18.7 percent in November.  Despite the decline, the November and December unemployment rates for African American males are the highest since September of 1983 when it hit 19.5 percent.  African American female unemployment increased to 14.3 percent in December, a significant increase of the November unemployment rate of 12.8 percent.

Even with the rapid in African American female unemployment in 2009, the recession continues to disproportionately impact African American male unemployment.  At the beginning of the recession in December of 2007, African American female unemployment was 8.1 percent while African American male unemployment was 9.9 percent, only 1.8 percentage points higher.  As of December 2009, African American male unemployment is 3.9 percentage points higher than African American female unemployment.

Report Analyzes 2008 Unemployment by Race and Ethnicity

A recent report by the Bureau of Labor Statistics, Labor Force Characteristics by Race and Ethnicity, 2008,  acknowledges the labor market problems of African Americans and Hispanics were especially acute in 2008. In the overview of the report it is written:

“The labor market difficulties of blacks and Hispanics are associated with many factors, not all of which are measurable. Some of these factors are their lower average levels of schooling; their tendency to be employed in occupations with high levels of unemployment; their greater concentration in the central cities of urban areas, where job opportunities may be relatively limited; and the likelihood that they experience discrimination in the workplace. These and other factors may make it especially difficult for some black and Hispanic workers to find or keep jobs as the overall demand for labor contracts during economic downturns.”

Posted in African American, Economy | Tagged: , , , | 1 Comment »

Access to Capital for Black Firms Focus of Economic Perspectives January 11

Posted by Hopeton on January 9, 2010

Note: If you’d like to be informed when the interview with Alicia Robb is available for download please email hopeton@econpers.com.

Alicia Robb, co-author of the research paper Financial Capital Injections among New Black and White Business Ventures: Evidence from the Kauffman Firm Survey, will be the January 11 guest on Economic Perspectives , 5:30 p.m. – 6 p.m. central time on KAZI 88.7 FM.  Listen to the interview live online at http://www.live365.com/stations/kazifm?site=pro&play

Robb has co-authored numerous papers on access to capital for Black businesses including Access to Financial Capital among U.S. Businesses: The Case of African American Firms, published in the Annals of the American Academy of Political and Social Science in September 2007 and Why Are Black-Owned Businesses Less Successful than White-Owned Businesses: The Role of Families, Inheritances, and Business Human Capital, published in the Journal of Labor Economics in April 2007.

Alicia Robb

Robb, a senior research associate at the University of California at Santa Cruz, co-authored the Financial Capital Injections paper with Robert Fairlie, a professor of economics at the University of California at Santa Cruz ,and David Robinson, a professor of finance at Duke Unversity.

In the paper Robb and her co-authors write:

“We find that black-owned businesses face persistent difficulty in accessing external capital markets. Black-owned businesses rely much more on owner equity than do white-owned businesses indicating that black-owned businesses face more difficulty in raising external capital. Direct evidence on average levels of external capital reveals large racial disparities between blacks and whites.”

Robb is the co-author with Robert Fairlie of the book Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States.   She is also a senior research fellow at the Kauffman Foundation and a senior economist at Beacon Economics.  Formerly, Robb was an economist for the Federal Reserve Board of Governors and the Office of Economic Research at the U.S. Small Business Administration.

She completed her Ph.D. in economics from the University of North Carolina in 2000 with the dissertation The Role of Race, Gender, and Discrimination in Business Survival.”

Posted in African American, Banking, Books, Business, Interview, minority business, Predatory Lending, Radio | Tagged: , , , , , | Leave a Comment »

New Book Examines History of Financial Crises Globally

Posted by Hopeton on January 4, 2010

“The financial sector had been liberalized within the preceding 5 years” in 18 of 26 banking crises after 1970 studied by Kaminsky and  Reinhart write economic professors Carmen Reinhart and Kenneth Rogoff in their new book This Time Is Different: Eight Centuries of Financial Folly.

In this book Reinhart and Rogoff look not only at our current financial crises, but they look at the history of financial crises of 66 nations going back to medieval times.  Not surprisingly Reinhart and Rogoff find that excessive debt, a booming economy, lax regulation, and overconfidence in the financial sector often precedes a financial crisis, but our policymakers and financial executives seemed to have thought those history lessons did not apply to the U.S.

I’m hoping to interview Reinhart either on Economic Perspectives or KAZI Book Review sometime in January.

Reinhart is a professor of economics at the University of Maryland and Rogoff is a professor of public policy and economics at Harvard University.

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Pioneering Entrepreneur Gary Hoover January 4 Guest on Economic Perspectives

Posted by Hopeton on January 3, 2010

Gary Hoover, Entrepreneur-In-Residence at the Herb Kelleher Center for Entrepreneurship at the McCombs School of Business at The University of Texas will be the January 4 guest on Economic Perspectives on KAZI 88.7 FM., 5:30 p.m. – 6 p.m. You can listen live online at http://www.live365.com/stations/kazifm?site=pro&playfounder.

At the age of 30, Hoover created pioneering book superstore BOOKSTOP, which helped change the nature of book shopping in America. BOOKSTOP also won kudos for its preservation and restoration of historic buildings such as old movie theatres. This company was sold to Barnes & Noble for $41.5 million cash when it was 7 years old, and became a cornerstone for their industry-dominating superstore chain, which in 2007 did over $4.5 billion in sales out of 700-plus stores.

After he and his partners sold BOOKSTOP, Gary returned to his first love of understanding businesses, and (in 1990) began a small business information publisher, the Reference Press. This company evolved into Hoover’s, Inc., the world’s largest Internet-based provider of information about enterprises. Hoover’s Online, at http://www.hoovers.com, covers thousands of companies around the world, and includes private, public, and non-profit enterprises. Millions of users from all countries access Hoover’s every day for the site’s easy-to-use and easy-to-read information on enterprises, generating hundreds of millions of page views a year. In July of 1999, Hoover’s went public and in March of 2003, the company was purchased by Dun & Bradstreet for $117 million.

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