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Reconciling Jingoistic Tendencies

Globally, many other countries work faster, longer, more cheaply, and take greater pride in their work than we do.  If we can look beyond our own self-entitled way of thinking, perhaps we can improve our metrics concerning GDP per capita, quality of life, income disparity, and many others.  People used to take so much pride in the goods that were manufactured in the USA, but it seems very short-sighted to still live by that model.  If you are a manufacturer, you need people that can meet deadlines cheaply and reliably.  Toyota is successful here, in part, due to our extraordinarily high labor costs in automotive manufacturing (due in part to unions).  The textile industry invariably favors Southeast Asia because they can manufacture quality goods and ship them overseas more cheaply than we can even produce them.  

These cost-cutting measures and outsourcing are GOOD.  It allows American entrepreneurs to thrive where they would otherwise flounder by keeping production costs low.  It also allows small businesses and corporations to build international relationships and share their product on a global scale simply by exposing the people who create your product to something that isn't often seen abroad.  If all labor was granted to American employees, we would be hindering market equilibrium and trying to control something that's beyond our means.

 We have become a service industry and a country of innovators.  We're the idea people.  We have reached for the next rung of the ladder of the economic hierarchy, and it's strange to hear people crave regression.  We must not get complacent, and we mustn't falsely assert that protectionist measures will liberate us from the shackles of the free market.  

ME-Commerce

Any retail item can be purchased online, often with free shipping or some other incentive that actually makes it the pereferential method of shopping.  Gone are the days of waiting in endless lines behind the person that has to write a check as slowly as he or she possibly can.  Mobile e-commerce has replaced traditional e-commerce…or rather, improved upon it.  

 

You could be strolling down the beach, basking in sunshine while ordering a new grill for Labor Day.  Even GM is rolling out a new application that would allow savvy consumers to trade-in their car, and take delivery or test drive a new car, all without bothering to get dressed in the morning.

 

 I already order all of my take-out online when I used to phone it in.  Further innovation will herald the dawning of a new Kondratiev Cycle that could yield innovations in every single industry on a global scale, and this would represent a huge boom for the logistics industry, with higher levels of import/export and international shipping business.  It would also mean smaller businesses could level the playing field a bit.  For instance, I love the asadero cheese from the Licon Dairy in San Elizario, Texas.  I encourage everyone to find a niche product that you absolutely love, and see if it's available for international shipping.  What an industrious age in which we live!!!

The Highly Controversial Blog That Mentions Syria

Investors are very cautious, more accurately put, they're probably straddling the line between prudent caution and paranoia.  The growing concerns about a multi-national force becoming entangled in a region that has demonstrated continued and unrelenting civil turmoil only serves to further perpetuate the financial instability as it pertains to the S&P 500, and the DOW.  Moreover, as one country goes, so does the rest of the world.

 

In the recent past, Greece was in financial jeopardy and although a relatively insignificant player in the global economy when you consider heavy hitters like the U.S., France, India, Brazil, China, etc…, it had immediate ramifications that resounded across the world due to the interconnectivity of economic interests and Greece's proclivity toward nationalistic pride and threats to break with the Euro.  

 

I would expect AT LEAST that kind of impact on the world market as resources are re-allocated to quell the disturbance in Syria.  These are uncertain times and uncertainty can lead to panic, especially by those who are expected to lead us economically because they tend to protect their own interests first.  So in the best interest of fear-mongering, strap on your kevlar vest, continue to go to work, and just act like nothing is happening because chances are your day-to-day will not change.  

50 Shades Of The Grey Market

Category: Economics,International,Jacksonville Ad Agency • May 9, 2013

A black market is simply illegal.  It could be that the goods themselves are illegal or it could be that the goods are associated with tariffs that the seller does not wish to pay.  Think of the black market as drug and arms trade.  Meanwhile, the GREY market (or parallel market if you prefer) is a market price set by the people and their perceived value of a good.  Let me illustrate by giving an example.  If the going currency exchange for dollars to yen is 1:1 and this rate is recognized by the government and exchanged at this rate at ATM's and banks and so forth, but the value as perceived by the population at-large is higher, your exchange rate could be 2:1, 3:1, or any other combination.  The grey market is far less seedy than the black market as it's kind of like a societal monetary control measure.  

There IS a grey economy which some people will recognize as being paid under the table in cash without having to pay state, local, or federal taxes and various social welfare programs.  This is not what a lot of people would call “illegal” so much as it's frowned upon, and THAT is where the grey part comes in.  There are no clear cut lines as to whether or not something is permissable so it goes on unchecked.  This generally isn't a problem with small sums of money, but if a CEO who made 7 million dollars per annum were to get paid entirely in cash, there would be one more corporate casualty.  

Believe it or not, many foreign economies thrive on the grey economy because they don't have NASDAQ, or the DOW, or the HSI telling them what their product is worth, but leaves it to the consumer.  Think of it like going to a market or bazaar and the price can be negotiated upon, or like a person to person auction.  This can maximize profits, but the price isn't always even across the board, but allows for fluctuation.

One Spark, Endless Opportunities….

Jacksonville could become synonymous with this festival and it could beckon innovators, philanthropists, community organizers, and more for years to come.   If this event is as successful as I anticipate it will be, our One Spark could rival several other festivals simply because of the uniqe crowd-funding opportunity that exists.  Everyone will be vying for a piece of the $250,000 pie, but if that weren't enough, investors like our own Shad Khan have pledged massive amounts of money to innovators and fledgling companies.  One Spark has electrified social media and the entire city has been buzzing about it for months.  It's truly a testament to the power of networking.  I foresee the next festival really upping the ante and bringing even more money to the table and even more international talent to the shores of the First Coast.  I'll see you there, April 17-21 in downtown Jacksonville!  Be One Spark.