Category Archives: Business/Economics

Business/Economics, International

Argentina warns South Africa: WalMart will destroy your economy

“WalMart does not take ownership of the goods until a product is sold.”-Sofia Scasserra, FAECYS

At a labor conference in South Africa, the Argentine Federation of Commerce and Service Workers ( FAECYS ) warned of allowing WalMart to set up shop.  The warning wasn’t about labor issues, but supply issues.  They claim that since WalMart was allowed to operate in Argentina, the affects on business supply has almost destroyed the business middle class.

In Argentina WalMart operates a “spot sale” deal with its suppliers.  Basically WalMart doesn’t pay anything for the products it stocks, until they sell.  On top of that, WalMart takes three months to pay suppliers.

Another trick WalMart plays; it ships its own products in from China.  First the the products go to Brazil, then Argentina, thus avoiding tariffs.

In the case of home appliances is was discovered that WalMart forced suppliers to sell below their cost, and even give them to WalMart for free.

The result is that Argentine suppliers are going out of business.  And the result of that, is that small manufacturers in Argentina are going out of business as well.

 

Business/Economics, International, U.S.

China gets to open factory in United States

Days after the U.S. and China signed an agreement to promise to work together, a Chinese company announces they will spend $161 million building an aluminum plant in the U.S.

Shandong Nanshan Aluminum company will open an extrusion plant in Lafayette, Indiana.  If there are no complications with the deal, they hope to start building the plant next year.  It could employ 150 people, and produce 40,000 tons of aluminum per year.

Business/Economics, International

If you’re wasting food then you’re part of the cause of Global Food Crisis

Maybe your not old enough to remember when parents in the United States used to tell their kids, “Eat all your food, there’re starving people in China/Africa!”   A new study by the United Nations proves that kind of reasoning correct.

The UN Food and Agriculture Organization released findings of a study on wasting food.  The study found that people, in the more wealthier countries, who buy food they don’t eat are a major contributor to the global food crisis.

People buying food in bulk, or ordering large meals at restaurants, and then they can’t eat it all, have just thrown huge amounts of cash down the toilet.  The UN estimates that 222 million tons of food is just thrown away in the wealthier countries.  That’s almost all the food produced in sub-Saharan Africa!

The United Nations points out that it’s not just food that’s being wasted but the land, water, labor and even investments used to grow the food.

Here’s another point; those people buying huge quantities of food are driving up the prices for food, because they’re increasing demand.   Help bring down the price of food: If you’re not going to eat it, don’t buy it!

 

 

Business/Economics, Idaho, U.S.

Florida cutting unemployment benefits, to benefit corporations. Idaho’s high unemployment rate holds steady

Starting in 2012, Florida will cut back the maximum number of weeks that unemployed people can collect benefits.

This is not to save the state money, but the corporations.  Like Idaho, companies in Florida are the ones who pay into the unemployment system.  Florida lawmakers said by reducing the number of weeks a person can collect benefits, it will reduce the cost to the companies paying into the unemployment plan.

In Idaho, companies actually get a refund at the end of the year, if they don’t have over a specific number of unemployment claims filed against them.  The idea is to encourage companies not to let workers go, but it hasn’t helped reduce Idaho’s high unemployment, which is holding steady at 9.7%.

Business/Economics, International, Opinion

Not only are the rich getting richer in the U.S., but in the U.K.

A study published by The Sunday Times shows that while the average Brit is struggling with a bad economy and government cut backs, the rich in the United Kingdom just get richer.

The Sunday Times “Rich List” says 1,000 of the richest Brits, not only kept their wealth, but actually increased it.  In fact, the number of British billionaires has increased to 73, up from 53 the previous year.

40 of the top billionaires were born in the U.K., but many British billionaires are from other countries.  Lakshi Mittal retains the number one spot, he’s Indian born and got rich in the steel industry.  Russian born Alisher Usmanov is now in the number two spot.  Chinese born Xiuli Hawken is the newest female billionaire, she got rich turning underground bunkers into shopping malls.

Keep in mind that money does not grow on trees, meaning there is not enough to go around for everyone, otherwise it would be valueless.  Knowing that, it should be obvious to people where the money is going.  The rich can only get richer because they are taking as much of the limited money/wealth supply as they can.  There is less for everyone else.

 

Business/Economics, International

Made in Germany hits record high

China is the number one exporter, which country is number two?  Germany.

Germany continues to do well when it comes to exporting its products to other countries.  So well, that it’s hit a record of 98.3 billion Euros (U.S. $140.9 billion) in exports for the month of March: “That was the highest monthly figure recorded for both exports and imports since the collection of foreign trade statistics had started in the Federal Republic of Germany in 1950.”-Destatis, German National Statistics Office