Monthly Archives: June 2011

Seven Problems a Recovery Won’t Fix – Umair Haque – Harvard Business Review

It’s time to stop looking for “recovery” (as in ways to resurrect this drooling zombie of an industrial economy) and start seeding transformation (as in building a 21st century economy, that turns most or all of the toxic dynamics above upside down). It’s time to stop thinking about getting back to yesterday’s prosperity — and time to start thinking about how to get past it.

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Congress takes aim at 401(k)s | Bankrate.com

The Congressional Joint Committee on Taxation and the Treasury Department’s Office of Tax Analysis conclude that these retirement planning programs will cost the federal government about $600 billion in lost revenue over the next five years.

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Robert Sayegh, Delta Passenger, Kicked Off Plane For Using F-Word – AOL Travel News

Robert Sayegh was flying back from his cousin’s wedding on Sunday on a Delta flight, when, while complaining about a delay, he used the F-word to a fellow passenger and was promptly kicked off the flight.

If this is the new criteria, I will never be able to fly again – Ed.

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Weekly Economic Update | LAEDC

THIS WEEK’S HEADLINES:

Holy Crap! | parkerruss

Troll Fail: Righthaven Smacked Down Again | Electronic Frontier Foundation

You may remember that we withdrew a number of popular articles from ‘Dispatches’ because of these rat bastards right here. They shook down independent blogs like this one on infringement claims. Their story isn’t selling anymore – Ed.

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Watch Your Eaches | Peter Mehit

In the pursuit of multi-million dollar outsourcing contracts, the company I worked for required me to defend my financial projections.  The auditor who usually ran these reviews was one of the kindest, yet toughest, auditors I’ve ever worked with. He’d always start with the same question, ‘What are the eaches?’ He wanted to know how many hours, square feet or cubic yards of something we had to sell to reach a specific revenue or profit goal. This experience taught me that looking at a business in terms of units made or sold provides critical clues about the viability of it.

Many projections and budgets lack any real precision. Typically, a desired revenue number is plucked from the air, or other suitable location, as a starting point. Some ‘standard’ percentage is applied to this number for cost of goods to arrive at gross profit, which then has some ‘standard’ expense number applied to it to determine at operating revenue and so on, all the way to the bottom line. If the profit number isn’t satisfying then lather, rinse, repeat.

This method has two basic problems. First, implies that there is a ‘standard’ anything. The smaller a business is, the more subject it is to variations in revenue, cost and expense. Its prices are constrained by and its costs are generally greater than, larger better capitalized companies. There can also be wide variation in prices paid for labor and materials depending on location, time of year and a company’s financial health.

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