Category Archives: Finance

7000 Words About The Dubious Refragmentation Of The Economy

One advantage of being old is that you can see change happen in your lifetime.

A lot of the change I’ve seen is fragmentation. For example, US politics and now Canadian politics are much more polarized than they used to be. Culturally we have ever less common ground and though inclusiveness is preached by the media and the Left, special interest groups and policies have a polarizing effect. The creative class flocks to a handful of happy cities, abandoning the rest. And increasing economic inequality means the spread between rich and poor is growing too. I’d like to propose a hypothesis: that all these trends are instances of the same phenomenon. And moreover, that the cause is not some force that’s pulling us apart, but rather the erosion of forces that had been pushing us together.

Worse still, for those who worry about these trends, the forces that were pushing us together were an anomaly, a one-time combination of circumstances that’s unlikely to be repeated—and indeed, that we would not want to repeat.

Describe How a Mass Culture Developed in America - JeankruwHumphrey

The two forces were war (above all World War II), and the rise of large corporations.

The effects of World War II were both economic and social. Economically, it decreased variation in income. Like all modern armed forces, America’s were socialist economically. From each according to his ability, to each according to his need. More or less. Higher ranking members of the military got more (as higher ranking members of socialist societies always do), but what they got was fixed according to their rank. And the flattening effect wasn’t limited to those under arms, because the US economy was conscripted too. Between 1942 and 1945 all wages were set by the National War Labor Board. Like the military, they defaulted to flatness. And this national standardization of wages was so pervasive that its effects could still be seen years after the war ended. [1]

Business owners weren’t supposed to be making money either.

FDR said “not a single war millionaire” would be permitted. To ensure that, any increase in a company’s profits over prewar levels was taxed at 85%. And when what was left after corporate taxes reached individuals, it was taxed again at a marginal rate of 93%. [2]

Socially too the war tended to decrease variation. Over 16 million men and women from all sorts of different backgrounds were brought together in a way of life that was literally uniform. Service rates for men born in the early 1920s approached 80%. And working toward a common goal, often under stress, brought them still closer together.

Though strictly speaking World War II lasted less than 4 years for the USA, its effects lasted longer and cycled North towards Canada.

Wars make central governments more powerful, and World War II was an extreme case of this. In the US, as in all the other Allied countries, the federal government was slow to give up the new powers it had acquired. Indeed, in some respects the war didn’t end in 1945; the enemy just switched to the Soviet Union. In tax rates, federal power, defense spending, conscription, and nationalism the decades after the war looked more like wartime than prewar peacetime. [3] And the social effects lasted too. The kid pulled into the army from behind a mule team in West Virginia didn’t simply go back to the farm afterward. Something else was waiting for him, something that looked a lot like the army.

If total war was the big political story of the 20th century, the big economic story was the rise of new kind of company. And this too tended to produce both social and economic cohesion. [4]

The 20th century was the century of the big, national corporation. General Electric, General Foods, General Motors. Developments in finance, communications, transportation, and manufacturing enabled a new type of company whose goal was above all scale. Version 1 of this world was low-res: a Duplo world of a few giant companies dominating each big market. [5]

The late 19th and early 20th centuries had been a time of consolidation, led especially by J. P. Morgan. Thousands of companies run by their founders were merged into a couple hundred giant ones run by professional managers. Economies of scale ruled the day. It seemed to people at the time that this was the final state of things. John D. Rockefeller said in 1880

Image result for john d rockefeller

The day of combination is here to stay. Individualism has gone, never to return.

He turned out to be mistaken, but he seemed right for the next hundred years.

The consolidation that began in the late 19th century continued for most of the 20th. By the end of World War II, as Michael Lind writes, “the major sectors of the economy were either organized as government-backed cartels or dominated by a few oligopolistic corporations.”

For consumers this new world meant the same choices everywhere, but only a few of them. When I grew up there were only 2 or 3 of most things, and since they were all aiming at the middle of the market there wasn’t much to differentiate them.

One of the most important instances of this phenomenon was in TV.

Popular culture and daily life of Americans in the 1950s - WWJD

Here there were 3 choices: NBC, CBS, and ABC. Plus public TV for eggheads and communists (jk). The programs the 3 networks offered were indistinguishable. In fact, here there was a triple pressure toward the center. If one show did try something daring, local affiliates in conservative markets would make them stop. Plus since TVs were expensive whole families watched the same shows together, so they had to be suitable for everyone.

And not only did everyone get the same thing, they got it at the same time. It’s difficult to imagine now, but every night tens of millions of families would sit down together in front of their TV set watching the same show, at the same time, as their next door neighbors. What happens now with the Super Bowl used to happen every night. We were literally in sync. [6]

In a way mid-century TV culture was good. The view it gave of the world was like you’d find in a children’s book, and it probably had something of the effect that (parents hope) children’s books have in making people behave better. But, like children’s books, TV was also misleading. Dangerously misleading, for adults. In his autobiography, Robert MacNeil talks of seeing gruesome images that had just come in from Vietnam and thinking, we can’t show these to families while they’re having dinner.

I know how pervasive the common culture was, because I tried to opt out of it, and it was practically impossible to find alternatives.

When I was 13 I realized, more from internal evidence than any outside source, that the ideas we were being fed on TV were crap, and I stopped watching it. [7] But it wasn’t just TV. It seemed like everything around me was crap. The politicians all saying the same things, the consumer brands making almost identical products with different labels stuck on to indicate how prestigious they were meant to be, the balloon-frame houses with fake “colonial” skins, the cars with several feet of gratuitous metal on each end that started to fall apart after a couple years, the “red delicious” apples that were red but only nominally apples. And in retrospect, it was crap. [8]

But when I went looking for alternatives to fill this void, I found practically nothing. There was no Internet then. The only place to look was in the chain bookstore in our local shopping mall. [9] There I found a copy of The Atlantic. I wish I could say it became a gateway into a wider world, but in fact I found it boring and incomprehensible. Like a kid tasting whisky for the first time and pretending to like it, I preserved that magazine as carefully as if it had been a book. I’m sure I still have it somewhere. But though it was evidence that there was, somewhere, a world that wasn’t red delicious, I didn’t find it till college.

It wasn’t just as consumers that the big companies made us similar. They did as employers too. Within companies there were powerful forces pushing people toward a single model of how to look and act. IBM was particularly notorious for this, but they were only a little more extreme than other big companies. And the models of how to look and act varied little between companies. Meaning everyone within this world was expected to seem more or less the same. And not just those in the corporate world, but also everyone who aspired to it—which in the middle of the 20th century meant most people who weren’t already in it. For most of the 20th century, working-class people tried hard to look middle class. You can see it in old photos. Few adults aspired to look dangerous in 1950.

But the rise of national corporations didn’t just compress us culturally. It compressed us economically too, and on both ends.

Along with giant national corporations, we got giant national labor unions. And in the mid 20th century the corporations cut deals with the unions where they paid over market price for labor. Partly because the unions were monopolies. [10] Partly because, as components of oligopolies themselves, the corporations knew they could safely pass the cost on to their customers, because their competitors would have to as well. And partly because in mid-century most of the giant companies were still focused on finding new ways to milk economies of scale. Just as startups rightly pay AWS a premium over the cost of running their own servers so they can focus on growth, many of the big national corporations were willing to pay a premium for labor. [11]

As well as pushing incomes up from the bottom, by overpaying unions, the big companies of the 20th century also pushed incomes down at the top, by underpaying their top management. Economist J. K. Galbraith wrote in 1967 that “There are few corporations in which it would be suggested that executive salaries are at a maximum.” [12]

Speaking Out Meant Standing Alone

To some extent this was an illusion.

Much of the de facto pay of executives never showed up on their income tax returns, because it took the form of perks. The higher the rate of income tax, the more pressure there was to pay employees upstream of it. (In the UK, where taxes were even higher than in the US, companies would even pay their kids’ private school tuitions.) One of the most valuable things the big companies of the mid 20th century gave their employees was job security, and this too didn’t show up in tax returns or income statistics. So the nature of employment in these organizations tended to yield falsely low numbers about economic inequality. But even accounting for that, the big companies paid their best people less than market price. There was no market; the expectation was that you’d work for the same company for decades if not your whole career. [13]

Your work was so illiquid there was little chance of getting market price. But that same illiquidity also encouraged you not to seek it. If the company promised to employ you till you retired and give you a pension afterward, you didn’t want to extract as much from it this year as you could. You needed to take care of the company so it could take care of you. Especially when you’d been working with the same group of people for decades. If you tried to squeeze the company for more money, you were squeezing the organization that was going to take care of them. Plus if you didn’t put the company first you wouldn’t be promoted, and if you couldn’t switch ladders, promotion on this one was the only way up. [14]

To someone who’d spent several formative years in the armed forces, this situation didn’t seem as strange as it does to us now. From their point of view, as big company executives, they were high-ranking officers. They got paid a lot more than privates. They got to have expense account lunches at the best restaurants and fly around on the company’s Gulfstreams. It probably didn’t occur to most of them to ask if they were being paid market price.

The ultimate way to get market price is to work for yourself, by starting your own company. That seems obvious to any ambitious person now. But in the mid 20th century it was an alien concept. Not because starting one’s own company seemed too ambitious, but because it didn’t seem ambitious enough. Even as late as the 1970s, when I grew up, the ambitious plan was to get lots of education at prestigious institutions, and then join some other prestigious institution and work one’s way up the hierarchy. Your prestige was the prestige of the institution you belonged to. People did start their own businesses of course, but educated people rarely did, because in those days there was practically zero concept of starting what we now call a startup: a business that starts small and grows big. That was much harder to do in the mid 20th century. Starting one’s own business meant starting a business that would start small and stay small. Which in those days of big companies often meant scurrying around trying to avoid being trampled by elephants. It was more prestigious to be one of the executive class riding the elephant.

By the 1970s, no one stopped to wonder where the big prestigious companies had come from in the first place.

Famous 1970s Logos: The Best 70s Logo Design Examples

It seemed like they’d always been there, like the chemical elements. And indeed, there was a double wall between ambitious kids in the 20th century and the origins of the big companies. Many of the big companies were roll-ups that didn’t have clear founders. And when they did, the founders didn’t seem like us. Nearly all of them had been uneducated, in the sense of not having been to college. They were what Shakespeare called rude mechanicals. College trained one to be a member of the professional classes. Its graduates didn’t expect to do the sort of grubby menial work that Andrew Carnegie or Henry Ford started out doing. [15]

And in the 20th century there were more and more college graduates. They increased from about 2% of the population in 1900 to about 25% in 2000. In the middle of the century our two big forces intersect, in the form of the GI Bill, which sent 2.2 million World War II veterans to college. Few thought of it in these terms, but the result of making college the canonical path for the ambitious was a world in which it was socially acceptable to work for Henry Ford, but not to be Henry Ford. [16]

I remember this world well. I came of age just as it was starting to break up. In my childhood it was still dominant. Not quite so dominant as it had been. We could see from old TV shows and yearbooks and the way adults acted that people in the 1950s and 60s had been even more conformist than us. The mid-century model was already starting to get old. But that was not how we saw it at the time. We would at most have said that one could be a bit more daring in 1975 than 1965. And indeed, things hadn’t changed much yet.

But change was coming soon.

And when the Duplo economy started to disintegrate, it disintegrated in several different ways at once. Vertically integrated companies literally dis-integrated because it was more efficient to. Incumbents faced new competitors as (a) markets went global and (b) technical innovation started to trump economies of scale, turning size from an asset into a liability. Smaller companies were increasingly able to survive as formerly narrow channels to consumers broadened. Markets themselves started to change faster, as whole new categories of products appeared. And last but not least, the federal government, which had previously smiled upon J. P. Morgan’s world as the natural state of things, began to realize it wasn’t the last word after all.

What J. P. Morgan was to the horizontal axis, Henry Ford was to the vertical. He wanted to do everything himself. The giant plant he built at River Rouge between 1917 and 1928 literally took in iron ore at one end and sent cars out the other. 100,000 people worked there. At the time it seemed the future. But that is not how car companies operate today. Now much of the design and manufacturing happens in a long supply chain, whose products the car companies ultimately assemble and sell. The reason car companies operate this way is that it works better. Each company in the supply chain focuses on what they know best. And they each have to do it well or they can be swapped out for another supplier.

Why didn’t Henry Ford realize that networks of cooperating companies work better than a single big company?

One reason is that supplier networks take a while to evolve. In 1917, doing everything himself seemed to Ford the only way to get the scale he needed. And the second reason is that if you want to solve a problem using a network of cooperating companies, you have to be able to coordinate their efforts, and you can do that much better with computers. Computers reduce the transaction costs that Coase argued are the raison d’etre of corporations. That is a fundamental change.

In the early 20th century, big companies were synonymous with efficiency. In the late 20th century they were synonymous with inefficiency. To some extent this was because the companies themselves had become sclerotic. But it was also because our standards were higher.

It wasn’t just within existing industries that change occurred. The industries themselves changed. It became possible to make lots of new things, and sometimes the existing companies weren’t the ones who did it best.

Microcomputers are a classic example.

Ms Dos 1.25 (1982)(Microsoft) Game

The market was pioneered by upstarts like Apple, Radio Shack and Atari. When it got big enough, IBM decided it was worth paying attention to. At the time IBM completely dominated the computer industry. They assumed that all they had to do, now that this market was ripe, was to reach out and pick it. Most people at the time would have agreed with them. But what happened next illustrated how much more complicated the world had become. IBM did launch a microcomputer. Though quite successful, it did not crush Apple. But even more importantly, IBM itself ended up being supplanted by a supplier coming in from the side—from software, which didn’t even seem to be the same business. IBM’s big mistake was to accept a non-exclusive license for DOS. It must have seemed a safe move at the time. No other computer manufacturer had ever been able to outsell them. What difference did it make if other manufacturers could offer DOS too? The result of that miscalculation was an explosion of inexpensive PC clones. Microsoft now owned the PC standard, and the customer. And the microcomputer business ended up being Apple vs Microsoft.

Basically, Apple bumped IBM and then Microsoft stole its wallet. That sort of thing did not happen to big companies in mid-century. But it was going to happen increasingly often in the future.

Change happened mostly by itself in the computer business. In other industries, legal obstacles had to be removed first. Many of the mid-century oligopolies had been anointed by the federal government with policies (and in wartime, large orders) that kept out competitors. This didn’t seem as dubious to government officials at the time as it sounds to us. They felt a two-party system ensured sufficient competition in politics. It ought to work for business too.

Gradually the government realized that anti-competitive policies were doing more harm than good, and during the Carter administration started to remove them.

The word used for this process was misleadingly narrow: deregulation. What was really happening was de-oligopolization. It happened to one industry after another. Two of the most visible to consumers were air travel and long-distance phone service, which both became dramatically cheaper after deregulation.

Deregulation also contributed to the wave of hostile takeovers in the 1980s. In the old days the only limit on the inefficiency of companies, short of actual bankruptcy, was the inefficiency of their competitors. Now companies had to face absolute rather than relative standards. Any public company that didn’t generate sufficient returns on its assets risked having its management replaced with one that would. Often the new managers did this by breaking companies up into components that were more valuable separately. [17]

Version 1 of the national economy consisted of a few big blocks whose relationships were negotiated in back rooms by a handful of executives, politicians, regulators, and labor leaders. Version 2 was higher resolution: there were more companies, of more different sizes, making more different things, and their relationships changed faster. In this world there were still plenty of back room negotiations, but more was left to market forces. Which further accelerated the fragmentation.

It’s a little misleading to talk of versions when describing a gradual process, but not as misleading as it might seem. There was a lot of change in a few decades, and what we ended up with was qualitatively different. The companies in the S&P 500 in 1958 had been there an average of 61 years. By 2012 that number was 18 years. [18]

The breakup of the Duplo economy happened simultaneously with the spread of computing power. To what extent were computers a precondition? It would take a book to answer that. Obviously the spread of computing power was a precondition for the rise of startups. I suspect it was for most of what happened in finance too. But was it a precondition for globalization or the LBO wave? I don’t know, but I wouldn’t discount the possibility. It may be that the refragmentation was driven by computers in the way the industrial revolution was driven by steam engines. Whether or not computers were a precondition, they have certainly accelerated it.

The new fluidity of companies changed people’s relationships with their employers. Why climb a corporate ladder that might be yanked out from under you? Ambitious people started to think of a career less as climbing a single ladder than as a series of jobs that might be at different companies. More movement (or even potential movement) between companies introduced more competition in salaries. Plus as companies became smaller it became easier to estimate how much an employee contributed to the company’s revenue. Both changes drove salaries toward market price. And since people vary dramatically in productivity, paying market price meant salaries started to diverge.

By no coincidence it was in the early 1980s that the term “yuppie” was coined. That word is not much used now, because the phenomenon it describes is so taken for granted, but at the time it was a label for something novel. Yuppies were young professionals who made lots of money. To someone in their twenties today, this wouldn’t seem worth naming. Why wouldn’t young professionals make lots of money? But until the 1980s being underpaid early in your career was part of what it meant to be a professional. Young professionals were paying their dues, working their way up the ladder. The rewards would come later. What was novel about yuppies was that they wanted market price for the work they were doing now.

The first yuppies did not work for startups.

AM2407 Spark blog: 1980s - The Yuppie

That was still in the future. Nor did they work for big companies. They were professionals working in fields like law, finance, and consulting. But their example rapidly inspired their peers. Once they saw that new BMW 325i, they wanted one too.

Underpaying people at the beginning of their career only works if everyone does it. Once some employer breaks ranks, everyone else has to, or they can’t get good people. And once started this process spreads through the whole economy, because at the beginnings of people’s careers they can easily switch not merely employers but industries.

But not all young professionals benefitted. You had to produce to get paid a lot. It was no coincidence that the first yuppies worked in fields where it was easy to measure that.

More generally, an idea was returning whose name sounds old-fashioned precisely because it was so rare for so long: that you could make your fortune. As in the past there were multiple ways to do it. Some made their fortunes by creating wealth, and others by playing zero-sum games. But once it became possible to make one’s fortune, the ambitious had to decide whether or not to. A physicist who chose physics over Wall Street in 1990 was making a sacrifice that a physicist in 1960 wasn’t.

The idea even flowed back into big companies. CEOs of big companies make more now than they used to, and I think much of the reason is prestige. In 1960, corporate CEOs had immense prestige. They were the winners of the only economic game in town. But if they made as little now as they did then, in real dollar terms, they’d seem like small fry compared to professional athletes and whiz kids making millions from startups and hedge funds. They don’t like that idea, so now they try to get as much as they can, which is more than they had been getting. [19]

Meanwhile a similar fragmentation was happening at the other end of the economic scale. As big companies’ oligopolies became less secure, they were less able to pass costs on to customers and thus less willing to overpay for labor. And as the Duplo world of a few big blocks fragmented into many companies of different sizes—some of them overseas—it became harder for unions to enforce their monopolies. As a result workers’ wages also tended toward market price. Which (inevitably, if unions had been doing their job) tended to be lower. Perhaps dramatically so, if automation had decreased the need for some kind of work.

And just as the mid-century model induced social as well as economic cohesion, its breakup brought social as well as economic fragmentation. People started to dress and act differently. Those who would later be called the “creative class” became more mobile. People who didn’t care much for religion felt less pressure to go to church for appearances’ sake, while those who liked it a lot opted for increasingly colorful forms. Some switched from meat loaf to tofu, and others to Hot Pockets. Some switched from driving Ford sedans to driving small imported cars, and others to driving SUVs. Kids who went to private schools or wished they did started to dress “preppy,” and kids who wanted to seem rebellious made a conscious effort to look disreputable. In a hundred ways people spread apart. [20]

Almost four decades later, fragmentation is still increasing.

Has it been net good or bad? I don’t know; the question may be unanswerable. Not entirely bad though. We take for granted the forms of fragmentation we like, and worry only about the ones we don’t. But as someone who caught the tail end of mid-century conformism, I can tell you it was no utopia. [21]

My goal here is not to say whether fragmentation has been good or bad, just to explain why it’s happening. With the centripetal forces of total war and 20th century oligopoly mostly gone, what will happen next? And more specifically, is it possible to reverse some of the fragmentation we’ve seen?

If it is, it will have to happen piecemeal. You can’t reproduce mid-century cohesion the way it was originally produced. It would be insane to go to war just to induce more national unity. And once you understand the degree to which the economic history of the 20th century was a low-res version 1, it’s clear you can’t reproduce that either.

20th century cohesion was something that happened at least in a sense naturally. The war was due mostly to external forces, and the Duplo economy was an evolutionary phase. If you want cohesion now, you’d have to induce it deliberately. And it’s not obvious how. I suspect the best we’ll be able to do is address the symptoms of fragmentation. But that may be enough.

The form of fragmentation people worry most about lately is economic inequality, and if you want to eliminate that you’re up against a truly formidable headwind—one that has been in operation since the stone age: technology. Technology is a lever. It magnifies work. And the lever not only grows increasingly long, but the rate at which it grows is itself increasing.

Which in turn means the variation in the amount of wealth people can create has not only been increasing, but accelerating.

The unusual conditions that prevailed in the mid 20th century masked this underlying trend. The ambitious had little choice but to join large organizations that made them march in step with lots of other people—literally in the case of the armed forces, figuratively in the case of big corporations. Even if the big corporations had wanted to pay people proportionate to their value, they couldn’t have figured out how. But that constraint has gone now. Ever since it started to erode in the 1970s, we’ve seen the underlying forces at work again. [22]

Not everyone who gets rich now does it by creating wealth, certainly. But a significant number do, and the Baumol Effect means all their peers get dragged along too. [23] And as long as it’s possible to get rich by creating wealth, the default tendency will be for economic inequality to increase. Even if you eliminate all the other ways to get rich. You can mitigate this with subsidies at the bottom and taxes at the top, but unless taxes are high enough to discourage people from creating wealth, you’re always going to be fighting a losing battle against increasing variation in productivity. [24]

That form of fragmentation, like the others, is here to stay. Or rather, back to stay. Nothing is forever, but the tendency toward fragmentation should be more forever than most things, precisely because it’s not due to any particular cause. It’s simply a reversion to the mean. When Rockefeller said individualism was gone, he was right for a hundred years. It’s back now, and that’s likely to be true for longer.

I worry that if we don’t acknowledge this, we’re headed for trouble.

If we think 20th century cohesion disappeared because of few policy tweaks, we’ll be deluded into thinking we can get it back (minus the bad parts, somehow) with a few countertweaks. And then we’ll waste our time trying to eliminate fragmentation, when we’d be better off thinking about how to mitigate its consequences.

Notes

[1] Lester Thurow, writing in 1975, said the wage differentials prevailing at the end of World War II had become so embedded that they “were regarded as ‘just’ even after the egalitarian pressures of World War II had disappeared. Basically, the same differentials exist to this day, thirty years later.” But Goldin and Margo think market forces in the postwar period also helped preserve the wartime compression of wages—specifically increased demand for unskilled workers, and oversupply of educated ones.

(Oddly enough, the American custom of having employers pay for health insurance derives from efforts by businesses to circumvent NWLB wage controls in order to attract workers.)

[2] As always, tax rates don’t tell the whole story. There were lots of exemptions, especially for individuals. And in World War II the tax codes were so new that the government had little acquired immunity to tax avoidance. If the rich paid high taxes during the war it was more because they wanted to than because they had to.

After the war, federal tax receipts as a percentage of GDP were about the same as they are now.

In fact, for the entire period since the war, tax receipts have stayed close to 18% of GDP, despite dramatic changes in tax rates. The lowest point occurred when marginal income tax rates were highest: 14.1% in 1950. Looking at the data, it’s hard to avoid the conclusion that tax rates have had little effect on what people actually paid.

[3] Though in fact the decade preceding the war had been a time of unprecedented federal power, in response to the Depression. Which is not entirely a coincidence, because the Depression was one of the causes of the war. In many ways the New Deal was a sort of dress rehearsal for the measures the federal government took during wartime. The wartime versions were much more drastic and more pervasive though. As Anthony Badger wrote, “for many Americans the decisive change in their experiences came not with the New Deal but with World War II.”

[4] I don’t know enough about the origins of the world wars to say, but it’s not inconceivable they were connected to the rise of big corporations. If that were the case, 20th century cohesion would have a single cause.

[5] More precisely, there was a bimodal economy consisting, in Galbraith’s words, of “the world of the technically dynamic, massively capitalized and highly organized corporations on the one hand and the hundreds of thousands of small and traditional proprietors on the other.” Money, prestige, and power were concentrated in the former, and there was near zero crossover.

[6] I wonder how much of the decline in families eating together was due to the decline in families watching TV together afterward.

[7] I know when this happened because it was the season Dallas premiered. Everyone else was talking about what was happening on Dallas, and I had no idea what they meant.

[8] I didn’t realize it till I started doing research for this essay, but the meretriciousness of the products I grew up with is a well-known byproduct of oligopoly. When companies can’t compete on price, they compete on tailfins.

[9] Monroeville Mall was at the time of its completion in 1969 the largest in the country. In the late 1970s the movie Dawn of the Dead was shot there. Apparently the mall was not just the location of the movie, but its inspiration; the crowds of shoppers drifting through this huge mall reminded George Romero of zombies. My first job was scooping ice cream in the Baskin-Robbins.

[10] Labor unions were exempted from antitrust laws by the Clayton Antitrust Act in 1914 on the grounds that a person’s work is not “a commodity or article of commerce.” I wonder if that means service companies are also exempt.

[11] The relationships between unions and unionized companies can even be symbiotic, because unions will exert political pressure to protect their hosts. According to Michael Lind, when politicians tried to attack the A&P supermarket chain because it was putting local grocery stores out of business, “A&P successfully defended itself by allowing the unionization of its workforce in 1938, thereby gaining organized labor as a constituency.” I’ve seen this phenomenon myself: hotel unions are responsible for more of the political pressure against Airbnb than hotel companies.

[12] Galbraith was clearly puzzled that corporate executives would work so hard to make money for other people (the shareholders) instead of themselves. He devoted much of The New Industrial State to trying to figure this out.

His theory was that professionalism had replaced money as a motive, and that modern corporate executives were, like (good) scientists, motivated less by financial rewards than by the desire to do good work and thereby earn the respect of their peers. There is something in this, though I think lack of movement between companies combined with self-interest explains much of observed behavior.

[13] Galbraith (p. 94) says a 1952 study of the 800 highest paid executives at 300 big corporations found that three quarters of them had been with their company for more than 20 years.

[14] It seems likely that in the first third of the 20th century executive salaries were low partly because companies then were more dependent on banks, who would have disapproved if executives got too much. This was certainly true in the beginning. The first big company CEOs were J. P. Morgan’s hired hands.

Companies didn’t start to finance themselves with retained earnings till the 1920s. Till then they had to pay out their earnings in dividends, and so depended on banks for capital for expansion. Bankers continued to sit on corporate boards till the Glass-Steagall act in 1933.

By mid-century big companies funded 3/4 of their growth from earnings. But the early years of bank dependence, reinforced by the financial controls of World War II, must have had a big effect on social conventions about executive salaries. So it may be that the lack of movement between companies was as much the effect of low salaries as the cause.

Incidentally, the switch in the 1920s to financing growth with retained earnings was one cause of the 1929 crash. The banks now had to find someone else to lend to, so they made more margin loans.

[15] Even now it’s hard to get them to. One of the things I find hardest to get into the heads of would-be startup founders is how important it is to do certain kinds of menial work early in the life of a company. Doing things that don’t scale is to how Henry Ford got started as a high-fiber diet is to the traditional peasant’s diet: they had no choice but to do the right thing, while we have to make a conscious effort.

[16] Founders weren’t celebrated in the press when I was a kid. “Our founder” meant a photograph of a severe-looking man with a walrus mustache and a wing collar who had died decades ago. The thing to be when I was a kid was an executive. If you weren’t around then it’s hard to grasp the cachet that term had. The fancy version of everything was called the “executive” model.

[17] The wave of hostile takeovers in the 1980s was enabled by a combination of circumstances: court decisions striking down state anti-takeover laws, starting with the Supreme Court’s 1982 decision in Edgar v. MITE Corp.; the Reagan administration’s comparatively sympathetic attitude toward takeovers; the Depository Institutions Act of 1982, which allowed banks and savings and loans to buy corporate bonds; a new SEC rule issued in 1982 (rule 415) that made it possible to bring corporate bonds to market faster; the creation of the junk bond business by Michael Milken; a vogue for conglomerates in the preceding period that caused many companies to be combined that never should have been; a decade of inflation that left many public companies trading below the value of their assets; and not least, the increasing complacency of managements.

[18] Foster, Richard. “Creative Destruction Whips through Corporate America.” Innosight, February 2012.

[19] CEOs of big companies may be overpaid. I don’t know enough about big companies to say. But it is certainly not impossible for a CEO to make 200x as much difference to a company’s revenues as the average employee. Look at what Steve Jobs did for Apple when he came back as CEO. It would have been a good deal for the board to give him 95% of the company. Apple’s market cap the day Steve came back in July 1997 was 1.73 billion. 5% of Apple now (January 2016) would be worth about 30 billion. And it would not be if Steve hadn’t come back; Apple probably wouldn’t even exist anymore.

Merely including Steve in the sample might be enough to answer the question of whether public company CEOs in the aggregate are overpaid. And that is not as facile a trick as it might seem, because the broader your holdings, the more the aggregate is what you care about.

[20] The late 1960s were famous for social upheaval. But that was more rebellion (which can happen in any era if people are provoked sufficiently) than fragmentation. You’re not seeing fragmentation unless you see people breaking off to both left and right.

[21] Globally the trend has been in the other direction. While the US is becoming more fragmented, the world as a whole is becoming less fragmented, and mostly in good ways.

[22] There were a handful of ways to make a fortune in the mid 20th century. The main one was drilling for oil, which was open to newcomers because it was not something big companies could dominate through economies of scale. How did individuals accumulate large fortunes in an era of such high taxes? Giant tax loopholes defended by two of the most powerful men in Congress, Sam Rayburn and Lyndon Johnson.

But becoming a Texas oilman was not in 1950 something one could aspire to the way starting a startup or going to work on Wall Street were in 2000, because (a) there was a strong local component and (b) success depended so much on luck.

[23] The Baumol Effect induced by startups is very visible in Silicon Valley. Google will pay people millions of dollars a year to keep them from leaving to start or join startups.

[24] I’m not claiming variation in productivity is the only cause of economic inequality in the US. But it’s a significant cause, and it will become as big a cause as it needs to, in the sense that if you ban other ways to get rich, people who want to get rich will use this route instead.

Thanks to Sam Altman, Trevor Blackwell, Paul Buchheit, Patrick Collison, Ron Conway, Chris Dixon, Benedict Evans, Richard Florida, Ben Horowitz, Jessica Livingston, Robert Morris, Tim O’Reilly, Geoff Ralston, Max Roser, Alexia Tsotsis, and Qasar Younis for reading drafts of this. Max also told me about several valuable sources. Essay from http://paulgraham.com/re.html

Bibliography

Allen, Frederick Lewis. The Big Change. Harper, 1952.

Averitt, Robert. The Dual Economy. Norton, 1968.

Badger, Anthony. The New Deal. Hill and Wang, 1989.

Bainbridge, John. The Super-Americans. Doubleday, 1961.

Beatty, Jack. Collossus. Broadway, 2001.

Brinkley, Douglas. Wheels for the World. Viking, 2003.

Brownleee, W. Elliot. Federal Taxation in America. Cambridge, 1996.

Chandler, Alfred. The Visible Hand. Harvard, 1977.

Chernow, Ron. The House of Morgan. Simon & Schuster, 1990.

Chernow, Ron. Titan: The Life of John D. Rockefeller. Random House, 1998.

Galbraith, John. The New Industrial State. Houghton Mifflin, 1967.

Goldin, Claudia and Robert A. Margo. “The Great Compression: The Wage Structure in the United States at Mid-Century.” NBER Working Paper 3817, 1991.

Gordon, John. An Empire of Wealth. HarperCollins, 2004.

Klein, Maury. The Genesis of Industrial America, 1870-1920. Cambridge, 2007.

Lind, Michael. Land of Promise. HarperCollins, 2012.

Mickelthwaite, John, and Adrian Wooldridge. The Company. Modern Library, 2003.

Nasaw, David. Andrew Carnegie. Penguin, 2006.

Sobel, Robert. The Age of Giant Corporations. Praeger, 1993.

Thurow, Lester. Generating Inequality: Mechanisms of Distribution. Basic Books, 1975.

Witte, John. The Politics and Development of the Federal Income Tax. Wisconsin, 1985.

 

World Economic Forum- Why Experts Expect Global Growth

82% of chief economists expect the global economy to remain stable or strengthen this year – almost twice as many as in late 2023
Over two-thirds predict a sustained rebound of global growth, driven by technological transformation, artificial intelligence and the green transition.
There is near-unanimity that geopolitics and domestic politics will drive economic volatility this year. Read the May 2024 Chief Economist Outlook here

Geneva, Switzerland,May 2024 – The latest Chief Economists Outlook released today presents a growing sense of cautious optimism about the global economy in 2024. More than eight in ten chief economists expect the global economy to either strengthen or remain stable this year – nearly double the proportion in the previous report. The share of those predicting a downturn in global conditions declined from 56% in January to 17%.
 
But geopolitical and domestic political tensions cloud the horizon. Some 97% of respondents anticipate that geopolitics will contribute to global economic volatility this year. A further 83% said domestic politics will be a source of volatility in 2024, a year when nearly half the world’s population is voting.
 
“The latest Chief Economists Outlook points to welcome but tentative signs of improvement in the global economic climate,” said Saadia Zahidi, Managing Director, World Economic Forum. “This underscores the increasingly complex landscape that leaders are navigating. There is an urgent need for policy-making that not only looks to revive the engines of the global economy but also seeks to put in place the foundations of more inclusive, sustainable and resilient growth.”
 
Regional variations
 
Growth expectations have improved, though unevenly, across the globe. The survey reveals a significant boost in the outlook for the United States, where nearly all chief economists (97%) now expect moderate to strong growth this year, up from 59% in January.
 
Asian economies also appear robust, with all respondents projecting at least moderate growth in the South Asia and East Asia and Pacific regions. Expectations for China are slightly less optimistic, with three-quarters expecting moderate growth and only 4% predicting strong growth this year.
 
By contrast, the outlook for Europe remains gloomy, with nearly 70% of economists predicting weak growth for the remainder of 2024. Other regions are expected to experience broadly moderate growth, with a slight improvement since the previous survey.



A challenging landscape for decision-makers
 
The latest survey highlights the escalating challenges confronting businesses and policy-makers. Tensions between political and economic dynamics will be a growing challenge for decision-makers this year, according to 86% of respondents, while 79% expect heightened complexity to weigh on decision-making.
 
Among the factors expected to affect corporate decision-making are the overall health of the global economy (cited by 100%), monetary policy (86%), financial markets (86%), labour market conditions (79%), geopolitics (86%) and domestic politics (71%). Notably, 73% of economists believe that companies’ growth objectives will drive decision-making, almost double the proportion that cited the role of companies’ environmental and social goals (37%).
 
Long-term prospects and priorities
 
Most chief economists are upbeat about the prospects for a sustained rebound in global growth, with nearly 70% expecting a return to 4% growth in the next five years (42% within three years). In high-income countries, they expect growth to be driven by technological transformation, artificial intelligence, and the green and energy transition. However, opinions are divided on the impact of these factors in low-income economies. There is greater consensus on the factors that will be a drag on growth, with geopolitics, domestic politics, debt levels, climate change and social polarization expected to dampen growth in both high- and low-income economies.



In terms of the policy levers most likely to foster growth in the next five years, the most important across the board are innovation, infrastructure development, monetary policy, and education and skills. Low-income economies are seen as having more to gain from interventions relating to institutions, social services and access to finance compared to high-income economies. There is a notable lack of consensus on the impact for growth of environmental and industrial policies.
 
About the Chief Economists Outlook Report
The Chief Economists Outlook builds on the latest policy development research as well as consultations and surveys with leading chief economists from both the public and private sectors, organized by the World Economic Forum’s Centre for the New Economy and Society. It aims to summarize the emerging contours of the current economic environment and identify priorities for further action by policy-makers and business leaders in response to the compounding shocks to the global economy. The survey featured in this briefing was conducted in April 2024.
 
The Chief Economists Outlook supports the World Economic Forum’s Future of Growth Initiative, a two-year campaign aimed at inspiring discussion and action on charting new pathways for economic growth and supporting policy-makers in balancing growth, innovation, inclusion, sustainability and resilience goals. Learn more about the Future of Growth Initiative here.
The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. (www.weforum.org).

Canada Debt Becoming Unmanageable Economists Warn

With the Canadian government’s high debt-to-GDP ratios, such as a ratio of debt to nominal GDP sitting at 68 percent in March 2023, economists warn that government debt could become unsustainably high if Ottawa fails to reduce spending, increase productivity, and re-establish business confidence.

“We’re not growing our income per capita, which means that we’re not going to get the tax revenues that we need, plus we’re getting a lot of people retiring. So the situation could end up becoming quite unmanageable if we keep our pace that we’re going,” said Jack Mintz, president’s fellow at the University of Calgary’s School of Public Policy.

The federal government has run back-to-back budget deficits since the 2008 financial recession, with government spending spiking during the COVID-19 pandemic. As a result, Canada’s debt as a percentage of nominal GDP rose from around 51 percent in 2009 to 74 percent by 2021, for example. Nominal refers to the current value for the particular year without taking inflation into account.

The two previous federal budgets have attempted to lower government spending, but the federal government will still post a $40 billion deficit in 2023–24, which they project will shrink to a $20 billion deficit by 2028–29.

The Liberal government’s response to criticism by the opposition that Canada’s debt could lead the country into a financial crisis has been that Canada has among the best debt-to-GDP ratios in the G7.

According to Mr. Mintz, while Canada’s debt situation is not as bad as it once was, it doesn’t mean that it may not impact Canada’s prosperity prospects.

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Mr. Mintz points out that Canada’s debt situation is not nearly as bad as in 1996. The government’s ratio of debt to nominal GDP ratio reached 83 percent that year.

Mr. Mintz also noted that Canada continues to have a triple-A credit rating according to the world’s leading credit agencies, meaning the country’s debt is not yet seen as problematic.

“We’re still viewed as having a much better credit line compared to a number of other countries. … But at some point, the credit agencies might look at that gross debt number and start asking the question, ‘Is it starting to become unsustainable?’” he said.

Lower Productivity Hampering Debt Payments

The federal government’s ability to pay off its debt could be hampered by low productivity, according to Steve Ambler, professor emeritus of economics at Université du Québec à Montréal.

“The thing that worries me in terms of federal government debt is we are currently in a period of extremely low productivity growth and low overall growth,” he said.

In March, the Bank of Canada’s senior deputy governor Carolyn Rogers warned that Canada’s poor productivity had reached emergency levels.

Although Statistics Canada said the country’s labour productivity showed a small gain at the end of 2023, that came after six consecutive quarters of productivity decline.

The right honourable Jean Chrétien.

Mr. Ambler said an appropriate way to lower the debt-to-GDP ratio is to keep government spending from increasing while also raising productivity to increase tax revenues. He said this was the strategy of Prime Minister Jean Chrétien, whose Liberal government established a budget surplus in three years by growing the economy and keeping government spending stagnant.

To lower Canada’s debt-to-GDP ratio, Mr. Ambler said the government should focus on increasing worker productivity, allowing its resource sector to grow, and easing back on discretionary spending.

He also cited a November 2023 C.D. Howe paper showing that business investment per worker in Canada has shrunk relative to the United States since 2015. Investments such as better tools for workers would increase productivity, while productivity growth would in turn create opportunities and competitive threats that spur businesses to invest, the paper said.

“Re-establishing business confidence would be almost the number one priority, especially in the resource sector,” Mr. Ambler said, adding that a future government might also be wise to lower the feds’ “wildly extravagant subsidy programs” for the electric vehicle (EV) sector.

The Liberal government has given tens of billions of dollars in subsidies for EV manufacturing projects in Canada since 2020, saying the factories will eventually create thousands of new jobs.

‘No Cushion’ to Mitigate Debt Issue

Joseph Barbuto, director of research at the Economic Longwave Research Group, has a more pessimistic view of Canada’s debt. He says that while federal debt is at levels similar to the 1990s, the crisis will be “larger” because the government does not have the “fiscal room to mitigate the downturn.”

Mr. Barbuto said that while the Canadian government was able to help alleviate its debt issues in the 1930s and 1990s by lowering its interest rates, it does not have that same luxury in 2024. The Bank of Canada lowered its key policy rate from 1.25 percent to 0.25 percent in 2020, and was forced to raise it to 5 percent by 2023 in response to rising inflation.

“There’s no interest rate cushion on the other side. Interest rates can only fall back to zero,” Mr. Barbuto said, noting that higher interest rates make it more difficult for governments to service their debt.

“The problem with the monetary system is there’s no fiscal discipline that is pushed on governments, unlike [individuals] or corporations,” he said.

“There will be a point where because of the accumulated interest with rising interest rates, eventually it’s going to overwhelm the government and then people will not lend the government any kind of capital.”

Mr. Barbuto also expressed concern over Canada’s private debt-to-GDP ratio. Private debt refers to debt owed by private, non-financial entities such as businesses and households, as opposed to public debt owed by governments and banks. Canada’s ratio of private debt to nominal GDP sat at 217 percent in December 2023 compared to 124 percent in 1995.

Mr. Barbuto said Canada’s private debt-to-GDP ratio is higher than that of Japan’s in the 1990s, and pointed out that the Japanese economy had stagnated after the country’s asset price bubble burst in 1992.

The research director believes the Canadian economy will eventually see a debt crisis and collapse in real estate that will result in austerity measures, a shrinkage in the size of government, and the “creative destruction” of the old political and economic system. He said this would be the continuation of an economic cycle that has repeatedly happened throughout history.

“[It’s] inevitable and necessary. A debt detox or deleveraging is the same thing as a drug detox. Nobody likes it, … but it’s a necessary part of the cycle for it then to go back up,” he said.

For the Silo, Matthew Horwood/Epoch Times.

Beware Of Overreach In Canada Competition Law Reforms

May, 2024 – Many of the federal government’s recent reforms in competition law sensibly strengthen the enforcement powers of the Competition Bureau and private actors seeking redress for allegedly anti-competitive behavior. However, amendments to the Competition Act that simply make it easier to meet legal tests for orders against allegedly anti-competitive conduct are over-reach, says a new report by our friends at the C.D. Howe Institute.

In “Uncertainty and the Burden of Proof in Canadian Competition Law,” author Edward M. Iacobucci, a professor in corporate and competition law at the University of Toronto and Competition Policy Scholar at the C.D. Howe Institute, says that while strengthening the enforcement powers of the Competition Bureau is welcome, other amendments to the Competition Act imply more profound changes to the fundamental posture of competition law.

Specifically, there is a family of amendments and proposals to move away from the bedrock principle that the burden rests with the Bureau to prove, on a balance of responsibilities, that a merger or practice by a dominant firm is likely to be or is anti-competitive. 

For example, the author argues that lowering the burden of proof in mergers cases to “appreciable risk” of anti-competitive effects or something analogous would be a mistake.

“The overwhelming problem with this standard is that it is too easy to meet and fails to distinguish anti-competitive from benign conduct,” he states.  He also disagrees with proposals to rely on market shares rather than competitive assessments in mergers cases.  He objects in addition to abolishing the requirement to analyze anti-competitive effects in abuse of dominant position cases – recent amendments imply that pro-competitive conduct could be treated as an abuse of dominance.

Aside from competition law reform, the author notes that there are other policy reforms that could promote competition. 

 “Assuming competition has worsened in Canada, there are several remedial policies that I suspect would be far more important than competition law reform,” he says. “The OECD ranks Canada near the worst internationally in establishing regulatory barriers to competition.” 

 Regulation, internal trade barriers, restrictions on international competition and ownership, and other policies are all important contributors to reducing competition in Canada and, certainly in their collective impact, are more important than competition law, he argues.

Nevertheless, there are good reasons to take stock of Canadian competition law.

“The vulnerability of digital markets to market power stemming from network externalities and scale economies encourages reflection on whether the Competition Act continues to be suitable for present times.”

“I am skeptical of the narrative that the law requires sweeping reform to address the digital economy or to reverse a strong, secular decline in competition caused by competition law,” Iacobucci added. “But I am not skeptical that there is room for improvement. I encourage the government to focus on strengthening enforcement and to resist and even reverse recent reforms to the burden of proof.”

For The Silo, Edward M. Iacobucci, TSE Chair in Capital Markets, Faculty of Law, University of Toronto and C.D. Howe Competition Policy Scholar.

Read the full report here.

Study in Brief:

• There are good reasons to take stock of Canadian competition law. The vulnerability of digital markets to market power stemming from network externalities and scale economies encourages reflection on whether the Competition Act continues to be suitable for present times.

• Recently, a number of statutory amendments have been proposed to amend the Act, some have been tabled in Parliament and still others already adopted. The federal government recently passed consequential amendments that grant the Minister of Innovation, Science and Economic Development (ISED) the power to initiate market studies, to include scrutiny of vertical agreements as possibly anti-competitive collaborations, to repeal the efficiencies defence to mergers, and to lower the burden of proof in abuse of dominance cases.

• Many of the government’s actions to date sensibly strengthen the enforcement powers of the Competition Bureau and make it easier for private actors seeking redress for allegedly anti-competitive behaviour.

• There are, however, other actual and proposed amendments that imply profound changes to the fundamental posture of Canadian competition law. In particular there are actual and proposed amendments that move away from the bedrock principle that the burden rests with the Bureau to prove, on a balance of probabilities, that a merger or practice by a dominant firm is likely to be or is anti-competitive.

• While enhancing enforcement is welcome, legislative amendments that lower the burden of proof are a mistake.

How Canada Can Help Repair Today’s Global Trading System

The article below (Furthering the Benefits of Global Economic Integration through
Institution Building: Canada as 2024 Chair of CPTPP) was first published by the C.D. Howe Institute by Paul Jenkins and Mark Kruger.

Introduction

Over the last 10 to 15 years, the global economy has become fragmented. There are many reasons for this fragmentation – both economic and geopolitical. A particularly important factor has been the inability of the institutions that provide the governance framework for international trade and finance to adapt to the changing realities of the global economy.

This erosion is reflected in the cycles of outcome-based measures of globalization, such as trade-to-GDP ratios. Research indicates that the development of institutions that promote global integration is highly correlated with more rapid economic growth. To secure the benefits of economic integration, the international community should re-commit to a set of common rules. This should involve the renewal of existing institutions in line with current economic realities.


But institutional renewal alone is not sufficient. Nurturing and growing new institutions are also critical, especially ones reflecting the realities of today’s global economy. Most promising in this regard is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).


The CPTPP is seen as a “next generation” trade agreement. It takes World Trade Organization (WTO) rules further in several key areas, such as electronic commerce, intellectual property, and state-owned enterprises.
Expansion of CPTPP represents a unique opportunity to strengthen global trade rules, deepen global economic cooperation on trade and sustain an open global trading system. The benefits for Canada of an expanded CPTPP are further diversification of its export markets and deepened ties with countries in the Indo-Pacific region.

Trusted Policy Intelligence


The challenge to enabling broad-based accession to CPTPP is geopolitical, reflecting the rising aspirations of the developing world, the associated
heightened contest between democracy and autocracy, and the prioritization of security. Indeed, for many, today’s security concerns are at the forefront, trumping economic issues. We argue that recognition of the economic benefits
of global economic integration must also remain at the forefront, and that research presented in this paper shows that institutional building is at the core
of securing such benefits.


As 2024 Chair of the CPTPP Commission, Canada has an opportunity to play a leadership role, as it did in the creation of the Bretton Woods institutions 80 years ago, by again promoting global institution building, this time through the successful accession of countries to the CPTPP, both this year and over the long run.

  1. Cycles in Global Economic Integration
    Former US Fed Chair Bernanke points out that the process of global economic integration has been going on for centuries. New technologies have been a major force in linking economies and markets but the process has not been a smooth and steady one. Rather, there have been waves of integration, dis-integration, and re-integration.
    Before World War I, the global economy was connected by extensive international trade, investment, and financial flows. Improved transportation – steamships, railways and canals – and communication – international mail and the telegraph – facilitated this “first era of globalization.” The gold standard linked countries financially and promoted currency stability. Trade barriers were reduced by the adoption of standardized customs procedures and trade regulations. The movement of goods, capital, and people was relatively unrestricted.
    The outbreak of World War I frayed global economic ties and set the stage for a more fragmented interwar period. The Treaty of Versailles imposed
    punitive measures on Germany, exacerbating economic hardships. Protectionist policies, such as high tariffs and competitive devaluations, became widespread as countries prioritized domestic interests.
    The collapse of the gold standard further destabilized international finance. In contrast to the cooperation seen before the war, countries pursued economic nationalism and isolationism.
    Protectionism increased in the 1930s as a result of the dislocation caused by the Great Depression. In an attempt to shield domestic industries from foreign competition and address soaring unemployment, many countries imposed tariffs and trade barriers.
    The Smoot-Hawley Tariff Act in the United States exemplified this trend, triggering a series of beggar-thy-neighbour policies. These protectionist policies exacerbated the downturn and contributed to a contraction in international trade that worsened the severity and duration of the Great Depression.
    Mindful of the lessons of the 1930s, a more liberal economic order was established in the aftermath of World War II. The creation of the Bretton Woods Institutions – the International Monetary Fund (IMF), the World Bank and the General Agreement on Tariffs and Trade (GATT) – provided the principal mechanisms for managing and governing the global economy over the second half of the 20th century.
    Building on the GATT, the formation of the World Trade Organization in 1995 provided the institutional framework for overseeing international trade and settling disputes. China became the 143rd member of the WTO in 2001 and almost all global trade became subject to a common set of rules.
    The rise and fall of international economic governance are reflected in the cycles of outcome-based measures of globalization. Looking at trade openness, i.e., the sum of exports and imports as a percentage of GDP, the IMF divides the process of global integration into five periods: (i) the
    industrialization era, (ii) the interwar era, (iii) the Bretton Woods era, (iv) the liberalization era, and (v) “slowbalization” (Figure 1).
    Many factors have contributed to the plateauing of trade openness in the last 10 to 15 years. The fallout from the Global Financial Crisis was severe and the recovery was tepid. Brexit, with its inward-looking perspective, has disengaged the UK from Europe.
    Populist protectionism has led to “re-shoring” in an effort to address rising inequalities and labour’s falling share of national income. There has been far-reaching cyclical and structural fallout from COVID-19.
    And while the AI revolution portends significant opportunities, uncertainties over labour displacement abound.
    Geopolitics has also played a critical role. Security concerns have become more important, trumping economic issues in the eyes of many. This has led to multiple sanctions, along with export and investment controls, being imposed to protect national security interests.
    The IMF has carried out several modelling exercises that estimate the consequences of fragmentation if further trade and technology barriers were to be imposed. The studies employ a variety of assumptions regarding trade restrictions and technology de-coupling. In summary, the cost of further fragmentation ranges from 1.5 to 6.9 percent of global GDP. As with all modelling exercises, a degree of caution is warranted. At the same time, these studies should not be viewed as upper-bound estimates because they disregard many other transmission channels of global economic integration.
  2. De Jure and De Facto Globalization
    In assessing the evolution of globalization, however, it would be misleading to focus too narrowly on outcome-based measures such as the trade-to-GDP ratio depicted in Figure 1.
    The data compiled by KOF, a Swiss research institute, provide a more nuanced view of global economic integration. KOF constructs globalization
    indices that measure integration across economic, social, and political dimensions. Its globalization indices are among the most widely used in academic literature. KOF’s data set covers 203 countries over the period 1970 to 2021. Our focus here is on KOF’s economic indices.
    In terms of economic globalization, KOF looks at the evolution of finance as well as trade. Moreover, one of the unique aspects of KOF’s work is that it examines globalization on both de facto and de jure bases.
    KOF’s de facto globalization indices measure actual international flows and activities. In terms of trade, it includes cross-border goods and services flows and trading partner diversity. For financial globalization, its indices measure stocks of international assets and liabilities as well as cross-border payments and receipts.
    KOF’s de jure globalization indices try to capture the policies and conditions that, in principle, foster these flows and activities. For trade globalization,
    these include income from taxes on trade, non-tariff barriers, tariffs, and trade agreements. De jure financial globalization is designed to measure the institutional openness of a country to international financial flows and investments. Variables to measure capital account openness, investment restrictions and international agreements and treaties with investment provisions are included in these indices.
    The trends in KOF’s de facto and de jure economic globalization indices are shown in Figure 2. Both globalization measures increased rapidly from 1990
    until the Global Financial Crisis. Both measures subsequently plateaued. In 2020, as the global pandemic took hold, the de facto index plunged to its
    lowest level since 2011. In 2021, it recovered half of the distance it lost the previous year. The de jure index has essentially been flat for the last decade.
    There has been a sharp divergence between KOF’s de facto and de jure trade globalization measures in the last five years (Figure 3). By 2020, de facto trade globalization had dropped to a 25-year low. Although it recovered somewhat in 2021, it remains well below the average of the last decade. In contrast, de jure trade globalization levelled off after the Global Financial
    Crisis. It reached a modest new high in 2019 and has essentially remained there since then.
    The trends in financial globalization are almost the reverse of those of trade globalization. De facto financial globalization continued to increase through
    2020 and dipped slightly in 2021. De jure financial globalization has been essentially flat over the last two decades (Figure 4).
    The KOF researchers provide convincing econometric evidence that economic globalization supports per capita GDP growth. Importantly,
    their analysis shows that institutions matter. They demonstrate that the positive impact on growth from trade and financial globalization comes from
    institutional liberalization rather than greater economic flows. Through a series of panel regressions, the researchers show that it is the de jure trade and financial globalization indices that are correlated with more rapid per capita GDP growth. In contrast, there is no significant relationship between growth and the de facto indices.
    KOF’s conclusions are consistent with the work of Rodrik, Subramanian and Trebbi who examine the contributions of institutions, geography, and trade
    in determining relative income levels around the world. They find that institutional quality “trumps everything else.” Once institutions are controlled for, conventional measures of geography have weak effects on incomes and the contribution of trade is generally not significant.
    Thus, to recapture the economic benefits of free trade and open markets, countries need to recommit to finding ways to further de jure globalization; that is, putting in place the institutional building blocks in
    support of enhanced trade and financial integration.
  3. Geopolitical Realities
    Institutional reform, however, requires trust and mutual respect among partners. Many would argue that such trust and respect is in limited supply
    today, especially between the United States and China. The United States is willing to endure the costs of heightened protectionism to purportedly
    strengthen the resilience of its economy and secure greater political security. This has resulted in multiple sanctions, particularly in areas of digital technologies.
    In response, China, amongst other measures, has imposed export controls on critical minerals used in advanced technology in defence of its geopolitical goals.
    Yet, as discussed by Fareed Zakaria in a Foreign Affairs article, The Self-Doubting Superpower, China has become the second largest economy in the world richer and more powerful within an integrated global economic system; a system that if overturned would result in severely negative consequences for China.
    For the United States, its inherent strength has been its commitment to open markets and its vision of the world that has considered the interests of others. In many respects, it remains uniquely capable of playing the central role in sustaining the global economic system.
    Following a recent trip to China, Treasury Secretary Yellen stated that “the relationship between the United States and China is one of the most consequential of our time,” and that it “is possible to achieve an economic
    relationship that is mutually beneficial in the long-run – one that supports growth and innovation on both sides.”
    This means that the United States would need to accommodate China’s legitimate efforts to sustain a rising standard of living for its citizens, while
    deterring illegitimate ones. For China, it would mean a clear and abiding commitment to an open, rules-based global economic system.
    It appears that there is currently no clear path forward for this change in mindset, given what many see as insurmountable geopolitics in both the United States and China. Yet, history shows that achieving and sustaining long-term economic growth is in every country’s best interest, and that such growth is best secured through ongoing global economic integration.
  4. A Way Forward
    Recent discussions at the IMF’s Annual Meeting in Marrakech about IMF quota reform, including quota increases and realignment in quota shares to
    better reflect members’ relative positions in the global economy, are important signals of possible renewal.
    Similarly, calls to revamp the World Bank’s mandate, operational model, and ability to finance global public goods, such as climate transition, reflect a growing consensus that the Bretton Woods Institutions must change in the face of today’s realities.
    But institutional renewal alone is insufficient.
    Broad-based accession to the CPTPP represents a unique opportunity to strengthen global governance overall, and to address common challenges in ways that benefit both countries as well as the global economy.
    The CPTPP sets a high bar, requiring countries to:
  • eliminate or substantially reduce tariffs and other
    trade barriers;
  • make strong commitments to opening their markets;
  • abide by strict rules on competition, government
    procurement, state-owned enterprises, and
    protection of foreign companies; and
  • operate within, as well as help promote, a
    predictable, comprehensive framework in the critical
    area of digital trade flows.
    The United Kingdom formally agreed to join the
    CPTPP in July 2023. Once its Parliament ratifies
    the Agreement, the UK will join Australia, Brunei
    Darussalam, Canada, Chile, Japan, Malaysia, Mexico,
    New Zealand, Peru, Singapore, and Vietnam in the
    trading block.
    Such a diverse membership clearly demonstrates
    that countries do not have to be geographically close
    to form an effective trading block.
    A half-dozen other countries have also applied
    to join the CPTPP, with China’s application having
    been the earliest received.
    Petri and Plummer estimate that joining the
    CPTPP would yield large economic benefits for
    China and the global economy. For the latter, the
    boost to global GDP would be in the order of $600
    billion annually. The United States in joining would
    gain preferential access to rapidly growing Pacific Rim
    markets. Much of the additional market access would
    come from China’s opening of its service sector.
    Industrial policy and state-owned enterprises,
    however, will continue to play a much larger role
    in China than they do in Western economies. The
    key for China is to demonstrate that a socialist
    market economy (i.e., one that has a mixed capitalist
    market and government-controlled economy) can be
    consistent with fair trade.
    The process of China joining the CPTPP will
    undoubtedly be time-consuming. It took 15 years of
    negotiations before China joined the WTO in 2001.
    This was five more years, on average, than it took
    those countries that joined after 1995.
    The challenge for Canada, and subsequent chairs,
    is to ensure that China’s entry maintains the high
    standards CPTPP members have met so far.
    Broad based accession to the CPTPP, including
    the United States and China, however, is best viewed
    Page 8 Verbatim
    Trusted Policy Intelligence
    as a long-term goal. China would need to undertake
    unprecedented reforms, involving complex political
    challenges, including Taiwan’s potential accession. For
    its part, the United States would need to step well
    back from its current mercantilist mind set, which
    risks worsening.

Canada as Chair in 2024

While efforts to renew existing global institutions to better reflect current economic realities are important, we see promoting broad accession to the CPTPP as the best means to turn today’s global economic fragmentation around.
At the heart of the global economic system is the open trading framework put in place at Bretton Woods in 1944. Many would see today’s fragmentation as becoming more acute, rather than getting better, due to geopolitical divisions.
But further fragmentation is no way to save the open, rules-based global trading system that has served so many countries so well for so long.


While restrictions reflecting legitimate security concerns are inevitable, an open, competitive trading system remains in the best interests of all countries.
As 2024 Chair of the CPTPP Commission, Canada has an opportunity to contribute to turning around the fragmentation of today’s global trading system and moving the global economy back along a path towards a
more open, rules-based trading system.


An important goal for Canada’s chairmanship would be to clarify the rules of accession. This would be a big step forward in sustaining expansion of CPTPP. While today’s geopolitical realities surrounding the applications of both China and Taiwan represent a particularly challenging area to advance, significant progress in other areas must be made. It should accelerate inclusion of Costa Rica, Uruguay, Ecuador, and Ukraine, all of whom have applied. And it should help move forward discussions with South Korea, Indonesia, Philippines, and Thailand, who have expressed interest in joining.


Over and above all that, however, at a more strategic level, Canada should also champion discussion and understanding of why building towards the long-run goal of broad accession to CPTPP is important. Open and inclusive institutions are at the core of providing the benefits of global economic integration to all countries.


Canada will also be Chair of the G7 Summit in 2025. This, along with the various ministerial and officials’ meetings leading up to the Summit, offers another critical avenue for Canada to take a leadership role in sustaining and promoting an open, rules-based global trading system.

    UN Specialized Fund & Program Combats Hunger In World’s Fragile Contexts

    Storybook       JOINT PRESS RELEASE IFAD and WFP work together to combat hunger in fragile contexts 
    Rome, Italy, March 2024. The UN’s International Fund for Agricultural Development (IFAD) and the World Food Programme (WFP) have today launched an action plan to work together in fragile contexts — countries simultaneously affected by economic shocks, and extreme weather, in combination with little or no institutional and government capacity to help people cope.

    The UN agencies seek to leverage the strengths and expertise of each organization to enhance resilience in fragile environments and improve food security for those who need it most.

    Fragility is a significant barrier to eradicating hunger and poverty. Moreover, frequent and severe extreme weather events are compounding these often-protracted crises worldwide. “We have decades of experience working in fragile contexts, because that is where so many of the rural poor live. But today, the rural environment is changing. It is becoming less predictable. Rapid changes in climate and demographics are making it harder than ever for rural populations to thrive on the land,” said Alvaro Lario, President of IFAD. “This new Action Plan is very exciting because together, we can be more than the sum of our parts,” added Lario.PR-20-2024©IFAD/Daniele Bianchi
    Fragile situations are on the rise and could impact as much as 60 percent of the world’s extreme poor by 2030. Nearly 1 billion people are currently living in such contexts worldwide, according to the International Monetary Fund estimates. 
    “WFP and IFAD teams work in many of the most fragile and challenging regions of the world, where millions of families who live on the frontlines of conflict, climate change and economic turmoil face a daily battle against hunger,” said WFP Executive Director Cindy McCain. “But it doesn’t have to be this way. Combining our expertise, resources and extensive global network, WFP and IFAD will step up our collaboration in key areas, such as food systems and climate resilience, to support sustainable development, peace and progress in the most vulnerable communities.”

    IFAD and WFP will carry out joint assessments on fragility, integrate smallholder farmers into food assistance programmes, invest in rural communities’ climate resilience, and share logistical capacity, data, analysis and expertise, as well as provide technical and operational support.
    For instance, IFAD’s investments in sustainable agricultural practices, such as the use of climate-resilient crops and climate insurance, will be combined with WFP’s climate-resilient local infrastructure and services.

    Ethiopia, Haiti, Mozambique, Pakistan, South Sudan, Sudan, Yemen and Zambia are the initial countries for collaboration to address fragility and food insecurity in addition to geographic areas across the Sahel and Pacific islands. The action plan aims at maximizing impact, being responsive to dynamic challenges, and focuses on tackling some of the main drivers of fragility. The partnership also builds upon the broader collaboration of the three Rome-based UN food and agriculture agencies, including the Food and Agriculture Organization of the United Nations (FAO), which was reinforced with a new five-year partnership agreement signed last August during a joint visit to South Sudan.

    Being able to work in fragile contexts is a priority for IFAD’s next three-year cycle (2025-2027), as the UN Fund plans to reach 100 million rural people. FAO, IFAD and WFP cover a spectrum of work that spans from humanitarian responses to emergencies and shocks, to resilience and development activities, aligning with the 2030 Agenda.

    The Rome-based agencies are working together on agri-food systems transformation, nutrition, gender equality and women’s empowerment, resilience-building, youth, and climate change to achieving maximized impact and delivering tangible value added to countries and populations.
    The United Nations World Food Programme is the world’s largest humanitarian organization saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change. Follow us on X, formerly Twitter, via @wfp_media

    For the Silo, Julie Marshall.

    Speedrunning (Beating Videogames Fast As Possible) Champs Playing For Make A Wish

    For the first time this year, the European Speedrunner Assembly (ESA) is set to host their recurring speedrunning event, where gamers aim to conquer video games at record speeds and showcase mind-blowing talents.

    For the first time ever, ESA is teaming up with Make-A-Wish International — an organization dedicated to fulfilling the wishes of children facing critical illnesses. Last year, ESA Winter and Summer collectively raised an impressive $200,000 for Alzheimer’s research. ESA Winter is taking place right now in Malmö until February 24th. 

    Set in Malmö, Sweden, the event will revolve around gaming, entertainment, and interactive fundraising. An onsite global audience of several hundred attendees are already interacting, accompanied by a substantial online viewership exceeding two million. Both the onsite and online audience have the opportunity to actively support the charity, for example, by donating $25 to influence the course of the games or to support various shows and performances, such as a Ikea furniture building duel or rhythmic displays.

    Last year, Make-A-Wish International granted more than 19,500 wishes to children living with critical illnesses around the world, including more than 5000 gaming and entertainment wishes. They are the second most popular type of wish granted by the charity, after travel wishes.

    Ida Lidholt, one of the ESA organizers says: “We are delighted to announce our new partnership with Make-A-Wish International. ESA Winter is a festival where gamers and the community unite. Through video games and speed, we level up to raise funds for children living with critical illnesses. It is heart-wrenching to witness the struggles of these kids. If we can alleviate their burden even a little by helping them fulfil their wishes, it holds profound significance for us.”

    Luciano Manzo, President & CEO, Make-A-Wish International says: “Children undergoing treatment for critical illness can experience anxiety, loss of hope, and isolation from friends and loved ones. For many of these children, gaming offers them a sense of escape, helps them connect with friends and distracts them from their long and often difficult treatment journeys. That’s why gaming and entertainment wishes are so popular among wish children. The funds raised from ESA Winter 2024 will help continue to grant these types of wishes and many others. We are so grateful to ESA and the gaming community for helping make wishes come true with this event.”

    ESA is globally livestreamed on Twitch.tv/esamarathon. Viewers are urged to contribute during the broadcast, with opportunities to, for instance, name game characters, present challenges to players, or vie for fantastic prizes. By backing ESA and Make-A-Wish, everyone can play a role in fulfilling the wishes of children living with critical illnesses. Support the talented speedrunners and participate in the fundraising—tune in to ESA and make a donation!

    Follow the event at www.twitch.tv/esamarathon

    About ESA 

    European Speedrunner Assembly (ESA) is a biannual charity marathon dedicated to video game speedrunning, held in Sweden. Since its inception in 2012, these events have collectively raised over one million dollars for various charitable causes.

    The two main flagship events, ESA Winter and ESA Summer, occur annually in February and July, respectively, each spanning seven days. Beyond these, ESA also organizes smaller speedrunning gatherings such as ESA Legends, a five-day in-person event uniting top RPG speedrunners, and Break the Record: Live, a three-day competition aimed at breaking world records in specified games and categories.

    About Make-A-Wish International

    Make-A-Wish creates life-changing wishes for children with critical illnesses. Founded in 1980, Make-A-Wish is the world’s leading children’s wish-granting organization, having granted more than 585,000 wishes in 50 countries worldwide. Together with generous donors, supporters, staff and more than 27,000 volunteers around the globe, Make-A-Wish delivers hope and joy to children and their families when they need it most. Make-A-Wish aims to bring the power of wishing to every child living with a critical illness because wish experiences can help improve emotional and physical health. For more information about Make-A-Wish International, visit worldwish.org

    Three Ways to Make $1,000 Using Artificial Intelligence

    Whether you need a side hustle or want to make a full career out of AI, here are ways to start

    A few years back, I read Warren Buffett’s book, Snowball. It turned out to be one of my favorite books of all time. In this book, Warren shares stories of when he was a kid and some of his favorite books. One book in particular, 1,000 Ways to make $1,000 by F.C. Minaker, helped shape his idea around business and making money. 

    After reading this legendary book many times, I decided to refresh the concept to help others by sharing ideas on how to use current AI technology to make money. As an entrepreneur who uses AI in my business, I know there are many ways in which AI can help you create side hustles, start businesses, and even help make your current jobs more efficient.

    Whether you would like to start a small side business, or whether you want this to be your full career, there are many opportunities to make money with AI.

    If you’re not a techie type, there may be a learning curve to become adept at the skills to succeed at AI. But if you have an interest in it and a desire to learn, and are willing to undergo some training and education, it’s possible to learn enough to make money with AI.

    Here are three ways to begin your journey into making money with AI technology.

    Prompt generators are becoming a lucrative business. Humans will pay for AI prompts that are ‘ready to go’.

    • Prompt Engineering refers to the process of designing and fine-tuning prompts for natural language processing (NLP) models. It involves creating a set of instructions or guidelines that tell the model what information to look for and how to use that information to generate a response. Here are a few steps and platforms I would use to start earning money today:
      1. Create an account at PromptBase.
      2. Check out this helpful tutorial on YouTube to get you prepared.
      3. Quickly read over some guidelines on how best to sell prompts to the marketplace to start earning.
      4. Take a look at some successful prompts that are for sale on the marketplace to get an idea how best for you to start earning.
      5. Start earning!
    • Transcription Services involve the conversion of audio or video recordings into written or text format. This service is provided by professional transcriptionists who are trained to accurately transcribe spoken words into written form. Here are a few steps and platforms I would use to start earning money today:
      1.                Create an account at Speak Write.
      2.                Check out the helpful tutorial video to get you prepared.
      3.                Quickly read over some FAQ’s on how best to prepare to start earning for transaction services.
      4.                Take a look at someones daily schedule for earning money on Speak Write
      5.        Start earning!
    • Labeling and Annotation are processes in which data is manually labeled or tagged with specific attributes or metadata that make it easier for machines to understand and analyze the data. Labeling involves assigning a specific category or label to data, such as identifying objects in an image or sentiment in a text. Annotation involves adding additional information, such as context or relationships between data points. Here are a few steps and platforms I would use to start earning money today:
      1.                Create an account at Clickworker.
      2.                Check out this helpful tutorial on YouTube to get you prepared.
      3.                Quickly read over some FAQ’s on how best to prepare to start earring for transaction services.
      4.                Take a look at the tasks you can pick from to start earning money on Clickworker.
      5.                Start earning!

    The next decade will be a Decade of Abundance due to technological advancements like AI. While AI has its detractors, I believe we should be leaning in to explore this life-changing technology because it will empower the globe. 

    AI has already been able to improve our lives in many ways, and it has the potential to solve some of the world’s most pressing problems, including in healthcare, education, and security. There’s no reason why you cannot be a part of this revolution, too. For the Silo, Joe Nigro.


    Connecticut-based Joe Nigro is an investor, advisor, and entrepreneur who has used AI extensively in his career.

    Featured image: Students summarize a text then tried to figure out which summaries were penned by classmates and which was written by a chatbot.Timothy D. Easley, FRE / AP

    Ways To Make Your Home Look Better For Winter Selling

    A truism in real estate is that the best time to sell is during the spring and summer months.

    You have more buyers, prices and valuations are higher, and your home simply looks better under the bright summer sun than during the drab winter gloom. But what if you really need to sell your home now?

    Before you list your property in the real estate listings such as these in Ottawa, here are a few simple tricks you can try.

    1. Make improvements to your fence.

    If you have a fence, then it’s the first thing that people encounter as they walk to your home. It should give a good first impression, so you need to fix damages if there are any. You can also consider repainting it to make it look new.

    Don’t forget to make sure that the latch works perfectly too. It should close easily enough without any sort of fussy process.

    1. Prune your trees.

    The trees near your home shouldn’t block the buyer’s view of your house. Instead, the trees should have silhouettes that frame the house to make it look much better. It’s best to prune your trees during their dormant periods when they don’t have leaves. This makes it easier for you to see the shape and structure of the tree.

    Remove the damaged and diseased branches first. Then get rid of the branches that hang low enough to obscure your house and hang over walkways. Finally, thin the crown to improve the air circulation and the amount of light.

    1. Plant snow flowers.

    You can plant early narcissi and snowdrops in your garden, along with a few clumps at the edges of your walkways. These can add some color to your home amidst all that white snow.

    You can also plant hardy hellebores that thrive during the winter months, such as the Ashwood Neon, the Walberton’s Rosemary or even the stinking hellebore (H. foetidus).

    1. Attract more birds near your home.

    Having plenty of birds around is great during the winter. The place seems alive, and you get plenty of colors. You can do this simply by putting up a bird feeder on your property. You can also plant shrubs in your garden that are known to attract birds. These include bayberry, snowberry, and burning bush.

    1. Touch up the house number.

    Your house number is important because you want your potential buyers to find your home more easily. Sadly, plenty of homes have rather illegible house numbers.

    Even those that are noticeable can seem outdated or downright unattractive. You can improve its look in various ways so that it becomes appealing and also prominent.

    1. Keep the house clean.

    One problem during the winter is that plenty of people track in mud after walking around in the snow and sludge. Often doormats aren’t just up to the job of getting rid of all that gooey mess.

    However, you can arrange for boots to be removed first before people enter the home. If that’s not possible, you can at least buy and set up an effective boot scraper that can help your doormat get rid of the mess.

    1. Use your Christmas lights.

    Put them up early, and leave them up until February if you have to. These lights can really make your home look better.

    Use plenty of Christmas décor for more color as well.

    1. Wash your windows.

    You need to get rid of the grime in your windows, which prevents the sunlight from getting into your home.

    Featured image- Hadley Hooper/ Boston Globe. 

    African Shaman- Devotion To Your Business Is Key To Success

    What does it take to make $1 Million Dollars at a business in just six months? Devotion. However, according to one expert, devotion and commitment are two totally different things.

    Makhosi Nejeser, known as “The Royal Shaman”, is an authentic African shaman specializing in energetic alignment and human potential.  She helps individuals create powerful transformations amplifying success and mentors high performing entrepreneurs. Makhosi is being recognized as a Spiritual Guide For Business Empires. Asked about devotion versus commitment she said:

    “You have to be all in. Devotion is that. It’s the same thing that generates $1M in revenue.

    Right now, as a society we suck at this.

    Devotion is a different energy. When you’re devoted to something you’re approaching it with your whole heart. Commitment is about what you can get out of a situation. Devotion is about what you can give. Commitment equals responsibility while devotion is love.  

    It’s the ones that are devoted to their message and vision that really win big.”

    With years of experience in mental & spiritual wellness, Makhosi can give valuable insight on:

    • Her journey from making $8/hour to generating $1M in revenue over just 6 months
    • Becoming your best by taking aligned action and implementing incremental change
    • Turning obstacles into opportunities and portals of evolution that improve yourself
    • How using integration can bring fulfillment, freedom, and mastery to your life
    • Understanding the energetic blueprint to reach your greatest human potential
    • Rewiring C-Suite executives and guiding their teams to maximize themselves

    Referred to as “The Get Sh*t Done Shaman” by Refinery29, profiled in Business Insider, and featured for her expertise in POPSUGAR, Entrepreneur, Authority, Thrive Global, Nicki Swift, and on LA news station KTLA 5, Makhosi can provide incredible insight.

    Benefits of Working On The Front-line in Canada: Lessons From My First Job

    As a double immigrant who worked his way through high school and university, I am a big believer in the lifelong benefits of working on the front line, early in life. My first job was an eye opener to say the least.

    As a double immigrant who worked his way through high school and university, I am a big believer in the lifelong benefits of working on the front line. My first job was in frontline customer service at age 16 for Canada’s largest sports store chain, Collegiate Sports (now Sport Chek), in a flagship mall in Toronto. I started as a salesclerk selling shoes, retail apparel, ski equipment, and stringing tennis racquets.

    As a student athlete, I was fortunate to work in a large sports department store situated in a multicultural city and to serve all kinds of people across various ages and income groups.

    Our customers ranged from consummate “old stock Canadian” athletes, who were fanatical about every detail when ordering custom equipment, to wide-eyed gullible immigrants whose children were seeking to learn a new sport like ice hockey or snowboarding. It was a fast paced atmosphere with dense traffic in the evenings and buzzing with energy on the weekends like a casino hotel on the Las Vegas strip.

    It was also a very demanding job because it required being on your feet for 8 hours per shift and being constantly “switched on” to anticipate customer needs. Employees engaged in their first front line customer service role developed emotional intelligence through hundreds of daily interactions with customers. Over time, I learned how to read customers’ non-verbal facial expressions and body language, which varied widely by their ethnicities, stage of life, and other factors.

    The job required meticulous knowledge of every major sporting activity, current and incoming inventory, and prices for disparate product lines and brands while also including labor intensive tasks such as tagging the products, stocking the shelves, and cleaning the store after hours. Determining the best allocation of shelf space was a key decision. There were no “smart technologies” such as sensors, cameras, big data, and analytics used by retailers today to manage inventories and shelf-space. Hence arranging the optimal product assortment on the floor to generate traffic was an essential part of the job that required teamwork and an entrepreneurial mindset of experimentation through trial and error.

    The store manager was a flamboyant French-Canadian named Guy who was a die-hard Montreal Canadiens fan with a profound sense of humor.

    Typical of 1980s Toronto, the staff was composed of up-and-comers, including many Asian, European, and Caribbean immigrants. Guy was great at motivating staff, casting people in the right departments, creating internal sales contests, and holding us accountable. He had a keen eye for talent and was adept at identifying and investing in adaptive learners who could conquer a multifaceted department such as ski equipment or hockey skates by efficiently conveying product knowledge to outsell others.

    Guy’s greatest skill was building an informal talent marketplace to grow the business in one of the world’s most diverse cities. He understood that a high performing diverse team of employees who felt like the store was their own business would not just generate loyal customers but grow the sports retail business by engaging new communities. Under his leadership, the store became an incredibly diverse meritocracy of over 500 full time and part time employees: Caribbean kids rose from selling track shoes to managing winter sports and Asian women ascended from selling apparel to assistant manager roles overseeing budgets and purchasing. I remember training a Jamaican immigrant, who happened to be the best sprinter in Toronto, how to string tennis racquets at optimal tensions depending on the player’s style, and she taught me about the subtle differences in track and field spikes depending on specific events and surfaces.

    Like any store environment, it was not always pleasant. When the store missed its numbers by a wide margin, Guy scolded us for not being sufficiently productive.

    He would curse at us with Quebecois nouns, poke fun at our beloved Toronto Maple Leafs, and if revenues were under budget, walk us back to his office which doubled as “banc des pénalités” (“penalty box”). His diminutive office was adjacent to the boisterous warehouse receiving truck shipments, welding, and assembling equipment. Here Guy would shout out the disappointing financial results and present the dormant inventory and the blue-collar workers whose strenuous labor made it possible for us to sell these products on the floor. He reminded us that even the most talented players end up in the penalty box and cost their team when they fail to play together and trust their teammates.

    Over the course of four years, this job taught me three things I would use in the rest of my career: First, the benefits of building a high-performing team of diverse colleagues who could teach each other through an apprenticeship model rather than formal training; second, how professional development is accelerated by highly demanding customers who make purchase decisions in a matter of seconds; and third, how the real world has a magical way of revealing where your greatest talents reside, even if it contradicts what your teachers and test scores suggest are your perceived strengths.

    In my last year on the job, Guy got promoted to regional VP overseeing 100 stores in Eastern Canada.

    Still, he sought me out once every few months. In our last few meetings, he expressed his gratitude that I helped recruit tens of what he called “gens talentueux” or highly talented and diverse employees – mostly high school athletes and musicians – that drew waves of new customers into his stores and grew the business. The last few times we met, Guy tried to persuade me to become a store manager and retail executive like he was. As an Asian immigrant with Ivy League dreams, I was not ready to take the store manager career path.

    However, years later after graduate school and a stint in management consulting, I joined the hospitality industry where I was able to harness this cross-cultural competence to achieve breakthrough results. And when I became an operating executive and eventually a hospitality CEO, it made an even bigger difference. Thanks to years on the front line, I was able to swiftly unearth customer needs, connect deeply with front line employees and build collaborative cross-cultural teams. My front line experience was most helpful in relating to employees in emerging markets such as Shanghai where I had no prior work experience, did not speak the language, and had to motivate migrant workers, mostly mothers living apart from their children.

    It was my years serving on the frontline in retail, sports, and healthcare that taught me to how to collaborate with colleagues, look customers in the eye and resolve their complaints, form teams to solve thorny problems, and meet the litmus test of becoming a leader by identifying and developing other people’s talents.

    Service industries are not just the largest employers: they are engines of human development for communities, cities, countries, and entire civilizations. From the United States to China and Saudi Arabia, business, and government leaders “get it” and are investing billions to rebuild human capital in hospitality centric service industries after the pandemic. These diverse stakeholders recognize the critical role of service industries in rebuilding their countries, diversifying their economies, and facilitating meritocracy for domestic and foreign employees of all ages, races, ethnicities, and genders.

    Surprisingly, their efforts are increasingly lost on the workforce. Instead, a talent disruption, powered by innovative technologies such as generative AI, changing attitudes towards work-life balance, and a growing mistrust of capitalism and governments is changing the equation. Millions of Gen Xers and Millennials are choosing the gig economy or hybrid jobs where they can effortlessly circumvent human interaction and avoid the discomfort of face-to-face conflicts. Groundbreaking technologies such as generative AI may accelerate this talent disruption, further distancing employees and contract workers and hence brands from their customers.

    Consequently, brands that achieved differentiation through personalized service may suffer from commoditization. What is more troubling are the long-term career development implications for individuals, especially Gen Xers and Millennials who are set to become the next generation of service managers and grew up performing these gig economy jobs.

    Driving around town and leaving bags at a front door with pictures, communicating via text confirmations, and receiving tips based on algorithms is not an equivalent experience to being on the frontline in a service operation.

    It may provide contractors with flexibility and income, but it comes at the cost of a lack of learning and customer contact that will serve to stunt their professional growth. What is the solution here? Given this historic talent disruption, what is the path forward for business and government leaders in industries such as hospitality, retail, and healthcare that are experiencing long-term labor shortages and growing unionization? Should employers, including entrepreneurs such as franchisees, increase their investments in acquiring, developing, and compensating talents? Or should they invest in AI and other technologies to automate and reduce their investments in building human capital? What other alternatives, if any, exist?

    My first job was in a sporting goods store.

    When To Accept First Offer On Your House: Insights From Denis Smykalov

    When selling a house, one of the most challenging decisions is determining whether to accept the first offer and move on or wait for a better one to come along. According to Denis Smykalov, founder and broker of Wolsen Real Estate, there are several factors to consider when deciding whether to accept the first offer.

    Mr. Smykalov believes that the quality of the offer goes beyond the price tag.

    Denis Smykalov

    A strong offer could entail fewer contingencies or a flexible closing date. If a buyer is pre-approved for a mortgage and is not asking for many contingencies, it may be in the seller’s best interest to accept the initial offer.

    The current real estate market can also play a significant role in deciding whether to accept the first offer. It may be wise to accept a reasonable offer in a buyer’s market to avoid the property staying on the market for an extended period. On the other hand, in a seller’s market, where demand outpaces supply, sellers may receive offers that meet or exceed the asking price. If the buyer has strong financing, it could be a good idea to accept the first offer.

    Speed is also a significant factor in determining whether to accept a first offer.

    If the seller needs to move quickly or has already purchased another home, accepting the first offer might be the best option. In these cases, a bird in the hand is often worth two in the bush.

    Feedback from a real estate agent is also essential in making a decision. A good agent understands the market and can advise whether the initial offer is competitive based on the current conditions.

    Lastly, if the seller believes they have priced their home correctly and the first offer aligns with their expectations, it may be a good idea to accept it. Ultimately, only the seller can determine what offer price they are comfortable with. If the first offer meets that threshold, it could be a good time to make a deal.

    It is essential to remember that each selling situation is unique, and these guidelines only provide a starting point. Sellers should always consult a real estate professional who understands their specific situation and the local market conditions.

    In conclusion, accepting the first offer is a decision that requires careful consideration.

    Denis Smykalov’s insights provide valuable guidance in determining whether the initial offer is the best option. With extensive experience in the industry, Mr. Smykalov’s expertise can help sellers make informed decisions when it comes to selling their home. For the Silo, Katherine Fleischman.

    More about Denis:

    Denis Smykalov built his career in the real estate industry over the last nine years by following his passion for being innovative, people and bringing the two together in the ideal environment. Achieving this goal so young, Smykalov decided to open an office in Sunny Isles Beach and became the owner of Wolsen Real Estate.

    With business on the rise, at one point there were 65 agents. Now there are 25 agents, a marketing department, social media department sales department and 3 assistants that have successfully helped bring in almost 80 million dollars in sales this year. His most notable accomplishments with Wolsen Real Estate were two crypto transactions. One was a resale at Marina Blue for $465,000, pre-construction at Waldorf Astoria for over $2.5 million as well as a villa sale on Hibiscus Island for $19 million.

    Investor-State Disputes Proliferating, Rules Remain Critical for Canada Business Investment

    May 9, 2023 – Investor-state disputes are proliferating around the globe as business investors seek redress for government actions they deem unfair or contrary to investment agreements, according to report from the C.D. Howe Institute. In “Investor-State Disputes: The Record and the Reforms Needed for the Road Ahead,” author and C.D. Howe Institute Senior Fellow Lawrence L. Herman reviews the record of investor-state dispute settlement (ISDS) procedures, the criticisms directed at them, and the reforms required.

    “Despite concerns and criticism, ISDS procedures in international investment agreements are an important development in global governance that should continue to be a part of our international fabric,” says Herman.

    Herman examines both Canadian and global cases involving ISDSs, which give private parties the right to bring binding arbitration against governments under International Investment Agreements (IIAs). These rights can be invoked when investors allege a lack of fair and equitable treatment, discrimination or expropriation without adequate compensation contrary to a country’s treaty obligations.

    “ISDS has become a significant feature for investments, particularly into developing countries in many parts of the world,” according to Herman.

    “However, because of the rights given to private parties, these agreements have become increasingly controversial – especially in an era of increasingly expanding governmental measures on climate change, sustainability, human rights and other issues impacting foreign investors and their investments in one way or another.”

    In response to these concerns, multilateral, regional and bilateral efforts are making continuing improvements to ISDS mechanisms when it comes to efficiency, transparency and aspects such as permanent appointments and a system of appeals.

    “While some countries have embarked on a program of terminating their bilateral investment agreements, these agreements will continue to remain as a part of the international fabric in many parts of the globe,” says Herman. “They are an important development in global governance and, even if not perfect, they not going to disappear in spite of concerns and criticisms.”

    Creating permanent rosters of tribunal members as well as adding an appellate review processes to existing IIAs would help improve ISDS procedures. Short of this, Herman says ongoing efforts could include: i) promoting model arbitration clauses to reduce legal uncertainty and enhance consistency and predictability of outcomes; ii) developing codes of conduct and best practices for adjudicators plus rules to ensure their independence; and iii) making sure appointments to tribunals are of highest quality. Governments should also publicly support the value of third-party arbitration as an objective and neutral process that leads to peaceful resolution of differences, he adds.

    Ultimately, investment protection treaties are about risk mitigation with host states bound by treaty to respect obligations of fair and equitable treatment and other rule-of-law standards and providing investors with a degree of assurance, says Herman. “While there are legitimate questions about the process and whether and to what degree investment treaties accomplish these objectives, these suggestions can assist in providing ways forward,” he concludes.

    There are some 2,500 international investment agreements (IIAs) in force around the world, whether as stand-alone treaties or incorporated into bilateral or regional free trade agreements (FTAs). They are a significant feature of the international business scene.

    A main feature of these agreements is to allow foreign investors to invoke binding arbitration where it is alleged that the host governments have breached fair and equitable treatment and other treaty obligations towards the investors. This is known as Investor-State Dispute Settlement or “ISDS”.

    The process gives foreign investors comfort that if things go wrong in host countries, they have recourse to neutral, third-party dispute resolution. It thus provides important elements of risk reduction for foreign investors and their investments, notably aiding the flow of capital from industrialized countries to the developing world.

    There has been dramatic escalation of investor arbitration claims over the last two decades. This makes it timely and useful to review the situation, looking at the value of ISDS as well as the criticisms that have emerged over the years. The conclusion is that IIAs and the arbitration process are valuable parts of the corpus of international order and will remain an integral part of the international business scene for the foreseeable future. The issue facing governments, therefore, is how to respond to criticisms by improving, as opposed to abandoning, the ISDS process. This paper suggests some pragmatic ways forward.

    A Canadian company, First Quantum Minerals, and the government of Panama are reported to have settled a long-standing tax dispute allowing the company to resume operations at the Cobre Panama mine in that country. Earlier reports were that if the dispute was not resolved by negotiation, the company would invoke arbitration rights under the Canada-Panama Free Trade Agreement.

    Had the dispute proceeded, it would have been another example of hundreds of arbitrations that have proliferated around the globe, initiated under various international investment agreements (IIAs) that give private parties the right to bring binding arbitration against governments under Investor-State Dispute Settlement ( ISDS) procedures. Those rights can be invoked, for example, where investors allege lack of fair and equitable treatment, discrimination or expropriation without adequate compensation contrary to that country’s treaty obligations.

    In addition to investment treaties, numerous free trade agreements incorporate separate investment dispute settlement provisions, including the former North American Free Trade Agreement (NAFTA); the Canada-EU trade agreement (CETA); the Trans-Pacific Partnership (CPTPP) Agreement; and bilateral free trade agreements, such as those between Canada and countries like Chile and South Korea, among others.

    As a consequence, ISDS has become a significant feature of the ground rules for investments in many parts of the world, particularly those made into developing countries. Because of the rights given to private parties, these agreements have become increasingly controversial, especially in an era of expanding governmental measures on climate change, sustainability, human rights and more that impact foreign investors and their investments.

    In light of these developments, it is useful to briefly update the ISDS record with regard to Canada, look at what lessons might emerge, both in the global and the Canadian context, and suggest some elements to monitor as we go forward.

    Criticisms Of ISDS Agreements

    As investor arbitrations have proliferated, so have the criticisms, making ISDS one of the more controversial aspects of global governance. Here are some of the main ones:

    • IIAs have given private companies broad rights to challenge host-country actions that can fall within legitimate fields of public regulation, especially now in an era of decarbonization and other national crises like COVID 19.
    • The process involves one-way litigation, with no corresponding right of host countries to bring arbitration cases against investors for disregarding laws, practices and standards of business conduct.
    • The growth of third-party financings of investor claims has stimulated, or at least encouraged, the initiation of ISDS cases.
    • Investment agreements bypass the customary international law norm that requires claimants to first exhaust local remedies before bringing an international claim against a host country.
    • The ISDS structure is defective because its ad hoc tribunals – put together to hear a particular case – make long-term, binding decisions affecting laws or policies enacted for the public interest.
    • Arbitrators’ decisions are final and binding with no avenue of appeal, whether on errors of fact or of law.
    • Because of its ad hoc nature, the system lacks institutional continuity. Public confidence in the system suffers.
    • Arbitrators are appointed from a small — if not closed – pool of international lawyers who are free to act for private interests as counsel in other cases, leading to appearances of conflict and adding to diminished public confidence in the process.7

    There are answers to these critiques but the over-arching response, as alluded to above, is that resolving investor-state disputes based on legal norms within an accepted procedural framework remains a significant achievement in the progressive development of international law. As observed in one analysis,

    “During the last decade a number of the shortcomings have indeed been addressed and remedied. It is reasonable to assume that this has been done – at least partially – based on the realisation that investment treaty arbitration is the most efficient and reliable dispute settlement mechanism for disputes between foreign investors and host States. There is simply no better, realistic alternative.”8

    As already mentioned, ISDS in its various manifestations provides an important element of stability and risk insurance when investing in jurisdictions where legal rules may not be mature or respected, aiding the flow of capital to developing countries and thus presumably helping to meet the international community’s aid and development goals. The system may not be perfect, but efforts are afoot to improve it at many levels.

    For the Silo, Lawrence Herman/C.D. Howe Institute.

    The author thanks Daniel Schwanen, Charles-Emmanuel Côté, Rick Ekstein, Ari Van Assche, Gus Van Harten and anonymous reviewers for comments on an earlier draft. The author retains responsibility for any errors and the views expressed.

    International Monetary Fund- World Economy Still Recovering

    The IMF announced today (Tuesday, April 11, 2023) in the World Economic Outlook’s press briefing that the baseline forecast for global output growth is 0.1 percentage point lower than predicted in the January 2023 WEO Update, before rising to 3.0 percent in 2024.

    “The world economy is still recovering from the unprecedented upheavals of the last three years, and the recent banking turmoil has increased uncertainties.”

    “We expect global output growth to fall from 3.4% last year to 2.8% in 2023, before rising to 3% in 2024, mostly unchanged from our January projections. Advanced economies are expected to see an especially pronounced growth slowdown from 2.7% in 2022 to 1.3% in 2023. Global headline inflation is set to fall from 8.7% in 2022 to 7% in 2023 on the back of lower commodity prices but underlying core inflation is proving to be stickier. Importantly, this outlook assumes that recent financial stresses remain contained,” said Pierre-Olivier Gourinchas, the IMF’s Chief Economist.

    Much uncertainty clouds the short- and medium-term outlook as the global economy adjusts to the shocks of 2020–22 and the recent financial sector turmoil. Recession concerns have gained prominence, while worries about stubbornly high inflation persist.

    Chart- world economic outlook projections including Canada.

    “Once again, risks are heavily tilted to the downside, they have risen with the recent financial turmoil. Most prominently, recent banking system turbulence could result in a sharper and more persistent tightening of global financial conditions. The simultaneous rate hikes across countries could have more contractionary effects than expected, especially as debt levels are at historical highs. There might be a need for more monetary tightening if inflation remains stickier than expected. These risks and more could all materialize at a time when policymakers face much more limited policy space to offset negative shocks, especially in low-income countries,” added Gourinchas.

    With the fog around current and prospective economic conditions thickening, policymakers have a narrow path to walk towards restoring price stability while avoiding a recession and maintaining financial stability. Achieving strong, sustainable, and inclusive growth will require policymakers to stay agile and be ready to adjust as information becomes available.

    “First, as long as financial stress is not systemic as it is now, the fight against inflation should remain the priority for central banks. Second, to safeguard financial stability, central banks should use separate tools and communicate their objectives clearly to avoid unwarranted volatility. Financial policies should remain laser focused on preserving financial stability and watch for any buildup of risks in banks, non-banks, and the real estate sectors. Third, in many countries fiscal policy should tighten to ease inflation pressures, restore debt sustainability, and rebuild fiscal buffers. Finally, in the event of capital outflows that raise financial stability risks, emerging market and developing economies should use the integrated Policy framework, combining temporary targeted foreign exchange interventions and capital flow measures where appropriate,” said Gourinchas.

    Metaverse Trademark Applications Surging

    Over 5,800 Metaverse Trademark Applications Filed Last Year = Surging 200% Year-Over-Year

    In 2022, there was a significant surge in trademark applications related to the Metaverse and non-fungible tokens (NFTs), indicating the growing importance and potential profitability of these emerging industries.

    According to data collected by Blockchain Centre, there were 5,850 new Metaverse trademark applications and 7,746 NFT trademark applications registered last year.

    This represents a growth rate of 205.64% and 259.61%, respectively, from the previous year. The monthly trends for trademark registrations steadily increased throughout the year, with at least 300 new applications filed every month.

    Increasing interest in the Metaverse

    Many big companies, including Meta, Formula One, Mastercard, McDonald’s, Gatorade, and the US Space Force, have also filed applications with the USPTO in 2022, indicating their interest in virtual products and involvement with crypto and blockchain.

    The rise in trademark applications related to the Metaverse and NFTs has prompted an investigation by the US Patent and Trademark Office and US Copyright Office to examine how NFTs impact intellectual property rights.

    According to the research:

    “Recently, several prominent brands have faced challenges when their intellectual property or products were infringed upon by NFT marketplaces or platforms.”

    Despite the ongoing ‘crypto winter’, the rise in trademark applications and growing interest in metaverse products have served as a counterbalance to concerns that the market is being negatively impacted. For the Silo, Lina Alisauskaite.

    Free App Keeps Track Of Your Food Best Before Dates Saves Money

    A major money saving and environmentally beneficial smart kitchen app launched waaaaay back in 2015, on World Environment Day, and deserves another look as it still works well and saves users up to $1,000 every year and helps reduce food waste.

    The “Smart Kitchen” EatBy App reduces food waste, saving households up to $1,000 per year and helps the environment.

    The staggering amount of wasted food continues to make headlines and back when the app was first created, husband and wife developers, Steffan and Barbara Lewis were focusing their passion for finding a solution to the environmental issues surrounding food waste and came up with the idea to develop and launch “Smart Kitchen” EatBy as soon as possible.

    “We had the idea one lunchtime after we had to throw out the food we’d hoped to eat because it had passed it’s use by date. That led to a purge of all the out of date food in our kitchen. And quite frankly, we were shocked and disgusted with ourselves when we realised how much we waste.” said Barbara Lewis.

    They decided to make the app free to download and offer expanded use with an optional shopping list that can be activated with an in app purchase.

    “It’s important to us that the app’s basic functions have to be free in order to gain and benefit the maximum number of users. Collectively we can all make a huge difference to the environment. And it’s an added bonus that we’ll save around £700 ($1,000) each year.”

    And the numbers add up.

    Recent reports state that the average household wastes $80 usd ($109.23 CAD) every month on un eaten food. With over 123 million U.S. households that’s $9,840,000,000. Factor in similar habits throughout the rest of North America and an equivalent amount in Europe, the tally is somewhere around a staggering $236 Billion each year. It’s known that about one third of all food produced is discarded but the real cost to the environment is misunderstood: 1.3 billion tonnes of wasted food contributes 10% of worldwide total greenhouse gases.

    Many strategies for reducing food waste have been proposed by environmentalists, government agencies and industry specialists. But the husband and wife creators of the EatBy App claim their app is the first practical personal tech solution to the problem of food waste. It is a simple to use Smart Kitchen App that effectively helps manage the food in your kitchen and lets you know when food items expire. The optional integrated shopping list will also help reduce buying too much food in the first place.

    “We are under no illusion that our app will immediately solve this global problem,” Said Steffan Lewis, “But if only a few million people download and use it, then it’ll already make an impact and that’d be a great start. Obviously, we’d like everyone to use our app and benefit from it!”

    The EatBy App is available for both Android and Apple devices. More information about the project’s history can be found at https://www.eatbyapp.com

    Supplemental- Students in Vancouver, Canada feed 5,000 using ‘rescued food’

    Can C3.AI Stock Keep Rallying with AI in the Spotlight?

    The recent rise of Artificial intelligence (AI) programs such as ChatGPT has created a frenzy around AI-related stocks.


    C3.AI, a pure play AI stock, is up over 100% since late December.

    But is this rally sustainable? After all, the public was already surrounded by AI without realizing it. Almost everything people use in daily life is affected by AI already: 

    • advertising
    • entertainment streaming services
    • social media
    • cars (collision detection and blind spot monitoring)
    • fraud prevention
    • screening job applicants
    • email spam filters
    • many other applications

    C3.AI is a company that creates software to help other companies deploy AI projects. C3 software is being used in multiple ways, including managing inventories, monitoring for energy inefficiencies, and predicting system failures. [Of particular note is one new product from C3 called ex machina which allows users to program AI initiatives without using any coding at all but instead via a series of visual programming tools. CP]

    AI stocks, and technology stocks as a whole, were a neglected market in 2022. The Nasdaq 100, an index heavy in technology stock, fell more than 30% in 2022. C3.AI fell over 65% in 2022, and is currently down almost 90% from its 2020 high (even after the 100% rally in 2023). All currency quotes that follow are in USD.

    C3.AI recently peaked at $30.92 on February 6. It then reached a low of $20.31 on March 1 before rallying back to $29.98. It has since fallen and is back near the $20.33 low.

    This puts the stock at a crucial level.

    An analyst from SafeTradeBinaryOptions.com had this input: “Right now, the stock is in an uptrend, albeit a precarious one. The price has been making higher swing lows and higher swing highs throughout 2023. But if the price drops much below $20, that will no longer be the case. The price will have made a lower high on March 6 (compared to February 6) and if the price drops below the March 2 low, that is a lower low. These are signs of a downtrend starting — not an uptrend.”

    All facets of our modern world are already in the embrace of A.I. whether we know it or not.

    This $20 region is important because if the area holds, this indicates the price is moving in a range, with the possibility of the price moving back up to the top of the range near $29. If that happens, there is still hope that the price will eventually break out of the range to upside, continuing its advance to $40, for example. 

    However, if the price drops below the $20 region, the range is broken and the uptrend is in jeopardy. 

    It’s important to watch C3.AI to see how investors are perceiving the future of AI, and what that may mean for the industry’s future. 

    As of March 2023, C3 doesn’t have a lot of direct competition. The company is not yet even profitable. How the stock moves is based on whether investors believe the company can eventually generate profits — and in this case, its profits largely depend on whether AI becomes even more widespread than it already is. For the Silo, Kat Fleischman.

    Pi- crypto, mined Via Smartphones is Getting Noticed

    Pi Network increased its team member headcount by nearly 33% over the past year, debuted new developer features and KYCd 3.8M community members to-date

    PALO ALTO, Calif., March, 2023 /– Pi Network, a community of tens of millions of humans mining Pi cryptocurrency to use and build the Web3 app ecosystem, today announced a series of milestones for the growing organization, including a notable spike in full-time Core Team members, multiple app developments and new improvements to its native KYC ID review algorithms. 

    March 14 (3-1-4) is Pi day

    Despite the overall crypto market contraction, the Pi Core Team continues to grow, signaling the speedy development of the Pi Network ecosystem and its long-term vision.

    Since February of 2022, full-time team member headcount has increased almost 33% in critical areas such as product, engineering, and community. Pi Network’s most recent hires include a new Senior Engineering Manager who will add more bandwidth to its technology management. The Pi Core team now stands around 40 strong and continues growing as the network expands and the ecosystem evolves. 

    “Given the breadth of work at Pi Network, the Core Team’s growth will continue to enable more decentralized efforts from our community of over 35 million engaged members who collectively build this network. Pi Network’s work is to empower those members in alignment with Pi’s vision of an ecosystem that is built on the blockchain to support a new Web3 social network of a large community, all of whom are empowered to create and use utilities through its developer’s platform and Pi apps. Building for that ambitious vision requires an all-hands approach from Pioneers, community developers, external partners, and the Core Team together,” said Chengdiao Fan, a Founder and Head of Product at Pi Network.

    “By prioritizing the human aspect, focusing on building substance and adopting non-consensus long-term strategies, we’ve taken a more careful and deliberate path. We know that patience isn’t a strength in the crypto space but we’re confident in our approach: that’s why we’ve been able to continue the Network’s steady growth despite the downturn we’ve seen impacting some other crypto projects.”

    In addition, Pi Network has taken great strides in the product and ecosystem fronts with numerous updates and developments.

    Pi’s current Enclosed Network period of Mainnet allows Pi to focus on completing KYC and Mainnet Migration for the majority of the network, and bootstrapping the Pi ecosystem with meaningful apps and utilities, without undue influence from external factors.

    To that end, Pi has been diligently improving its KYC ID algorithms to expand access to its native KYC solution, officially launched March 14, 2022, as the primary mechanism to validate Pioneers’ identities for Mainnet Migration. Since enabling mass KYC in June of last year, Pi has successfully validated over 3.8 million Pioneers to date.

    Simultaneously, Pi has made significant efforts in building Developer Platform features and expanding community collaboration to foster Pi ecosystem growth, including the launch of PiOS, Pi’s Open Source Software License which allows Pi Community Developers to create open source applications and tools and exclusively extends to use within the Pi Ecosystem. Recent ecosystem-related updates include work on App-to-User payments and Developer Wallets for improved Mainnet payment flows, the Pi “Brainstorm” app (where “Pioneers” can propose and explore various ideas and pair up with like-minded Pioneers to build real Pi platform apps, and more. 

    Moreover, Pi has emphasized app development through Core-Team-developed apps, external business partnerships, and the most recent Pi Hackathon which hosted over 6,400 participants, all to better source talent, concepts, and utilities for the community.

    “With the much-anticipated ‘Pi Day’—which celebrates the 4th anniversary of Pi’s official launch—happening this March 14, we have some exciting programs in the pipeline that we are eager to introduce to the Pioneers and developers for our decentralized efforts to build the Pi ecosystem,” said Dr. Nicolas Kokkalis, a Founder and Head of Technology. “At Pi, we’re creating things and solving problems in a way that the world hasn’t seen before.”

    To learn more about Pi Network, please visit minepi.com.

    ABOUT PI NETWORK

    Pi Network is a community of tens of millions of humans mining Pi cryptocurrency to use and build the Web3 app ecosystem. Founded in 2018 by Stanford University PhDs with specializations in blockchain and social computing, Pi Network is a utilities-based ecosystem for third-party apps on a mobile web platform, with widespread (rather than concentrated) token distribution. The blockchain platform offers a mobile-first mining approach, with low financial cost and a light environmental footprint within the crypto space.

    5 Tools to Facilitate the Management of your Business

    Running a business can be a challenging task, especially when you are dealing with multiple tasks and responsibilities at the same time. Fortunately, many tools can help streamline your business operations and make management much easier. In this article, we will take a look at five such tools that can help you manage your business more efficiently.

    1. A personalized ERP

    ERP stands for Enterprise Resource Planning, and you may opt for an ERP business application. It is a type of software that helps businesses manage their day-to-day operations by integrating and automating various business functions, such as finance, accounting, inventory, sales, and human resources, into a single system. ERP software provides real-time visibility into all business processes, enabling businesses to make informed decisions based on accurate data.

    1. Slack

    Slack is a communication tool that helps teams collaborate more effectively. It allows you to create channels for different projects or teams, which you can use to share files, send messages, and hold virtual meetings. Slack integrates with many other tools, such as Trello and Google Drive, making it an ideal choice for businesses that rely on multiple tools for their operations.

    1. Google Analytics

    Google Analytics is a powerful tool that allows you to track and analyze your website’s performance. It provides valuable insights into your website’s traffic, such as where your visitors are coming from, what pages they are visiting, and how long they are staying on your site. This information can help you optimize your website and improve your online presence.

    1. QuickBooks

    QuickBooks is an accounting software that can help you manage your finances more effectively. It allows you to track income and expenses, create invoices, and manage payroll. QuickBooks also integrates with many other tools, such as Trello and Google Sheets, making it easy to manage your finances and other business operations from a single platform.

    1. HubSpot

    HubSpot is an all-in-one marketing, sales, and customer service platform that can help you manage your business more efficiently. It includes a CRM (customer relationship management) tool, email marketing, social media management, and much more. HubSpot’s powerful tools can help you automate your marketing and sales processes, and improve your customer engagement.

    1. Trello

    Trello is a project management tool that helps teams collaborate and stay organized. It is a visual tool that lets you organize your projects into boards and lists, with cards for each task. You can assign tasks to team members, set due dates, and track progress. Trello is great for managing projects of all sizes, from small tasks to large, complex projects.

    Managing a business can be overwhelming, but with the right tools, it can be much easier. ERP, Trello, Slack, Google Analytics, QuickBooks, and HubSpot are just a few of the many tools available that can help you manage your business more efficiently.

    By using these tools, you can streamline your operations, improve communication, track performance, manage finances, and much more. So, give these tools a try and see how they can help you manage your business more effectively. For the Silo, Bill Gordon.

    7 Serious Tips for Better Bookkeeping in Canada

    Bookkeeping is tedious for most business owners unless you are a seasoned accountant or a fan of working with numbers. That is because businesses have a lot of financial details that need to be recorded, for instance, which supplier should be paid, outstanding customers, equipment to buy, significant purchases to make, and more. Without an accounting and bookkeeping system, you may lose essential business data, miss important goals, or make uninformed decisions that may affect your company’s finances.

    Proper money-handling strategies are integral in any business as it helps you keep track of your long-term goals, improve your profits, and streamline seasonal cash flow changes. In addition, it will help your business stay out of trouble with the Internal Revenue Service or IRS.

    By adopting good bookkeeping habits, you can avoid costly errors when it comes to record keeping. You can opt to have an in-house team to handle all your bookkeeping services, but this can be un-economical for small business owners. To save on cost, you can work with a bookkeeping agency, which often offers professional online and virtual services in Canada at very fair rates.

    Here are seven tips for better bookkeeping for businesses in Canada.

    Separate Your Business and Personal Finances

    If you are a sole business owner, you should learn to separate your personal and business accounts. This will help you maintain records of every business and personal spending and help you keep the boundary to alleviate eating into the business growth finances.

    For limited liability companies, the business is a separate entity from you, and your finances should be kept separate. That means you need to know which assets belong to the business and which are yours. By eliminating all personal transactions from the business accounts, you will lower the number of transactions the bookkeeper needs to categorize and reconcile. Additionally, your tax preparation and filing process will be seamless. You can find a bookkeeper in Canada to help you separate your accounts and provide outsourced business and personal bookkeeping services.

    Control Your Business Credit

    One of the common signs of an insolvent business is the inability to make payments promptly. The company may need better credit scores, lack of funding, or challenges in fulfilling its working capital needs.

    When your business depends on bank financing to fund everyday operations, you will need help to pay back your high-interest debt. Therefore, you need to do due diligence before taking external funding.

    You should set strict deadlines for your clients to pay what they owe and consider blocklisting repeat offenders that are taking advantage of you. Eliminate any late payments, as it is just like an interest-free loan. Your business may quickly become a cash-flow crisis if you lack rigorous credit control.

    Track Business Expenses

    Business expenses may be claimed against tax; therefore, tracking them is crucial if you want to cut overhead and maintain a healthy cash flow. You should always use a business credit card and keep records of expenses based on business activity.

    Categorizing your expenses can be crucial, especially when your business is undergoing an CRA audit. The numbers on tax returns are often estimates, and these records help offer supporting evidence. Always remember that even trivial expenses will add up, and having records of everything can be helpful in the long run.

    Overspending negatively affects any business; hence, keeping track of your expenses will ensure you track all your expenditures. Always remember that every dollar that you spend takes the business one step away from making a profit. Therefore, when running a business, keep a close watch on all your expenses, understand the benefit you gain from each expense, and document everything carefully. With outsourced online bookkeeping services, you can keep track of all your business expenses and maintain good records.

    Schedule Routine Bookkeeping Times

    As a business owner, you are handling many things at once, which can eat into the time you can use to monitor your financial record books.

    The best way to keep your accounts is by consistently scheduling times to balance your books or working with a bookkeeping company in Canada. You can set aside time when your credit card statement is due and check through your monthly transactions to ensure everything is accurate. Although this task will take about one or two hours, it will simplify your life during the tax season by making tax preparation and filing much more effortless.

    Create Budgets For Your Expenses And Set Financial Goals

    Planning for business expenses, especially significant purchases, can help you best utilize your business resources and credit while giving you the peace of mind you need. Setting up and reviewing business budgets is directly related to the success of your business.

    According to research, small businesses that regularly review their budgets on a weekly, monthly, and annual basis have success rates of 95%, 75%, and 25%, respectively. Therefore, if you want your business to succeed, you must have relatively high unused credit balances. In addition, you should also ensure your budget is monitored regularly, understand the benefits of using credit for your company, and be able to earmark the right amount of business payroll expenses.

    Automate Manual Processes

    One of the best accounting tips for growing businesses and start-ups is automating routine bookkeeping. Most accounting and bookkeeping activities are repetitive, and automating them will make your work easier and seamless.

    Some repetitive bookkeeping processes you can automate include paying employees’ salaries monthly, following up on late invoices, and tracking invoices you send to customers. In addition, you can also automate the calculation of mileage payments for employee reimbursements and document utility bills in a central database.

    Business owners can make life much easier by utilizing unified accounting project management solutions to help track expenses, automatically send invoices, and generate customized reports.

    Consider Hiring a Tax Accountant

    Investing in a seasoned tax accountant near me can be valuable for your business, even if the professional commits just a few hours every week or month to work on your small business bookkeeping and accounting needs.

    A certified bookkeeper will record income and expenses and categorize them for a specified period. Conversely, a chartered accountant will help file your business taxes and set up your business’s accounting backbone. A reputable bookkeeping company will have certified tax consultants near me ready to assist you.

    With an expert bookkeeper or chartered accountant handling all financial tasks, business owners can focus entirely on their business to attract customers and satisfy existing clients. They can also develop new products and services and grow their business.

    Final Thoughts

    Bookkeeping is a necessary evil that businesses cannot escape because almost everything depends on it. With an accurate and robust accounting system, you will get information about the business’s cash flow, performance, and financial condition, and it will help you make informed financial decisions. With the tips mentioned above in mind, you can ensure your small business bookkeeping records are available and can make better decisions for your business. You can also eliminate the headache of bookkeeping by outsourcing this function to a certified bookkeeper to help you out. Having a safe pair of skilled hands providing bookkeeping services for small businesses will give you, as the business owner, the confidence and freedom to lead from the front by focusing more on growing your business.

    Crypto and E-wallets are Future of Gaming Payments

    The gaming industry is undergoing a significant shift. The payments ecosystem is evolving towards a new era of cryptocurrencies and e-wallets and away from conventional online banking accounts. According to our friends at LotteryCritic.com, the impact of this changing payments ecosystem is multifaceted, affecting everything from the speed of transactions to how funds are stored and managed. Freddie Smith, CEO of LotteryCritic, commented:

    Integrating crypto and e-wallet payments into the gaming industry is particularly advantageous because it eliminates the need for third-party payment processors. This means that users don’t have to go through traditional banking channels, which can be slow and unreliable. Moreover, crypto and e-wallet payments are more secure than traditional systems since they use sophisticated encryption algorithms.  

    Advantages and Opportunities of Cryptocurrency and E-wallets in the Gaming Industry

    Cryptocurrency has widespread recognition as a form of payment, and the gaming industry is no exception. Many online gaming platforms now accept cryptos. Therefore, players can use them to buy in-game items or to place bets. The use of cryptos in the gaming industry offers several benefits. They include lower transaction fees, fast and secure transactions, and anonymity for players. E-wallets have also become increasingly popular in the gaming industry. Players use them to store funds and make transactions within the gaming platform. E-wallets offer several advantages, such as ease of use, fast dealings, and storing multiple currencies in one account. With the integration of e-wallets and cryptos, players can make quick and secure transactions.

    The adoption of cryptos and e-wallets in the gaming industry has also opened up new revenue streams for gaming companies. For example, some gaming companies now offer in-game purchases using cryptocurrencies. Thus, allowing players to buy items using their digital assets. This has created a new market for gaming companies and has provided an opportunity for them to increase their revenue.

    Challenges in the Adoption of Cryptocurrency and E-wallets in the Gaming Industry

    The gaming industry has seen a rise in adopting crypto and e-wallets as payment. While these payment methods offer several benefits, adopting cryptos and e-wallets has challenges. One of the significant challenges is the volatility of crypto prices. Crypto prices can fluctuate rapidly and unpredictably. Thus, it can affect the value of in-game purchases made using cryptocurrencies.

    The unpredictability can create confusion for both gaming companies and players. Besides, there is also a need for more regulation in the cryptocurrency market. The lack of rules makes it difficult for gaming firms to operate within a legal framework.

    Moreover, the lack of regulation also exposes players to security risks, such as hacking and theft. Integrating cryptocurrencies and e-wallets into the gaming industry can also present technical challenges. Investors must ensure systems and processes used for transactions are secure and user-friendly. This requires significant investment in technology and infrastructure. The cost implications can hinder small and medium-sized gaming firms from investing.  For the Silo, Elizabeth Kerr.

    Pi- the only crypto you can mine from your smartphone.

    Streaming Royalties Are Bullshit A Musicians Case For Universal Income

    Royalties Are Bullshit: A Musician’s Case For Basic Income….. “This song is Copyrighted in U.S., under Seal of Copyright #154085, for a period of 28 years, and anybody caught singin’ it without our permission, will be mighty good friends of ourn, cause we don’t give a dern. Publish it. Write it. Sing it. Swing to it. Yodel it. We wrote it, that’s all we wanted to do.”

    -Woody Guthrie, copyright notice, This Land Is Your Land

    Royalties are bullshit.

    I say this as a musician, and as a songwriter. But let me go a step further: royalties have always been bullshit. The first problem? They’re not going to musicians, and they never have.

    If money is being made, something is being sold. That something has to be a product, something that can be counted. Originally it would have been sheet music, before recorded music was widely available. Later on, it meant records, then tapes, CDs, downloads, streams, as well as licensing rights – use in a specific film, or for a particular commercial. There is a product. Someone is buying it. Some of that money goes towards the cost of producing, distributing, and marketing that product; some of it goes to the artist, as royalties.

    Well, a little bit of it goes to the artist.

    As Billboard notes, “An accurate map of royalty pathways would be a tangled mess.” It’s not easy to get paid.

    Some royalties are set by the government, some are negotiated, some are paid through groups. For example, I license my music through TuneCore, which strikes deals with a series of digital music outlets, like iTunes and Spotify, each of which offers different terms of payment. Spotify pays artists, on average, $0.007 cents per stream.

    Example of royalties earned for artist Jarrod Barker. Russian streamer Yandex awarded 8/100th of a penny for track streaming. Mr. Barker would need 99,992 additional streams to earn a dollar!
    Example of royalties earned for artist Jarrod Barker. Russian streamer Yandex awarded 8/100th of a penny for track streaming. Mr. Barker would need 99,992 additional streams to earn a dollar!

    Beyond that, if you are “fortunate” enough to work with a major record label, there are restrictive terms and conditions. Techdirt quotes Tim Quirk of Too Much Joy explaining the Kafkaesque math [emphasis mine]:

    A word here about that unrecouped balance, for those uninitiated in the complex mechanics of major label accounting. While our royalty statement shows Too Much Joy in the red with Warner Bros. (now by only $395,214.71 after that $62.47 digital windfall), this doesn’t mean Warner “lost” nearly $400,000 on the band. That’s how much they spent on us, and we don’t see any royalty checks until it’s paid back, but it doesn’t get paid back out of the full price of every album sold. It gets paid back out of the band’s share of every album sold, which is roughly 10% of the retail price. So, using round numbers to make the math as easy as possible to understand, let’s say Warner Bros. spent something like $450,000 total on TMJ. If Warner sold 15,000 copies of each of the three TMJ records they released at a wholesale price of $10 each, they would have earned back the $450,000. But if those records were retailing for $15, TMJ would have only paid back $67,500, and our statement would show an unrecouped balance of $382,500.

    Of course, none of this is new, really. The history of artists getting screwed by record labels is as long as the history of record labels, and includes everything from the creative math above to outright theft, failure to count sales, or inventive stunts like Fantasy Records accusing John Fogerty of plagiarizing himself. But bear with me, because it gets worse.

    In the music industry today, there are a few people who are making money from royalties- and they’re making nearly all of it. More specifically, the top one percent of earners are taking in 77% of the recorded music revenue. Strikingly, these are many of the same artists who are now “at war” with YouTube. Artists such as Taylor Swift and Paul McCartney are convinced that YouTube is making money from their music by selling ads and subscriptions, and not paying adequate royalties. And they’re not wrong; YouTube is definitely making money by selling ads and subscriptions, and there’s no question that most of that is not going to the artists.

    However, this is a stupid argument.

    It’s a stupid argument because a tiny group of people that’s making the lion’s share of all recorded musical income is concerned that a new service doesn’t adequately compensate them; the major record labels feel the same way, of course. It’s a “war” that leaves out 99% of the musicians out there trying to make music and make a living, and it doesn’t really matter how they settle the conflict.

    So let’s say, hypothetically, that we eliminate royalties. This raises a fundamental question.

    How do we compensate and credit artists for their work?

    I believe the answer is basic income, but first let’s take a closer look at that question. At a glance, it seems like it should be simple: pay them for their music. But what does that mean? It quickly gets complicated.

    Part of the problem is that we as a culture equate value with ownership. If musicians have created a song, this thinking goes, and that song has value, they must own it, like any other form of property. But that’s ridiculous, and it’s pretty easy to see how quickly it becomes truly absurd.

    For example, take a classic blues song, like Big Mama Thornton’s “Hound Dog.” Is that her tune? Yes! Does she deserve credit for it? Absolutely. Big Mama Thornton has a special place in blues history, and rightly so. But is it the first example of a 12-bar blues? No, of course not. Is it the first time someone used lyrics about a dog? Is it the first time someone used the call-and-response verse structure of a repeated first line and different last line? No, and no. And even though she made it a hit, the lyrics were by Leiber and Stoller. So which part of the song does she “own”? Is it just that specific recording? If so, how much does the bass player own, or the drummer? Do you pay royalties for playing it on the radio? What if it’s on the radio, and you tape it? What if you give that tape to a friend? I know, I know, nobody tapes anything off the radio anymore. What if you cover it in a bar? What if you sing it in your living room? What if you sing it in your living room and upload it to YouTube? What if you share the MP3? Where do we draw the lines?

    Woody Guthrie, speaking from the folk music tradition, said “New words, new song.” Bob Dylan took that lesson to heart, both in early works like “Masters of War,” which took a melody from an English folk song called “Nottamun Town,” and in more recent releases. On Modern Times he lifted lines from a Civil War era Confederate poet named Henry Timrod, and used the arrangement of Muddy Waters’ “Rollin’ and Tumblin'” with re-written lyrics and the same title.

    I don’t mean to discount Big Mama Thornton, or disparage Bob Dylan. I’m a big fan of both. What I want to illustrate is that “property” and “ownership” is a meaningless way to look at music, because it’s a living, inherited tradition. Everybody got something from somebody. Every electric guitar player owes something to T-Bone Walker, and T-Bone owes something to Blind Lemon Jefferson. Every folk singer owes something to Woody Guthrie and Pete Seeger. And more to the point, if you ask any great musician, they will tell you who they got it from. Eric Clapton tells people about Buddy Guy, but if you put a microphone in front of Buddy he’s going to tell you about Muddy Waters, BB King, Guitar Slim. The greats are always ready to turn around and credit the people who came before them, because that’s how a living musical tradition works.

    So again: how do we compensate and credit artists for their work?

    Splitting the question

    One answer is to split up the question. When you think about it, it’s really two different questions. Let’s look at the second part first: how do we acknowledge and appreciate and credit the work that artists do? This is especially important because many important contributions to music, art, and human history generally, were made by people who get erased from popular culture- in particular women, LGBTQ folks, and people of color (Ma Rainey, for example, was all three). They are erased, in part, because there is money to be made by erasing them.

    The uninformed still think “Hound Dog” and “That’s All Right” are Elvis Presley tunes. And while Presley himself was quick to credit his influences, most people have never heard of Arthur Crudup, and everyone’s heard of Elvis. Sometimes people were erased several times over; early blues music was driven by women like Bessie Smith, Ma Rainey, and Sister Rosetta Tharpe, who were largely displaced by black men, who then had their music co-opted by white guys playing rock’n’roll versions of the same songs. Some made serious efforts to show people where the music had its roots – The Rolling Stones, appearing on the show Shindig in 1965, insisted that Howlin’ Wolf also get to perform. On the other hand, Led Zeppelin took Willie Dixon’s song “You Need Love,” and recorded it as “Whole Lotta Love,” without ever mentioning where they got it. It’s ironic, since Dixon himself was notorious for taking credit and royalties for other people’s work, often by offering to “take care of the paperwork” on a new tune.

    So how do we make sure we credit and acknowledge artists? One way, I believe, is to end a system of compensation based on owning something that cannot be owned. In a system like we have now, where the focus is on ownership of a particular sound, or song, or style, there is a real financial incentive to take credit. In the case of the record labels, you can even get the actual rights to an artist’s songs. If we disconnect the money from the “ownership” of the music, we are removing part of the incentive to pretend that new music doesn’t freely flow from old music.

    Universal Basic Income

    To be clear, I’m not suggesting artists should not be paid. There are different ways to support artists, and the internet has allowed for a lot of direct interaction between artists and fans. There are crowdfunding sites like Kickstarter and Patreon, there are independent music platforms like BandCamp and CDBaby. They’ve got their advantages and disadvantages, but what I’m advocating is something simpler, more widespread and direct: universal basic income.

    Universal basic income, sometimes called emancipatory basic income or simply “basic income,” is an easy idea to understand: you give everybody money. Everybody. Rich people, poor people, working people, the unemployed, the young, the old, everybody. Everybody gets a salary. It’s not a lucrative salary, but enough to make sure you can provide for yourself.

    First, let me clear something up: this is not a wild, crazy, utopian idea. It’s a serious proposal, that is increasingly being treated as such. Even Forbes ran a piece called “Universal Basic Income Is Not Crazy.” Of course, it works better if you already have some of the social framework much of the world takes for granted: child care, family leave, health care. But let’s leave those aside for a moment to look at basic income from the musician’s perspective. What is the impact for working musicians?

    Quit Your Day Job

    Many, if not most, working musicians [and artists CP] support themselves with a day job. This includes long-time performers with steady gigs, people who have gone on world tours and recorded on dozens of albums. Buddy Guy drove a tow truck into his thirties. Composer Philip Glass worked as a plumber and taxi driver until he was 41. Wes Montgomery worked in a factory from 7am to 3pm and played gigs until 2am.

    Let me tell you: it’s not easy. As a musician, you already have to balance many competing demands: playing gigs, traveling, booking and promoting shows, recording new material, rehearsing a band. Being a professional musician is, effectively, more than one job already. Now try to schedule all that around a conventional job structure that wants you working at 8 or 9 in the morning, 5 days a week, regardless of where you played last night or when you got home. It’s hard to fit all of it in, and that’s without stopping to consider that it might be nice to sleep occasionally or even see your family now and then.

    One reason basic income is sometimes called “emancipatory” is because it frees you from this burden. You’re still going to be out there hustling for gigs, scheduling sessions, trying to record and promote and – let’s be real – get paid. Basic income doesn’t eliminate the desire or possibility for people to make money by working, it just means you don’t have to worry about starving or getting evicted while you do it. And let’s remember, most of the money musicians make doesn’t come from royalties anyway. People are getting paid for gigs, for shows, for studio sessions, for tours, sometimes for merchandise or direct sales (in particular if you’re producing your stuff independently).

    Make The Music You Want To Make

    Musicians make compromises all the time. Sometimes it’s about timing: you want to put something out, and you can’t afford to wait, so you settle- you keep a take that could have been better, you scratch a song that needs a few more sessions to come together. Sometimes it’s about the sound: a record label wants to market you a particular way, a track needs to be “radio friendly” to get airplay. Sometimes it’s just about resources: recording and producing music, even with all the advances in digital technology, is a laborious, expensive process. For some players, there’s also the trade-off between taking gigs that might pay better but be musically unfulfilling (think wedding band or corporate events) versus pursuing a musical vision that might not have a ready-made market. And, of course, there’s that most precious of all resources, time, which is often given over in huge amounts to the aforementioned day job.

    Basic income removes the immediacy of financial pressures, and frees up a lot of time. Does that mean we won’t have choices to make? No, of course not. There are always choices, and there are always constraints, and even if we get basic income that won’t turn time itself into a limitless resource. But it changes the balance of the decision.

    Creative Liberation: Supported By Research

    Right now, across the country, there are brilliant artists whose music could change and enrich our culture in ways we can’t imagine, and we don’t get to hear them. They’re stuck working day jobs, playing the gigs that pay the bills, and trying to fit their creativity into commercial constraints. Pause for a moment, and imagine the explosion of new sounds and ideas we can liberate with basic income.

    As a musician, that paragraph felt intuitively true to me. However, a number of people who were kind enough to review an early draft of this essay suggested that my point might be better served if I backed it up with “evidence” and “examples.” Of course, there’s not exactly a one-to-one comparison available, so I’m going to draw on some similar programs and related ideas.

    First: the MacArthur “Genius” grants. These fellowships are awarded to people who are already recognized to be exceptional; they provide a no-strings-attached stipend of USD$625,000 over five years. Obviously that’s a lot more than “basic” income, but they underpin the idea that simply providing creative people with resources allows them greater freedom to explore, discover, and create. In a review of their program and its effectiveness, The MacArthur Foundation found that 93% of the fellows reported greater financial stability (no surprise) and 88% reported an increased opportunity to express creativity. Three quarters felt it lead them to make riskier, more ambitious choices in their work.

    Some might argue that the fellowships exhibit a selection bias, since they go to people already known to be creative. However, there’s good reason to believe that supporting the poorest and most marginalized offers even greater benefits. Dissent magazine recounts the history of the Federal Writers Project, which offered “unemployed” writers guaranteed income by giving a fixed salary to produce travelogues or other commissioned writings:

    …with regular paychecks, FWP writers could experiment with more creative projects at the same time. Over the course of eight years, the program employed over 6,600 writers, including Nelson Algren, Jack Conroy, Zora Neale Hurston, Richard Wright, and Ralph Ellison. The FWP enabled new classes of Americans to become “professional” writers.

    While employed by the FWP, these writers—most notably writers of color—wrote fiction that challenged the political status quo, and they revolutionized literary form in order to do so. To be sure, many of these writers developed their politics in pre-FWP years, but stable employment facilitated their political and artistic ambitions—by providing them with steady income, connecting them to other writers, and offering literary inspiration. From 1936–37, between posts at the Federal Theatre Project and the FWP, Hurston wrote her beautiful and troubling novel Their Eyes Were Watching God, a book celebrated today for its inventive use of black vernacular. Wright spearheaded the “Chicago Renaissance,” a creative community strengthened and supported by FWP projects in the state of Illinois. Meanwhile, in New York City, Ellison was conducting FWP oral histories when, as he reported it, he stumbled across a man who described himself as “invisible.” This encounter would be the genesis for his Invisible Man, surely one of the strangest and most significant novels of the twentieth century.

    I recognize that the subjective self-evaluation of MacArthur fellows and even the impressive work of FWP authors can be considered, to some extent, anecdotal evidence. But there is also controlled research, and what it shows is the flip side of the coin: that poverty impedes cognitive function. Lead by Harvard economist Sendhil Mullainathan, the team found that “experimentally induced thoughts about finances reduced cognitive performance among poor but not in well-off participants.” They also found that farmers showed diminished cognitive ability before harvest, when they were poor, compared to after harvest when they were relatively rich. That’s after controlling for free time, nutrition, work effort, and stress.

    If you’ve ever been broke and had bills to pay, this is not news. It’s hard to focus when you have a huge bill hanging over your head and no immediate prospect for paying it off. When you’re in a position of financial hardship, a portion of your brain is effectively set aside to repeating over and over again, “AAAH THE RENT AAAH THE RENT AAAH THE RENT.” Or the hospital bill, or the car payment, etc. You know the classic sci-fi trope that imagines what you could do if you could harness the full power of your brain? Turns out it doesn’t require genetic engineering – you just need to be able to pay your bills.

    I would argue that we are effectively paying a cultural opportunity cost in the form of lost creativity. Coming back to music, anthropologist David Graeber puts it this way:

    “Back in the 20th century, every decade or so, England would create an incredible musical movement that would take over the world. Why is it not happening anymore? Well, all these bands were living on welfare! Take a bunch of working class kids, give them enough money for them to hang around and play together, and you get the Beatles. Where is the next John Lennon? Probably packing boxes in a supermarket somewhere.”

    The Robot Imperative – It’s Not Just About Musicians

    I realize we’re covering a lot of ground here, and we’re about to talk about robots. So first, a quick recap

    Royalties don’t go to (most) musicians.

    Royalties don’t make sense because they rely on ownership of something that cannot be meaningfully owned.

    This system of ownership creates financial incentives to take credit for other people’s work.

    Eliminating royalties forces us to confront the fundamental question of how we credit and compensate artists for their work.

    Basic income answers part of that question – compensation – while eliminating royalties removes, at least in part, the financial incentive to take credit.

    Basic income liberates musicians from the constraints of a day job and the pressures of commercial music.

    Evidence supports the idea that this liberation leads to more, and more adventurous, creative work.
    In short, basic income separates the idea that people have value from the idea that they must own something valuable.

    All of that has been true for quite some time, and in fact arguments for basic income are as old as Thomas Paine. But there is a huge, disruptive change happening that makes this a much more urgent question, not just for musicians but for everyone. Namely, robots. Robots and computer automation are about to eliminate huge numbers of jobs (think tens of millions). Some are in the news right now: Uber is testing self-driving cars in Pittsburgh. Driverless trucking is not far behind, taking 3.5 million jobs with it. And it’s not just truckers: designers, fast food workers, accountants, financial analysts, doctors, hotel concierges. Thousands of news stories are being written by robots. An Oxford University study estimates that 47% of total employment may be at risk. Even jazz musicians have to be worried.

    In short, the day job could be going away, and not just for musicians. The question is, what will we do with these millions of people, once they’re out of work? Will we insist that truckers can all get jobs doing social media? Will a few wealthy people retreat behind high walls and leave the rest of us to fight for the scraps of employment through a fog of financial worry and expensive, short term trade-offs?

    Or will we embrace basic income, recognize that people have innate value, and unleash a wild torrent of creative exploration the likes of which we’ve never heard before? For the Silo, Anthony Moser. www.anthonymoser.com
    @mosermusic

    Supplemental: Basic Income Earth Network
    HYPERLINK “http://www.huffingtonpost.com/scott-santens/the-economist-just-came-o_b_7447312.html”The Basic Affordability of Basic Income
    HYPERLINK “http://www.france24.com/en/20160825-finland-test-out-basic-income-scheme”Finland to try basic income
    HYPERLINK “https://www.thenation.com/article/a-basic-income-would-upend-americas-work-ethic-and-thats-a-good-thing/”A Basic Income Would Upend America’s Work Ethic
    HYPERLINK “http://qz.com/765902/ubi-wouldnt-mean-everyone-quits-working/”UBI Would Change The Nature Of Work

    Royalties and copyright:
    The Music Industry is a Parasite And Copyright Is Dead by Steve Albini
    Free Culture by Lawrence Lessig

    PS – My music is available on iTunes, Spotify, YouTube, Bandcamp, and a host of other digital music services. If you catch me at a gig, you can buy an album for name-your-price. And if anyone ever uploads it to The Pirate Bay, torrent with my blessing. As Woody Guthrie would say, “Publish it. Write it. Sing it. Swing to it. Yodel it. We wrote it, that’s all we wanted to do.”

    How To Attract New Customers

    New customers are essential to long-term business growth. The more customers you attract, the easier it will be for your company to grow. But how to attract new customers every day? Here are some ideas for gaining new customers.

    1. Understand your customers

    To gain new clients, you must first understand who your ideal customers are. This allows you to target and nurture them into making a purchase. So, before you do anything else, make sure you have accurate information about the customers you want to reach. Creating a buyer persona is a great way to improve your targeting.

    1. Find the best channels for attracting new customers

    When you know your customers, it’s easier to find them in the places they frequent the most. This could be done on social media platforms such as Facebook, Twitter, or Instagram. Or at your physical store. Analyzing your current customers to understand where they came from is the best way to know where you are likely to gain more customers. 

    Wall mounted prisma-print makes for a perfect outdoor display sign.

    If you got them through mail or social media, you’re likely to get more if you target the same channel. However, if most of your customers discovered you with your physical store, you should focus on an outdoor display sign for example.

    While it is acceptable to focus on one channel, especially if it is promising, a multichannel marketing strategy is recommended. Keep in mind that one channel can backfire.

    1. Set objectives for attracting new customers

    Setting goals motivates you to stay on track. Consider the following for the best experience when and after setting goals:

    • Make a list of everything you want to accomplish.
    • Analyze and prioritize your objectives.
    • Set a time limit to meet those objectives.
    • Begin with short-term objectives.
    1. Recognize the purchasing procedure

    How do customers contact you to make a purchase? If you know the answer to this question, it will be much easier to make the necessary changes to attract new customers. For example, if you discover that the majority of your customers are completing purchases on your site (which is not mobile-friendly), you can speed up the improvement process to attract more people.

    1. Create compelling content

    There is no other way to put it. Simply ensure that every piece of content you publish or share with your prospects establishes you as an expert in your field. This will encourage more people to interact with your content. You can even hire someone to create content for you if you find the DIY route too difficult. 

    Nothing can stop you from gaining new customers if you create content that your target audience is looking for and do it well. Remember that people enjoy reading and sharing rich content.

    How To Make Money Quickly?

    Having side cash from time to time, or even better continually, is a great source of wealth. 

    Not only that it enables you to collect money for something that you really need, but it really can boost your emergency fund, or just let you spoil yourself from time to time. 

    To get extra money and get it fast you can do several different jobs from ride-share services to doing some online surveys – they all pay differently, but they all will get you extra money. 

    Here are some of the best ways to earn money quickly this year. 

    Start With Home Care Services

    You will be surprised to learn that additional help in-home care areas are always more than welcome. 

    With Boomers retiring and Millennials taking over the job market, it seems only logical for Millennials to provide additional care for senior citizens. Not only that you can find home care services jobs in Canada easily and fast, but next to quick money this type of job will also bring you a safe working environment, great companionship, and also provide you with a flexible work schedule, and an opportunity to learn new skills. 

    Sell Your Used Items 

    This is an old one, but a gold one. 

    Use well-known offline and online marketplaces, such as Craigslist, to sell items that no longer serve you. 

    You may not enjoy them anymore, but someone will be more than happy to welcome an original lamp from the 19th century or a preserved CD from ’90. 

    Do your best to present the product well:

    • Take great photos
    • Provide an accurate and brief description
    • Post items online

    Pro tip: High-quality clothes and perfumes are the first to sell

    Think also about selling old electronics, including tablets, fitness trackers, game consoles, and laptops. 

    The great thing about electronics is that if you cannot sell them, you can always trade them and get something that you can actually sell.

    Freelance Online

    Use large platforms for freelancers such as UpWork and Fiverr to get an online gig. 

    These sites are more than packed with different opportunities for people of various skills to land a job. Think about a position such as a virtual assistant, or a data entry assistant. 

    Good to know: It may take a while to get your first job, but in the long run this can be an ongoing source of additional money.

    Can you guess how these gift cards tie in?

    10 Ideas On How To Make Money Quickly

    1. Sell unused gift cards
    2. Be an affiliate marketer
    3. Take online surveys
    4. Tutor students
    5. Delivery 
    6. Sell on eBay
    7. Sell photos
    8. Teach English online
    9. Pet sitting
    10. Dog Walking

    There are dozens of different ways to earn money quickly and continually. 

    Before you start, be honest and know how much time you can invest in working on the side. 

    Once you determine that know what skills you can actually use to get that extra money. From there, find a place where your skills can be put to good use and sold. 

    In the meantime, check your loft and see what you have around collecting dust and sell.

    WFP BREAKS RECORD WITH FOOD SUPPORT IN SOMALIA AMID FAMINE RISK

    MOGADISHU – The United Nations World Food Programme is delivering life-saving food and nutrition assistance to record numbers of people in Somalia, with over 4 million people a month receiving urgent humanitarian support to prevent famine in the face of the region’s worst drought in over 40 years.

    The scale-up has helped keep the worst outcomes of Somalia’s hunger crisis at bay so far.

    But the situation on the ground remains dire, with lives and livelihoods being lost. WFP is racing against time to avert a projected famine and a death toll that could reach the tens or even hundreds of thousands.

    Somalia, Baidoa, 12 October 2022 Nuuriya Ali Mohammed Nuur (30) and her baby Mohammed Nuur Mohammed (2 years old) travelled to Baidoa from a rural town in Southwest state. After four failed rainy seasons, all of Nuuriya’s livestock died due to the drought. She lost ten cows and one donkey which supported her livelihood. She has ten children and was only able to bring four children with her and the oldest stayed behind with their father. There were several stops on her journey to Baidoa, including walking on foot until she reached transportation to reach the camp. Her child was weak and malnourished when she arrived, but with WFP assistance he is starting to gain weight and become healthier. With no expectation to return and nothing left for her at home, she now lives in an IDP camp on the outskirts of Baidoa town, receiving both WFP relief assistance and nutrition services. She is receiving emergency relief cash assistance, each month receiving a mobile cash transfer to buy food. For nutrition, WFP is providing screening services for the baby, nutrition educational services for the mother on child nutrition, distribution of plumpy food for the baby, and referral to relief assistance receiving cash transfers. Photo: WFP/Geneva Costopulos

    Additional information:

    Somalia, Galkayo, Galmudug state, 6 August 2022 In the photo: struggling livestock goats and farmer in Qarqora, Galmudug. Photo: WFP/Geneva Costopulos
    • Nutrition prevention activities were almost entirely suspended from the second quarter of 2022 as WFP was forced to prioritize treatment services due to limited funds. The agency has resumed some prevention activities for children and pregnant or breastfeeding women and is working to do more.
    • WFP is reaching new rural areas, including in the famine risk districts of Baidoa and Burhakaba, with food assistance and cash transfers. WFP’s mobile money transfers are an efficient way to getting assistance rapidly to people in hard-to-reach areas.
    • WFP deployed a new helicopter in Somalia in September to deliver food assistance to hard-to-reach areas and get aid workers to the places they are needed most. The WFP-led Logistics Cluster is also using the helicopter to deliver humanitarian relief on behalf of other UN agencies and NGOs. The helicopter has so far conducted over 30 flights in September and October.
    • WFP is the largest humanitarian agency in Somalia, with 12 offices across the country providing coverage in every state.
    • WFP’s massive scale-up has largely been made possible thanks to timely support from key donors, particularly in recent months. It is essential that this is maintained. WFP has a funding gap of US$ 412 million / CAD$ 565.3 million across all activities for the next six months to March 2023, including a shortfall of US$ 315 million/ CAD$ 432.2 million for life-saving food relief and nutrition assistance.

    The United Nations World Food Programme is the world’s largest humanitarian organization, saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.

    Featured image: Somalia, Baidoa, 12 October 2022 Nuuriya Ali Mohammed Nuur and her baby Mohammed Nuur Mohammed travelled to Baidoa from a rural town in Southwest state. After four failed rainy seasons, all of Nuuriya’s livestock died due to the drought. She lost ten cows and one donkey which supported her livelihood. She has ten children and was only able to bring four children with her and the oldest stayed behind with their father. There were several stops on her journey to Baidoa, including walking on foot until she reached transportation to reach the camp. Her child was weak and malnourished when she arrived, but with WFP assistance he is starting to gain weight and become healthier. With no expectation to return and nothing left for her at home, she now lives in an IDP camp on the outskirts of Baidoa town, receiving both WFP relief assistance and nutrition services. Photo: WFP/Geneva Costopulos

    This Quiz Tests Your Knowledge Of Paper Money Faces

    You’ve likely seen paper money from all over the planet. Maybe you have an aunt living in Australia that sends you dollars in the mail every year for your birthday or perhaps on your commute to work each day you pass by a currency exchange kiosk- you know the type: colorful bills from all over the world decorating the walls. 

    But how well do you know the faces of world currencies? Is it the King or Queen on the face of the Swedish Krona or neither? Which former US President is found on the five dollar bill?
    Take this fun test and discover some pretty cool facts about paper money faces.

    Long live hard cash!


    How Do Canada Provinces Grade In Taxpayer Fiscal Transparency?

    September 15, 2022 – Taxpayers and citizens need greater fiscal transparency from Canada’s federal, provincial and territorial governments, says the latest report from the C.D. Howe Institute.

    In “The Right to Know: Grading the Fiscal Transparency of Canada’s Senior Governments, 2022,” William B.P. Robson and Nicholas Dahir graded these governments’ budgets, estimates and financial statements on how well they let legislators and voters understand their fiscal plans and hold them to account for fulfilling them. The grades range from A to D. While some of the governments present helpful and timely budgets and financial statements, others fall badly short.

    The authors underline that budgets, estimates and financial statements must let interested but non-expert users find and understand and act on key information.

    “Taxpayers’ and citizens’ ability to monitor, influence and react to how legislators and officials manage public funds is fundamental to representative government,” say Robson and Dahir. “We need to check that legislators and government officials are acting in the interest of the people they represent, and we need to respond if we conclude that they are acting negligently or in their own interest. Financial reports are key tools for monitoring governments’ performance of their fiduciary duties.”

    image: Prime Minister of Canada Justin Trudeau website. Link to Transparency PDF: https://pm.gc.ca/en/news/backgrounders/2015/11/27/open-and-accountable-government

    While much of the financial information presented to legislators and the public by Canada’s governments has improved over time, the assigned grades reveal significant shortfalls. This year’s report card covers year-end financial statements for fiscal year 2020/21 and budgets and estimates for 2021/22. The results were as follows:

    • Manitoba, British Colombia and the Northwest Territories trailed the the class with grades of D;
    • The federal government got a D+ – which was actually an improvement from an F last year, when it failed to produce a budget;
    • Newfoundland and Labrador also got a D+;
    • Nova Scotia scored a C and Prince Edward Island scored a C+;
    • Quebec scored a B- and Ontario scored a B;
    • Nunavut, Saskatchewan, and New Brunswick each scored B+;
    • Alberta and Yukon topped the class with grades of A and A- respectively.

    These governments tax, spend and borrow hundreds of billions of dollars, and the fiscal impact of the COVID-19 pandemic will make their financial position all the more important in the future. The authors conclude: “This annual report card hopes to encourage further progress and limit backsliding. Canadians can get more transparent financial reporting and better fiscal accountability from their governments, if they demand it.” For the Silo, Lauren Malyk.

    For more than 60 years, the C.D. Howe Institute has researched and published on policy challenges and potential solutions aimed at improving the performance of Canada’s economy and raising Canadians’ living standards.

    Read the Full Report

    Featured image via GIFT- The Global Initiative for Fiscal Transparency

    Threat to Prosperity: Canada Should Mind Business Investment Gap

    August, 2022 – Business investment in Canada is so weak that capital per member of the labour force is falling, and the implications for incomes and competitiveness are ominous. Governments, particularly the federal government, need to get serious about growth to get workers more of the tools they require to compete and thrive, according to a new report from the C.D. Howe Institute.

    In “Decapitalization: Weak Business Investment Threatens Canadian Prosperity”, authors William B.P. Robson and Mawakina Bafale write that since 2015 Canada’s stock of capital per available worker has been declining and its rate of gross investment per worker has been well below that in the United States and other OECD countries.

    Capital= Business “bread and butter”

    They examine why Canada might be lagging as well as what action to take.

    “Business investment and productivity are closely related: productivity growth inspires investment by creating opportunities, and investment drives productivity growth by equipping workers with more and better tools,” says Robson. “Investment per available worker lower in Canada than abroad tells us that businesses see less opportunity in Canada, and prefigures weaker growth in Canadian earnings and living standards than in other OECD countries.”

    New investment per available worker in Canada, adjusted for purchasing power, was only slightly above 50 cents for every dollar of investment per available United States worker in 2021 – lower than at any point since the beginning of the 1990s. In addition, in 2022, OECD projections show that Canadian workers will likely enjoy only 73 cents of new capital for every dollar enjoyed by their counterparts in the OECD excluding the US, according to Robson and Bafale.

    The authors’ calculations from OECD projections for 2022 show $20,400 of new capital per available worker this year for OECD countries excluding the United States, compared to $14,800 for Canada.

    In other words, new capital per available worker in Canada will be more than one-quarter less than in those countries this year.

    Declines in the stock of machinery and equipment (M&E) and intellectual property (IPP) per member of the workforce are particularly worrisome, the authors explain, because those types of capital may be particularly important for economy-wide productivity. “Whatever special messages the recent M&E and IPP numbers may convey, the message from stocks of business capital overall is clear: the average member of Canada’s labour force began 2022 with less capital to work with than she or he had in 2014,” says Bafale.

    Robson and Bafale identify a few probable causes for Canada’s dismal investment performance. These include: weak business in the natural resource industries; restricted access to finance for small and mid-size firms; a loss in Canada’s competitive edge in business taxation, notably against the United States; an uncongenial environment for IP investment; regulatory uncertainly; unpredictable fiscal policy; and governments’ in-house spending and transfers to households that are steering resources into consumption and housing rather than non-residential investment.

    Is business investment capital trajectory predetermined?

    “The prospect that Canadians will find themselves increasingly relegated to lower value-added activities relative to workers in the United States and elsewhere, who are raising their productivity and earnings faster, should spur Canadian policymakers to action,” conclude Robson and Bafale. “The first step is to recognize that recent trends are a symptom of threats to Canada’s prosperity and competitiveness – that low business investment is a problem that governments can and should address.”

    Supplemental- Are you a small Canadian business frustrated with the difficulties involved in accessing capital? For example, our experience has shown that the multitude of Business Development Corporations operate with autonomy but without accountability, poor vision and nepotism. Essentially, gleaning business plans and strategies before revealing ‘jump through these application hoops” which include personal finance and personal life details. It is sobering to discover that they also receive a hefty commission % for every applicant they ‘certify as successful’. Do you agree or have you had a more positive experience? We want to hear from you in the comments below.