Hard Times

As hard times continue, consumers are opting for cheaper domestic beers over pricer imported ones. According to a Chicago Tribune article, sales of imported beers have dropped since the economic crisis.

Corona Extra has been ranked the number one selling imported beer since 1997. It was ranked sixth in 2008 in category that included domestic beers. Despite its higher price, Corona Extra was outselling cheaper domestic beers such as Busch, Michelob, and Miller High Life.

It may seem that Corona Extra is living the high life, but following the economic crisis the number one beer has been greeted with sobering news. In 2008, shipments of Corona Extra dropped 4.6 percent, which was the second consecutive annual decline for the product. Last year import sales were down 2.3 percent while domestic beer sales remained constant, according to the Nielsen Co.

The falling sales reflect changes in consumer habits. “When I’m fearful, I’ll buy what’s good enough for right now,” said John Greening, an associate professor at Northwestern University’s Medill School of Journalism. Sales of craft beers such as Sam Adams and Fat Tire actually grew 8 percent last year, according to Nielsen Co.

There is also a new competitor in the market for Corona Extra, Bud Light Lime. When the product debuted in May, it outsold Corona Extra for an entire year, according to Beer Marketer’s Insights. Despite this new competition, it will drink Corona Extra under the table. Perhaps drinking Bud Light Lime is just a passing trend.

Good news for Corona Extra: It is the number one imported beer that comes to mind for consumer between the ages of 21 and 29, according to a Nielsen survey.

Chicago smokers woke up to an unfortunate April Fool’s Day prank this year, only this prank is permanent, and it may get worse. Cigarette taxes were raised last week by 62 cents in Illinois. Many packs are over 9 dollars now. Combine this with last year’s bar and restaurant smoking ban, and it appears the city is waging an all out assault on smokers. Lawmakers are even considering two additional 50 cent tax hikes, which would make a pack of cigarettes a full one dollar higher by this time next year.

The city insists that the tax will help push smokers to quit. However, the incentive for legislatures to pass “sin taxes” like this one is almost always in order produce revenue. Either the state really thinks Chicagoans will quit, and are willing to sacrifice the tobacco taxes that they won’t collect anymore from those quitters, or there is another motive. It seems more than likely that the state is trying to bleed even more money out of a group of people addicted to smoking. The government must know that most smokers won’t simply quit because of an extra dollar or so, and so they know cigarette taxes are an easy cash cow. It seems extremely unfair to levy a tax like this when people are struggling so much to get by.

There are only two results that can come out of this situation. Illinois can angers its residents, convince some not to smoke, and lose money in the long run, or Illinois can anger its residents by putting a sin tax on something that is supposed to be a free choice, and make money.

Either way, many smokers are going to be unhappy and lighter in the pocket, because most of them are still going to keep their cigarettes and lighters right there in their pockets anyway, no matter what the price.

Looking to take advantage of struggling businesses? (In the most tasty way?)

This article from CNN.com talks about how many fine restaurants are introducing delicious deals on dining because of the recession.

Wine deals, bar menu specials and three-course, prix fixe meals for $25 to $40 are popping up in high-end eateries across the country to lure customers as business and leisure travel dips and diners stay closer to home and make more value-driven decisions about eating out.

(AP Photo/Mel Evans)

According to a recent article published by The New York Times, because of the recent economic downturn, more and more people are networking. In fact, today’s job market is so crucial that even those that already have jobs are either still going to career fairs or using the latest social networking sites just to be able to make a lot of connection. Here are some excerpts from the article:

 “I equate this to dating,” Ms. Wu said. “Networking is a basic numbers game. If you don’t get out, you won’t meet as many people.”

With companies firing workers in droves and those with jobs worried that they could be next, 2009 is shaping up to be a golden era of networking. Universities have shifted alumni outreach efforts to focus on career counseling and networking instruction, rather than social gatherings.

With more people unemployed and less jobs available, the market is definitely more competitive than it used to be. So for us looking for jobs, let’s get out there and begin networking. Who knows? Maybe a friend of a friend of a friend will be your next boss.

SallieMae announced that it will add 2,000 jobs in the next 18 months. Its stock also rose 8.6 percent recently. I was intrigued by this story because I know that the company finances so many college student loans.

It’s great to hear that there is some positive news coming from the news front by jobs being added, but at the same time, it is hard because I know that so many college students will be paying a nice amount of money in interest after they graduate.

It’s ironic to hear that the company who loans college students all over the country thousands of dollars a year is booming, while the college students who owe money are racing to get a job.
Personally, I think that there may need to be special accommodations for college students who are graduating and can’t find a job, in terms of paying back their student loans.

I may be biased because I am a college student myself, but I have to focus on the positive of this story, and that is that there are jobs being added during this recession. When compared to the number of jobs that have been lost in recent months, the 2,000 that SallieMae is adding, doesn’t even compare.

Kevork Djansezian/AP

Foreclosure fraud has reached an all-time high as more and more companies are soliciting people in financial dilemmas, desperate for relief. These companies are everywhere, on television and Website ads, “fraudulently promising to help… avoid foreclosure.”

An article on cnn.com says federal agencies have taken note of this issue and are acting to stop these scammers. The Department of Justice, the Federal Trade Commission, and the Department of Housing and Urban Development are among the agencies involved.

The FBI says there are currently 2,100 open cases of foreclosure fraud, and the Federal Trade Commission found that “71 distinct companies [are] running suspicious ads” after nationwide investigation. The Obama administration has granted $75 billion in hopes of helping nearly “9 million mortgage holders get new or refinanced loans.”

Treasury Secretary Tim Geithner stated, “Those who would seek to prey on the most vulnerable also seek to intensify their efforts as well…we will aggressively pursue those involved in mortgage rescue scams.”

People heading toward foreclosure should consider certain guidelines when seeking foreclosure counseling and other outside help.

For decades, stoners of all ages have been demanding that marijuana be legalized. Yet, no matter how loud their roar, very few (if any) influential people in America took them seriously.

Things are starting to change…

The rebellious kids of the 1960′s that rocked out at Woodstock and protested for peace during the Vietnam War are now the same men and women that are starting to take over the reins of power in Washington. The more conservative generation of individuals who grew up during the Great Depression and WWII are starting to be replaced by the Baby Boomers, and as this continues to happen over the next decade, America will grow increasingly more liberal and open to newer, more radical ideas.

Additionally, as America is amidst the most calamitous economic meltdown in decades, more and more citizens are showing an openness to reform the country and a willingness to weigh all the available options to turn the country around – including a Rooseveltian end to marijuana prohibition.

“The issue has brought together a diverse mix of advocates, including state legislators, political pundits, a famous musician, a high-profile blogger and even White House correspondents.”

The issue of whether or not marijuana should be legalized has gone from a question that garnered mocking laughs not all that long ago and has morphed into an issue that many academics and leaders in Washington are now taking seriously.

Many of those in favor of marijuana reform are looking back at history, particularly the 1930′s and how the end of liquor prohibition was one of the major catalysts in reviving the country during America’s worst economic crisis. Many of today’s academics and politicians believe that the legalization and taxation of marijuana in America would not only help to curb gang-related violence (particularly in urban cities and near the U.S.-Mexico border) but would also create a multi-billion dollar industry for the government that could dramatically jump-start economic growth across the country.

Sen. Jim Webb of Virginia, and Sen. Arlen Specter of Pennsylvania, two of the most prominent leaders in Washington, recently introduced a bill intended to overhaul the criminal justice system, with the option to reform marijuana laws if necessary.

According to the Huffington Post, Webb said, “I think everything should be on the table, and we specifically say that we want recommendations on how to deal with drug policy in our country…I think they should do a very careful examination of all aspects of drug policy.”

Also, this month’s Time magazine features an article from Joe Klein titled,“Why Legalizing Marijuana Makes Sense.” In the article, Klein argues that “there is an enormous potential windfall in the taxation of marijuana. It is estimated that pot is the largest cash crop in California, with annual revenues approaching $14 billion. A 10% pot tax would yield $1.4 billion in California alone – and of the economic impact, with thousands of new jobs in agriculture, packaging, marketing and advertising. A veritable marijuana economic-stimulus package!”

Realistically, the country is still too conservative to actually allow such a bill to pass at this time, but the fact that high-powered people are finally taking drug reform seriously is a major step in the right direction.

Cheech and Chong and Snoop Dogg are not the only ones pushing for marijuana to be legalized anymore and one doesn’t have to be a drug user to see the potential in legalizing the drug – or at least decriminalizing it.

When a major magazine like Time runs an article highlighting the benefits of marijuana legalization and when democrats and republicans can come together to co-sponsor a bill to investigate and revise drug reform in America, one knows that attitudes are starting to shift in this country.

The Grateful Dead are now old enough to be grandpas and many of the pot smoking hippies that defined the 1960′s are now entering retirement. It may not be immediate, but as the Boomer generation and the Generation Xers start to merge together, we will see action being done to reverse the country’s conservative drug policies and retire the ban on marijuana in America.

In the process, we might find out that this high-minded approach can also get our economy rolling again (no pun intended) and become President Obama’s 21st century equivalent of ending prohibition in the 1930′s.

“Going green” may be getting a whole new meaning.

Singles are finding new ways to kvech in these troubled, unemployable times. The Startribune reports that eharmony and other online dating sites experienced up to a 20 percent increase since the recession. They claim that besides having a wealth of time on their hands, during a crisis individuals want another person to share in their troubles. Two bank accounts sound better than one (especially a depleting one). Signing up for $20 a month, but with a guaranteed number of dates, is a good deal compared to the bar scene, where one martini values in the $7 range. Drinking your sorrows aways is expensive. But dating your sorrows away could yield better results.
My office co-worker, Julia, used not one, but two, online dating sites. She literally went out twice a week. We would all huddle around her cubicle, analyzing pictures of her next potential husbands, the genes her future children would inherit. She insisted she was not desperate. Even though she taped magazine cut-outs of cute kids to her computer in the hopes of being impregnated someday, there was a method to her online obsessiveness. She saved on grocery costs by eating out so much, and having the man pay like in the old days.
So I guess the next question for the unemployed, serial daters is: who will foot the bill?

These days, it is not uncommon to find quite a few stories of people doing whatever they can to make ends meet, most of which have ended in demise. Nearly every industry in America has suffered for numerous reasons, most of which involve a serious lack of personnel and money. But a few people have found a loophole.

Apple’s iPhone and iPod Touch have swept America at large. I have one, my roommate has one, my brother has one, the random man on the bus sitting next to me has one. The Genius Bar at the Apple store on Michigan constantly has people inquiring about their current one or getting a new one. A newer feature on these phones and iPods is the App Store, where users can download or purchase applications for pretty much anything (so says the slogan).

My friends constantly comment on how many I have (I shamefully have four pages…), because it is very easy to get hooked. My favorite applications are Recorder, Alphabetic, and ColorSplash, if you care to check them out or are in search of new recommendations. The point is, with quite a few free options, you can find yourself scrolling for some time through multiple pages of apps.

But where do these come from? Each one has an individual creator, and anyone that successfully can code an application can submit it to use in the store. Depending on the application’s popularity, anyone could make a good amount of money for creating something that everyone else can get addicted to.

A New York Times article follows a man named Ethan Nicholas, who spent weeks on end developing an application called “iShoot,” which has earned him $800,000 in 5 months. He knew a little bit about coding, so he found Apple’s guide to creating these applications and worked on his game. He needed the money to support his family after his job suspended his bonus for the year. He certainly did something right.

It may be tedious and a bit difficult, but with the help of the internet and a great idea, you too could perhaps create the next iShoot. Maybe even earn a small fortune. Who knows.

As I posted earlier in the semester, I would provide regular updates on two companies that employ several of my family members.
Alcoa, Inc. laid off around 220 hourly workers at its plant in Riverdale, Iowa and another round of cuts is expected in June at that plant. My dad still has his job for now, and hopes he won’t be part of the group laid off in June.
In a recent online Wall Street Journal article, it was reported that Alcoa will lay off 170 workers at a smelting plant in Massena, New York. However, at the same plant, Alcoa is working to retain some of its employees by striking a deal with the New York Power Authority and temporarily reduce the output of aluminum by 120,000 metric tons.

Chrysler has less then 30 days to either complete the deal with the Italian automaker Fiat or another company, or else face an uncertain future without the help of the government. According to USA Today, Chrysler also has to reduce its debt and formulate a new plan of action to prove the company can once again be profitable. It is a daunting challenge and after seeing the aftermath of the partnership with Daimler, I fear a partnership with another foreigner automaker may be folly for Chrysler.
Meanwhile, workers at the Belvidere, Illinois plant that include my aunt, uncle, and two cousins, are still running 1st and 2nd shifts at the plant, though still living week to week depending on if the plant is running or not on a given week.