Business & Economics

Why the Trenta?

“So, why did we launch the Trenta? We listened to you,” says Starbucks. Really?
Looking for more answers, I asked my friend Greg Dietrich for his thoughts on the matter. Greg works at Paragon Coffee Trading, which means he imports coffee and collaborates with members of the New York commodities coffee trade. Oh and he gets to roast beans and cup all day (see picture below on right). Below is a conversation (via Gmail’s instant messaging service) we had about the Bucks’ latest creation.

Susan G. Komen for the Cure^® Sells Out the Pink to Get the Green

By Gayle A. Sulik

In response to increased publicity surrounding Susan G. Komen for the Cure’s questionable trademark and marketing activities, the organization published an official statement on its website, titled: “Susan G. Komen for the Cure® Sees Trademark Protection as Responsible Stewardship of Donor Funds.”

According to the statement, Susan G. Komen for the Cure® has never sued other charities or put other non-profits out of business, and the organization does not have plans to do so in the future. Apparently knitters, sandwich makers, and kite fliers who want to raise money for breast cancer or other causes should breathe easier now!

The Dollar: Dominant No More?

By Barry Eichengreen

If the euro’s crisis has a silver lining, it is that it has diverted attention away from risks to the dollar. It was not that long ago that confident observers were all predicting that the dollar was about to lose its “exorbitant privilege” as the leading international currency. First there was financial crisis, born and bred in the United States. Then there was QE2, which seemed designed to drive down the dollar on foreign exchange markets. All this made the dollar’s loss of preeminence seem inevitable.

The tables have turned. Now it is Europe that has deep economic and financial problems. Now it is the European Central Bank that seems certain to have to ramp up its bond-buying program.

Amend the “Giving Pledge” to Include the Federal Treasury

By Edward Zelinsky

Sixteen more billionaires have signed the “Giving Pledge” sponsored by Warren Buffett and Bill Gates. Signers of the Pledge commit to donating to philanthropy a majority of their wealth. New signers of the Pledge include the founders of Facebook, Mark Zuckerberg and Dustin Moskovitz.

Critics of the Giving Pledge denounce it as a public relations gimmick. Even if each Pledge signer donates a majority of his fortune to charity, his heirs will still inherent substantial wealth from what remains.

I am not one of these critics. I take Mr. Buffett, Mr. Gates and the other signers at face value and applaud their charitable intentions. I do find it interesting that certain names are absent from the Pledge. For example, despite their

Obama’s Silent Reset

By Elvin Lim

President Barack Obama, who had taken a backseat to allow the First Branch to set the health-care reform legislative agenda last year, has now moved into the driver’s seat of American government. An electoral shellacking was all it took to for a former constitutional law professor who once espoused the separateness and equality of branches to stop practicing what he once taught.

The irony is that it was united Democratic party control of all branches of government that allowed Obama the luxury of taking the back seat. When before, he could have relied on Pelosi and Reid, Obama has recently learnt that he can only rely on himself. The Oval Office is a lonely place, but he who realizes it quickly learns that as a result, it is also a powerful place.

Go ahead. Raise the retirement age. Who can afford to retire anyway?

By Mariko Lin Chang

Any day now the Senate will decide whether to raise the retirement age to 69. Proponents argue that raising the retirement age is necessary to save Social Security. Opponents argue that raising the retirement age will disproportionately hurt low-income and minority workers. But this is all irrelevant to many because recent actions by the Senate and current economic realities have already helped to ensure that most people won’t be able to fund their “golden years.”

Take women, for example. Given the Senate’s failure to pass the Equal Paycheck Act, it’s unlikely that the persistently stubborn wage gap will decline on its own, leaving women earning only 77 cents for every dollar earned by men. Assuming that the typical person works about 40 years

Are the UN’s Millennium Development Goals missing the point?

By Susan Pick and Jenna T. Sirkin

In September, our world leaders met in New York for the Summit on the United Nations Millennium Development Goals. They congratulated one another for lower child mortality rates, the increase in women’s empowerment and a reduction in the number of new HIV/AIDS cases; they lamented how far we are from reaching the eight goals we established ten years ago. But are they missing the point?

One of the Millennium Development Goals is particularly complex: achievement of universal primary education. We measure the progress made toward this goal with net enrollment ratios, the proportion of pupils who finish primary school, and literacy rates. We know that according to the UN’s 2010 report, “enrollment in primary education

Obama’s Deal with Jon Kyl

By Elvin Lim

Obama is a politician, and that’s why he’s made an estate tax deal with Jon Kyl in return for Kyl’s support for ratifying the START treaty.

As Senator Chuck Schumer has suggested, the Democratic party would probably benefit by allowing the Bush era tax cuts to expire, but this is not what Obama is proposing because he has something up his sleeve.

Consider if Democrats allowed the Bush tax cuts to expire. People would be angry for a few days, but then come 2011, Democrats would be in a better bargaining position to play chicken with Republicans. Democrats would then be able to dare Republicans to

“Undercover Boss”: Lying to Tell the Truth

Clayton P. Alderfer

Undercover Boss, one of reality TV’s newest additions, is based on a truth that many thoughtful CEOs grasp: they do not have a thorough understanding of what goes on at the middle and bottom of their organizations. There are multiple reasons why. Immediate subordinates do not know either. Middle and lower ranking managers withhold their understanding from those above them. First level managers cut deals with hourly workers that permit the employees to do well enough financially while not working too hard – lest the employees act disruptively. CEOs hired from outside have even less of an idea about what goes on, as insiders feel resentful about being subject to outsider rule and choose not to tell what they know. The reasons why CEOs face this predicament are thus far reaching. The question for CEOs who grasp this tough reality is whether they can do anything about it.

Paycheck Fairness Act Fails in Senate

By Mariko Lin Chang

Last week, the Senate Republicans defeated the Paycheck Fairness Act. The bill would have strengthened the Equal Pay Act by providing more effective protections and remedies to victims of sex discrimination in wages, including prohibiting employers from retaliating against employees who discuss their wages with another employee, requiring employers to prove that wage differences between women and men doing the same work are the result of education, training, experience, or other job-related factors, and providing victims of sex discrimination in wages the same legal remedies currently available to those experiencing pay discrimination on the basis of race or national origin.

Was the bill perfect? Probably not (few, if any bills could be considered perfect). But the Republican senators threw the baby out with the bath water.

Memo From Las Vegas: What’s the Matter with Casino Capitalism?

Tweet By Sharon Zukin Taking a position on Las Vegas is like taking an option on a company’s stock: if you like the place, you’re betting that free markets, human power over nature and boundless shopping opportunities will continue to rule the world.  If you don’t like it, you’re a killjoy…or a sociologist. I made […]

Oil Companies Can’t Watch Themselves – And They Know It

Tweet By Benjamin Ross The Deepwater Horizon oil spill has been plugged, but the fire on another oil platform recently is a disturbing reminder of the unfinished business that it leaves behind. The root cause of the disaster – an absence of outside supervision that allows profit-driven managers to set their own priorities – has […]

An Open Letter on Taxes to Bill Gates, Sr.

Dear Mr. Gates:

You have, by dint of your intelligence and sincerity, become a major spokesman for wealthy Americans calling for higher taxes. Since the nation’s budgetary problems will only be solved by combining spending reductions with tax increases, this is a compelling claim.

However, the devil, as they say, is in the details. Allow me to call three details to your attention:

Killer app: Seven dirty words you can’t say on your iPhone

By Dennis Baron
Apple’s latest iPhone app will clean up your text messages and force you to brush up your French, or Spanish, or Japanese, all at the same time.

This week the U.S. Patent and Trademark Office approved patent 7,814,163, an Apple invention that can censor obscene or offensive words in text messages whie doubling as a foreign-language tutor with the power to require, for example, “that a certain number of Spanish words per day be included in e-mails for a child learning Spanish.”

Turnover at the White House and a Crisis of Confidence

By Elvin Lim
The Obama White House has announced a series of personnel changes in recent weeks, ahead of the November elections. The aim is to push the reset button, but not to time it as if the button was plunged at the same time that voters signal their repudiation on election day. But the headline is the same as that of the Carter cabinet reshuffle in 1979: there is a crisis of confidence in the Oval Office.

George Martin Goes Independent, 2 Sept 1965

By Gordon Thompson
When George Martin first entered the recording industry in the early 1950s, assisting Oscar Preuss at EMI’s Parlophone, he encountered the end of the mechanical era. The company’s facilities on Abbey Road in genteel St. John’s Wood still used lathes to record sound by cutting grooves in warm wax with energy provided by weights and pulleys, like a child of Big Ben. The sheer mechanics of this kind of professional recording demanded large…