MINIMUM WAGE

Are Minimum Wage Laws Really Helpful?

In Pennsylvania, along with a handful of other states, lawmakers passed legislation to increase minimum wages from the Federal minimum of $5.15 per hour to $7.15 per hour by July 1, 2007. Lawmakers are now looking at steady increases in Pennsylvania minimum wages so that by 2010 it will be around $9.35 per hour. Statements such as “minimum wages that provide dignity instead of poverty” are echoed throughout the political world. Certainly lifting people out of poverty and offering a better quality of life can’t be a bad idea right?

Who really benefits from higher minimum wages? In Pennsylvania, the state income tax deduction is 3.3 percent. Higher wages increases the income for the state based on the gross pay. Another 1 to 2 percent is taken out for local taxes. On the federal level, Social Security and Medicare get their share and the federal tax rounds out the deductions.

The two dollar per hour increase is about $1.20 actual increase or $48 per week. This is less than $200 per month, $2400 per year, an amount not likely to lift people out of poverty. If you take into account inflation, the minimum wage needs to be around $15 per hour in order for people to afford a middle-class lifestyle.

Another negative effect on people living in poverty would be state assistance programs that are based on income. This increase will eliminate many individuals and families that once qualified for state assistance programs, such as housing, food and healthcare. There were no indications that minimum assistance levels would increase along with the minimum wage.

People will now need to make a choice between higher minimum wages and state assistance. Given the prohibitive costs for healthcare, people may choose not to work full-time. This sounds counter-productive and illustrates that money is not a simple solution to our social problems.

Perhaps a better idea, instead of raising the minimum wage, would be to exempt any taxes and other tax deductions from persons making less than $20K per year. At the same time, make sure that the basic needs for security and safety are addressed by providing healthcare, food and utility coverage for persons earning under the $20K amount. At least the lower per hour wage is “real” and won’t deter employers from providing or people from taking low-end paying jobs. Isn’t this the hot issue behind the immigration policies?

Families earning more than one million dollars per year are growing at 7 percent a year while people falling into poverty are increasing by 14 percent a year. The median yearly income is less than $32K per year. This data points to the idea that wealth is becoming concentrated and not being returned to our communities. People who have had good fortune are responsible for those who don’t. That’s a basic tenet of civilization and certainly most religions.

If politicians are opposed to taxing higher income families, then families should show their compassion by donating money to non-profit organizations that feed, clothe and offer help to people living in poverty. Instead of giving to world causes where your money may or may not be effectively utilized, consider giving to local organizations that are run by your neighbors and people you know.

Until minimum wage laws actually rise to the point where people are self-sufficient, communities need their wealthy members to be more generous. Ironically, by helping people pay their bills and live securely, they will become consumers with more money to spend on the products that make wealthy people rich.

Credit Card Marketing

USA Today (10-02-06) reported that the largest colleges in the US earn millions of dollars every year by allowing credit card companies to market on campus. Further, colleges share/disclose students’ contact information and where they live on campus.

The average outstanding balance on student credit cards is $2169 and the average college senior holds five credit cards. When will parents get some protection from these greedy institutions that are well-endowed by alumni contributions, supported by state and federally tax dollars and have no reservations about raising tuitions at a pace greater than inflation? How much money does this country need to pay for advanced high school?

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

OCTOBER THOUGHTS

Challenges for the Small Business Owner

From a survey of 1000 sole proprietors, the top challenges for them included:

1) The inability to focus on generating new business

2) Spreading time across multiple projects or roles

3) Limited resources

4) Running their business more efficiently

5) Not having enough time to focus on own passions

When you work alone or with a small group of people it is easy to be distracted. There are so many items that seem important and it is hard to know which ones to ignore. It seems like “that one might be the one” and so you pursue it until a dead end appears. Unfortunately, your time and financial resources get stretched even further.

Gurus tend to be a distraction more than offering value. Everyday it seems like experts surface with the solutions to your problems. It is difficult to evaluate all this knowledge and know when to leave it alone. Until you have been through it you just don’t know when new ideas or knowledge will help you. Experience does matter. One idea for evaluation: if the guru is selling something that is going fix your problem quickly and improve your bottom line, you can safely move on without a second thought.

There are professional groups that can help such as SCORE, the Small Business Administration, college business schools and your local chamber of commerce. These organizations give you a chance to ask questions and to learn how to ask questions that may help you analyze if the “new knowledge” is valuable or just re-hashed time wasters.

Most importantly, research, learn and be prepared before you start your business. If you start with a clear direction you are less likely to be distracted by the daily bombardment of ideas that will capture your time. In doing your homework beforehand you may also discover a key voice or someone who will be your mentor through the process. Think about it: in nearly every successful business story there has been two people that work together to develop their ideas, support and help each other resist the temptation to be distracted.

What is a Generation Y?

Baby Boomers, Generation X and now Generation Y; who are these people? Baby Boomers represent the graying of America, the AARP generation and the more than 70 million population group that will crash Medicare and Social Security over the next 10 years.

Generation X are the kids of Baby Boomers that were going to bring new thinking and direction to American society. Generation X are the people who are going to take care of the environment, the poor and homeless and keep society strong.

Generation Y are people born between 1982 and 2000, who are influencing the consumer habits of families. These are the kids were born to shop and are influencing their parents as to what is “cool.” From a marketing and manufacturing standpoint, Generation Y picks products that will help them stand out among their peers.

For example, Gen Y may pick a certain brand name and heavily promote it to friends and family. It may be a computer, an MP3 player, sweaters, pants, shoes or cars. They will focus on this item to build their image. Gen Y may have the most expensive plasma TV but at the same time will buy clothes in thrift shops or via eBay. That person wants to be known for his or her TV.

In promoting or marketing your products or services to the Gen Y consumer, you need to rely on viral marketing and get some notoriety from Gen Y influencers. That group is the savvy consumer and they will help you gain access to other consumer groups.

The Blogosphere

According to research by USA Today, since March 2004, the blogosphere has doubled in size every 5 to 7 months and now has over 53 million blogs. Everyday nearly 2 blogs per second are created and there are 1.6 million daily postings or 66,600 per hour.

By language, 39 percent of blogs are written in English, 31 percent Japanese, 12 percent Chinese and 2 percent in Spanish. Only about 40 percent of bloggers (people who write blogs) tend to stay active for at least 3 months.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

SMOKING and DRUGS

Tobacco Use Drops

The percentage of boys and girls ages 12 to 17 that used tobacco products is dropping. In 2002, the reported use was 12.3 and 13.6 percent for boys and girls respectively. By 2005 the use had dropped to 10.7 and 10.8 percent respectively.

Since the early 1970’s, smoking education programs have been in place in K-12 education. All the non-profit health organizations such as heart, lung and cancer have introduced games, booklets, videos and mascots to send the message to K-12 students that smoking is harmful and needs to be avoided. After nearly 35 years of effort, the programs seem to be working.

Or are they? The cost for a pack of cigarettes has increased dramatically, enforcement agencies have deterred small shop owners from selling to minors and society in general has shunned the habit with more laws banning public smoking. And, in the workplace, employment may hinge on answering the question about whether or not you smoke. Some companies have targeted employed smokers whenever there are terminations.

These messages may be stronger than education. Adults see smoking as a negative behavior even among the ones who smoke. This kind of talk around their children sends a message of disgust and that may be the turning point. Researchers know that children follow the lead of their parents. If they hear enough negative talk about smoking, health and social acceptance that may be the trigger point not to start.

Education about smoking now completes the adoption of non-smoking behavior by reinforcing what the child hears at home. As long as the program focuses on healthy alternatives to a smoking lifestyle that can be as satisfying, smoking among young people will be minimized but not totally eliminated.

To completely eradicate smoking among school students of all ages, schools need to influence the social circles of peer groups. Every school has cliques and they are part of the dominating social circles. The leadership in these larger circles needs to be influenced so they set the trend of not smoking. If you lose any of these social influencers, many more students will follow and the drop in smoking numbers may start to reverse.

Stop Anti-Drug Campaigns

Is there anyone who really believes that people who use drugs will be influenced by commercials showing “eggs in a frying pan?” Remember the crash and burn films in driver’s ed that were supposed to encourage safe driving? Behaviorists know that people use “cognitive dissonance” to justify their behaviors, even ones as simple as buying new clothes. In essence, we can talk ourselves into anything that we want to pursue.

The Government Accountability Office issued a report in August 2006, that reveals anti-drug campaigns are not working and should end. The campaign actually seems to be increasing drug use. The 2007 budget has requested $170 million to continue the commercials, a $20 million increase over this year’s budget. Why?

Here’s another scenario where the survival of bureaucracy is trying to trump the science of investigation. If independent research says “it’s not working,” then why continue along those same strategies? Why not investigate other ideas that may have an impact? When it comes to drug abuse and how to minimize its spread, there are many credible voices that need to be heard.

The “war on drugs” began in the 1970’s (a familiar theme?) generally has not deterred the use of drugs despite some instances of success. The harder to achieve (with more long-term results) solutions that would have a greater impact are too much “leg-work” for those in bureaucracy. These solutions call for stronger education at all grade levels, better housing and prospects for employment and raising the hopes of those that for generations have struggled. In general, give people a reason not to use drugs or to sell drugs as a way out of their environment.

Solving drug abuse at the social level is not as glamorous as tracking down and capturing drug lords but it is the long-term solution that makes sense. Cut off the demand and you will eliminate the supplier.

Hoopla Around Professional Models

Recently, the annual fashion shows were making their rounds across the globe introducing new styles. Young girls are influenced by these glamorous people. The result is to do whatever is necessary to keep thin. While a certain degree of thinness is healthy, purposely denying your body of nutrients during the “growing years” will result in long-term chronic illness such as heart disease and osteoporosis. Fortunately, this devotion to thinness appears to be short-term infatuation.

Professional models often wear a size 4; the size most often sold in retail is size 14. The average proportion of physical features for size 4 is 32-24-35. For size 14 the attributes are 38-31-42. If young girls can make it through the formative years with minimal bodily damage, it appears they will “catch up” as they get older.

Physical fitness needs to be stressed more as a healthy way of creating thinness not only during the teen years but for life. As with all behavioral issues, quality alternatives need to be introduced in order to replace the negative choice.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

BASEBALL AND LEADERSHIP

National Past-time Offers Many Lessons

Baseball doesn’t always get the respect it deserves as a teaching tool. While it is not as popular on TV as compared to football or basketball, the game still has magnetism. Attendance this past season reached an all-time high; fans can still afford to see the game live. Seeing the game in person is the best way to learn.

The first lesson is the slow pace of the game. In today’s “what can you tell me in 30-seconds” world, a slow pace is a welcome change. A slow pace illustrates patience and allows strategies to develop. There are no time limits (just like the real world where problems may take years to solve) and players stay involved from start to finish. There is plenty of time for communications and time-outs are taken regularly to discuss strategy.

The slow pace parallels the work or education world because not every moment is loaded with excitement or doing things. There are lulls but then the action can start to build and intensify. The pace is action then rest; action then rest; score and don’t lose ground; and so on until the game is over (or the task is completed).

The second lesson is the player’s defined roles. Baseball is played as a team but it is a game of individuals. A player can be the best hitter in the league but his team has a losing record. A pitching staff can have big winners and big losers. A team’s record doesn’t always reflect individual performances.

A championship caliber manager doesn’t mange a team, he manages players. Individuals matter in baseball and they contribute to the team’s success. Players know the boundaries and the goals and they have the freedom to determine how to get there.

Players know what their roles are on the team. Some players are interchangeable, playing a variety of positions, but most have single, defined roles. A power hitter will always be in the middle of the batting line-up; weak hitters near the bottom. Starting pitchers train to pace themselves for 6 or 7 innings; relievers can go for 1 or 2 innings. Switch those roles and not much success will ensue.

Leaders need to embrace this attitude of individuals on a team. They need to identify employees’ strengths and have them fill a role that uses those strengths on a regular basis. Some people can do more than one task with success, but most need to specialize. You don’t ask someone to pitch 6 when they are best at 2.

The third lesson is the attitude of success based on failure. The best players fail more often than succeed. A top hitter is successful about 35 percent of the time. A top pitcher wins about half of his starts. The point is that through failure, a player is better prepared to deliver when the game is “on the line.” Many times a hitter will be having a bad day until that last at bat when suddenly he swings and sends a drive deep into the seats to give his team the lead or the win. Baseball players learn from the first time they play the game that failure prepares them for the next opportunity. A hitter doesn’t hit four home runs every game; his goal is to hit a home run when it matters. If you only have one hit, you want it in the bottom of the ninth as a game winner. If you as a pitcher only have one strikeout, you want it on the last batter that wins the game.

Leadership in the workplace is much the same way. People cannot come to work everyday and hit multiple home runs, even though they try. You want them to deliver when it creates a win. You want them to quickly recover from a strikeout and do their best next time. Highly successful people learn from mistakes.

The fourth lesson is that the offense scores even though the ball is controlled by the defense. The pitcher and the catcher attempt to confuse the batter with a variety of pitches. The fielders cut off ground and fly balls to keep runners from getting on base. The offense must overcome these obstacles in order to score runs. Leaders must recognize that control over external events is not always possible; you keep adjusting the strategy to respond to the environment. Your employees continue working at what they do best and they realize that set backs are part of the game. Everyone understands that the game has 27 outs and you have plenty of time to score.

Baseball is enjoyed because of its appearance of simplicity. Talented people make it look effortless and easy. Yet anyone who has tried to play baseball will tell you that it is complex and takes a high level of skill. It appears slow yet decisions are made in milliseconds. Outs are the result of the ball and bat missing the “sweet spot” by millimeters. Defensive plays are the result of superior reaction time and the high degree of coordination between mind and body.

Practice, practice and more practice makes the game look easy when played by professionals. Leaders want their employees to practice, practice and practice so when they are needed, they deliver and it looks easy. Simulation exercises allow people to explore reasons for failure and what needs to be done to be successful next time. Preparation is as much a part of the workplace as work and productivity.

Enjoy a ballgame next year and see how it can apply to your workplace.

Career Development

The three areas of career development considered most important are:

1) learning new skills

2) pay increases, and

3) career paths

The difference in regards to importance relates to age. For example, employees 18 to 26 rank the three areas in terms of importance as 31 percent, 22 percent and 21 percent. People ages 27 to 41 rank the areas as 27, 31 and 33. Finally, people 42 to 61 rank the three areas as 19, 14, and 8.

It is ironic that in the ever changing workplace that so little respect is given to learning new skills. Without question, the acquisition of new skills is linked to pay increases and possibly career paths. Yet, respondents see higher pay and promotions as career development, not learning.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

Tomorrow’s Careers

What Career Will You Choose?

The top 10 careers as rated on CNNMoney.com are:

1) Software Engineer

2) College Professor

3) Financial Advisor

4) Human Resource Manager

5) Physician’s Assistant

6) Market Research Analyst

7) Computer/Information Technology Analyst

8) Real Estate Appraiser

9) Pharmacist

10) Psychologist

Given the emphasis on career re-training following plant closings or downsizing, what career from the list above do you suppose a person who lost their job in manufacturing could achieve? With few exceptions, none of the above careers can be achieved without going to college for at least 4 years and an investment of more than $40K.

This is the growing issue in the US with respect to jobs. Even if displaced workers were motivated and capable of attending college to study for one of the above careers, where would the money come from to pay the bills while they are at school? How do you raise a family without working?

And, what about if you are a junior or senior in high school and see one of these careers as something worth pursuing? Who guides you to understanding what it will take to be successful as a student in those fields? Are there appropriate resources and courses at the high school to prepare you for gaining acceptance into colleges that offer these programs? Will

What other choices might there be if you don’t have the interest in one of the above fields or you need to work to support your family? The top three jobs readily available that require little training are:

1) Retail Sales

2) Food Preparation

3) Customer Service Representative

As many under-employed people now realize, for the past 10 years the US has moved from a producer to a consumer society. Jobs (over 90 percent) are now in the service industry as compared to 25 years ago when over 80 percent of the jobs were in manufacturing. It is no longer possible for a high school graduate, or even a dropout, to get a high paying job that will see them though a lifetime. Most service industry related jobs will pay around $18K per year and have minimal, if any benefits.

On a related note, the world’s largest employer is Wal-Mart with 1.8 million employees (ranked second in total revenue). Other world employer leaders include the US Postal Service (4^th) with 803,000 employees (61^st in revenue) and McDonald’s at 447,000 employees (ranked 318^th in revenue).

Terms In The News

1) Jihad: defined as the utmost struggle (sometimes used to mean a religious war)

2) fatwa: a legal pronouncement that can include a declaration of war

An Insightful Quote

The Stone Age didn’t end because the world ran out of stones.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC