Category Archives: Economy

US Mint to Halt Production of $1 Presidential Coins

Economy, , , , ,

Vice President Joseph Biden announced this past Tuesday that because of lack of demand, the production of the $1 presidential coin would be terminated, and it will be taken out of circulation.

Low Demand for Coins

Demand for the coin is so bad, that right at this moment there are 1.4 billion surplus $1 presidential coins wasting away in Federal Reserve vaults. In addition the government states that taxpayers could save about $50 million annually in both storage and production costs by halting their creation.

The alternative plan which will go into effect will be for the US Mint to produce the coins only in limited quantities. Those coins “will be sold at a premium to collectors, so it will ensure that the coins will not be produced at a cost to taxpayers,” said Treasury spokesman Matt Anderson.

No Need for More Coins

Up until the announcement on Tuesday the US Mint was ready to produce another 1.6 billion additional $1 presidential coins until 2016. This is despite the fact that there already exist 1.4 billion of these coins in surplus, which is more than enough to meet the demand for the next ten years and beyond, said Anderson.

The presidential coins came about through a piece of legislation known as the Presidential $1 Coin Act of 2005 whose goal was “to revitalize the design of United States coins and return circulating coinage to its position as an object of aesthetic beauty in its own right.”

Presidents Honored on Coins

The US Mint then began producing the new $1 coins, each one depicting a past and deceased US president. The program was inaugurated with the production of 70 to 80 million coins for each one of four presidents chosen each year.

But the program was not a big hit. Over 40% of the coins were returned to the Federal Reserve “because nobody wants to use them,” according to the Treasury.

“As will shock you all, calls for Chester A. Arthur coins are not big,” said Biden, referring to the 21st president, who died in 1886. “I’m not commenting on his presidency, but it just is not very high.”

Texas Boasts Best Job Growth in Country

Economy, ,

Since Rick Perry took over the governorship of Texas in December of 2000, the state added 1.2 million net jobs. Quite impressive considering during the same time period the country as a whole lost 1.1 million jobs.

Perry Pursues Presidency

The remarkable job increase is due to a 40% increase in health service and education jobs over the past ten years, plus a 67% surge in the number of mining jobs, including the flourishing oil industry. Perry’s success looks good on his resume as he competes for the nomination of the Republican Party to be the GOP’s candidate for president, but it is not clear if the great record on the state level can be easily translated into success on the federal level.

Next Five Years Looking Good

Texas is the front runner of states that will add the most jobs during the coming five years, on a percentage basis. According to research done by Moody’s Analytics, total employment is predicted to grow by 2.9% each year until 2015. In other words, over the next five years there will be about 1.6 million new jobs in Texas.

Texas is Special

So what’s so special about Texas? For one thing, the state offers businesses low taxes, a friendly business atmosphere, and an almost unlimited supply of youthful workers. Texas ranks number six in the Forbes list of Best States for Business and Careers. The state is also not afraid to use aggressive tactics to try and persuade new businesses to relocate so they can enjoy the great benefits that business receives there.

Persuasion

When Washington was considering raising taxes last year for the state’s top earners, Governor Perry sent a letter to 90 companies headquartered there, including Amazon.com, Microsoft and Starbucks, trying to persuade them to move to Texas.

Perry’s letter stated in part:

“As the State of Washington considers a multibillion-dollar tax increase for citizens and businesses … I invite you to consider your future in America’s new land of opportunity: the State of Texas. If Washington doesn’t want your business, Texas does. Texas has no personal income tax and no interest in getting one.”

First-Class Mail Slow Down Could Hurt US Businesses

Economy, ,

For those who think snail mail is a thing of the past, think again. Yes its true that most bills are paid, most legal briefs are filed, and much Christmas shopping gets done on line, but for things like magazines, catalogs, movies and old fashioned birthday cards, the mail is still being delivered.

Say Good-by to Fast First-Class Mail

Many businesses in the US are still dependent on the quick and inexpensive service that first-class mail offers. It is still the preferred way to reach many potential customers and subscribers. And above all, it is a crucial way many businesses still get paid.

Postal Service Losing Money

For the past five years, despite the importance the US Postal Service has for many businesses, the post office has been losing money. More than 200 mail processing centers are about to be put on the chopping block, which will most likely add at least one day to the time it takes to deliver the mail. This latest news is leaving many businesses concerned and even frustrated, while others say they haven’t relied much on the post office in recent years.

“It’s less of a disaster than it would have been 10 years ago, but it’ll be a cash flow crunch for some companies,” said Todd McCracken, president and chief executive of the National Small Business Association. “It’ll be longer to get your invoice, and longer to get a check back.”

Snail Mail Getting Slower

The US post office used to promise that first-class mail would arrive in one to three days. Almost half does arrive in just one day, but the cutbacks will back up the deliveries to closer to two to three days. Magazines and other mass-mailed media could take as much as nine days to get to its destination.

More Loans Reflect Consumer Confidence on the Rise

Economy, , , ,
Consumers Using their Cards More

Consumer confidence in the US economy may be rising, if increasing use of credit cards and other forms of borrowing is any indication.

More Car and College Loans

October saw consumers borrowing more for the second straight month taking more loans to buy more cars and to pay college fees. They seem to be charging more as well to their credit cards. The increase in buying points to the chance that consumers are more comfortable with the economy and are willing to spend more in expectation of the coming holiday season.

Borrowing Going Up!

The Federal Reserve announced on Wednesday that consumer borrowing went up by $7.6 billion. The gains of September and October reversed what had been a continuing steep decline in borrowing since August, when it fell by its largest amount in 16 months.

Unemployment Coming Down

There are other signs of an improved overall economy in the US. In November the unemployment rate went down to 8.6%, its lowest in two and a half years. There have also been 100,000 more jobs generated in the last five consecutive months, the first time that has happened since April 2006.

The borrowing report of the Federal Reserve includes car loans, student loans and credit cards. It does not include, home equity loans, mortgages and other loans which are connected to real estate transactions.

Michigan Wine Industry Defies Lackluster Economy

Economy, , , ,

In news which would cause even teetotalers to toast, the nascent Michigan wine industry is reporting exciting growth over the past few years, defying an otherwise sluggish economy.

Michigan might not have the romantic reputation of the great vineyards of France or even Napa in California, but fertile hillsides, the Great Lakes and cool weather are the perfect combination for some of the industry’s cool-weather varieties like riesling, pinot grigio and chardonnay.

The Growing Michigan Wine Industry

Reaping the Benefits

Not yet in the same economic league as the Detroit car manufacturing industry (yet), the success of the burgeoning wine industry is making analysts sit up and take notice, especially since the rise of the industry has transpired during a serious economic slump which began in Michigan years before arriving in the rest of the country.

Linda Jones, executive director of the Michigan Grape and Wine Industry Council said that eleven wineries have already opened in the last year alone, with four more scheduled to start production soon. Jones further explained that in the past several decades the number of Michigan wineries using state grown grapes has risen from 18 to 89.

Land Boom

Dan Matthies is a real estate agent in Michigan who concentrates on dealing with land  suited for vineyards. He says he has brokered the sale of five properties this year, and he admits to being flooded with inquiries from people who would like to get started in the wine-producing business.

“It is one of the brightest spots we have in the state of Michigan,” said Matthies, who also runs Chateau Fontaine in beautiful Leelanau County.

The success of this particular agricultural niche in Michigan is partly a reflection of the general health of the nation’s farm economy. The farm economy in general is doing well, with farm income reaching an historic high this year, and farmland value increasing in the double digits.

Drink to Success

The success of Michigan’s wine industry feeds itself. Its reputation for producing quality wine has skyrocketed, while simultaneously expanding the number of excellent varieties available. Michigan’s wineries are marketing highly regarded selections of merlot, pinot noir, pinot blanc, cabernet franc and ice wines, a dessert variety made with grapes which have been frozen before they are harvested.

“It’s been like an explosion the last couple of years. They’ve been winning medals left and right, competing across the U.S. and internationally,” said Yolanda Daly, director of the Pacific Rim Wine Competition in San Bernadino, California. “Beautiful wines are coming out of Michigan.”