WHY PALIN?

Love her, hate her, on-the-fence about her, Sarah Palin can't be ignored. Karl Rove snagged our attention when he described the Republican vice presidential pick as a "campaign" decision versus a "governing" decision (WashingtonPost.com 8.2.08). In our world, that's code for: "going after a highly desirable specific demographic target."

In what respect, you ask? Aside from being a woman, Palin (born in 1964) rides the comet tail of the younger Boomer cohort, the 40 million people who came of age in the late '70s and early '80s, as does Barack Obama (born in 1961). Younger Boomers, also sometimes called Generation Jones, were the swing vote in the last two elections, and they still make up an estimated 26% of the vote (Newsweek 2.11.08).

From her age-defying rimless titanium Kawasaki specs, to her '80s updo, to her Vogue magazine cover bod, Palin strikes a perfect visual pose for a cohort set on busting the Boomer stereotype of the aging hippie. Add in her Brady-sized household and her meteoric career rise from the local PTA to the governor's office, and witness the "living large" ethos passed on by older sibs, sans the rebellion.

Win or lose in November, Palin's image, lifestage and message make her an interesting case study for a cohort that has $1 trillion in spending power and still has a few things to prove. As the election brings the passing of the torch, make sure you know what else younger Boomers care about.

TAKING THE PULSE ON LOCAL ECONOMY: ARE AMERICAN JOBS DISAPPEARING?

Some argue that unemployment rate is higher that what the US Department of Labor reported. 600,000 jobs were lost between January and June of this year, an average of 80,000 jobs at month while 100,000 jobs should be created every month to keep the economy flowing at a reasonable growing pace. With the collapse of giant banks, unemployment rate increased by 1.7% to 7.1%. There is still an average of 300,000 people who are unemployed but not reported that have decided not look for a job or start their own business.

Often I see people afraid of loosing their ability to provide for their families and pay the bills, others are simple angry they lost their income already. In this presidential elections, we have more than the Wall Street Crisis to think about before we vote. Neither of the presidential candidates are offering a plan we can buy in. They need money to implement their simplest plan and we are already broke trying to bail out those who create the turmoil we are living.

All I hear everywhere I go is about Wall Street and Main Street, but I want to tell you about My Street. Nobody seems to care enough about Free Trade Agreements and how well US Exports are doing to become nowadays the most profitable source of capital, and creator of jobs for the country.

Contrary to what some people have led us to believe, I like to discus some important questions that are constantly in American Minds these days.

What do you tell American workers who are worried about losing their jobs to foreign competitors?

The simple truth is the United States is effectively a duty-free market. The average tariff on products entering the U.S. is less than 3 percent. This is peanuts to pay to participate in the world's most open and lucrative market. Contrary to what some may lead us to believe, the United States has very few protective tariffs on manufactured goods. If we did they would be squarely against World Trade Organization rules.

If we were to turn the clock back to 1994, before NAFTA was implemented, the average cost of our imports from Mexico would increase by a mere 2 percent, whereas American products exported to Mexico would increase by more than 30 percent. This would make absolutely no difference in what we presently import, but it would have a dramatic impact on our exports. Mexico would simply source those products it currently imports from the United States from others, such as the European Union, where Mexico has in place a free trade agreement. As a result, thousands of American well-paying jobs created by our exports would be lost and in return we would not create a single job. We have already lost the jobs we are going to lose. It is now time to bring them back through increased exports that only free trade agreements can achieve.

The big winner in all agreements of this kind is American exporters, who will return the favor by hiring more American workers. Since NAFTA was implemented, the U.S. added 30 million new jobs. The problem is not NAFTA; it is that we do not have free-trade agreements with China, Japan, India, and others that make up most of our suffocating trade deficit.

How does the U.S. economy gain when American businesses succeed overseas? Aren’t most of the benefits shared between the company and its foreign host?

The U.S. economy gains when American exporters succeed overseas. It is not that American exporters are uncompetitive; it is the world trading system is corrupt and skewed against them. Our exports dollar-for-dollar employ five times more people than our imports and pay 17 percent more wages. Creating an environment where American exporters are allowed to compete on a level playing field that includes not only the elimination of tariffs but agreements that instill labor rights, due process, environmental protections, intellectual property protections, product standards and approvals, and corruption eradication will result in booming American exports. We have never known a world where American exporters were given equal access on a level playing. I fervently believe if such a world did exist American exporters would put millions of our citizens to work and our trade deficit would soon be history.

What do this means for local business?

Florida’s technology exports alone grew by almost $1 billion last year, according to the Trade in the Cyberstates 2008 report, released Tuesday by AeA, a national technology trade association.

Florida was the third-largest tech exporter in the nation, with a $13.4 billion share of the U.S.’s $214 billion total.

Florida trailed only California, which led the country with $48.2 billion, and Texas, the nation’s second leading high-tech exporter, with $35.9 million. New York ($8.9 billion) and Massachusetts ($8.7 billion) rounded out the top five.

"When many people think of Florida exports, they probably think only of citrus fruits,” said Maryann Fiala, executive director of AeA’s Florida Council. “But, nearly a third of all exports from the Sunshine State are high-tech products. State public policy officials need to see trade as a great job creator for Florida. High-tech exports support nearly 70,000 jobs in the state.”

While Florida’s tech exports rose, they declined by 3 percent domestically.

The largest single tech sector was computers and peripherals, which accounted for $5.1 billion of exports.

The overviews also provided the top five leading high-tech export destinations for individual states.

For example, Massachusetts’ leading export destination was Japan, followed by Germany and Canada. In contrast, Florida’s leading high-tech export destinations were Brazil, Venezuela and Mexico.

High-tech exports supported hundreds of thousands of U.S. jobs. In Florida, nearly 70,000 jobs were supported by tech exports. Other leading states included Texas (183,900 jobs), California (183,000 jobs), Arizona (36,400 jobs) and Oregon (33,900 jobs).

What does high-tech trade mean for Florida?

· $13.4 billion in high-tech exports (ranked third in U.S.)

· Up $989 million in tech exports between 2006 and 2007

· 30 percent of exports from Florida are tech exports (ranked 12th)

· 69,900 jobs in Florida are supported by tech exports



Florida’s leading tech export destinations:

· Brazil ($2 billion)

· Venezuela ($1.3 billion)

· Mexico ($1 billion)



Florida’s leading tech export sectors:

· Computers and peripheral equipment ($5.1 billion, ranked third in U.S.)

· Communications equipment ($3.3 billion, ranked third)

· Photonics ($529 million, ranked second)

Source: Trade in the Cyberstates 2008

A CHANGE IN THINKING IN SEARCH FOR THE e-MONEY

OBSERVATION
The mega-trends of social media and sustainability share plenty of the same DNA in any industry.




WHAT'S HAPPENING



About 60% of non-profit organization’s members over age 25 want to see their charities on different online forums. Nearly 90% among members and volunteers between age18-45, only 2% could make small online donations in second quarter of 2008.



PEW INTERNET AND AMERICAN LIFE PROJECT SURVEY, FLORIDA TRENDS. | 8.1.08.

Although charities are doing fine in the current economic downturn; however, their members and volunteers are changing their giving habits. And since 25% are giving their dollars to education; 35% are giving to natural disasters emergency funds, in our consumer-driven economy, a slowdown on traditional donation really puts the brakes on.

LargerNet polled more than 2,000 consumers among 150 charities in Florida. The company found that there was a 30% decline in donations in the second quarter of 2008 in absence of safe online forums where they can donate to their charities of their choice.

LargerNet also found that levels of confidence in charities’ members and volunteers had reached an all-time low in 2008


 in great part due to lack of updated website content and organic inbound marketing that allows them more control over their charitable donation choices. "They’re seeking for more convenience, speed and privacy when it comes to charity giving," says Carmen Bracamonte, President of LargerNet.


WHAT THIS MEANS TO BUSINESS



The average online contributor to Campus Crusade is 50 years old, which demonstrates a growing comfort level with online transactions.

Additionally, Fleetwood said, people don't seem to mind that a small percentage of the donation - roughly 2 percent - goes to the credit card company.

Because the percentage is much less when contributing through a personal bank account, Campus Crusade has added that option on its Web site, www.ccci.org.


A preferred bank account transfers where most of the contribution goes to the purpose that it's aimed at. Some of the nation's larger charities, including United Way of America, have seen only modest gains in online giving, but some experts say that might be because those organizations are slow to embrace or aggressively market technology and sustainability.

United Way of America raised $257.4 million online last year, an increase of 7.3 percent over the previous year, according to the Chronicle's survey.

To learn about how social media can change your business at low-cost, please visit Echoing Green Business.

OBSERVATION ON THE RICH- THEY ARE ALSO CUTTING DOWN

WHAT'S HAPPENING

The well-to-do are feeling the pinch of the current economic downturn, and they're changing their spending habits just as surely as the middle and lower classes. And since the top 10% are responsible for 25% of the spending in our consumer-driven economy, a slowdown at the top really puts the brakes on (AP 8.4.08).

Unity Marketing polled more than 1,000 consumers with an average income of $204,000. The company found that there was a 20% decline in purchases of luxury goods in the second quarter of 2008.
Unity also found that luxury consumer confidence had reached an all-time low in the five years it has conducted the survey.


WHAT THIS MEANS TO BUSINESS

Luxury spending was already down 4% last year, and it's expected to take an even steeper dive in the next 12 months.
When the affluent begin to scrimp, it can have a doubling effect on an already slow economy.

Today, even the affluent will respond to marketing that emphasizes value, durability, and quality-for-price rather than mere prestige for its own sake. Vanity spending where price is the only significant brand distinction? That short of spending is going into mothballs.

OBSERVATION ON GXERS: GROCERY STORES FLAUNT THEIR MONEY SAVERS

WHAT'S HAPPENING

With rising food prices and a sinking economy, grocery stores are battling for budget shoppers by showcasing their sweet money saving skills.

At Stop & Shop's "Affordable Food Summits," local politicians and economists enlighten shoppers with insights on edible savings. Consumers have been responding well, so the program is expanding to more stores (SupermarketNews.com 7.25.08).

Whole Foods, a newcomer to the budget mindset, is offering discount-themed tours to help shoppers eat well without spending the whole paycheck (New York Times 8.2.08).
Shaw's is touting promotions on products that have consumers trading down, like ground beef and canned tuna (Boston Herald 7.21.08).

WHAT THIS MEANS TO BUSINESS
To stand out in the marketplace in the current economic climate, grocers need to go above and beyond discounting prices in traditional ways.

Consumers across income levels are dealing with sticker shock in the grocery aisles, so they're looking for retailers to provide empowering options and programs.

CONSUMER MARKET FACTS

About 50% of seniors over age 65 own a cellphone, compared with nearly 90% of consumers 18-29. 2% of seniors own a BlackBerry or other PDA, compared with 17% of their younger counterparts. 6% of seniors have sent a text message, while 75% of the younger group are ravenous texters.

PEW INTERNET AND AMERICAN LIFE PROJECT SURVEY, WASHINGTONPOST.COM | 8.1.08

Observation on GXERS: Washington, D.C., restaurant created by the people, for the people

WHAT'S HAPPENING

The people have spoken, and they want a sustainable, vegetarian/raw foods restaurant. Restaurant-to-be Elements is the first to crowdsource its theme and menu (Washington Post 7.26.08).
The “crowd” (about 400 strong) is comprised of a random group of people who offer opinions on everything from the look to the logo on a community website. Though Elements’ owner, Linda Welch, reserves final decision-making power, she uses the comments as a guide. Indeed, Welch’s original plan for a 1,500-square-foot café was scrapped in favor of larger digs and a green theme.

Community members earn points for participation. Those who accrue at least 1% of the total points are eligible for some kind of profit-sharing.

WHAT THIS MEANS TO BUSINESS

Empowering consumers makes good business sense, but empowering potential customers is downright clever. Elements will have a loyal following (with a vested interest) once it opens for business. Transparency and control can build momentum and trust.

But companies need to make sure they’re not catering to the whim of a select group of people, especially in this shaky market.
Is the raw food movement hitting the mainstream? One thing’s for sure: diners are desiring more vegetarian options.

MARKET FACTS

The average U.S. household throws out nearly a quarter of the fruits and vegetables they buy. For a family of four, that adds up to about $500 each year.


MSNBC.COM | 7.23.08

Exercise rates drop off sharply in U.S. teens

WHAT'S HAPPENING

American kids get sluggish when they hit their teens, a major new study found. While 9-year-olds average three hours a day of moderate-to-vigorous exercise, 15-year-olds average less than the minimum hour the government recommends (AP 7.15.08).

The study, published in JAMA (7.16.08), tracked a demographically-mixed group of 1,000 U.S. children from 2000 to 2006. Each wore an accelerometer attached to the belt that recorded physical activity.

Researchers attribute the sharp decline in exercise to the cutback of school gym programs, along with the rise of videogames and social networking sites.

WHAT THIS MEANS TO BUSINESS

The threat of childhood obesity doesn't end when kids enter their teens. Indeed, it accelerates. Lack of exercise compounds the risk for junkfood-prone adolescents.

Every student has a right to physical education, not just the team jocks. High schools need to restore gym programs and look to innovations like Dance Dance Revolution.

Soc net sites and videogames are here to stay. But parents can help teens balance their couch time with outdoor activities like walking the dog.



RESOURCES
“Moderate-to-Vigorous Physical Activity From Ages 9 to 15 Years,” by Philip R. Nader., M.D. et al., Journal of the American Medical Association (7.16.08)

GENERATIONS
General Market:
Millennials
Millennials - Teens