Archive for November 17th, 2011

Relax: “zero-based” doesn’t mean “zero” … though, maybe it should.

November 17, 2011

Rick Perry kicked up some dust at last Saturday’s GOP Presidential Candidates’ Debate by saying that foreign aid should be “zero based.”

The remark has caused a massive wringing of hands … e.g.  “but what about Israel?”

Settle down folks.

Zero-based doesn’t necessarily mean zero.

It simply means stating each year with a clean sheet … starting each year’s budget at zero, and then justifying spending an item at time … rather than simply taking last year’s budget as a starting point and adjusting that total up or down (usually up).

Any funding that gets justified gets added; unjustified spending gets axed.

Sounds reasonable doesn’t it?

It’s the way well run businesses do it.

If your still uncomfortable, think of it as going through the budget line-by-line.

Remember, when Candidate Obama said he’d go through the budget line-by-lined, people cheered the new way of doing business

When Candidate Perry said essentially the same thing, people squirmed.

The difference?

Easy.

President Obama didn’t do it.  Doubt if he ever intended to …. but, it did resonate on the stump.

If Perry gets elected president, he just might do it.

Oh my, fiscal responsibility … time to squirm.

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For the record, I’m not a big Rick Perry fan, but I do think he landed a nice punch with this one.

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Midnight madness … works for college hoops, so why not for retailers?

November 17, 2011

TakeAway: With projected holiday spending down, big retailers hope to boost sales on Black Friday by opening up even earlier.

New plan for T-Day: schedule dinner for 4 p.m., eat way too much, take a really long nap … then at midnight, head for the stores to buy some plus-sized clothes  (for me) and heavily discounted gifts (for loved ones).

Might work …

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Excerpt from WSJ: “Holiday Shopping’s New Hour: Midnight”

More retailers are concluding that 4 a.m. on the Friday after Thanksgiving just isn’t early enough. Macy’s  said most of it will open at midnight. That’s four hours earlier than in recent years.

Last week, Target said it will break with its usual around-dawn opening practices and begin business at midnight on Thanksgiving night.

“In dollars and cents, it probably gives the retailers that are opening extra early another fraction of a day’s sales … and,  it does engender publicity, which, in this environment, is very valuable.”

This year is expected to be especially competitive because spending is projected to be a bit lackluster.

The National Retail Federation expects total retail spending during the holiday period to rise 2.8%, down from a 5.2% increase last year.

Shoppers are expected to spend 4.6% less this year on gifts, or about $516.

Edit by ARK

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