4 Things That Keep Employees Loyal (Hint: It’s Not Money Or Perks): The opportunity to do great work. A decent, non-toxic manager. Decent people. Remember them?

4 Things That Keep Employees Loyal (Hint: It’s Not Money Or Perks)

LES MCKEOWNINC. AUG. 1, 2013, 11:52 AM 3,287 2

You can ditch the esoteric interview questions; skip the outlandish benefits and uber-hip working conditions; and forget building an awesome brand. When it comes to hiring– and more importantly, keeping– great employees, not even paying well above market compensation guarantees success. In a recent survey of companies with the highest amount of employee turnover, guess which trailblazing exemplars of world-class employee-centricity came in second and fourth, respectively? None other than Google and Amazon. All of which just goes to show, as the Beatles once said, money can’t buy you love. If resource-rich employers like Wynn Resorts and Berkshire Hathaway Inc. (#6 and #18 on the list of companies with the least loyal employees) can’t build loyalty in their workforce, what chance does the average, resource-constrained, small- and medium-sized business have? Well, the truth is, quite a lot. Despite the fact that most small business founder/owners feel that they are in a David and Goliath-like battle for talent with mega-employers, the reality is that great employees are all looking for an environment that any business, large or small can provide. Here are the four key ways to ensure that, so long as you’re paying at or near market compensation, your employees will remain engaged and loyal, irrespective of the size of your business: Read more of this post

Collaboration: How Leaders Avoid the Traps, Build Common Ground, and Reap Big Results

Collaboration: How Leaders Avoid the Traps, Build Common Ground, and Reap Big Results [Hardcover]

Morten Hansen (Author)

collaboration-how-leaders-avoid-traps-create-unity-reap-morten-hansen-hardcover-cover-art

Publication Date: April 14, 2009

In Collaboration, author Morten Hansen takes aim at what many leaders inherently know: in today’s competitive environment, companywide collaboration is an imperative for successful strategy execution, yet the sought-after synergies are rarely, if ever, realized. In fact, most cross-unit collaborative efforts end up wasting time, money, and resources. How can managers avoid the costly traps of collaboration and instead start getting the results they need?
In this book, Hansen shows managers how to get collaboration right through “disciplined collaboration”– a practical framework and set of tools managers can use to:
· Assess when–and when not–to pursue collaboration across units to achieve goals
· Identify and overcome the four barriers to collaboration
· Get people to buy into the larger picture, even when they own only a small piece of it
· Be a “T-Shaped Manager,” collaborating across divisions while still working deeply in your own unit
· Create networks across the organization that are not large, but nimble and effective
Based on the author’s long-running research, in-depth case studies, and company interviews, Collaboration delivers practical advice and tools to help your organization collaborate–for real results. Read more of this post

The Innovation Mindset in Action: an illiterate woman from Tamil Nadu, India. Her story is at once heartbreaking and inspiring, showing that game changers can come from all walks of life, all over the world

The Innovation Mindset in Action: Shantha Ragunathan

by Vijay Govindarajan and Srikanth Srinivas  |   9:00 AM August 1, 2013

This January, we met Shantha Ragunathan, an illiterate woman from Kodapattinam, a remote village in Tamil Nadu, India. Her story is at once heartbreaking and inspiring, showing that game changers can come from all walks of life, all over the world. At six, Shantha lost her parents. By her twenties, she was stuck in a seemingly dark pit without a glimmer of hope: with two children and little financial support from her husband, she could not afford even one square meal a day. Although she was poor in resources, she possessed the innovation mindset shared by many game changers: they see and act on opportunities, use “and” thinkingto resolve tough dilemmas and break through compromises, and employ their resourcefulness to power through obstacles. Innovators maintain a laser focus on outcomes, avoid getting caught in theactivity trap, and proactively “expand the pie” to make an impact. Regardless of where they start, innovators persist till they successfully change the game. Read more of this post

Apprenticeship Good for Ben Franklin Closes Skills Gap

Apprenticeship Good for Ben Franklin Closes Skills Gap

Toby Wofford learned his way around United Tool and Mold Inc. maintaining machines his last two years of high school in Easley, South Carolina. Now he’s graduating to an advanced apprenticeship program that includes free classes at a nearby technical college. The United Tool apprenticeship is one of more than 500 such programs added in South Carolina since 2008. They range from certified nursing assistants in senior-care facilities to pharmacy technicians at CVS Caremark Corp. (CVS) These federally registered programs are part of an effort by states to adapt such on-the-job training to close a skills gap in technical jobs. “It’s the best of both worlds,” 18-year-old Wofford said in an interview at the shop, which makes and repairs molds for plastic parts such as auto-fuel tanks. “You get the on-hand experience, but you also need the knowledge of education from college.” The apprentice system, which helped founding fathers Benjamin Franklin become a printer and John Hancock learn silversmithing, faded in the U.S. during the next 200 years until it was concentrated primarily in construction trades, said Joseph Fuller, a senior lecturer at Harvard Business School in Boston who is studying work-training programs. Read more of this post

The eighth generation brothers who run Aspall Cyder see their product as a rival to champagne and talk about the black art of cider-making and taking advice from maharajahs.

CORE BUSINESS

ARTICLE | 1 AUGUST, 2013 12:52 PM | BY JEREMY HAZLEHURST

There was a lovely moment just after I’d sat down with the Chevallier Guild brothers when Barry was having a little trouble with a coffee pot. Henry walked over to help out and, as they both grappled with the plunger, it was a rather sweet scene of fraternal cooperation: “It’s got a bit…”, “Just press the…” “How do you…?” After some delicate coaxing, the blockage was removed, the handle depressed and the coffee was served. Some siblings in family businesses have fractious, antagonistic relationships, but it’s blindingly obvious that these two are totally and utterly at home in each others’ company. You can hardly imagine them not working together. Read more of this post

Getting people on and off an airplane quickly is so complicated that even an astrophysicist couldn’t figure it out

Mysteries of boarding bedevil airlines

BY DAVID KOENIG AP

AUG 1, 2013

DALLAS – Getting people on and off an airplane quickly is so complicated that even an astrophysicist couldn’t figure it out. The astrophysicist, Jason Steffen of Northwestern University, normally contemplates things such as axionlike particles. But after waiting in one boarding line too many, he turned to the mysteries of airline seating. “I thought there had to be a better way,” he says. So, after a series of calculations, he deduced that the best system would be a combination of filling window seats first, then middle and aisle ones, while spacing the boarding passengers two rows apart. There was just one problem — passengers would have to board in precise order. Good luck with that. “Well,” Steffen observes, “I understand why airline people aren’t calling me.” But the search for the perfect boarding process goes on. Read more of this post

Tyrrells, the premium snacks and crisps business, has been sold to private equity investor Investcorp for a price of £100m; Tyrrells was founded by farmer Will Chase, who first started the business as a sideline on his farm

Tyrrells sold to Investcorp for £100m

Tyrrells, the premium snacks and crisps business, has been sold to private equity investor Investcorp for a price of £100m, it can be revealed.

Tyrrells was founded by farmer Will Chase, who first started the business as a sideline on his Herefordshire farm, Tyrrells Court Farm, in 2002.

By James Quinn, Financial Editor

1:02PM BST 01 Aug 2013

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The business, which has expanded from making crisps to a range of snacks in recent years, was put up for sale by private equity owner Langholm Capital earlier this year. Investcorp is an investor well versed in growing premium brands, with past investments including Gucci, Tiffany and Helly Hansen. Read more of this post

Handicaps of sector and name fail to check Lanxess; The once-spurned chemicals group has been transformed; judicious CEO Axel Heitmann eliminated several layers of executives and business segments are free to conduct its operations without interference from headquarters to a degree uncommon at large German companies

August 1, 2013 4:04 pm

Inside Business: Handicaps of sector and name fail to check Lanxess

By Tony Barber

Lanxess

The once-spurned chemicals group has been transformed

The ugly duckling of Leverkusen turned this week into the swan of Cologne. Lanxess, a German speciality chemicals company spun off in 2004 from Bayer, had few admirers at its birth. Conventional opinion derided it as a ragtag collection of low-margin chemicals and polymers businesses. It existed, so it was said, for no better reason than that Bayer, like some cold-blooded, profit-hungry giant, had decided to dump old-fashioned chemicals and place its bets on healthcare, nutrition and high-tech materials. Yet the last laugh is with Axel Heitmann, chief executive of Lanxess from day one. He swiftly reorganised the newborn company, selling off a quarter of its portfolio and making astute acquisitions such asthe 2008 purchase of Petroflex of Brazil, Latin America’s largest synthetic rubber producer. After years of steady growth and improved margins, Lanxesswas promoted last September to Germany’s blue-chip Dax-30 index. Read more of this post

Bacteria ‘Invest’ Their Resources To Seek Evolutionary Success

Bacteria ‘Invest’ Their Resources To Seek Evolutionary Success

August 2, 2013

Researchers have recreated and analyzed the complex interplay between bacterial investment strategies and their outcomes for the first time. Asian Scientist (Aug. 2, 2013) – The complex interplay between bacterial investment strategies and their outcomes has been recreated and analyzed for the first time by researchers in Australia and the UK. Since the 1960s, theories have been floated on how decision-making by organisms is related to their survival on one hand or to rapid growth on the other. It is not possible to do both simultaneously because of insufficient resources. Bacteria, like humans, have limited resources and are constantly faced with decisions on how to invest in their future. In their study, published in Ecology Letters, the researchers developed a mathematical model to predict the best way for bacteria to invest resources in a trade-off between growth and stress resistance. The researchers modeled how, like humans investing in cash, bacteria trade in costly proteins to reduce their stress levels or to increase consumption and so grow faster. Evolution can be seen as a decision making process where different choices are encoded in the genes. Each bacterium makes an investment decision; the bad investors fall by the wayside, the good ones survive. Read more of this post

Our Hotter, Wetter, More Violent Future

Our Hotter, Wetter, More Violent Future

Earth’s atmosphere seems to have found a way to get back at the human race. For almost three centuries, we humans have been filling the air with carbon dioxide, methane and other greenhouse gases. Now, it turns out, the climate change these emissions have wrought is turning people against one another. So says a review, published today, of 60 studies on how climate change helps spark conflict throughout the world. The researchers found a surprisingly close link between climate change and civil wars, riots, invasions and even personal violence such as murder, assault and rape. Rising temperatures are especially provocative. A shift toward greater warmth of one standard deviation caused personal violence to increase by 2.5 percent and intergroup conflict by 24 percent. (One standard deviation varies from place to place; in an African country, for example, it could amount to a warming of 0.6 degrees Fahrenheit for a year.) Read more of this post

N.Y. Resort Owners Charged With $96 Million Ponzi Fraud

N.Y. Resort Owners Charged With $96 Million Ponzi Fraud

A money manager and a real estate developer already facing a regulator’s fraud lawsuit were charged with running a $96 million Ponzi scheme and diverting the proceeds to their New York beachfront resort. Brian R. Callahan, 43, and his brother-in-law Adam J. Manson, 41, were charged in a 24-count indictment unsealed today in federal court in Central Islip, New York. They pleaded not guilty and were released on bond. The men are accused of telling investors that their money was going into hedge funds and other investment vehicles while actually much of it was going to the unprofitable 117-unit Panoramic View Resort & Residences in Montauk. Read more of this post

Nicotine-addicted turtle smokes half a pack of cigarettes a day

Nicotine-addicted turtle smokes half a pack of cigarettes a day

Thursday, August 1, 2013 – 16:39

AsiaOne

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Several Chinese news programmes ran reports of a turtle in Changchun who smokes ten cigarettes a day. The reptile picked up the dirty habit when its owner flipped the animal to remove a thorn from the animal’s underbelly. To prevent the turtle from snapping his jaws, the man – who is a chef – put his cigarette in the turtle’s mouth. From then on it was hooked. The turtle makes chirping noises when it wants smokes or walks over to its owner when he’s puffing away. The owner said he’s trying to get his pet to quit, not due to concern for the turtle’s health but because he’s shelling out too much on tobacco.

Education: You can’t improve by sticking with what works

Education: You can’t improve by sticking with what works

In a book, What’s the Use of Lectures?, Mr Donald Bligh notes that lectures have been compared to reading and independent study, projects, discussion and audio and video learning. None of the comparators have been shown to be more effective in transmitting information.

5 HOURS 34 MIN AGO

In a book, What’s the Use of Lectures?, Mr Donald Bligh notes that lectures have been compared to reading and independent study, projects, discussion and audio and video learning. None of the comparators have been shown to be more effective in transmitting information. In other words, reading and independent study are just as good as listening to a lecture. Video delivery of content is just as good as a live lecture. Numerous studies have not shown that lectures are better than any of the other forms of education, but the converse is also the case. Read more of this post

Japan Regulator Says Singapore-Based Hedge Fund Juggernaut Manipulated Share Prices

Japan Regulator Says Singapore-Based Hedge Fund Manipulated Share Prices

By Reuters on 5:56 pm August 1, 2013.
Tokyo. A Singapore-based hedge fund manipulated prices in the Japanese equity market and should pay a 431 million yen ($4.38 million) fine, Japan’s securities regulator said, which would be biggest ever imposed against a non-Japanese firm for market manipulation. The Securities and Exchange Surveillance Commission (SESC) said on Wednesday that Juggernaut Capital Management inflated the share price of real estate developer Rise Inc for 26 business days during March and April last year. Read more of this post

Joko’s ability to resolve the near-impossible Tanah Abang market relocation may seem inconsequential, but it is actually a major transformational step for the country. It proves that change is possible. The old top-down ways are redundant. Change can only be effected when leaders hit the ground and engage with the people.

Joko’s Golden Touch

By Karim Raslan on 10:20 am August 1, 2013.
As Lebaran, or Idul Fitri, approaches and the fasting month builds in intensity, Jakarta becomes an increasingly difficult place to manage. Traders pour out onto streets, blocking the roads, while commuters fret and fume. It’s at times like this when a hands-on leader becomes all the more important. The city — indeed all cities — need someone who’s willing to step forward and say “enough is enough.” In this sense, the Tanah Abang market relocation issue has been a major challenge for the administration of Jakarta Governor Joko Widodo. Read more of this post

Increase in Urine Testing Raises Ethical Questions; The growth of tests for painkillers has led to concerns about their accuracy and whether some companies and doctors are exploiting them for profit

August 1, 2013

Increase in Urine Testing Raises Ethical Questions

By BARRY MEIER

As doctors try to ensure their patients do not abuse prescription drugs, they are relying more and more on sophisticated urine-screening tests to learn which drugs patients are taking and — just as important — which ones they’re not. The result has been a boom in profits for diagnostic testing laboratories that offer the tests. In 2013, sales at such companies are expected to reach $2 billion, up from $800 million in 1990, according to the Frost & Sullivan consulting firm. Read more of this post

Getting cancer cells to scream “come and get me!” Getting cancer cells to scream “come and get me!”

Innovation: Cancer Vaccine by Stanford’s Irving Weissman

By Olga Kharif on August 01, 2013

Innovator: Irving Weissman
Age: 73
Title: Stanford Medical School director of stem cell biology and regenerative medicine

Form and function: Creating antibodies capable of blocking the protein most cancer cells use to hide themselves from a body’s immune system.

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Indian Tractor Maker Mahindra Takes On Deere

Indian Tractor Maker Mahindra Takes On Deere

By Bruce Einhorn on August 01, 2013

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Mahindra & Mahindra (MM:IN) is one of India’s largest conglomerates, but it’s not exactly a household name in the U.S. That used to be a problem for Richard Johnson as he tried to sell Mahindra tractors in Navasota, Tex. (pop. 7,204), about 70 miles northwest of Houston. “People would say, ‘I’ve never heard of this,’ so the first thing you had to do was go through the spiel of where they’re made and all that,” he says.

Today, almost all of Johnson’s prospective tractor customers have heard of the small machines. The company has invested to make itself appear less foreign: Mahindra sponsors Championship Bull Riding and has signed on angler and TV host Bill Dance, a member of the Professional Bass Fishing Hall of Fame, as a spokesman. Mahindra commercials appear on Fox News(FOX), the Outdoor Channel, and other heartland-friendly cable networks. “Mahindra has done a good job of really getting out there,” says Johnson, who last month opened his third outlet selling the Indian company’s tractors. Read more of this post

China Metal Liquidators Sue Chairman Chun for Fraud

China Metal Liquidators Sue Chairman Chun for Fraud

The provisional liquidators of China Metal Recycling Holdings Ltd. (773) sued its founding chairman Chun Chi Wai and his wife for unspecified damages for fraud. Chun, Lai Wun-Yin and 10 companies orchestrated false trading schemes, disclosed false or misleading information to China Metal and paid dividends on inflated profits, according to a lawsuit filed on July 31 at Hong Kong’s High Court. China Metal, which called itself the nation’s biggest scrap-metal dealer, inflated the size of its business to gain a listing in Hong Kong in 2009, the Securities and Futures Commission said July 29 when it announced that it had won a court order appointing provisional liquidators for the company. The liquidators have obtained an injunction freezing more than HK$1.6 billion ($206.3 million) in assets of the defendants, a lawyer for the SFC told a court hearing today which agreed to continue their appointment. Read more of this post

‘Decoupling’ Returns to Bite Asia

August 1, 2013, 8:57 AM

‘Decoupling’ Returns to Bite Asia

By Michael S. Arnold

A few years ago economists in Asia were talking about “decoupling,” a buzzword that meant markets and economies would continue to grow on the back of regional demand despite a slowdown in the West. Now that decoupling may be coming back to bite them. Manufacturing data out Thursday shows regional economies failing to benefit from a pick-up in economic activity in the U.S., Europe and Japan. The reason? Their deepening dependence on demand in China, where growth continues to decelerate.  Read more of this post

Can something be so uncool that it’s actually cool? ‘Uncool’ Cool Japan Video Goes Viral

August 2, 2013, 8:29 AM

‘Uncool’ Cool Japan Video Goes Viral

By Joelle Metcalfe

Japan’s Ministry of Economy, Trade and Industry has never been known as a particularly hip place — even though it’s in charge of the government’s “Cool Japan” push to promote trendy industries like anime, fashion, and Japanese cuisine overseas. But a home-made Cool Japan video shot by two ministry officials and uploaded to YouTube last month has attracted so much criticism that it’s gone viral, prompting Japan’s online community to ask: Can something be so uncool that it’s actually cool? Read more of this post

P&G Shifts Marketing Dollars to Online, Mobile; World’s Largest Advertiser Says as Much as 35% of Ad Budget Going to Digital Media

Updated August 1, 2013, 8:00 p.m. ET

P&G Shifts Marketing Dollars to Online, Mobile

World’s Largest Advertiser Says as Much as 35% of Ad Budget Going to Digital Media

SERENA NG and SUZANNE VRANICA

‘We need and want to be where the consumer is,’ says A. G. Lafley, CEO of P&G, maker of basics like Tide.

Procter & Gamble Co. is now spending more than a third of its U.S. marketing budget on digital media, an aggressive shift as Americans for the first time are expected to spend more time online this year than watching television. P&G chief executive A.G. Lafley said the consumer products giant’s digital spending on things like online ads and social media ranges from 25% to 35% of its marketing budget and is currently near the top of that range in the U.S., its biggest market. That is well beyond the estimated 20% to 25% share that digital ads typically claim of companies’ marketing budgets and highlights the threat to traditional advertising media like print. Read more of this post

Plight of Chinese hawkers highlights impact of downturn

August 1, 2013 7:45 am

Plight of Chinese hawkers highlights impact of downturn

By Jamil Anderlini in Beijing

Every year the scorching Chinese summer brings throngs of unlicensed vendors out on to the streets, hawking everything from pirated DVDs to watermelons. Given their lowly and illegal status they are often treated poorly by the authorities, but this year has been particularly bloody for this army of mobile shopkeepers. Two weeks ago, Deng Zhengjia, a 56-year-old watermelon vendor, was killed and his wife knocked unconscious after they were attacked by the local “chengguan” – an auxiliary police force tasked with keeping city streets clean and orderly. Since then there have been a dozen similar incidents reported across China in which “melon-peasants” (as they are referred to in Chinese), street hawkers, journalists and even police officers have been beaten up by locally-employed chengguan. Read more of this post

Carrefour in the trenches of the hypermarket war

Carrefour in the trenches of the hypermarket war

1:53am EDT

By Dominique Vidalon

PARIS (Reuters) – Fifty years ago, on June 15, 1963, two French families opened Europe’s first hypermarket in Sainte-Genevieve-des-Bois near Paris. Stocking 5,000 products over 2,500 square meters, it was three times the size of most grocery stores. Today, owned by retail giant Carrefour, it has tripled in size and offers 19,000 different products. The store’s growth mirrors Carrefour’s global expansion, but the format – an out-of-town warehouse offering cheese, lawn mowers and almost everything in between – is shrinking as online vendors, convenience shops and discounters bulk up. Some fear the decline could be terminal. Not Carrefour, which pioneered the stores across the globe, making it the world’s second largest retailer after Wal-Mart, but its attempts to revive the hypermarket in France have ended the tenure of a string of chief executives. Read more of this post

Gildan Reaches Record as Branded Wear Boosts Pofit

Gildan Reaches Record as Branded Wear Boosts Pofit

Gildan Activewear Inc. (GIL), the Canadian producer of cotton T-shirts to underwear, rose to a record high after reporting third-quarter earnings at the high end of the company’s guidance and analysts’ estimates. Gildan rose 4.7 percent to C$48.15 at 11:00 a.m. in Toronto. Earlier it rose 6.6 percent to C$48.86 earlier, the highest since the company went public in June 1998 and the biggest intraday jump since June 12, 2012. The shares have gained 26 percent this year through yesterday, compared with a 0.4 percent rise in the Standard and Poor’s/TSX Composite Index. Montreal-based Gildan posted earnings of $116.5 million or 95 cents per share, adjusted for certain items, compared with $80.2 million or 66 cents a year earlier. The company previously projected earnings of 92 cents to 95 cents per share. Results beat the 94-cent average of analysts’ estimates compiled by Bloomberg. “The company began shipment of its first major Gildan-branded underwear program to a national mass-market retailer,” the company said today in a statement. “Initial retailer sales of the Gildan underwear products are very strong, and consumer demand is well in excess of expectations.” Gildan acquired New Buffalo Shirt Factory Inc. manufacturing facilities on June 21, providing it with screenprinting and decorating capabilities to enhance its ability to act as a supply chain partner for larger athletic and lifestyle brands. Gildan narrowed its full year adjusted earnings expectation to $2.67 to $2.70 per share, from its previous guidance range of $2.65 to $2.70.

To contact the reporter on this story: Lauren S. Murphy in Toronto at lmurphy48@bloomberg.net

Sin-free ale: Non-alcoholic beer is taking off among Muslim consumers

Sin-free ale: Non-alcoholic beer is taking off among Muslim consumers

Aug 3rd 2013 | BEIRUT AND CAIRO |From the print edition

DEDICATED drinkers may struggle to see the point of non-alcoholic beer, but it is growing in popularity around the world. Last year 2.2 billion litres was downed, 80% more than five years earlier. In the rich world it is mainly consumed by a health-conscious minority. But in the Middle East, which now accounts for almost a third of worldwide sales, the target market is the teetotal majority. In 2012 Iranians quaffed nearly four times as much as in 2007. Consumers in Saudi Arabia, Egypt and the United Arab Emirates also have a growing taste for it (though across the region, alcoholic beer still outsells it). Read more of this post

Baidu and Sina are among Chinese Internet companies that have jointly created a website for refuting rumors, the latest step in government efforts to increase scrutiny of information spread online

China Starts Website to Refute Rumors as Scrutiny Grows

Baidu Inc. (BIDU) and Sina Corp. (SINA) are among Chinese Internet companies that have jointly created a website for refuting rumors, the latest step in government efforts to increase scrutiny of information spread online.

The website officially began operations yesterday under the oversight of the Beijing Internet Information Office and the Beijing Internet Association, the official Xinhua News Agency reported. Sohu.com Inc. (SOHU) and NetEase Inc. (NTES) also contributed to creating the site, which is hosted by Qianlong.com, a news portal controlled by the Beijing city government. Read more of this post

German employers are abandoning the country’s famous labour model

German industrial relations

Labour’s lost love

German employers are abandoning the country’s famous labour model

Aug 3rd 2013 |From the print edition

IT WORKED brilliantly in the dark days of 2008 and 2009 when exports faltered and companies might have been tempted to shed staff. German manufacturers, their workers and unions, with a little help from the government, engineered a compromise that put employees on short time and trimmed their holiday entitlements but saved their jobs. As a result, when Germany pulled out of recession in 2010 its companies had a skilled workforce in place to meet resurging demand. The pact, along with continuing wage restraint, has boosted productivity while keeping unemployment low. Read more of this post

The father of fracking: Few businesspeople have done as much to change the world as George Mitchell

The father of fracking: Few businesspeople have done as much to change the world as George Mitchell

Aug 3rd 2013 |From the print edition

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THE United States has of late been in a slough of despond. The mood is reflected in a spate of books with gloomy titles such as “That Used to Be Us” (Thomas Friedman and Michael Mandelbaum) and “Time to Start Thinking: America in the Age of Descent” (Edward Luce). For the first time in decades the majority of Americans think their children will be worse off than they are. Yankee can-do optimism is in danger of congealing into European nothing-can-be-done negativism.

There are good reasons for this. The political system really is “even worse than it looks”, as another doom-laden book puts it. Middle-class living standards have stagnated. The Iraq war turned into a debacle. But the pessimists are ignoring a mighty force pushing in the opposite direction: America’s extraordinary capacity to reinvent itself. No other country produces as many world-changing new companies in such a variety of industries: not just in the new economy of computers and the internet but also in the old economy of shopping, manufacturing and energy. Read more of this post

The future of oil: The world’s thirst for oil could be nearing a peak. That is bad news for producers, excellent for everyone else

The future of oil: The world’s thirst for oil could be nearing a peak. That is bad news for producers, excellent for everyone else

Aug 3rd 2013 |From the print edition

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THE dawn of the oil age was fairly recent. Although the stuff was used to waterproof boats in the Middle East 6,000 years ago, extracting it in earnest began only in 1859 after an oil strike in Pennsylvania. The first barrels of crude fetched $18 (around $450 at today’s prices). It was used to make kerosene, the main fuel for artificial lighting after overfishing led to a shortage of whale blubber. Other liquids produced in the refining process, too unstable or smoky for lamplight, were burned or dumped. But the unwanted petrol and diesel did not go to waste for long, thanks to the development of the internal-combustion engine a few years later. Read more of this post

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