The third quarter was lucrative for Corporate America. Earnings at the 900 companies on BusinessWeek's Corporate Scoreboard jumped 41 percent from a year earlier, the third straight quarter of double-digit gains. But the difference is that companies finally are loosening their purse strings, a sign the magazine says shows the economic recovery is real.
Wal-Mart has become a symbol of America's love affair with bargain shopping, and that comes at a big price to the economy, Fast Company says. It says that as the world's largest retailer, Wal-Mart has "the power to squeeze profit-killing concessions from vendors, many of which are willing to do almost anything to keep the retailer happy." That may lead to the closing of U.S. factories in favor of cheaper producers overseas, the magazine says.
While Americans crave discounts on items they care little about, two authors show consumers will pay hefty premiums for noticeably higher quality and the ability to stir emotional attachments. Think of Callaway golf clubs, Belvedere Vodka and Viking ranges. The growth in demand for this "new luxury" category, consultant Michael Silverstein and retailer Neil Fiske write in Trading Up, comes from rising household incomes, changing demographics and the need of many consumers to distinguish themselves through their possessions.
The National Debt Clock near Times Square stopped ticking three years ago when the U.S. budget hit a surplus. Ah, the good old days. The clock is ticking again at the rate of $1.1-million per minute in new federal debt, Bloomberg Markets says in a look at a nation "drowning in debt." The combination of economic weakness and war ushered in a new era of record deficits, which will total $480-billion by this time next year, the magazine says.
If you've resisted retiring your VCR in favor of a DVD because of price and ability to record, you no longer have an excuse. DVD recorders that cost $1,000 and up just two years ago have plummeted in price, and BusinessWeek says some will cost less than $300 by year-end. Advantages of DVD recorders: They look and sound better, they take up less space and they don't wear out.
