Archive for the ‘Money & Finance’ Category

Are Large, For-Profit Corporations Intrinsically Less Ethical?

Love of Money
In the comment streams on my blog posts there is a recurrent theme from one segment of the respondents - they have a deep distrust in the large companies that are involved in modern agricultural technology.  They don’t believe these companies will behave ethically because they are for profit entities “only answerable to their shareholders.”   

I’d like to speak directly to this as a long-time Ag industry insider whose experience does not support these suspicions. I know that some will dismiss this perspective assuming I am biased, but one has to balance potential for bias with actually having first-hand experience from which to speak.  Over the last 32 years I’ve work for or with most of the companies, large and small, that provide agricultural technologies.  Fourteen of those years have been as an independent consultant so I get to know what is going on inside of many companies in a given year.  I have still only had direct knowledge of a subset of what happens, but in all of that exposure I’ve never witnessed an unethical decision or action - not even the consideration of one.  I’ve seen certain decisions that were short-sighted.  I’ve sometimes seen decision-making processes that are more driven by fear than by opportunity.  I’ve seen missed opportunities because vision was lacking.  I’ve occasionally seen failures to take advantage of synergies that could have been realized between divisions of large organizations. I’ve seen problems, but I believe that some level of dysfunction is inevitable in any organization involving people.  Still, unethical behavior isn’t something I’ve seen so I disagree that it is automatically likely just because of the characteristics of the company.  

On balance I’ve also seen these organizations, large and small, frequently make important contributions to society in terms of the productivity and safety of our food supply.  I’ve seen these companies continue to do that in an environment of constant activist attack and very limited public understanding because so few people farm.

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Financial Sustainability: The Best Things in Life are Free

Millions of Americans are declaring financial sustainability, even if they don’t exactly call it that. After all, we can’t borrow our way out of debt.

We’re paying down or paying off credit cards. We’re getting rid of our mortgage or putting an extra payment toward the principal balance (which has huge cost savings advantages). Or we’re practicing other frugality rules. According to data from the Federal Reserve, the amount Americans owe on consumer loans and credit cards plummeted $21.6 billion in July of 2009 – the largest monthly drop in consumer debt since the Federal Reserve started to track it in 1943. The “cash for clunkers” will, no doubt, alter the outcomes for August and September, but the trend continues to be less appetite for debt, not more.

People are working to get the bankers out of our lives, demanding that we become someone other than a “consumer.” So while the Federal government continues to re-affirm their “wise” decisions to bailout bankers and big finance, Americans are choosing to fire their credit card companies and break their “death pledge” (aka mortgage) by paying it off early. Of course, there are also many Americans who are in so far over their heads that unfortunately, personal bankruptcy and home foreclosure are the only remedy.

I am, however, focusing on those who thrive in abundance, simplicity and sustainability when it comes to community, lifestyle and, yes, financial intelligence. As my wife and I write about in ECOpreneuring, you cannot have ecological sustainability without a large degree of social and economic equity. The ECOnomy is not about “free trade” but fair trade; it’s about commerce that restores the planet, not destroys it or exploits people.

You can join these financial freedom-seekers too, by practicing financial sustainability. As most of us intuitively recognize, the best things in life are free (or close to it).

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Sustainability Spending with Frugality Rules

Okay.  So, the shopping spree may be over.  It’s hard to pick up a newspaper or listen to a TV station that doesn’t have a story about it.  Meanwhile, advertisers keep putting things on sale to get us spending again.  However, millions of Americans are waking up with a debt-hangover and have adopted a new mantra: living within our means.  For the sustainability of our planet, let’s hope it lasts.

Whether its because of the recession, high energy prices, an awareness of the trash building up in our landfills or oceans, or because we’re without a job or forced to go on regular “furcations” (furlow based, unpaid vacations) — the equivalent of a pay demotion — many Americans are adopting a Fruglity is Freedom lifestyle that remarkably similar to a sustainable lifestyle.  It’s beginning to change what we value and how we place value on values.

Here’s a few of the Frugality Rules:

•  Paying off credit debt and possibly cutting up credit cards (after paying them off)

Once upon a time, most Americans never had credit cards — even one.  Those who did, had a fixed interest rate.  But a lot has changed, with plastic being the method of preference for millions of Americans, most of whom have more than one credit card.  All the cards these days have variable rates and all sorts of fees, too.  So, when the Fed comes around to raise interest rates to head off inflation, get ready to pay more for what you bought on credit.

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Green Talk Radio: Green Blogger Series presents Paul Smith of TriplePundit and Ecopreneurist

GreenTalk Radio

Triple Pundit & Ecopreneurist

GreenTalk Radio host Sean Daily talks with green blogger Paul Smith from TriplePundit.com and Ecopreneurist.com Triple Pundit is the new conversation place all about integrating people, planet, and profits into today’s businesses. Ecopreneurist covers the latest trends in building green, sustainable and socially responsible companies and products as well as offering advice, analysis and information for and about green entrepreneurs and companies targeting the LOHAS consumer.

[Courtesy of our friends at GreenLivingIdeas.com]

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Book Review: Inquiries into the Nature of Slow Money

Most of us have heard about the slow food movement where we savor the taste of a place, know our farmers and sip the wine slowly, not gulp down a beer.

But what about Slow Money?

In Woody Tasch’s visionary book, Inquiries into the Nature of Slow Money: Investing as if Food, Farms, and Fertility Mattered (Chelsea Green, 2008), he breaks from the grow-big-and-go-global-fast mode of industrial capitalism and industrial agriculture by providing a remarkable synthesis of the writings, ideas and practices from such authorities on the subject of soil, agriculture, community and commerce as Wendell Berry, Eliot Coleman, Gene Logsdon, Gary Snyder, E.F. Schumacher, Paul Hawken and David Suzuki – calling for and sharing examples of a new economy whereby capitalism creates and sustains life, not destroys it.

Tasch’s observation: “As it circulates the globe with ever accelerating speed, money is sucking the oxygen out of the air, the fertility out of the soil and the culture out of local communities.”

“In our devotion to money, market, and machine, we are destroying not only the fertility of the soil, but the fertility of our imaginations,” continues Tasch. “What is, in the farmer’s field, a struggle between economics and ecology becomes, in the investor’s mind, a struggle between quantity and quality, portfolios and possibilities, numbers and words.” Tasch goes on to document the widespread loss of topsoil and erosion of fertile land, noting that roughly a third of all farmland in the world has been degraded since World War II. “There is another kind of erosion at work here: erosion of social capital, erosion of community, erosion of an understanding of our place in the scheme of things.”

Expertly woven together like the rich tapestry of biological life abundant in a mere teaspoon of soil, Inquiries into the Nature of Slow Money tugs at our yearning to be connected to the land, to the soil and to the great food it can provide. It also explores our relationship to money and all the things it can, and cannot, buy.

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Home Wind Energy: Will it Survive Your Own Cost-Benefit Analysis?

wind turbineThinking about installing a wind energy system, but not sure if the payback period on your investment meets your financial needs? I began thinking about this question last week when our old friend (and my real old friend) bobbyb sent me an article about a couple who’d installed a wind turbine at their home in Great Britain. He noted that the numbers provided in the article (a £20,000 initial outlay for £500/year energy savings) didn’t make financial sense: “That’s a forty-year payback period!”

He’s right… that kind of cost-benefit analysis doesn’t really work. If you’re going to put up tens of thousands of dollars for a wind system (or a solar energy system), you probably want to see a return on that investment in years, rather than in decades. I got so interested in the topic that I wrote a post about things you should consider before putting your money down on a renewable energy system at SUNfiltered. Wind energy systems have their own requirements, so here are a few of the things you’ll want to take into consideration.

Will wind energy work on my property?

As with any renewable resource, some areas are better than others for home wind energy. Some of the questions you’ll need answers for include

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Green Talk Radio: Shea Gunther of EarthFirst

GreenTalk Radio

GreenTalk Radio host Sean Daily talks with green blogger and eco-entrepreneur Shea Gunther, previously of EarthFirst.com and now with MNN.

[Courtesy of our friends at GreenLivingIdeas.com]

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Personal Happiness and the Economy: A Sustainability Link

In my previous post, I brought up the sustainability prism and the link between personal happiness or peace and the other three, traditional components of sustainability theory — economy, equity, and ecology. In this article, I explore the link between personal happiness and the economy in greater depth. Of course, this is just a taste of the full connection between the two since there are enough layers here to write a book on it all, but here is a start and there is plenty of comment space below!

Economy is at the forefront of society’s consciousness these days. It is always a, if not the, major societal issue for most people. With the current economic crisis, it has stepped up even another level of importance. We all have to wonder, these days, if we will be able to return to the affluence of just one or two decades ago, or, if, on the other hand, the whole economic system of America, and the world that depends on it, will collapse as a house of sand built on a thin board of wood on the ocean’s waves.

We can look to the specific failures of banks and immoral business practices to explain all of this. But these failures, and much more, were built on much more widespread and much less questioned norms than these.
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How To Live Richly: Go Green on a Budget

Go Green on a Budget - Green Piggy BankThere should be no secrets among those who continue to prosper in mostly non-financial ways despite the challenging economic times.  These people live (and perhaps work) following the laws of nature more than the “laws of supply and demand” of the increasingly dysfunctional “free” and global marketplace.

Here’s how to thrive in the abundance of renewable energy, organic food and a more healthy and sustainable lifestyle. While not all frugality rules, this approach to living more sustainably does require some degree of curtailment, scaling down and living within our means.  It means using credit cards less and relying on community members or family more.  However, the result can be a rich life filled with health and well-being, friends and family, more time to do the things you love to do (imagine that!), a greater sense of purpose, and, my favorite, happiness.

Below are a few suggestions to get you started or continue your journey.  Please add some of your own in the comments.  Maybe some of the BIG banks or BIG government folks might take notice that a few ideas do not involve printing and spending trillions of dollars to “spur consumption.”

•  Powering the renewable energy revolution

Times couldn’t be better for installing your own renewable energy system or improving your energy efficiency of your home or business (or both!), depending on the state you live in.  The Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009 extended the Energy Policy Act of 2005. These new acts extend and expand the federal tax credits available for energy efficiency and renewable energy improvements made in 2009 and beyond.  There are numerous renewable energy cash-back incentives, tax credits and low interest loans that can help ease the transition from a fossil-fuel based economy to one that thrives on solar income.  Check out the Database for State Incentives for Renewables and Efficiency (www.dsireusa.org) to see what’s available in your state.

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Cutting out Credit Cards: Living Within (or Beneath) our Means

Cutting up Credit Cards

There’s more to buying that high-tech gizmo or fancy new clothes, especially if you put it on plastic.   If you’re anything like the so-called average American with combined balances on your credit cards pushing upwards of $10,000 per household, then you’re paying a lot more than the purchase price after factoring in an exorbitant interest rate on the unpaid balance.  Just one credit card with a balance of $15,000 and a monthly minimum payment of $300 based on an interest rate of 13 percent would take nearly twenty years to pay off, amounting to nearly $9,000 in interest, according to the website Cardweb.com.

To save or spend?

This raging debate among economic recovery pundits mask the reality that based on our current “free trade” global economic system, what we really mean by spending is consuming.  And in this global free trade system, ecological costs are “externalized” if we use the correct economist’s jargon.  As a result, we pollute, destroy and exploit where ever we can.  If you can’t do this in the United States very easy thanks to national laws and regulations, well then, export your manufacturing and service operations to places that don’t have many, or any, regulations.  Then import these products back into the U.S. to sell at a big box store, plopped down where there used to be viable farmland.  For example, these BIG companies move operations to places where poor people can sort through toxic junk computers for scrap or to places where throwing something away can’t possibly ruin our own clean air or water in our communities.

According to Emily Kaiser’s analysis for Reuters:  “U.S. President Barack Obama needs to convince Americans to spend now and save later in order to get the U.S. economy back on solid footing.”  It doesn’t have to be this way.

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