Netbooks, the challenge to never stop learning

There are thousands of well paying jobs today that did not even exist ten years ago. Changes in technology are accelerating despite the economic crisis. Right now, for example, a whole new type of computer is being sold, the netbook. This category of computer is so new, you may not have seen one or you may have seen one and not noticed. Recently, Costco featured a display of netbook computers by HP for under $500. The first true netbook is considered to be the ASUS Eee PC introduced in 2007. As reviewed in Wikipedia, it was noted for its combination of a light weight, Linux operating system, solid-state drive and relatively low cost. Newer models have added the option of Windows XP operating system and traditional hard disk drives. Following the EeePC, Everex launched its CloudBook, MSI released the Wind, Dell and HP both released a "Mini" series (the Inspiron Mini and HP Mini), and others soon followed suit. Windows XP based models were also introduced.

A quick check of the prices shows that these mini-computers begin around $250 new.

It is even rumored that Apple may develop a model, perhaps a hyped up iPhone with a keyboard.

One measure of preparation is the ability to react quickly to changing circumstances. As these new products begin to sell in the millions of units, various secondary markets, programs, accessories and add-ons will likely become available. These new inexpensive computers are not a passing fad, they will fundamentally change the way computers are sold and marketed again, and probably yet again when the market is redefined. Meanwhile, those who ignore reality and fail to prepare through additional learning, as the old saying goes, prepare to fail.

At a recent software company presentation, I was disappointed at the antagonism the computer users had to change. Not only were they unhappy that they might have to learn a new program, they were positively angry at the prospect of something new. Too bad for them. In this changing world economy, change and preparation and learning are the keys to survival.

When all around are losing theirs...

It is hard to read the news without encountering a comparison of the recent economic downturn and the Great Depression. I didn't live through the 1930s, but my parents and grandparents did. There is not one of the comparisons about the present economy that bears even the slightest shadow of resemblance to the Great Depression. I have written about this topic before, but it bears repeating.

In the 1930s the life expectancy of the average male was 58.1 years and female was 61.6. Today, the average life expectancy is around 75.2 years for males and 80.4 years for females. The average salary in the 1930s was around $1,368 dollars a year. In 2009 dollars that salary is about $17,296 a year. In 2007, the median annual household income was $50,233. In the 1930s on an annual income of roughly $1000, most families had between $20 and $30 a week for food, clothing and shelter. That same $20 in 1930 translates to about $250 a week in 2009.

Before we start wringing our hands about the economy, think about all the things you couldn't buy in 1930; computers, CDs, DVDs, cell phones, home air conditioning, household refrigerators, digital cameras, the Internet and on and on an on.

I need only mention segregation, lack of education, the fact that a huge percentage of the U.S. population lived on farms and any of a hundred or thousand other changes in our society, to show that there is no way that conditions are even faintly comparable to today to the 1930s.

Will the economic downturn have an effect on our lives and our society? Yes, of course, but lets not get carried away thinking we are in any way comparable to the suffering and deplorable conditions that existed in the 1930s.

The hidden costs of credit cards and debit cards

Visa announced a new ad campaign. In previous campaigns Visa showed people making major purchases for vacations and other large ticket items using their credit card. The new campaign is an attempt to overcome the effects of the major downturn in the economy. The company explains the goal of the ads to deliver "a single marketing message that is consistent with the company's core strategy of migrating cash and check spending to Visa. The campaign is not about spending more, it is about using Visa for more of your spending."

Previously Visa was concerned that people were not using their credit card and were migrating to using debit cards. However, even though the user does not pay a fee for the use of their Visa Debit Card, the merchant who sells to the user does pay a fee. That fee is passed on to the consumer in the form of higher prices for goods and services sold with the "convenience" of a debit or credit card. This hidden cost is compounded even more if the user is charged a fee for the use of the debit card, as is done in many gas stations across the country.

Another hidden cost of using your credit or debit card is the cost of the world wide advertising campaign. See videos of campaign. Notice the absence of such values as thrift, industry, savings, self control and provident living. We are in the middle of a severe economic downturn and Visa is advertising ice climbing, surfing, travel and a lot of people doing things that have nothing to do with everyday living, especially those people shown flying in a private plane.

Credit and debit cards are not free. You pay extra for every purchase.

Economic Seff-Reliance

Brigham Young University has a Center for Economic Self-Reliance. In answer to the question, what is the ESR Center, BYU says the following:

Poverty is a word that conveys a lot of different meanings to different people. Some see hunger, others see disease, while others see squalor. These mental pictures often come from the media's publication of dire cases of starvation and cataclysm. Yet there is another, often more insidious side to poverty. It is the fact that it exists just around the corner, and that we choose not to see it. This is why as a worldwide community we respond more to disaster than the daily, grinding catastrophe that is poverty.

For instance, here in Utah where the ESR Center is located, almost ten percent (225,000 people) live in poverty. In the United States, almost thirteen-percent (37 million) live in poverty, while over forty percent (2.7 billion) people around the world live in poverty. For millennia the same questions have been asked, "What causes poverty? What can be done? How can I help in a way that builds self-reliance?"

The news is full of stories about those who have been recently impoverished or may soon become so. The mission of the BYU ESR Center is explained by their Web site:

The BYU Economic Self-Reliance Center (ESR Center) was founded in 2003 with the express purpose of answering those questions by focusing on helping families become economically self-reliant. As an academic research center, we do this by helping socially minded practitioners to better serve their clients. Our research agenda investigates and develops interventions that best promote economic self-reliance—both domestically and abroad.

The two main projects that are the focus of the ESR Center are Microfranchising and the Single Mom Initiative.

The ESR Center defines MicroFranchises as small businesses that can easily be replicated by following proven marketing and operational concepts. The overall objective of MicroFranchising is to promote economic development by developing sound business models that can be replicated by entrepreneurs at the base of the pyramid; therefore, the start-up costs of MicroFranchises will be minimal. The key principle is replication, replicating success to scale. MicroFranchising is a new tool designed specifically to assist these entrepreneurs to become more successful and reach economic self-reliance, through the provision of successful business models with the necessary initial and on-going training needed to succeed.

The Single Mom Initiative (SMI) represents the ESR Center’s effort to help families in Utah. Beginning in late 2005, the SMI was created in partnership with the Single Mom Foundation with the express purpose of helping single moms in Utah achieve economic self-reliance.

Although the U.S. is not considered a poverty stricken country, but with 7.6% over-all unemployment and with the rate certain to increase, there are many people who are facing poverty without the tools to survive. Maybe it is time to use what we have learned from dealing with poverty in third world countries, right here in the U.S.

Save money -- keep clean

We are so used to using commercially sold chemical cleaners, we often forget that common household substances can do the job equally as well at a small percentage of the cost. These common substances are powerful cleaning agents and should not be used without the same caution you would use with so-called powerful cleaning solutions. As an added bonus, these agents are all biodegradable and environmentally safe. There are hundreds of thousands of Websites with lists of the types of products. Here is one example.

As you can see lemon juice, baking soda, castile soap, Borax or Boric acid, white vinegar, washing soda, and cornstarch make up the majority of the ingredients.

White vinegar is the most amazing. We have been trying it lately, and it works as well or sometimes better than most of the commercial products and at about $3 a gallon it is a real bargain.

This is a situation where new isn't necessarily better. It may not seem much of savings to buy natural cleaning products over commercial brands, but once you begin the process of realizing that there are alternatives to expensive products your whole world may reorient itself into significant savings.

Always salable skills

It is sad to see so many people losing their jobs. One person I know was commenting that several managers over his particular department had disappeared lately. My friend's comment, we never could figure out what they did in the company. To quote the Current Employment Statistics of the U.S. Department of Labor, Bureau of Labor Statistics, "Nonfarm payroll employment fell sharply in January (-598,000) and the unemployment rate rose from 7.2 to 7.6 percent. Payroll employment has declined by 3.6 million since December 2007; about one-half of this decline occurred in the past 3 months."

A look at the statistics for employees on nonfarm payrolls by major industry sector, 1959 to date gives some good general guidelines for those work areas that are in the decline and those that are increasing. For example, construction is way down as is manufacturing. Transportation is up or steady, while education and health services are dramatically higher. Government employment is at an all time high. Information services are on the decline, contrary to the ads you see on TV.

Despite these statistics, there are those who will always be employed. They are those who learned to work and work hard at whatever job they have or can find, who give an honest day's work for their pay. Even though Mesa, Arizona is one of the hardest hit areas for construction, there are still contractors and crews out there working hard on jobs because they are sought after for their honesty, dependability and skill. Although a good contractor may lose a job, one that knows how to work and do a job well will always be in demand. This is the same everywhere in every profession, honesty, dependability and skill are always salable.

Count the beans

Do you care that the house brand of some foods contain significantly fewer food items than the "name" brand? Have you ever compared cans of beans, for example, by dumping out the cans and counting the beans? Maybe if you have enough time to do this, you should get a life. But, if you do, and I know people who have done this, you might find that the house brand contains significant amounts of filler and/or water over some more "expensive" brands. Fortunately, the food labels give you a lot of information, if you know how to read them.

Here are some of the key Websites:

The National Heart Lung and Blood Institute of the National Institutes of Health. You need to look at the Heart and Vascular Information, The Low-Down on Food Label Claims

Reading Food Labels

U.S.D.A. How to Understand and Use the Nutrition Facts Label

Don't pay for filler or water. Use your head and think about the food you are buying. Does it do what I want it to do? Is it a good price based on content, cost per volume or weight and quality?

Do I really need the calories?