The economy has affected a number of different businesses. In fact, there are many which have already closed, such as Linens ‘N Things and Circuit City. Many other stores have had to downsize and some, such as Fashion Bug, have lowered their prices. According to Yahoo News, there are quite a few restaurants which may now be in danger as well.
Economy Hitting Big Name Restaurants: Who Is Next To Close?
GM CEO Forced Out - Socialism Or Just Good Business?
General Motors CEO Rick Wagoner is stepping down effective immediately at the request of the White House, according to administration officials. The decision precedes a President Obama plan to restructure the auto industry which has been failing even with funding from the government. This restructuring is part of the deal for the Chrysler and GM to recieve additional loans from the federal government. They have already received close to 18 billion in loans and are now asking for 21.6 billion more. The decision to have Wagoner step down is not entirely unexpected, though it is sure to be politically controversial.
Obama Announces Tax Reductions
President Obama announced Saturday that the Treasury Department has already begun to implement a plan to reduce the amount of taxes that will be taken from the paychecks of workers. This, according to a recent New York Times article, should increase the take-home pay of the American typical family by at least $65 a month. As a result of tax provisions in the $787 billion economic recovery package the reductions a scheduled to begin on April 1st.
Surprising Increase in New Home Sales in September
With the economy in the doldrums, an ongoing mortgage crisis, and worries over recession, few analysts expected sales of new homes to rise in the last quarter. But surprisingly, there was a 2.7% increase nationally in the sale of new homes in September. Meanwhile, the median price of a new home dropped to its lowest level in more than four years.
Wal-Mart Comes to Time Square
According to Reuters.com, controversial American mega-retailer Wal-Mart is opening a “temporary” store right in the middle of Times Square in Manhattan. Wal-Mart officials claim that the company has no plans to maintain a permanent outlet in Manhattan. The company appears to be following a trend started by many lower-level retail stores of setting up a “pop up” store in the heart of New York to promote a specific sales event or product.
eBay Continues to Expand — While Laying off 1000 Workers?
What in the world is going on over at eBay? Back in the olden days — the 1990s — eBay was a beacon of hope in the online world. It established a level playing field by which any mom-and-pop retailer around the country (or around the world) could compete with the big boys online and create a profitable business.
McDonald’s Rethinks its $1 Menu
McDonald’s has had the popular one dollar menu since 2003, offering double cheeseburgers and other items for only a buck. But the company is now considering changing its dollar menu, and raising prices on many of its items to keep up with inflation and the rising cost of meat and produce in the US.
Virtual Meetings Gain Popularity as Travel Costs Increase
Has the humble business trip become a thing of the past? With travel expenses rising, more and more companies are turning to virtual meetings and video teleconferencing as a way to initiate sales, close deals, train new employees and a variety of other business tasks.
High Gas Prices Driving Increased Online Sales
With the price of gasoline currently between four and five dollars a gallon, many aspects of the economy are being affected. But interestingly, high gas prices have led to an increase in retail sales online at a time when off-line retailers are struggling to stay afloat.
Cell Phone Companies Complain About Phone Trafficking
Cell phones are getting cheaper all the time. Many companies are offering pay-as-you-go cell phones, preloaded with minutes for as little as $10 or $15. The idea is to sell the phone at a loss, and then make up for it when the user returns to buy extra minutes again and again. Sounds like a profitable idea, and it can be; but clever entrepreneurs have also figured out how to “beat the system” by unlocking the phones software and reselling it abroad.
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