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Watch Dr. Boyce Watkins and Christopher Metzler on CNBC – should the rich be taxed more than the poor? Click here to watch
Visit our Other Blogs and Join Our Family!
Follow us on Twitter!
by Dr. Boyce Watkins, Finance Professor – Syracuse University
As a Finance Professor, I find it incredibly ironic that many people get married without talking about money. They talk about every kind of compatibility from emotional, to spiritual, sexual, and professional, but they seldom take the time necessary to ensure that they can tolerate the idea of sharing their financial life with a person who may not be on the same page. This problem is compounded in black relationships, where many women describe economic hurdles as one of the reasons that black women have trouble finding the right mate.
Chain’s new CEO expects international sales to surpass those in U.S. in 3-5 years.
In 2006, the chairman of the House Ways and Means Committee, Bill Thomas, sent a letter to NCAA President, Myles Brand. In this letter, Thomas had this to say:
"The annual return also states that one of the NCAA’s purposes is to ‘retain a clear line of demarcation between intercollegiate athletics and professional sports.’ Corporate sponsorships, multimillion dollar television deals, highly paid coaches with no academic duties, and the dedication of inordinate amounts of time by athletes to training lead many to believe that major college football and men’s basketball more closely resemble professional sports than amateur sports."
In this letter, Thomas makes a very clear point that is also being mentioned by academics, coaches, former athletes, students, attorneys and fair-minded Americans throughout the country: the NCAA is a professional sports league. To call collegiate athletes in revenue-generating sports "amateur" is like calling Barack Obama a part-time politician in training.
Companies pay CBS Sports $100,000 dollars for a 30-second ad during the early rounds of March Madness. This cost jumps to $1 million dollars for a 30-second spot during the Final Four. The NCAA’s contract with CBS is an 11-year, $6.1 billion dollar TV rights deal, with the NCAA hauling in over half a billion per year in revenue. The amount of money made during March Madness exceeds that which is earned in the playoffs for the NFL, NBA or Major League Baseball. The average coach in March Madness earns roughly $1 million dollars per year and schools typically hire their basketball coaches without giving a "you-know-what" about the academic standards of the coach they’ve chosen to hire (you hear that Kentucky)?
Now, who said that any of this could be defined as "amateur"?
According to a recent survey by Experian, African-American consumption grew by over 50 percent from the year 2000 to 2008 ($590 billion to $913 billion), and it is expected to grow to over $1.2 trillion dollars by the year 2013. The study also shows that blacks are more economically optimistic than whites, with 36 percent of us stating that we expect our financial future to improve, as opposed to 31 percent for all adults.
The Experian study says a couple of things: First, it says that black people love to consume and that we are getting better at it. In fact, black people have historically been very good at buying things and working hard to get them, but we are not very good at production, investment and saving our money. We grab our tax refunds and run to the mall. We become highly paid corporate lawyers in order to purchase the house and car we really can’t afford. We are chubby kids in the economic candy store, accelerating our collective addiction to the monetary engines controlled by corporate greed.
I’d like to ask you a quick question that I ask my students here at Syracuse University. It is also a question I had to honestly ask myself when I thought I was on top of the world after spending 12 years going through college and graduate school to earn a PhD in Finance (which was unbelievably difficult). The question is this: Do you have financial security? If you don’t have financial security, do you at least have job security? If you believe your job is secure, then how many jobs do you have?
If you are like most Americans, you probably have just one job. I am not here to tell you that this is wrong. But, I am here to tell you that you might want to rethink what it means to be economically secure.
At worst, economic security is not provided by just having a high income. In fact, in some ways, having a high income can make you less secure, since you are more likely to have higher monthly expenses. To some extent, having a high income from just one job can fool you into believing that you are financially secure, when the truth is that you might be one paycheck away from economic disaster.
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Why, the email asks, do we still have Black History Month? The writer might be white, or she might not. She identifies her self as a "conscious woman" and sends the email to one of my public addresses. She seems chagrined that "race still matters" and wants to initiate an exchange of views with hers at the foundation – studying black history is obsolete. We have a black president, the woman writes. Black people have made so many strides. Aren’t you holding on to the past, she argues, when you insist on having this month to study black history?
I am not in the habit of engaging in email debates with folks who are ill informed, so I ignore the note. Still, I am intrigued enough by it to print it out and paste it to my desktop for a few days. When I pick up high school history books, I see African American history sprinkled through, like seasoning, as opposed to being placed at a base. And I think of the tremendous vision of Dr. Carter G. Woodson, the second African American to receive a Ph.D. from Harvard (after WEB DuBois) and the founder, in `1915, of the Association for the Study of African American Life and History (ASALH). Woodson wrote the masterpiece "The Miseducation of the Negro" and founded Negro History Week in 1926. By 1976 the week had expanded into African American History Month. The Association, based in Washington, DC, sets a theme for Black History Month each year (notice that I use Black and African American interchangeably – for me they are the same thing). This year the theme is "The History of Black Economic Empowerment".
Economics is the study of who gets what, when, where and why. It is the study of the way the factors of production – land, labor, capital and creativity are paid in rent, wages, interest and profit. It is the history of the knife, of how the pie is sliced. And it is the story of why African Americans get so much less than our fair share of the pie.
Hip hop mogul Russell Simmons seems to feel that banks are not treating the poor in a proper fashion. This week, in a rant on his site, “The Global Grind,” Simmons had this to say:
“They trick customers into doing things that are not good for them through lack of transparency, and surprise them with new fees when they can least afford it. I’m learning an important lesson about ethics or lack of ethics in this industry. In fact, I’m fighting with a bank right now that doesn’t know what kind of ass whipping they are going to get when I expose them for the abusive practices and exuberant fees they are charging the poor. What they are doing is trying to double their already outrageously high fees in exchange for providing absolutely nothing to my customers.”
Simmons went on to try to create a “movement” by adding a call to action:
“Let’s start the biggest public discussion ever about how banks treat us and expose these banks for their unequal treatment and unconscionable conduct. The time is now.”
American Indians and the Great Recession—Economic Disparities Growing Larger
Getting Good Jobs to People of Color
Unequal unemployment—Racial disparities in unemployment vary widely by state
Stuck in Neutral: Economic Gains Stall Out for Asian Americans and Pacific Islanders in 2000s
Reversal of fortune: Economic gains of 1990s overturned for African Americans from 2000-07
What a recession means for black America
A bleak future for black children
Analysis & Opinion
High unemployment: A fact of life for American Indians
Reversing the Decline in Good Jobs [event]
Jobs creation effort needs to focus on good jobs
Three lessons about black poverty
Analysis & Opinion
African Americans see weekly wage decline
Among college-educated, African Americans hardest hit by unemployment
Jobs Picture, September 5, 2008 – Special Issue
Understanding the black jobs crisis
Talking about giving back, Charlie Simpson, a 7-year-old boy from England has raised over $160-thousand for the relief fund for Haitian earthquake victims.
The unselfish kid asked his mother if he could set up a sponsored bicycle ride around his local park in West London. Originally expecting to raise around $1,000 for UNICEF Haiti appeal with a 5-mile bike ride on Sunday, donations poured in from his webpage and are still coming.
His mother Lenora Simpson stated,
" He was really upset by the pictures on TV. He actually burst into tears. He sat on my lap and we had a chat about the things he could do. He decided to do the cycle ride and he made me do a sponsorship form and that was it. We sent it out on the web and it just went everywhere."
A former NAACPexecutive was charged in Fulton County, Ga., with embezzling $275,000 from the U.S. civil rights organization, NAACP officials say.
The Rev. Amos Brown, administrator for the NAACP’s Atlanta chapter, said former NAACP official Judith W. Hanson and Hanson’s former assistant, Saundra Douglass, are accused of embezzling funds during their time with the Baltimore-based organization, The Atlanta Journal-Constitution said Tuesday.
Authorities allege Hanson, who served as the executive director of the NAACP’s Atlanta chapter, and Douglass used NAACP funds for personal expenses during a six-year period.
Historically, marriage was the surest route to financial security for women. Nowadays it’s men who are increasingly getting the biggest economic boost from tying the knot, according to a new analysis of census data.
The changes, summarized in a Pew Research Center report being released Tuesday, reflect the proliferation of working wives over the past 40 years — a period in which American women outpaced men in both education and earningsgrowth. A larger share of today’s men, compared with their 1970 counterparts, are married to women whose education and income exceed their own, and a larger share of women are married to men with less education and income.
"From an economic perspective, these trends have contributed to a gender role reversal in the gains from marriage," wrote the report’s authors, Richard Fry and D’Vera Cohn.
Fake fundraising efforts for the Haiti disaster are spreading like wildfire on Facebook. Dozens of fan pages have been set up, urging users to join and promising a $1 donation for each member. One group this weekend attracted 1.5 million members before it was disabled.
Meanwhile, during the weekend, Facebook officials had to beat back a rumor that the firm had promised a $1 donation for every member that changed their status to include a message about Haiti.
"This status is being tracked, the owners of facebook have confirmed they will send $1 to the rescue fund for the Haiti earthquake disaster for everytime this is cut and paste as a status," read one form of the bogus claim. "You only have to leave it for a minimum of 1 hour. Lets all do our bit to help."
Facebook spokesman Barry Schnitt said the firm took aggressive steps to quell the rumor. It posted a note on its blog on Saturday warning about the bogus message.
"Beware of scams and hoaxes and ensure that your donations for Haiti get to the right places," the social networking company wrote on its blog. Contrary to a current meme, Facebook is not donating $1 for statuses, however we are sharing reputable resources via the "Other Pages" tab on the Global Disaster Relief on Facebook Page."
Haiti’s musician Wyclef Jean, left, arrives at the airport in Port-au-Prince on Wednesday, Jan. 13, 2010, the day after a 7.0-magnitude earthquake hit his country. (AP Photo/Lynne Sladky)
Groups that vet charities are raising doubts about the organization backed by Haitian-born rapper Wyclef Jean, questioning its accounting practices and ability to function in earthquake-hit Haiti.
Even as more than $2 million poured into The Wyclef Jean Foundation Inc. via text message after just two days, experts questioned how much of the money would help those in need.
"It’s questionable. There’s no way to get around that," said Art Taylor, president and chief executive of the Better Business Bureau’s Wise Giving Alliance, based in Arlington, Va.
Taylor reviewed Internal Revenue Service tax returns for the organization also known as Yele Haiti Foundation from 2005 through 2007. He said the first red flag of poor accounting practices was that three years of returns were filed on the same day — Aug. 10 of last year.
In 2007, the foundation’s spending exceeded its revenues by $411,000. It brought in just $79,000 that year.
NEW YORK (CNNMoney.com) — Employers once again slashed a substantial number jobs off their payrolls in December, according to adisappointing report from the government Friday. But there was a small glimmer of hope as well.
The payroll number for November was revised to a net gain of 4,000 jobs. That’s the first increase in jobs in nearly two years. The government had previously indicated that 11,000 jobs were lost in November.
The following is an excerpt from the book, “The Millionaire Mentor” by Towanna Freeman (click her name to buy the book)
Happiness is a Choice You Make
If you are not a happy person that is a choice you are making. You have full control over your life and the decisions that you make. There are many factors which people measure happiness. Some people think money is happiness however they may absolutely miserable with what they do on a daily basis to make their money.
You might look at people who have absolutely everything and you strive to be like them. These things may be wealth, possessions, status, or even the position you hold at work. These things don’t create happiness. Happiness is a choice.
There are many people who have wealth and a high status who are completely miserable. They may be lonely, divorced and more. Happiness comes from within. These people may be working jobs they absolutely hate but just have a knack for making money.
Happiness is Subjective
There are things in life that can make you happy that are subjective. They are subjective because happiness comes differently for everyone.
You might find joy and happiness seeking thrills through rides like roller coasters and bungee jumping. This thrill may be more than torture for someone with a fear of heights who would never step foot on a roller coaster or ever be brave enough to jump from a bridge suspended by a bungee cord.
Everyone seeks happiness in their own way. What makes you happy is a natural high that you deserve to seek. There is nothing wrong with the things that you find joy in. You may be told you are crazy but that is because of the subjectivity.
Many of us don’t spend much time thinking about retirement planning. We figure that it’s something …
It turns out that Sinbad is broke. The comedian declared bankruptcy on December 11th of this year, …
Terrance Watanabe has a serious problem. The 52-year old man went into Harrah’s casino, got drunk …
Gatorade has dropped Tiger Woods, well, at least they dropped his drink. The new Gatorade drink, …
Nearly every African American knows just how important the black church is to our community. We …
The following is an excerpt from the book, "Black American Money." I saw some random "expert" on a …
A major sponsor for Tiger Woods announced Sunday that it is dropping the golf star in light of recent controversy swirling around his personal life.
Accenture, a management consulting firm, said on its Web site that "given the circumstances of the last two weeks … the company has determined that he is no longer the right representative for its advertising."
The move ends a sponsorship arrangement that lasted six years.
Another major sponsor, Gillette, said Saturday it was "limiting" Woods’ role in its marketing programs to give him the privacy to work on family relationships.
Woods announced on his own Web site Friday that he is taking an "indefinite break" from professional golf.
The 33-year-old golfer, who tops the sport’s world rankings, has been mired in controversy since he crashed his car outside his Florida mansion late last month. In the week following the crash, Woods apologized for "transgressions" that let his family down, and US Weekly magazine published a report alleging that Woods had an affair with a 24-year-old cocktail waitress named Jaimee Grubbs.
Watch this video, which describes the financial trauma for UCLA students as the result of a recent tuition hike. It’s very interesting.
In the strongest employment report since the recession began nearly two years ago, the government said Friday that the nation’s employers had all but stopped shedding jobs in November, taking some of the pressure off of President Obama to come up with a jobs creation program.
Michael Reynolds/European Pressphoto Agency
Demonstrators outside the White House on Thursday as President Obama met with business leaders and economists to seek ideas for creating jobs.
The Labor Department reported that the United States economy lost 11,000 jobs in November, and the unemployment rate fell to 10 percent, down from 10.2 percent in October.
The government also significantly revised its September and October job loss estimates. September’s data was adjusted to show a loss of 139,000 jobs instead of 219,000, and in October 111,000 jobs were lost, instead of 190,000. Even allowing for the November loss, the revisions added 148,000 people to the list of those employed in the United States in November.
Though the pace of job loss has been declining since a peak in January, the November number was surprising. Economists had been expecting a turning point to come in the late spring or summer, with employers finally adding workers as a recovery takes hold. The last time the number was so bright was in December 2007, when the economy added 120,000 jobs.
“It is clearly a much better picture, and appears to be mostly genuine,” said Nigel Gault, chief domestic economist at IHS Global Insight, who said he was encouraged by gains in the average workweek and the number of temporary workers hired. “It shows employers have come back so much and are starting to rehire.”
Nearly every African American knows just how important the black church is to our community. We also know about "prosperity gospel," the act of preaching about God within the context of wealth building. I admit that this form of faith is a bit odd to me. I am a Finance Professor and I become confused when my pastor talks about money more than I do. The saddest truth is that it’s hard to tell the difference between a pastor and a pimp: Most pastors aren’t pimps, but any pimp could be a pastor. The same skill set is required in both professions.
My father is a preacher, but he almost never preaches about money. I’ve never heard him asking for money on the pulpit, or mentioning that giving money to him is one of the keys to gaining access to heaven. But I don’t presume that my father is right about all things, and given that I write about money on a regular basis, I have gained an appreciation for what financial resources can do to enhance your life. Also, one must be aware of the pragmatic realities of running a church: You have the building fund, bills to pay every month and any community service initiatives that the church chooses to pursue. The proper use of money can certainly enhance your ability to do God’s work.
I’ve always had mixed feelings about Federal Reserve Chairman Ben Bernanke. I feel that he is better than the previous chairman, Alan Greenspan, but the Fed Chairmanship (like the presidency) is almost never given to the right man. Just the fact that it is almost always given to a man is problematic enough, and the truth is that only white men need apply for the job.
Well, when you are limited in your option pool for the top job, bad leadership and flat out ignorance can sometimes be the result. While Fed Chairman Bernanke might know some nuts and bolts about economics, he appears to be shockingly misinformed about economic disparities between blacks and whites. His embarrassing and highly inappropriate statements at Morehouse College serve as a significant case in point.
In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and whites. In response, Bernanke said that the gap was due to a lack of "financial literacy" and "financial education" on the part of African Americans. That’s all he mentioned.
Scuffles erupted as several thousand Detroit residents jockeyed, pushed and shoved Wednesday to get free money being offered to only 3,500 of the city’s recently or soon to be homeless.
Several received medical treatment for fainting or exhaustion while frantically trying to obtain the applications for federal housing assistance. The long lines and short tempers highlighted the frustration and desperation that Detroit residents feel struggling through an economic nightmare.
The line around Cobo Center, a downtown convention center, started forming well before daybreak. Anger flared within a few hours as more people sought out a dwindling number of applications for the program.
Members of the Detroit Police Department’s Gang Squad and other tactical units were called in for crowd control. Several people reportedly passed out from exhaustion and had to be treated by emergency medical personnel. Some minor injuries were reported, and no arrests were made.
"The high cost of each premium and the high deductible a person or family must pay per year is my biggest complaint against health insurers."
"For example, I pay around $300 a month for my wife and me for basic coverage, and pay a deductible of $750 each every year, not to mention a co-pay of $15 to $20 at the window."
"My yearly income is around $32,000 a year. Very little is left for goodies. Meanwhile, a doctor takes in $80 to $120 a visit that lasts 15 to 20 minutes. Imagine how much he makes a day, a week, a month, a year. Plenty of goodies here."
Back in August, Federal Reserve officials suggested that the Great Recession was ending and the U.S. could expect "a gradual resumption of sustainable economic growth." But even with stock market indexes and the bottom lines of large financial firms bouncing back, small businesses can expect a longer slog to economic health.
"Small business performance is a lagging indicator of recovery in the same way that unemployment is," says Villanova University business school professor John Pearce II.
And it’s likely that small businesses will find this recovery even slower than previous ones. The downturn has especially hurt construction firms, retailers and food service providers, the vast majority of which employ fewer than 20 workers. To make matters worse, more than 110 banks have failed since early 2008, most of them community thrifts catering to the financial needs of local firms.
I had a lot of fun watching the new Vh-1 show, "Going for Broke," starring comedian Eddie Griffin. Griffin is one of the funniest comics in America, the comedian that Chris Tucker could have been (if he would simply stop disappearing between Jackie Chan movies).
On the show, Griffin gives insight into his personal life, which is both intriguing and disturbing. The show is called "Going for Broke" for a reason, because Eddie just might actually get there.
Here are some reasons that Eddie Griffin might actually become the broke celebrity that he is trying to become:
1) He spends like a damn fool. One of the easiest traps for an entertainer to fall into is the "infinite money trap." That’s when the person thinks that they’ve got an endless supply of cash, giving them ability to spend whatever they want on whatever they want. Apparently Eddie may have fallen into this trap, since his Bentley was being repossessed in an early episode of the show. Eddie’s conversation with his accountant was also revealing, as the words "all the accounts are empty" seemed to strike him hard. With all the success that Eddie Griffin has had, it is difficult to imagine that he would be completely broke. But the truth is that this kind of thing happens all the time.
If the link above doesn’t work, click here.
Education is critical for success, but when everyone has the same education from the same Ivy League schools with the same GPA… how do you stand out? Other factors beyond education – business etiquette, dress, playing well with others, teamwork and dedication are easy to measure and log. But what of those immeasurable traits that count for just as much in the corner office: passion, drive, commitment and stamina?
How can we measure the immeasurable?
When it comes to playing at the top, it’s often the intense, burning desire of the candidate that makes the difference between success and failure. At the end of the day, performance and results are two of the most important traits a top performer can possess. Work harder than your competition, and you’ll win the battle every time.
Another thing that people can’t measure with grades, paychecks, promotions or time cards is what’s inside your heart.
With U.S. unemployment rising, lawmakers hope to resolve a logjam this week on a measure that would extend jobless benefits for those who already may have exhausted them, Senate aides said on Tuesday.
Congressional leaders had hoped to extend benefits before the end of September, when some 400,000 recipients were expected to use them up. But while the House of Representatives last month passed a bill, jobless benefits legislation stalled in the Senate due to a dispute over how many workers should be eligible.
While some details remained unresolved, the measure could come up for a vote in the Senate within days, said an aide to Democratic Senator Jeanne Shaheen, who argued that the legislation was too narrowly targeted.
Shaheen objected to legislation passed by the House that would extend benefits for jobless workers only in states where the unemployment rate is above 8.5 percent. The unemployment rate was 6.8 percent in August in Shaheen’s home state of New Hampshire.
Even when I was a Vice President at Dell Computers, one of the most cutting edge companies on the planet, our problems remained the same. The variables changed, but the bottom line always came down to figuring out how to sell to one customer at a time. Reaching this critical objective becomes more complex as technology changes and the world becomes more advanced. As complacent as we’ve gotten with new technology and global opportunities, this much has become clear: what got you here won’t get you there. In fact, what positioned you here, might not even keep you here…
…At least, not without a sponsor.
These days competition isn’t just stiff, it’s rigid. You need every advantage you’ve got, particularly if you’re a recent grad, female or minority. Think hard work, an MBA and a well-rounded resume will get you to the top? Think again; that might be what got you here, but to get there – the proverbial corner office or CEO’s chair – you’ll need more than just a spotless resume and a 4.0 GPA; you’ll need a sponsor.
Consumer bankruptcies soared 41% from the previous September and climbed from August, as high unemployment and the housing market crash took their toll, the American Bankruptcy Institute said Friday.
September filings totaled 124,790, the fourth-highest month since the bankruptcy law changed in 2005.
Filings also rose 4% from August, even as recent reports indicated the housing market might be stabilizing and consumer confidence appears to be recovering.
September’s filings pushed 2009 consumer bankruptcies to 1.05 million, the highest for the first nine months of a year since 1.35 million in 2005.
The American Bankruptcy Institute said it expects consumer bankruptcies to climb to more than 1.4 million this year.
The U.S. unemployment rate rose to a 26-year high in September at 9.8%, according to government statistics released on Friday.
Tiger Woods has become the first sportsman to break through the billion-dollar earnings barrier, Forbes magazine reported on Thursday.
The 33-year-old American, who has won 14 majors, reached the latest landmark of his career when he won a 10-million-dollar bonus for his FedEx Cup victory last weekend.
According to the magazine’s calculations, Woods went into the 2009 season on 895 million dollars which included prize money, endorsements, appearance fees as well as money earned through his golf course design business.
Even before picking up his end of season bonus, Woods had earned 10.5 million dollars on the USPGA Tour this year, winning six titles.
Once upon a time your MBA was the gold standard; a guarantee for eventual and all-but inevitable success in your chosen profession. Today the starting line has moved; an MBA is still crucial for the well-rounded, would-be consummate executive, but no longer the gold standard by which success is currently measured.
Even those reliable old yardsticks by which past business success was calculated – hard work, seniority and massive overtime – no longer ensure you the success you desire today. Many men and women have built their fortunes on these skills alone in the past, but times are changing at a critical pace, and it is important that you keep up. There are thousands of MBAs awarded every year, and the cookie-cutter approach to business success has evolved. How are you going to be different from every other MBA in the country when it comes to finding your path to success?
Here are some things you can do to rise above your MBA, make yourself relevant and prepare for the real world:
1) Never forget that the world is changing: With the increased used of technology, business models are adapting, corporations are changing their strategies, industries are rising and others are dying. Make sure you know where you fit in this bold, new world and don’t assume that you are living the same life you would have lived in 1989. The textbooks used in your MBA courses might have worked for business models in the 1990s, but they may become obsolete in the new millennium.
In this challenging time for print media, the historic jewel of African American periodicals, Ebony (like so many of our ancestors) is on the auction block. What was once a staple in so many African American homes is now struggling for its survival as many question its relevance.
During segregation Ebony and Jet magazines were key sources of information for the African American community about the community. With integration, too many of us left our communities, churches, and culture behind in order to assimilate into the dominant culture. With that, for too many, Ebony no longer reflects the community they live in; aspire to live in or a lifestyle that they see as relevant.
I have always felt that Ebony needed to incorporate more relevant political/economic/business information, analysis, and content to appeal to the growing African American middle and upper class. Life style and entertainment is great but that needs to be supplemented with the relevant information to maintain that life style. It’s a difficult mix to maintain but necessary.
Selling Ebony/Jet does not mean that those magazines will cease to exist but with ownership comes control. The sale of Ebony/Jet goes back to the question of who will be left to define and interpret the issues that are relevant to the African American community and who will control its imagery. I don’t know that Viacom has that mission or interest.
John H. Johnson said that Ebony was founded to "project all dimensions of the Black personality in a world saturated with stereotypes. We wanted to give Blacks a new sense of somebodiness, a new sense of self-respect. We wanted to tell them who they were and what they could do. We believed then–and we believe now–that Blacks needed positive images to fulfill their potentialities." The world continues to be saturated with those stereotypes and the community still needs positive images in order to fulfill its potential.
The black journalism students here at Syracuse often come to me to find out how the industry works. They sometimes instinctively wonder if their professors’ stories about being in a CBS newsroom in 1982 are going to help them survive in a world run by Twitter, Myspace and Facebook. The answer is a resounding "probably not."
While respecting the journalism professors teaching their classes, I simply use examples like Ebony Magazine to help them realize that black media is changing, and sites like theGrio.com, BlackVoices.com, and TheRoot.com, are examples of how black media has evolved. In fact, a journalist who doesn’t understand technology and business models is in danger of starting his/her career as a dinosaur.
When it comes to recent reports about Ebony Magazine being offered for sale, I admit that I was saddened, but not surprised. The Ebony Fashion Fair has become one of the most celebrated events in black America, and the magazine has been nothing less than a tremendous source of national pride since its creation in 1945. But in the age of the web, oversized bureaucracies can be crushed under the weight of their own arrogance. Bloated payrolls, pompous corporate functions and a sense of entitlement make them easy prey for quick, hungry and rapidly evolving competition.
In spite of the tremendous love we have for Ebony/Jet, the truth must be confronted when realizing that it is what radio was to TV or what the train was to the airplane. Like radios and trains, there is still a place for print media, but that role is no longer dominant. The current economic climate only accelerated the inevitable, since advertisers were eventually going to stop spending $50,000 for magazine ads when they can buy the same number of eyeballs for $5,000 or less.
I present the following 5 questions I’d like to ask out loud about both Ebony Magazine and the state of African American media:
Visit Your Black World for the latest in Black News
By Dr. Boyce Watkins
Let’s be clear: This recession has become President Barack Obama’s personal War on Terror. Like the War on Terror, the enemy is evasive, the challenge is global, international cooperation is necessary, and the battle is unlike any other in our nation’s history. Wars are good for political business: when people get scared, politicians get a blank check to fulfill their legislative agenda. After 9/11, President Bush used fear to get the entire nation to sign onto the Patriot Act, and years later, we are wondering if someone is going to tap our cell phones and illegally imprison us for not eating our Freedom Fries. Bad legislation is like an STD: you can pick it up with a snap decision, but you pay the price for the next 20 years.
The nation’s financial regulatory system must be overhauled to strengthen oversight of banks, mutual funds and large financial institutions whose collapse would put the entire economy in peril, Federal Reserve Chairman Ben Bernanke said Tuesday.
"We must have a strategy that regulates the financial system as a whole, in a holistic way, not just its individual components," Bernanke said in a speech to the Council on Foreign Relations.
In his most extensive remarks on the subject, Bernanke built upon previous suggestions to bolster mutual funds and a program that insures bank deposits — and repeated his call for Congress to create a system to cushion fallout from the failure of a big financial institution.
The Fed chief’s remarks come as the Obama administration and Congress are starting to crafting their overhaul strategies. For the administration, critical work on that front will be carried out among global finance officials this weekend in London. That will help set the stage for a meeting of leaders from the world’s 20 major economic powers in April.
Dr Boyce Watkins, Finance Professor at Syracuse University, appears in the March issue of Essence Magazine to discuss money and investing in light of the 2009 Financial Crisis.
Dr. Watkins is one of the world’s leading experts in Finance and was the only African American in the world to earn a PhD in Finance during the year 2002. For more information, please visit www.BoyceWatkins.com.
Employers axed 651,000 jobs in February, pushing the unemployment rate to its highest in 25 years, as companies buckled under the strain of a recession that is showing no signs of ending, according to a government report.
While that figure was near economists’ expectations for a 648,000 drop in non-farm payrolls, January and December job losses were revised sharply higher.
The Labor Department on Friday said the unemployment rate surged to 8.1% in February, the highest level since December 1983. That was above market forecasts for a rise to 7.9 from January’s 7.6%.
Cost-cutting employers are resorting to even bigger layoffs as they scramble to survive the recession, feeding insecurities among those who still have jobs and those who desperately want them.
"The pace of layoffs is fast and furious," said Stuart Hoffman, chief economist at PNC Financial Services Group, before the report. "We’re still in the teeth of this recession and the bite has not let up at all."
A woman who received a $5,077 bill from AT&T for data charges on her Netbook is suing the wireless carrier and RadioShack for fraud, reports Jacqui Cheng at Ars Technica.
The lawsuit alleges that the two companies conspired to promote a netbook plus data deal that deliberately misled customers and tricked them into paying thousands of dollars per month for service.
Here’s Parks’ story:
Parks purchased a netbook from RadioShack in December of 2008 after the electronics retailer began advertising a heavily subsidized netbook deal: for $99.99 and a two-year AT&T contract, customers could buy a netbook with AT&T’s DataConnect plan, allowing them to get online from anywhere. The DataConnect service costs roughly $60 per month before the usual taxes and fees.
By Dr. Boyce Watkins
I love Tavis smiley and I love the State of the Black Union. I must also admit that my mouth (which my mother used to say will either “make me great or get me killed”) has probably burned any bridge I’ve had with Tavis, thus implying that you will likely never see me on a panel at The State of the Black Union conference. I am ok with that, since I don’t like traveling when I don’t have to, and I don’t like the idea of having to kiss pinky rings of old school leadership in order to fit in (once you accept someone’s support, you can become beholden to them, reducing your ability to be honest). Beyond that, I have a nasty habit of telling the truth, which is neither profitable nor popular. So, the Your Black World Coalition is going to be my venue of choice when it comes to matters of Black Public Policy. Our corporate sponsors are clean, which means that we have a green light to do what’s right without worrying about offending Exxon Mobile, Walmart, The Republican Party, or McDonald’s. Again, I say this with all love and respect for Tavis Smiley.
As a Finance Professor who has spent the last 20 years studying money, I want us to understand the nature of how financial incentives can play a role in the nature of a forum such as The State of the Black Union. This is especially true in the midst of a financial crisis, during which our financial challenges may lead us to make decisions that are not always in the best interests of our constituents. I want to make it clear that my commentary on the State of the Black Union in the past has not been intended to be destructively critical in any way, as I feel that the forum is an important and necessary component of the Black community. But I am going to propose some quick thoughts about the State of the Black Union that should be considered for the future. If this venue is to be considered an important component and gathering of some segments of Black leadership, it is critical that we understand how to properly manage the temptation by some to use the venue as a source of power.
1) Corporate sponsors should be properly vetted: If the State of the Black Union is to be presented as the pseudo-diplomatic forum that Tavis Smiley wants us to perceive it to be, then just any old sponsor simply won’t do. No banks accused of predatory lending using the venue to wash away their sins with a donation to the Tavis Smiley Bank account. No firms trying to sell liquor, tobacco or other products. No companies which appear to get rich from exploiting the poor. All potential corporate sponsors should be evaluated by an unbiased committee and careful consideration should be given to the nature of the donor, where the money is going and other ways that the sponsor must prove their interest in serving the community. President Obama would never allow his State of the Union address to be sponsored by enemies of his country, but that is what we are doing if we allow any dirty corporation to walk through the door to give us money for our forums.
2) Consider the political agendas: I went to a great conference a couple of years ago in Atlanta, and wondered why there were so many videos and speeches being shared that had nothing but good things to say about the Bush Administration. It didn’t take me long to figure out why – The Bush Administration was a major donor to the conference, and in exchange for their money, they wanted the organizers to persuade Black folks to become Republicans and to love George Bush. I don’t think it worked. The lesson to be learned is that taking care of the gatekeepers can mean that those behind the gate are being manipulated. Don’t let another man sell your brain. If your brain gets sold, you should get the money.
3) Be careful with the Obama-Haterology: It doesn’t take a rocket scientist to know that Tavis Smiley was a clear “homie” to Hillary Clinton. This close relationship, as well as some hope that he might be her Press Secretary, led to some “interesting” words being fired across the aisle last year as Barack Obama chose not to attend the conference. This forum is designed for the people and should not be used to reflect the personal agendas of a few powerful men. One must draw the line between carefully considered critiques on The White House vs. politicized attacks in response to being “dissed”. I too have critiqued our president, but I have always wanted him to succeed.
4) Kill the self-righteousness: There is no boss of the Black community. We are not children who need to be told what’s best for us. Being of a strong religious background, Tavis Smiley can sometimes become more of a preacher than a leader. There is this idea that he and a few others know the solutions and the rest of us don’t have a damn clue. Please get over your selves….we’re all smart people. This does not, for one second, imply that strategic and intelligent guidance cannot be meaningful. But this guidance must be balanced with mutual respect for the people you are serving.
5) Kill the “flossing”: Sometimes, when people get on their respective soap boxes, the forum can become a contest of who can make the most earth-shattering, slap-ya-leg, koolaid-coming-out-of-your-nose, “hoo-hoo-she-sure-is-funny!” moment. Due to the presence of media, which many people on the panel are seeking by attending this forum, we can be pressured to entertain more than enlighten. While entertainment is excellent, the focus must be on commentary which educates the public. I encourage the audience to watch the forum and listen to the content and substance of the rhetoric, and not be swayed by distractive inflections, body language or vocal tones. Some of us are very good at saying a lot and saying nothing, all at the same time.
6) FYI – Here is the source of Smiley’s power (for which I congratulate him): He gets C-span to show up and he has access to major White corporations. Were there no media and/or no corporate sponsorship, The State of the Black Union forum would cease to exist. This is not to disrespect the nature of the platform, but to help those who don’t understand business and media to see why so many of our leaders flock to the forum and why many Black leaders gladly appear on Fox News. Since they don’t have any other outlets for their work, this is one of the few provided. This gives a great deal of power to the owner of the platform, sort of like having the only grocery store or hospital in town. When Black folks get more ownership of media (even online media), the need to succumb to the power of others will cease to exist.
7) This is not the only forum in Black America: Kevin Powell, a man who will eventually be elected to Congress, holds Black male empowerment forums in New York City. The “Your Black World Coalition” has done amazing work in the past. “Color of Change” engages in meaningful, effective protest that is not sponsored by any of the corporations known for the exploitation of African Americans. “Dangerous Negro” is a group of young, intelligent brothers who are changing campuses across the world. Tavis Smiley’s insinuation that The State of the Black Union forum is the place you must be if you truly care about Black people is simply wrong. You can be in a lot of places and still care about Black people, which is why there are a lot of Black Bloggers, Black leaders and Black business people who are choosing not to attend The State of the Black Union.
8) The Money Makes a difference: I am a Finance Professor, which makes me the last person to criticize anyone for showing up to collect the cash flow. But the truth is that money is POWER. Money determines what we do and who we do it with. So, the idea that (what some consider to be) one of the most critical forums in the Black community is driven by corporate sponsorship granted by our historical oppressors is a very serious and problematic contradiction. I encourage us to find ways to sponsor other forums without sponsorship from mainstream corporate America so that we can speak real truth to power.
9) The Covenant with Black America: This is a great book. But it is still just a book. It is a book written to make a profit. When you see the book being advertised to you, there is a business model designed to sell the book. It is not the most important book in Black history, it is not necessarily a “must-read” for you and your kids. It’s just a book. Remember that. If the advertisers convince you that it is a “must-read”, then they’ve achieved their corporate objectives.
10) We need Tavis Smiley: Tavis, like most of us, has to make a living. He has done an amazing job with his work and platforms, and like the rest of us, he is not perfect. If you are compelled by his work, you should support him and support The State of the Black Union, I know I will. Also, just because Tavis seemed to have personal reasons for his attacks on Barack Obama, that doesn’t mean that his critiques were invalid. Yes, we have a Black President, but we need Black leaders. The greatest Black leader in the world is the one you see in the mirror. Get out there and do your thing.
Dr. Boyce Watkins is a Finance Professor and author of “What if George Bush were a Black Man?” For more information, please visit www.BoyceWatkins.com.
I’ll start by saying that I love Tavis Smiley and have a tremendous amount of respect for him. Ok, I’ve said it, and I meant it. I hope you believe me as I write.
Tavis Smiley’s work in the Black community is critically important. But there is a difference between being an intelligent guide to enlightenment and being downright self-righteous. Tavis has a way of putting political leaders “on blast” for not showing up at his forums. When he held a debate for the Republicans in the 2008 Presidential Primaries, there were several Republican presidential candidates who chose not to attend. I understand being upset about this, because the Republican Party has paid dearly for its racism and ignorance of the needs of the Black community. Smiley responded to the Republican snub by putting the name of the candidate on the podium even if they were not there. This was a clear reminder to those in the audience that the leader “doesn’t care about issues in the Black community.”
When holding the State of the Black Union of 2008 (some confuse it with the State of Black America, issued each year by the Urban League), Smiley again invited as many political leaders as he could find, with Hillary Clinton being his star for the day. Then Senator Barack Obama, in the middle of a heated battle for Democratic delegates in Texas and Ohio, said that he could not attend the forum. Instead, he offered his wife Michelle to attend in his place. That’s when the drama got heated.
Tavis, appearing to be offended by Obama’s slight toward his conference, proceeded to nibble away at Obama’s heels every morning on The Tom Joyner Morning Show. The segments started with “he-say, she-say”, in which Tavis claimed that no one from the Obama camp offered Michelle up for attendance. But even if they had, Tavis claimed that no spouse of a presidential candidate would be acceptable for the conference, even Bill Clinton.
I must admit that I felt Tavis was doing a “Karl Rove” on the truth. It was also a slap in the face of Black women everywhere who have tremendous respect for Michelle Obama. Finally, Smiley’s words and actions bordered on petty and angered the millions of African-Americans who’d come to believe that Barack Obama could walk on water. While I’ve never felt that Obama could walk on water, I certainly did not understand Smiley’s confused obsession with Obama’s behavior. Smiley’s comments toward the Black presidential candidate reminded me of the same double standard I can sometimes get as a Black professor. You may have Black students who feel a certain degree of comfort with you, and thus empowered enough to attack you more than they would a White professor with whom they have no prior social affiliation. These situations can be nightmares, as they reflect problems with the collective self-esteem of the Black community, which leads us to feel that attacking and hurting one another is easier, and thus more satisfying than working together to fight Black oppression. In other words, Smiley was reflecting the same sentiment held by Black men who shoot one another on the street, but stand in fear of the racism in White America. Aaron McGruder, creator of the popular cartoon, “The Boondocks”, would refer to this as “a nigger moment.”
Phones were ringing off the hook, as I had friends from California to New York calling and asking “What’s wrong with Tavis?” I had no idea, since I don’t know Tavis personally. However, because we run in the same circles, I know plenty of people who know plenty of people who know Tavis. One of my great and respected friends, Kyle Bowser, is one of Tavis’ best friends, and Kyle rang my phone the day after I made my comments. Going through the blogs of other Black scholars, I had a chance to see their reactions. Melissa Harris-Lacewell at Princeton University, an intelligent (though somewhat elitist) scholar, happened to be incredibly poignant in her critique of Tavis Smiley’s behavior.
Melissa angered Tavis by writing a column that asked ”Who died and made Tavis King?”. I wasn’t as direct in my critique of Tavis, but I did have some strong words for him. I did not want to deliver any commentary on the Tavis via the major networks, since I honestly feel that there are some conversations Black folks need to have behind closed doors. But given that we get nearly 100,000 Black readers per week on our website YourBlackWorld, I felt this to be a fitting venue to let the world know how I feel.
I issued a statement agreeing with my friend Roland Martin at CNN, who felt that Tavis was out of line by making such a strong demand on Obama at such a critical time. Yes, Hillary Clinton showed up in spite of being on the same campaign trail, but the fact was that Hillary was well positioned to win in the upcoming battlegrounds states, Texas and Ohio. Also, Hillary Clinton needed to regain the ground in the Black community that was lost when her husband Bill shot himself in the foot. The words out of Bill Clinton’s mouth were so vile, that his own “ghetto pass” was revoked immediately. Clinton had compared Barack Obama to Jesse Jackson, implying that he was simply a Black presidential candidate with no chance to win White voters. While Jesse ran a great campaign, the notion that Obama’s fate would be similar to his own was disappointing for many Black people to hear. Clinton was no longer one of us, and he certainly was not the “first Black president” anymore.
I also felt that Tavis should have been more careful about being too critical of Obama in light of the fact that he was accusing Barack of doing some things that he himself had been doing. For example, Tavis claimed that he was not going to give Obama a “ghetto pass” just because he was Black. Rather, he would challenge him and question him like he would anyone else. First, Tavis’ words presumed (self-righteously) that he knows what is best for Black folks and we cannot make this determination ourselves. No one gives the “ghetto pass” to Ward Connerly (the guy in California fighting against Affirmative Action) or Condoleeza Rice, so the idea that Black candidates get votes only because they are Black is simply ridiculous. A “ghetto pass”, should such a pass exist, must be earned, and Obama had earned the love, trust and support of the Black community. To presume that people were supporting him just because he is Black is an insult to the collective intelligence of the Black community.
Secondly, Tavis himself had been long receiving the very same “ghetto passes” that he felt Black America was unfairly bestowing upon Obama. As powerful and revolutionary as Tavis may have sounded on The Tom Joyner Morning show, the fact that you hear “This was brought to you by Walmart” at the end of each segment reminds you that the message has been diluted by corporate sponsorship. No great Black revolutionary in American history has ever been brought to you by McDonald’s, Walmart, Wells Fargo, or any of the other corporations that sponsor Tavis’ forums.
Additionally, there is a clear reality in the life of Tavis Smiley, one that he cannot ignore: the Covenant with Black America, The State of the Black Union Conference, The “Pass The Mic” Tour, and everything else Tavis has done was created with the express objective of obtaining revenue and profitability for his corporate sponsors. Tavis has sold himself (and I do not use the word “sold” in a negative sense) to White American corporations as the broker of Black leadership. He is the man that many corporate executives believe they can go to in order to reach the African-American masses. We are the drugs, and he is the pusher: White corporate America represents the group of addicts getting high on the profitability of Black consumption.
As a Finance Professor, I must say that I see nothing wrong with the Tavis Smiley business model. I am not here to say that Tavis has “sold out”, for I don’t believe he has. We all sell something in order to make a living, and even the concept of “selling out” presumes that one has managed the thin line between making a profitable trade, versus giving up something of tremendous value. The problems with the Tavis Smiley business model arise when such a business model is pursued carelessly or selfishly. I do not accuse Tavis Smiley of being careless or selfish. However, his attacks on Senator Barack Obama, none of which were thrust on Senator Hillary Clinton, smelled of self-interest from a man who appeared to feel slighted that Obama jumped his place in the line of great Black leadership.
I felt sorry for Tavis after seeing the reactions of our readers on YourBlackWorld. Hundreds of emails and comments were coming in every day, with many readers claiming that they were once Tavis Smiley fans, but not anymore. Overnight, Tavis went from being incredibly popular, to becoming the Milly Vanilly of social commentary. I can’t help but wonder what happened behind closed doors, as I am sure his publisher became concerned that he could no longer sell books. His corporate sponsors were surely aware of the fact that he was not in control of the Black audience they were buying from him. I am willing to bet that his life was a mess, at least for a while.
I hope this year’s State of the Black Union Conference is a bit more balanced. Tavis is a good brother who deserves our respect. But it is my greatest hope that he learns the difference between balanced critiques and flat out “haterology”. I do a lot of critiquing, but when it comes to Obama, I want him to succeed. I sincerely hope that Tavis wants the same.
One year ago, rising oil prices were taking travel costs to new heights and business travelers were feeling the pinch. Now travel prices are falling again, fueled by the global recession, and airlines, hoteliers and car rental companies are taking evasive actions to survive. Here are ten trends caused by the global economic meltdown, and what they will mean for business travelers in 2009:
1. Air travel on sale. With fewer travelers in this sputtering economy, airlines are desperately trying to fill seats. From January 2007 through July 2008, U.S. airlines raised fares 32 times, according to FareCompare.com. Less than two months into the new year, U.S. airlines have initiated 25 fare sales and prices are back to pre-2007 levels in many markets. If you still have funds in your travel budget, this is a good time to fly.
2. Capacity cuts continue. To counteract declining travel demand, U.S. airlines continue to trim their schedules. Most have already eliminated 10% to 20% of domestic flights and the Air Transport Association projects the seven largest U.S. airlines will cut another 3% to 10% this year. This means fewer seats available for last-minute purchase and more involuntarily denied boardings on oversold flights.
3. Ancillary fees proliferate. Although base airfares are declining, airlines are unlikely to relinquish the added revenues from those annoying ancillary fees for checked luggage, meals and snacks, in-flight entertainment, seat selection and more. United Airlines expects to earn $1.2 billion in ancillary fees in 2009. It’s difficult to avoid most fees unless you are an elite member of that airline’s frequent-flier program. Continental is the only major U.S. airline not charging for meals in coach and Southwest has shunned a la carte pricing, at least for now.
Urging strict future restraint even as current spending soars, President Barack Obama pledged on Monday to dramatically slash the skyrocketing annual budget deficit as he started to dole out the record $787 billion economic stimulus package he signed last week.
"If we confront this crisis without also confronting the deficits that helped cause it, we risk sinking into another crisis down the road," the president warned, promising to cut the yearly deficit in half by the end of his four-year term. "We cannot simply spend as we please and defer the consequences."
He said he would reinstitute a pay-as-you-go rule that calls for spending reductions to match increases and would shun what he said were the past few years’ "casual dishonesty of hiding irresponsible spending with clever accounting tricks." He called the long-term solvency of Social Security "the single most pressing fiscal challenge we face by far" and said reforming health care, including burgeoning entitlement programs, was a huge priority.
The Dow and S&P 500 tumbled to levels not seen in nearly 12 years Monday, as investors continue to worry that the government’s efforts to slow the recession won’t be sufficient.
The Dow Jones industrial average (INDU) lost 250 points, or 3.4%, according to early tallies., ending at the lowest point since May 7, 1997.
The S&P 500 (SPX) index lost 26 points, or 3.5%, ending at the lowest point since April 11, 1997.
The Nasdaq composite (COMP) lost 53 points, or 3.7%. The tech-fueled index has held up better than the rest of the market so far this year, closing at the lowest points since Nov. 20, 2008.
Stocks had gained in the morning on enthusiasm that the government may boost its stake in Citigroup, briefly assuaging fears that the troubled bank would have to be nationalized. But the early advance quickly petered out, as the worries of the last few weeks returned.
If anybody had a reason to doubt whether Tyler Perry has become one of the most bankable brands in all of movies, be skeptical no longer.
The domestic dramedy maestro’s latest release, Tyler Perry’s "Madea Goes to Jail," ran away with a big victory on the typically slow Academy Awards weekend, grossing a hefty $41.1 million, according to early estimates from Media by Numbers.
That opening sum is the biggest of all time for a Tyler Perry film, besting the $30 million debut of 2006′s "Madea’s Family Reunion." Too, it’s the top bow in the history of indie studio Lionsgate, improving upon all the Tyler Perry and "Saw" flicks that came before it. The movie’s per-theater average of $20,236 ranks in the top 40 for all wide openers ever.
And, no surprise, "Madea Goes to Jail" achieved all this success with a solid A CinemaScore grade from a crowd that included mostly older women. Watch Tyler Perry talk about his success »
Second place went to "Taken," which added another $11.4 million to its four-week tally, bringing said total to $95.2 million. Fellow strong holdover "Coraline" (No. 3) was next with $11 million.
"He’s Just Not That Into You" (No. 4) declined a sharp 56 percent to bank $8.5 million on its third weekend. And Best Picture favorite "Slumdog Millionaire" rounded out the top five with $8.1 million — a sum that brings its domestic total to $98 million.
His massive stimulus plan now signed into law, President Barack Obama is turning to attack the home foreclosure crisis at the heart of the nation’s deepening economic woes.
His goal is to prevent millions of American families from losing their houses because they can’t make mortgage payments.
"We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes," Obama said Tuesday as he signed his tax cut and spending package into law.
The ambitious plan he was announcing at a Phoenix high school Wednesday was expected to offer government cash to mortgage companies that reduce interest rates — and therefore monthly payments — for homeowners in danger of default, according to several people briefed on the plan. What remained unclear was how the government will decide who qualifies for relief.
One Democratic official familiar with the plan said it also would allow homeowners to refinance their mortgages if they owed more than their homes were valued. Still another section would give bankruptcy judges more authority to change mortgages. That last provision has been opposed by lenders, who said it would add risk and lead to higher interest rates.
President Barack Obama is ready to sign into law the most sweeping economic package in decades, a rescue plan meant to reinvigorate job creation, consumer spending and public optimism. Add the bill to an ever-growing deficit.
Capping the biggest victory of his month-old administration, Obama will sign the economic legislation Tuesday in Denver.
The setting, the Denver Museum of Nature & Science, is meant to underscore the investments the new law will make in "green" energy-related jobs. It also allows Obama to get away from Washington, where the bill’s passage was a mostly partisan affair, and be among people who may benefit from the huge government intervention.
The flailing economy continues to dominate Obama’s time.
Tuesday is also when General Motors Corp. and Chrysler LLC, which are living off a combined $13.4 billion in federal bailout loans, are due to hand in plans to Obama’s government about how they can remain viable.
And on Wednesday in Arizona, Obama will unveil another part of his economic recovery effort — a plan to help millions of homeowners fend off foreclosure.
US President Barack Obama early Saturday hailed a 787-billion-dollar economic stimulus plan passed by Congress, calling it "a major milestone on our road to recovery."
"This is a major milestone on our road to recovery, and I want to thank the members of Congress who came together in common purpose to make it happen," Obama said in his weekly radio address.
He promised to sign the package into law "shortly."
The comments came after the US Congress late Friday approved a 787-billion-dollar package of tax cuts and fresh spending to salvage the broken US economy, handing the president his biggest yet political victory.
The Senate voted 60-38 to pass the measure hours after it cleared the House of Representatives by a lopsided 246-183 margin, setting the stage for Obama to sign the measure into law before his self-imposed February 16 deadline.