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Entrepreneurship expert: New Americans vital to U.S. economy

In the United States, there is a long history of marginalized communities being extremely entrepreneurial. These communities were driven, in large part, by the desire to meet their own ethnic, religious, and cultural needs, according to Christine Beech, D.M., the Dr. Jon and Betty Kabara Endowed Chair in Entrepreneurship and Innovation at Saint Mary’s University of Minnesota.  In the mid-19th century, more than 100 hospitals were founded by the Jewish community to fight anti-Semitism in medical school appointments and meet patient needs of having kosher options during the hospital stay.These opportunities were not available in the existing network of mainstream hospitals.  Similarly, in the beginning of the 20th century, Irish Catholic immigrants began establishing a network of parochial elementary schools as a way to preserve their faith and culture and allow children to learn about their faith in school, Dr. Beech said. These two initiatives, led by immigrant groups, helped establish networks of schools and healthcare institutions that served a social good in their communities while generating jobs and stimulating the economy. In addition, there is a long line of entrepreneurs in the African-American community who combatted racial discrimination through new businesses because they were marginalized from the mainstream economy, Dr. Beech said. Examples of these entrepreneurs include Madam C.J. Walker, who invented a line of hair care products to serve the needs of her community, and Charles Clinton Spaulding, who developed the largest African-American business in the early 20th century specifically serving the insurance needs of the African-American community. In modern times, one of the largest marginalized communities in the U.S. is comprised of new Americans, many of whom are immigrants and have developed culturally responsive businesses.  Although current policies are set in place to curtail U.S. immigrants, it is important to remember that the country could potentially lose an entire segment of the population that has been vital to the economy, Dr. Beech said. Beech pointed to a 2015 study from the Kauffman Foundation which mentioned that 40% of the Fortune 500 in 2010 were companies founded by an immigrant or the child of an immigrant. Nearly 30% of all new businesses started in 2014 were started by immigrants, Dr. Beech said, according to a related study from the same foundation. “We've been able to see constant growth and diversity within our economy that's been very healthy for us,” said Dr. Beech, who also serves as the executive director of the Kabara Institute for Entrepreneurial Studies at Saint Mary’s. “There's a narrative that says that the immigrant community is coming here to find work. But in fact, when we look at the data, a significant portion of them are actually creating jobs and starting businesses.” Dr. Beech added three primary reasons for these continued statistics indicating significant immigrant entrepreneurship: The drive to be independent A desire to meet their communities culturally specific needs A response to societal biases that hinder success within the mainstream workforce “Those migrant communities often develop their own businesses, almost like a subset of the economy, where they can't be marginalized, where they're actually taking charge of their own economic well-being,” said Dr. Beech.  When it comes to knowing the overall impact of the immigration policies on the economy, there will be a natural lag in the data — possibly as long as five years — given how much time it typically takes for immigrants to establish businesses after arriving in a new country, Dr. Beech said.  Are you a journalist covering this topic and interested in an interview? That’s where we can help. Christine Beech, D.M., has had a career that encompasses academics, entrepreneurship, military service, and consulting. She has been a faculty member in the business department at Saint Mary’s University since 2017 and is the executive director of the Kabara Institute for Entrepreneurial Studies. Before joining Saint Mary’s University, Dr. Beech owned her own consulting business in the Washington, D.C., area for many years. Before that, she worked as a corporate entrepreneur where she led the development of a multimillion-dollar business line for a global consulting firm. Dr. Beech is an expert in entrepreneurship, social entrepreneurship, and women entrepreneurs. She is available to speak with the media. To arrange an interview with her, simply click on her photo below to access her contact information.

Unprecedented levels of partisanship vitriol threatens the health of democracy in U.S., globally

Voter-based political parties have played an integral role in American politics since their formation in the 1790s, yet it is difficult to remember any other time in history — other than perhaps the 1850s — when the level of divisiveness was this high and the polarity this profound between Republicans and Democrats.  To add more fuel to the fire, the anti-democratic actions against the rule of law by President Donald Trump have become a primary threat to democracy in the U.S., said David Lynch, Ph.D., a professor of History and Social Sciences and Political Science program coordinator at Saint Mary’s University of Minnesota.  The same action are also threatening how the government works and delegitimizing and undermining institutions that make and enforce laws,Lynch added. Those institutions include formal ones such as Congress and the political parties themselves, as well as less formal entities, such as the traditional news media.  “You have to have free, fair, open media in order to have a democracy. If you do not have a free press, you do not have a democracy,” Dr. Lynch said. “And similarly, you need to have the rule of law where laws are carried out not for political ends, but based on the laws.” The recent impeachment proceedings were an attempt to curtail these actions, but the partisan response to the Senate’s impeachment trial allowed the violation of democratic norms to be rewarded, said Dr. Lynch. Furthermore, politicians who react strongly to anti-democratic actions threaten to further delegitimize the government, such as Trump’s refusal to shake the hand of House Speaker Nancy Pelosi, a Democrat, at his most recent State of the Union address and her subsequent action of tearing up his speech.  “That helps both sides reinforce their own position that the other side is less legitimate and that we shouldn't cooperate with somebody like that,” Dr. Lynch said. Dr. Lynch pointed to how the indices that measure the health of democracy both in the U.S. and abroad have all gone down since Trump won the 2016 election. In addition, the most recent Economist Intelligence Unit’s Democracy Index reflected the worst registered global democracy score since its inception in 2006. In that report, the U.S. received a score of “flawed democracy.” Traditionally, the U.S. democratic system has been able to regulate such extreme partisanship before election day by not nominating candidates that violate democratic norms or are far from the ideological center. On election day, overly partisan candidates are vulnerable in swing districts and swing states. That ability for the public to express its collective voice, though, has eroded over the years as the number of swing districts has dwindled.  "When people view through a partisan lens, it changes the incentives that elected officials have because they may be rewarded for partisan but anti-democratic actions,” Dr. Lynch said. “It also changes how average people view this whole debate.” To demonstrate the current political scene in the U.S., Dr. Lynch alluded to a 2017 study conducted by a group of political scientists at Yale University in which experimental surveys were sent to Venezuelans to see to what degree they would be willing to accept a less democratic candidate if he or she was a member of the political party they affiliated themselves with. The answer was quite a large degree. “The big message here is you can't necessarily rely on the public just to vote out an anti-democratic candidate because they might get a partisan advantage from that anti-democrat,” Dr. Lynch said.  Are you a journalist covering this topic and interested in an interview? That’s where we can help. David Lynch, Ph.D., professor of History and Social Sciences and Political Science program coordinator, has taught political science at Saint Mary’s University of Minnesota since 1996. Dr. Lynch has also written over a dozen chapters on international relations, international political economy, and American foreign policy, including the chapter on trade in the United Nations Association of the USA’s “A Global Agenda” from 1996 to 2005.  Dr. Lynch is an expert in political science, political economies, and international relations. He is available to speak with the media. To arrange an interview with him, simply click on his photo below to access his contact information.

The coronavirus will impact these three things in a major way

The coronavirus has already sent ripple effects through the global economy, according to Michael Ehrlich, professor of finance at New Jersey Institute of Technology. Reports of Wall Street reacting, automakers scrambling to avoid major disruptions and the Mobile World Congress cancellation has demonstrated the effects of COVID-19. According to Ehrlich, some of the biggest indirect impacts of the virus will be felt in tourism and travel, supply chain disruption and the flight to quality. Airlines have begun to cut routes to destinations with high risk, and tourism in major European countries have forecasted a decline, as much as 30-40% in France according to a report in Forbes. "We're already seeing people decide to not go on cruise ships or not to travel on airplanes because of the coronavirus," said Ehrlich. Supply chains are being met with challenges due to China's factory shutdowns. "The real impact of where it's going to affect the economy is supply chain. China is the factory of the world, and those factories are being shut down in order to contain the virus and slow down the transmission of the virus," said Ehrlich. Finally, the third impact is a phenomenon called flight to quality. This is when investors move capital from risky investments to safer ones, a reaction when there is uncertainty in international markets. The move, according to Ehrlich, can see investors take up more U.S. stocks, bonds, and dollars that are viewed as more stable long term investments. The downstream effect could lead to a boost in the U.S. economy as it allows national manufacturing sectors to better compete in a marketplace where they are in higher demand. Michael Ehrlich is an expert on financial markets and institutions, with an emphasis on market failures. Simply click on the button below to arrange an interview. 

Economic Impact of Macy's Closures, Sephora Openings

On February 4, Macy's announced that it will lay off 2,000 employees at corporate-level positions and close 125 stores over the next three years. They will also look to open smaller store concepts in shopping center locations, which have become more popular destinations for consumers than shopping malls. On the same day, Sephora announced it was going to open 100 stores in 2020. Villanova's David Fiorenza, an assistant professor of economics, has provided comments on both retailers' moves: "Macy's closing about 125 stores with a couple thousand jobs lost is basic economics. Supply and demand has been changing for many years, as people are shopping online, visiting boutique stores, travelling to smaller stores in strip malls, and visiting the urban-style malls that are popping up in suburban towns. These town centers, like King of Prussia Town Center, offer everything a mall or city shopping district does—but with smaller stores such as Sephora or Ulta." "Specialty stores like Sephora and Ulta will continue to see good growth in 2020 and beyond, as this is one area of retail that cannot be replaced with online shopping. The servicing of makeup, cosmetics, hair salons and fragrances needs to be experienced in a store with a knowledgeable sales representative." "The cosmetics counters in the large stores that are anchors in malls, such as Nordstrom, Neiman Marcus and Bloomingdale's, continue to show strong sales. However, in other departments within these stores, the sales are flat or declining."  "Most of the smaller strip malls and suburban town centers do not have the competition you see at the larger malls."  "Since the economy has been thriving for some time now, people have more discretionary income to spend. This is another bonus for Sephora and even Ulta to expand." "Macy's is a great organization but some of the stores look old and tired, similar to what happened with Toys 'R' Us' shops. I can see Macy's opening smaller boutiques, like what Best Buy has done, or discount stores, like Nordstrom Rack."  "Landlords in these small strip centers and urban centers look for a certain type of business, and the large format of Macy's does not work at this point."

If it's an election in America or Asia – Mary Washington’s experts are sought out by media

The election in Taiwan on January 10 saw a strong anti-China sentiment reinforced with the re-election of President Tsai Ing-wen.  Elections in America, and even an ocean away can have ripple effects on economies, relations and even national security. As the world tuned in the results in Taiwan – it was the media that contacted the experts from Mary Washington for insight and opinion. Elizabeth Freund Larus, Professor of Political Science and International Affairs, offered commentary January 10 on CNBC Asia’s Capital Connection on the 2020 Taiwan presidential election. Professor Larus indicated that incumbent Taiwan President Tsai Ing-wen benefited from the Hong Kong protests and that she would likely be re-elected. Dr. Larus projected that a second Tsai administration will continue to diversify Taiwan’s economy and distance itself from China, and that Beijing will put more heat on Taipei, bringing the U.S. into play. Capital Connection is a television business news program aired every weekday on various CNBC channels around the world. It is broadcast live from Singapore. See more here: Are you a journalist covering Asian politics? That’s where our experts can help. Professor Elizabeth Freund Larus teaches political science at the University of Mary Washington and is an #expert on China and the field of Asian studies. She is available to speak to media – simply click on her icon to arrange an interview.

With Brexit looming, more is unknown than known with British economy, trade agreements

Although it has been in the works since June 2016, the transition phase of Great Britain’s decision to leave the European Union (EU) — more commonly known as “Brexit” — is set to take place on Jan. 31. It is a date that will most likely leave a ripple of economic uncertainty in the United Kingdom in its wake as the British prepare for total independence at the end of the year.  “Brexit has created so many new unknown variables. It can be profoundly disruptive to England as we know it today,” says Ralf “Don” Keysser, D.B.A., an associate professor in the MBA program at Saint Mary’s University of Minnesota. Keysser predicts a negative short-term impact to the British economy, whereas the long-term perspective is still hard to predict until new free trade agreements with Europe and the rest of the world are established.  Keysser does not see a clear-cut benefit to the U.S. establishing a free trade agreement with the U.K., simply based on the lack of British imports in the American market, other than maintaining political closeness.  “It’s going to be a shock to the system. England will not be the England that it has been. There’s a lot of speculation, because we’ve never had a country pull out of the EU before, so it’s kind of an unknown. And it’s so highly politicized that it’s hard to get an objective analysis of what it’s going to look like.” Keysser points to a Toyota plant in South Derbyshire that supplies most of its output to countries in the EU through a tariff-free treatment. With Brexit going into effect, the factory may have to vastly reduce its output. Still, the workers in that community overwhelmingly voted to leave the EU. “This is a good example of how people will vote against their economic self-interests for ideological reasons,” Keysser says. “There’s a lot of ideology behind the Brexit vote: anti-immigrant, anti-Europe, pro-nationalist views that very much echoed President Trump’s appeal.” There are a few reasonably good projections, Keysser says, to make about the impact on inflation, unemployment, and economic trends — and none of them look good for Britain. One just has to look at the British pound, which has steadily been losing value to the dollar and euro over the years. In addition, several banks decided to either move from London or expand into other markets within the EU as soon as the Brexit results were announced, which could cost the British capital its status as of the world’s premier financial centers. “I see a gradual diminution of the financial business that’s been a mainstay of London,” Dr. Keysser says.  On top of that, there is a real fear of Scotland and Northern Ireland wanting to leave the U.K. in favor of establishing their own independence and returning to the EU. The last time Scotland voted to leave the U.K. in 2004 it only passed 55% to 45%. “That could be the beginning of the end of the United Kingdom as we have known it,” Keysser says.  The news might not be entirely bad out of Brexit. For international tourists, especially those from the U.S may be able to take advantage of the dollar’s exchange rate with the declining pound. Do you want to know more about the possible economic ramifications of Brexit? Are you a journalist covering this topic and interested in an interview? That's where we can help. Ralf Keysser, D.B.A., has been an active investment banker and business finance consultant for 35 years. He also serves an associate professor for the MBA program at Saint Mary’s University of Minnesota. To book an interview with him, simply click on his icon above to access his contact information.

Can America’s Infrastructure Withstand The Digital Economy?

When a city like New York is facing a continuous delivery stream of more than 1.5 million packages a day, something has to give.   The growing number of sales by Amazon and other online retailers, combined with rapid delivery options, is choking streets within major metropolitan cities.   This issue was recently featured in The New York Times — and when the journalists needed an expert perspective, they contacted Rensselaer Polytechnic Institute. Here's an excerpt:   The average number of daily deliveries to households in New York City tripled to more than 1.1 million shipments from 2009 to 2017, the latest year for which data was available, according to the Rensselaer Polytechnic Institute Center of Excellence for Sustainable Urban Freight Systems. “It is impossible to triple the amount,” said José Holguín-Veras, the center’s director and an engineering professor at Rensselaer, “without paying consequences.” Households now receive more shipments than businesses, pushing trucks into neighborhoods where they had rarely ventured. And it could be just the beginning. Just 10 percent of all retail transactions in the United States during the first quarter of 2019 were made online, up from 4 percent a decade ago, according to the Census Bureau.  — The New York Times, October 28, 2019 If you are a reporter covering this or a similar topic, let our experts help! Professor José Holguín-Veras is the Director of the Center for Infrastructure, Transportation, and the Environment (CITE) at Rensselaer. He is a leading authority in freight transportation and humanitarian logistics. Professor Holguín-Veras is available to speak with media regarding the ongoing difficulties cities are facing as shopping moves online and to the streets. Simply click on his icon to arrange an interview.

What's Ahead for California's Gig Workers?

A new law is set to take effect in California on January 1 that could significantly shift the landscape for the "gig economy" and freelancers across the state: Assembly Bill 5 (or AB 5) will require businesses to reclassify workers like ridesharing and food app delivery drivers as employees and not contractors, giving them access to minimum wage and benefits such as overtime, workers' compensation and health insurance.  Another group that's targeted in the legislation are freelance journalists. (Vox Media, the parent company of sports site SB Nation, has already taken action and laid off hundreds of freelancers before the law goes into effect.)  Villanova University professor Cheryl Carleton, PhD, is an expert on labor economics and the workforce who, in conjunction with Mary Kelly, PhD, recently published research on alternative work arrangements and job satisfaction. "By making them regular employees of the company, workers that firms do hire would gain some benefits, and the government may gain some unemployment insurance payments," Dr. Carleton said about California's AB 5 legislation. "Such a law may be great for them. However, other workers will be worse off because they will be losing just what they wanted—the ability to work when and where they want." "Some of these workers may already have needed benefits through a spouse or significant other or through another job," she continued. "Perhaps they are retired and already have access to those benefits. Still, other workers may not be able to take a regular job with its rigid hours, so they will not be able to work at all." Dr. Carleton also noted that there is a larger issue about how benefits are provided in our economy.  "Benefits such as medical insurance, pensions and sick and disability leave are provided through one's place of employment. To the extent that these other working arrangements are growing in popularity, the best approach may be for us to rethink how such benefits are offered," she shared. "It may be that more should be offered by the government to citizens, which then would allow them the ability to choose the job(s) they want that fill the needs they have." To speak with Dr. Carleton or Dr. Kelly, please click on the "View Profile" links featured on this page.

2020 is going to be the year of politics – let Stephen Farnsworth be the expert you call first when you’re covering it

2020 is going to be the year of politics – let Stephen Farnsworth be the expert you call first when you’re covering it. Like the final act in a great Shakespearean play – 2020 looks to be a year of tragedy, irony, comedy and intrigue. We can expect betrayal, vengeance, protagonists, antagonists, heroes and villains. With impeachment hearings, the DNC primaries, summer conventions, trade deals and the election that promises to be an epic display of speeches and stumping as well as vicious and vitriolic attacks. Dr. Stephen Farnsworth is a sought-after political commentator on subjects ranging from presidential politics to the local Virginia congressional races. He has been widely featured in national media, including The Washington Post, Reuters, The Chicago Tribune and MSNBC. He is author or co-author of six books on presidential communication. His latest work, 'Late Night with Trump Political Humor and the American Presidency' shows how late-night political humor, have responded to the Trump presidency. Employing a dataset of more than 100,000 late night jokes going back decades, Farnsworth and S. Robert Lichter discuss how the treatment of Trump differs from previous presidents, and how the Trump era is likely to shape the future of political humor. Stephen is available to speak with media – simply click on his icon to arrange an interview today.

Pope Francis Calls Consumerism a "Virus," Encourages Prayer and Charity

In an Advent homily on December 1, Pope Francis urged to "choose prayer and charity over consumerism" during the holiday season. "Consumerism is a virus that affects the faith at its root because it makes you believe that life depends only on what you have, and so you forget about God," Francis said. "The meaning of life is not to accumulate." Villanova's experts have weighed in on and provided their thoughts on Francis' latest remarks.  Mary Hirschfeld, associate professor of theology and religious studies and author of Aquinas and the Market: Toward a Humane Economy "Francis is echoing the message the Church has consistently given on this. Pope John Paul II warned about thinking of 'progress' as having more. The essence of true progress is being more—growing as a human being, giving oneself more fully to relationships, drawing closer to God. "God created us to find our happiness in Him. We thus do have a longing for the infinite. The modern mistake is to seek that infinite in the finite goods of this life. But that can never satisfy us, which is why we always look for the next thing and the next thing. "The one thing I would ask Pope Francis is whether it is our consumerism that is driving out our desire for God, or are we throwing ourselves into consumerism because we have forgotten about God? It could well be both. But for Christians who find themselves swept up in consumerism it is worth asking whether we are seeking out the distractions of things because we are afraid of turning more fully to God. This might be a fruitful line of prayer this Advent season. "We live in a culture that thinks that happiness consists in getting more. It's built into the economic approach that informs so much public discourse. So, it's not surprising that we all struggle with this. "And plenty of secular people know this is a problem. That's why there have been episodic movements towards 'simple' living. Marie Kondo's popularity is testimony to the fact that we all recognize that 'more' doesn't lead to 'better' or 'happier.'" Eugene McCarraher, associate professor of humanities and author of The Enchantments of Mammon "While I certainly agree with Pope Francis that consumerism is a virus, I don't think it's the most harmful virus with which we have to deal. In fact, I've long thought that consumerism is way of not talking about capitalism. "Capitalism needs consumerism as a structural necessity; capitalists need people to buy a lot of things they either don't need or often don't really want. Hence, the importance of the culture industries such as advertising, marketing and public relations. I also think that criticizing consumerism can end up being a rather tiresome and ineffectual form of moralism. "Wagging a finger at people for being 'materialistic' has never really worked, and besides, material things are both necessary and good; material life should be cherished and savored. The real issue isn't the amount of material goods that people use; it's the nature of the goods and what sort of people their use helps to cultivate. So, while the pope's remarks are certainly true and pertinent, I think we might use them as a starting point for a very different kind of conversation."