Buffett Rule: “Old Wine in New Bottles”

President Obama’s proposed Buffett Rule or millionaires tax as it is more widely known is “old wine in new bottles,” according to Simon Graduate School of Business Professor Jerold L. Zimmerman. The rule, named after billionaire Warren Buffett, would raise taxes on those earning more than $1 million a year. Zimmerman says implementing a minimum tax on high income earners has been tried and failed by administrations dating back to the 1960s. In addition, implementing it would only address the federal deficit for three days out of the year. What about the other 362 days, he asks. To Zimmerman, the answer is clear. The proposal fails to address in his view the nation’s most pressing problem, the ever mounting federal budget deficit due to massive government spending.

Oct 17, 2011 | 0 comments View Post

Sand in Gears of Economy

While well intentioned, Simon Graduate School of Business Dean Mark Zupan says President Obama’s jobs bill is unfortunately more of the same. The proposed jobs bill is a stimulus package that will be disproportionately paid for in higher taxes and will rely too much on the public sector for meaningful jobs, Zupan says. If anything, what economists dating back to Adam Smith have learned is that the private sector is a much better generator of long-run jobs. Zupan compares Western Europe to  the U.S. post-1945 and how many more jobs were created per capita through a more private sector approach. He also cites lessons from Japan’s economic meltdown of the 1980s and the massive stimulus that resulted in a prolonged crisis. The more we can promote trade and the private sector for job creation, the better, Zupan says.

Oct 13, 2011 | 0 comments View Post

Lessons from Kodak

With the recent news about Kodak stock plunging, and word that the firm has hired a restructuring law firm and is potentially mulling bankruptcy, Simon Graduate School of Business Dean Mark Zupan is reflecting on Kodak’s challenges and its global impact.

Zupan observes that the world we live in is hypercompetitive, both in terms of business and technology. As a result of global competitiveness and rapid technological change, there is a constant need for reinvention, and that applies to governments, firms and individuals. Citing the Dow Jones, only one company from the original index remains–General Electric. That underscores just how hard it is to remain relevant and the need for continuous reinvention. Zupan points to firms like Goodyear and IBM, both of which were on the brink of bankruptcy but went through significant transformations and experienced major comebacks. Kodak’s impact on Rochester and the world over the years is a testament to its success, Zupan says. Kodak founder George Eastman set in motion a history of philanthropy that has extended to higher education including the University of Rochester, Rochester Institute of Technology and Massachusetts Institute of Technology, among several others. Zupan says the impact those alumni have had on society is arguably Kodak’s biggest legacy of all.

Oct 12, 2011 | 0 comments View Post

Steve Jobs: Serial Innovator

Apple co-founder Steve Jobs passed away on October 5 following a courageous battle with pancreatic cancer. Calling Jobs a “serial innovator,” Simon Graduate School of Business Professor Abraham Seidmann reflects on his life as a pioneer inventor and innovator who changed the world the way we knew it and made our lives a lot more fun.

Oct 07, 2011 | 0 comments View Post
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