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Summarizing The Success Of 40 Years Of Deregulation In Air And Freight Transportation

Summarizing The Success Of 40 Years Of Deregulation In Air And Freight Transportation

In 1980 Democrats held the presidency and both houses of Congress. The 96th Congress marked a generation in which both the Senate and House had stayed blue. However, the economy overall had suffered the drawbacks of some 90 years of misguided industrial regulation and central planning from both parties. Moreover, Americans suffered from stagflation (prolonged stagnation and inflation), gasoline shortages brought on by a fickle foreign oil supply, limited options for transportation, and limited consumer goods, which were expensive to ship.  A growing bipartisan, academic and policy consensus documented that regulatory control entrenched the power of incumbent firms, incentivized collusive relationships between regulators and companies, created barriers to entry in the market, and precluded the competition that would incentivize innovation and choice. Congress and the Carter Administration rightly focused on democratizing the benefits of freight rail and air transport networks to help address some of these challenges. The signing of the Staggers Rail Act in 1980 laid important groundwork for the greening of the transportation industry today.

Making Freight Rail Work for Americans, not Bureaucrats

American folklore alludes to the 19th century railroads as justification for regulatory agencies, but the creation of Interstate Commerce Commission (ICC) in 1887 was partially a product of rent seeking, reflecting the political prioritization of powerful agricultural interests over transport providers, not consumers. Shippers of the time desired political power to ensure preferred rates rather than a competitive bidding process. The subsequent decades saw the decay of America’s railroads, so much so that they were unfit to deliver some supplies to ports during World War II. Many went out of business as the government subsidized highway travel and trucking. It reached

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Fast Company’s Advice for the Next 25 Years

Fast Company’s Advice for the Next 25 Years

Something is happening, and it affects us all. A global revolution is changing business and business is changing the world.” That was how cofounders Bill Taylor and Alan Webber introduced Fast Company to readers in November 1995. “A new generation is rewriting the rules of business,” they added, and they emblazoned these new tenets on the cover: Work Is Personal. Computing Is Social. Knowledge Is Power. Break the Rules.

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Taylor and Webber’s manifesto proved prescient. But 25 years later, as society confronts a global pandemic, the worst economic downturn since the Great Depression, and demands to end systemic racism (on top of climate change and growing income inequality), it’s time to rewrite the rules yet again. Some changes had begun before the existential crises of 2020—hourly wage hikes, pledges to lower carbon footprints—but they were largely reactive, and not adopted broadly enough to meet this moment. Taylor, who has gone on to write three books about leadership, recently said, “It’s hard to sustain a great company in a deeply troubled society, to build a healthy corporate culture in a world where so many people struggle with discrimination, lack of access to healthcare, and a planet that keeps getting sicker.”

We editors asked the Fast Company Impact Council—an invitation-only group of forward-­thinking corporate and nonprofit leaders, CEOs, innovators, and founders—to help draft the new new rules of business. During a series of conversations this past summer, they aided us in developing a prescription for the next 25 years, and beyond. (Excerpts of these roundtables may be found on fastcompany.com.)

Bring democracy to work

When the spread of COVID-19 forced many employees to work from home, all illusions about the value of hierarchical leadership “blew up,” says Aaron Levie, cofounder and CEO of enterprise tech company Box. “In fact, it’s

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Here’s what 710 years’ worth of Italian bond market data is showing about central banks ‘crushing rates’

Here’s what 710 years’ worth of Italian bond market data is showing about central banks ‘crushing rates’

The yield on Italian 10-year
TMBMKIT-10Y,
0.680%

and 30-year
TMBMKIT-30Y,
1.529%

debt fell to record lows on Monday.

As this chart from Deutsche Bank shows, the yield on the Italian 10-year is lower than it was even before Italy became a country. Deutsche Bank strategist Jim Reid attached proxies for Italian debt, such as from Naples, to chart pre-1861 data. (There is also a gap in the data series for the 1700s.)

He also charted debt-to-gross-domestic-product, which shows the Italian economy with an all-time low capability to service that debt.

The move on Monday came after the European Central Bank’s chief economist gave an interview suggesting the central bank may take further action. Among the ECB’s actions stimulus so far is the purchase of government debt from countries including Italy, through what’s called the pandemic emergency purchase program.

“Has the ECB permanently suppressed yields and spreads or are there many more twists and turns to this story over the years ahead? I would lean towards the latter but for now Italian politics and their control of the second wave are acting as strengths and not weaknesses,” Reid said.

David Stockman, the former Reagan-era budget director and acerbic critic, looked at the same chart and issued this brief but withering analysis: “when central banks crush rates, politicians bury their governments in debts.”

The current explosion in debt-to-GDP has been because the latter dropped, precipitously. The Italian economy shrank by 18% year-over-year in the second quarter.

Italy also has been issuing more debt. According to Italian bank Intesa Sanpaolo, Italy is forecast to issue a net €177 billion in new debt in 2020, compared with €54 billion in 2019.

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Would Shareholders Who Purchased Infinity Pharmaceuticals’ (NASDAQ:INFI) Stock Five Years Be Happy With The Share price Today?

Would Shareholders Who Purchased Infinity Pharmaceuticals’ (NASDAQ:INFI) Stock Five Years Be Happy With The Share price Today?

It is a pleasure to report that the Infinity Pharmaceuticals, Inc. (NASDAQ:INFI) is up 42% in the last quarter. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. Like a ship taking on water, the share price has sunk 87% in that time. The recent bounce might mean the long decline is over, but we are not confident. The real question is whether the business can leave its past behind and improve itself over the years ahead.

We really feel for shareholders in this scenario. It’s a good reminder of the importance of diversification, and it’s worth keeping in mind there’s more to life than money, anyway.

Check out our latest analysis for Infinity Pharmaceuticals

We don’t think Infinity Pharmaceuticals’ revenue of US$1,438,000 is enough to establish significant demand. This state of affairs suggests that venture capitalists won’t provide funds on attractive terms. As a result, we think it’s unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, they may be hoping that Infinity Pharmaceuticals comes up with a great new product, before it runs out of money.

We think companies that have neither significant revenues nor profits are pretty high risk. There is almost always a chance they will need to raise more capital, and their progress – and share price – will dictate how dilutive that is to current holders. While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). Infinity Pharmaceuticals has already given some investors a taste of the bitter losses that high risk investing can cause.

Infinity Pharmaceuticals

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Pigeon Family Market to close after 40 years in business

Pigeon Family Market to close after 40 years in business

PIGEON, Mich. (AP) — After operating for 40 years, the Pigeon Family Market announced it will be closing at the end of the month.

The market announced its closure in a Facebook post on Oct. 1, which extended thanks to all the customers, vendors, employees and other people that have become family to them over the years.

Shirley Ashmore, the general manager for the market, told the Huron Daily Tribune that ever since the Meijer in Bad Axe opened, their sales have gone down.

“We think that during the winter, it is going to get worse,” Ashmore said.

The closure leaves the village of Pigeon without a grocery store to call its own, with residents having to travel outside of town to do their shopping.


Dennis Hug, the store owner who lives in the Harbor Springs-Petoskey area of Northern Michigan, has owned the store for about four years after buying it from the Schuette family. He also owns the Caseville Family Market, with both known as IGAs before taking their current names.

Hug said a lot of money was invested into improving the store when he purchased it, but the residents of Pigeon did not respond the way he hoped after cleaning and fixing the place up.

“When you invest money, you expect a return,” Hunt said. “After operating the store for so many years, we were not able to take one penny of revenue out of it, we just kept putting money into it.”

Oddly enough, Hug said the coronavirus pandemic was good for the grocery business, since people were eating their food at home instead of going out to restaurants, but they did see an immediate decline once Meijer opened.

“Every store has a basic level of service needed for customers, and you need people working there for

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